Goods and Services Tax

High Court Rules Writ Petition Under Article 226 Is Unfit When Statutory Appeal Exists, Except for Jurisdictional Issues.
Case-Laws
GST
The High Court considered the maintainability of a writ petition challenging an assessment order under the Tax Legislation. The court held that generally, when a statutory appeal remedy is available, a writ petition under Article 226 of the Constitution of India would not be entertained. However, exceptions exist. The court noted that if an assessment o

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High Court tackles unfair tax demand, GST registration cancellation, orders reconsideration. Petitioner gets chance to contest.
Case-Laws
GST
The High Court addressed a case involving a violation of natural justice principles due to the petitioner not having a fair opportunity to contest a tax demand. The court noted that the petitioner's GST registration was canceled without sufficient opportunity to address discrepancies in returns. The court set aside the order canceling the registra

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Court rules in favor of petitioner due to lack of notice. Impugned order set aside; petitioner to pay Rs. 50,000.
Case-Laws
GST
The High Court addressed a case involving a violation of natural justice principles due to the non-receipt of show cause notice or impugned order until a recovery notice was received. The notice for a personal hearing was returned as “no such person in the address.” The court noted that the petitioner had proof of residence at the address in question after purc

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High Court rules in favor of petitioners in GST registration cancellation case, emphasizing the importance of natural justice principles.
Case-Laws
GST
The High Court considered a case involving the cancellation of GST registration due to a non-speaking order issued without providing supportive documents or adequate notice to the petitioners. Citing the importance of natural justice principles, the Court emphasized the need for an opportunity to be heard when civil consequences are like

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Tax Clarification: ESOP, ESPP, and RSU by Overseas Parent Not GST Supply; Fees May Attract GST if Charged.
Circulars
GST
The circular addresses the taxability of ESOP/ESPP/RSU provided by a company to its employees through its overseas holding company. It clarifies that the transfer of securities/shares by the foreign holding company directly to employees of the Indian subsidiary company, and subsequent reimbursement of costs by the subsidiary company to the holding company, does not co

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Guidelines for Verifying GST Compliance on Post-Supply Discounts Using Tax Credit Notes Outlined in New Circular.
Circulars
GST
The Circular addresses the mechanism for verifying compliance with Section 15(3)(b)(ii) of the CGST Act, 2017 by suppliers offering discounts through tax credit notes post-supply. It clarifies that such discounts can be excluded from taxable value if conditions are met, including the recipient's reversal of input tax credit. As no portal functionality exists fo

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Input Tax Credit on Life Insurance Premiums: No Reversal Needed u/r 42 of CGST Rules.
Circulars
GST
The circular clarifies the treatment of input tax credit in relation to life insurance premiums not included in taxable value. The circular explains that such premiums are not to be considered as pertaining to a non-taxable or exempt supply under the CGST Act. As per the Insurance Act, life insurance policies may include an investment component, but the portion of premium not included in

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Time limit for claiming input tax credit on supplies from unregistered persons clarified. Don't delay invoices!
Circulars
GST
The circular discusses the time limit u/s 16(4) of the CGST Act, 2017 for availing input tax credit (ITC) on reverse charge mechanism (RCM) supplies from unregistered persons. It clarifies that the relevant financial year for ITC availment is the year in which the recipient issues the invoice u/s 31(3)(f) of the CGST Act, subject to tax payment. Delayed issuance

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New Circular Simplifies Valuation of Imported Services from Related Persons for Full Input Tax Credit in India.
Circulars
GST
The circular addresses the valuation of imported services from a related person when the recipient is eligible for full input tax credit. It clarifies that where no consideration is involved, and the activities are not considered supplies by the related person in India, the value declared in the invoice by the recipient may be deemed the open market value. The ci

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GST Timing for Telecom Spectrum: Deferred Payments as Continuous Supply Triggering Tax at Each Due Date.
Circulars
GST
The circular clarifies the time of supply for GST payment on spectrum allocation services when telecom operators opt for deferred payments. The bidder is liable to pay GST on spectrum usage services received on reverse charge basis. If payments are made in installments, it constitutes continuous supply of services, with tax liability arising when payments are due or mad

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Insurance companies don't pay GST on salvage if it's insured's property. But if it's insurer's property, GST is due on sale.
Circulars
GST
The Circular addresses the taxability of salvage/wreck value in motor vehicle insurance claims under GST law. Insurance companies are not liable to pay GST on salvage deducted from claim settlements if such salvage remains the property of the insured. However, if the insurance contract settles the claim without deducting salvage value, making salvage

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Place of Supply for E-Commerce Goods to Unregistered Persons Now Determined by Delivery Address per Recent Circular.
Circulars
GST
A recent Circular provides clarification on the provisions of clause (ca) of Section 10(1) of the Integrated Goods and Service Tax Act, 2017 regarding the place of supply of goods to unregistered persons. The clause states that the place of supply for goods to unregistered persons is determined by the address recorded in the invoice, overriding other provisi

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New guidelines clarify GST rules for warranty cases, no GST on replaced goods. Extended warranty seen as separate service.
Circulars
GST
The circular provides clarification on GST liability and input tax credit (ITC) availability for warranty and extended warranty cases. It addresses issues like the replacement of goods or parts under warranty, distributor's role in replacement, and nature of extended warranty supply. It clarifies that GST is not payable on goods replenished under warra

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New Guidelines for Time of Supply in Road Construction Services Under HAM for National Highway Projects Clarified.
Circulars
GST
The Circular provides clarity on time of supply for services in construction of roads and maintenance under the Hybrid Annuity Mode (HAM) model for National Highway Projects. It states that under the HAM model, where payments are staggered over the contract period, the time of supply is determined by the date of invoice issuance or payment receipt, whichever i

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Circular clarifies no denial of tax credit for ducts & manholes in OFC networks as “plant & machinery.”
Circulars
GST
The circular addresses denial of input tax credit (ITC) on ducts and manholes used in optical fiber cable (OFC) networks u/s 17(5) of the CGST Act. It clarifies that ITC is not restricted for such items as they are considered part of “plant and machinery” essential for telecommunication services. Ducts and manholes are integral for laying OFC networks and fall within the

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India Clarifies Special Procedure for Manufacturers Under Notification No. 04/2024-Central Tax; Addresses Trade Concerns and Compliance.
Circulars
GST
A circular issued by the Government of India provides clarifications on issues related to a special procedure for manufacturers of specified commodities under Notification No. 04/2024-Central Tax. The procedure was revised following the rescission of a prior notification. The circular addresses concerns raised by trade associations, inclu

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Clarification on GST Taxability for Loans Between Related Parties: Interest Exempt, Fees May Incur Tax.
Circulars
GST
A recent circular addressed the taxability of loans between related parties or affiliates. The circular clarifies that providing loans between related parties constitutes a taxable supply under GST. However, services involving interest or discount on loans are fully exempt. Processing fees or administrative charges on loans may be subject to GST, but in cases where no su

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Clarification on IGST Act: Custodial Services to FPIs Not Classified as Services to Account Holders u/s 13(8)(a.
Circulars
GST
The circular provides clarification on the place of supply for custodial services offered by banks to Foreign Portfolio Investors (FPIs). It addresses the confusion regarding whether these services fall under the category of services provided to 'account holders' as per Section 13(8)(a) of the IGST Act. The circular explains that custodial services do not qualif

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Government Sets Monetary Limits for Appeals in Tax Cases to Reduce Litigation Under New Circular.
Circulars
GST
The circular addresses the Reduction of Government Litigation by setting monetary limits for filing appeals before GSTAT, High Courts, and Supreme Court. It refers to the National Litigation Policy, emphasizing prudent litigation practices. The circular cites Section 120 of the CGST Act, empowering the Central Board of Indirect Taxes & Customs to fix monetary limits for appeal

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Insurance Firms Can Claim Input Tax Credit on Motor Vehicle Repair Costs in Reimbursement Settlements.
Circulars
GST
The circular addresses the entitlement of Input Tax Credit (ITC) by insurance companies on repair expenses for motor vehicles in reimbursement mode of claim settlement. It clarifies that ITC is available to insurance companies for repair expenses reimbursed to insured, even if the garage issues invoices in the insured's name. ITC is permissible as the insurance company is

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Court orders refund of Rs. 30 lakh to appellants as collected due to coercion during search proceedings.
Case-Laws
GST
In a case where a writ petition was dismissed due to allegations of false statements regarding authorization, the High Court held that payment made under threat and coercion during search proceedings cannot be considered voluntary. The court directed GST authorities to refund Rs. 30,00,000 to the appellants within six weeks. The appellants can raise a claim for interest

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High Court grants relief to small dealer in tax dispute due to lack of response and credit discrepancies. Case remanded for fresh consideration.
Case-Laws
GST
The High Court addressed a case involving a violation of natural justice as the petitioner did not respond to prior notices leading to the disputed order. Discrepancies in credit amounts were noted. The Court, acknowledging the petitioner as a small dealer, granted partial relief by annulling the order and sending the case back to

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High Court grants retrospective relief for input tax credit refund under CGST Act, citing COVID period extension in Notification 13/2022.
Case-Laws
GST
The High Court addressed the issue of refunding accumulated input tax credit within a time limit for zero-rated supplies. The petitioner sought the benefit of an extended period under Clause(e) of Explanation 2 to section 54 of the Central Goods and Service Tax Act, 2017, as per Notification No. 13/2022-Central Tax. The court held that t

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The court ruled on unused tax credits from VAT to GST. Credits from TNVAT Act are protected. Refunds was denied for untransferred credits.
Case-Laws
GST
The High Court addressed the transition of unutilized input tax credit from VAT returns u/s 140 of GST enactments. It held that credits availed under TNVAT Act are indefeasible, citing a Supreme Court decision on CENVAT Credit Rules. Refund wasn't provided for untransitioned credits under TNGST Act. The petitioner's credit validity unde

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High Court ruled search invalid due to lack of reasons provided. Goods to be released in 3 weeks, refunds in 8 weeks.
Case-Laws
GST
The High Court considered a challenge to a search and seizure order under the UPGST Act. The court found non-compliance with the mandatory provision of Section 67 as the Joint Commissioner did not provide the necessary “reasons to believe” for the search. The State authorities' explanation of discrepancies in forms was deemed insufficient. Consequently, the

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