Goods and Services Tax

Court Dismisses Petition Against GST Registration Cancellation; Show Cause Notice Found Deficient u/r 25.
Case-Laws
GST
Violation of principles of natural justice – Show cause notice did not disclose reasons for cancellation of petitioner's GST registration. Mere disclosure of reasons does not satisfy Rule 25 of GST Rules regarding physical verification of business premises. Respondents did not notify petitioners about attempt to identify petitioner's place of business. Postal endorseme

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Consultancy for water schemes under Jal Jeevan Mission exempt if supplied before 01.01.2022 to MJP, a 'Governmental Authority'.
Case-Laws
GST
Consultancy services provided to Maharashtra Jeevan Pradhikaran (MJP) for water supply schemes under Jal Jeevan Mission, a Government of India initiative, are exempt from GST if time of supply is before 01.01.2022. MJP, established by Maharashtra State Legislature, qualifies as 'Governmental Authority' for exemption purposes before 01.01.2022. Fun

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Ad space in print media classified as pure service, exempt from tax under GST for municipal corporations' recruitment ads.
Case-Laws
GST
Exemption from tax for supply of selling space for advertisement in print media qualifies as pure service under Entry 3 of Exemption Notification. Supply does not constitute composite supply of goods and services under Entry 3A. Pune and Pimpri Municipal Corporations are local authorities u/s 2(69) of GST Act for Entries 3 and 3A. Content of advertisem

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Services before 18.07.2022, invoiced later for price escalation, attract 18% GST despite earlier 12% rate under works contract. : , , , ,
Case-Laws
GST
Services supplied before 18.07.2022, invoices proposed for price escalation. Rate of GST 18% applicable as per Section 14(a)(i) of CGST Act, 2017 on invoices issued after 18.07.2022 for price escalation against works contract services executed prior to 18.07.2022, despite services originally taxable at 12% under Notification 24/2017-CT(R

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Transfer of ESOP/ESPP/RSU by foreign holding co. to employees of domestic subsidiary co. sans fee/markup is GST-exempt.
Circulars
GST – States
Transfer of ESOP/ESPP/RSU by foreign holding company to employees of domestic subsidiary company does not attract GST where no additional fee, markup or commission is charged. Securities/shares are neither goods nor services under GST law. Reimbursement by domestic subsidiary to foreign holding company on cost-to-cost basis for transfer of securi

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Petitioner's reply to GST notice not considered, violating natural justice. Court orders fresh consideration of petitioner's own case.
Case-Laws
GST
Validity of notice issued u/s 73 of the U.P. Goods and Services Tax Act, 2017 challenged due to non-consideration of petitioner's reply, violating principles of natural justice. Court held petitioner's grievance valid as notice contained facts and figures relating to unrelated entity. Directed respondent to consider petitioner's reply regar

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Confiscation Orders Invalid Without Prior Action u/s 129 of CGST Act; Cases Sent for Re-adjudication.
Case-Laws
GST
The interplay between Sections 129 and 130 of the CGST Act was analyzed. Section 129 applies when goods are in transit, while Section 130 allows confiscation and penalty for specific violations. Proceedings u/s 130 without prior Section 129 action were deemed invalid. Non-affixture of DIN on confiscation order and violation of natural justice principles by not providing ma

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Order Violates Natural Justice: Case Remanded for Reply and Hearing Under GST Act, 2017. Fundamental Rights Upheld.
Case-Laws
GST
The impugned order was passed without considering the reply filed by the petitioner and without affording an opportunity of personal hearing, despite a request being made, thereby violating the principles of natural justice. The provisions u/ss 73(9), 73(10), and 75(4) of the Act, 2017 mandate the requirement of providing an opportunity of filing a reply and

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Tax demand order set aside for lack of hearing. Remanded on condition of remitting 10% tax & replying to show cause.
Case-Laws
GST
Impugned assessment order violated principles of natural justice as petitioner was not provided further opportunity after show cause notice nine months prior. Petitioner's reply did not address show cause notice. Tax demand confirmed without hearing petitioner. Order set aside, matter remanded for reconsideration on condition petitioner remits 10% of dispute

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Bail granted due to lack of evidence. Custody serves no purpose. Pending cases not a ground to reject bail.
Case-Laws
GST
Petitioner granted regular bail as no incriminating evidence collected against him during investigation. Offences triable by Magistrate's Court, final report already submitted. Keeping petitioner in custody serves no purpose. Pendency of other criminal cases not ground to reject bail as petitioner made out case for bail. Supreme Court held pendency of several crimina

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E-commerce operator liable for GST on app-based passenger transport services, even if payment goes directly to drivers.
Case-Laws
GST
E-commerce operator's scope and GST liability u/s 9(5) of CGST Act, 2017 – Applicant qualifies as Electronic Commerce Operator (ECO) as it owns 'Rapido' app platform for supply of passenger transportation services. Services by four-wheeler cab providers to passengers through applicant's app are notified u/s 9(5) as ECO supplies. Applicant is liable to pay

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Powdered Mixture 'Pushti' Ineligible for GST Exemptions: Not Covered by 2022 Amendments or Relevant Circulars.
Case-Laws
GST
Entry No. 59 of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017, as amended by Notification 06/2022-Central Tax (Rate) dated 13.07.2022, mentions 'Meal and powder of the dried leguminous vegetables' but the applicant's product 'pushti' is a powdered mixture of cereals, pulses, and sugar, hence not covered under this entry. Entry No. 78 of Notification

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Goods Detained Due to E-Way Bill Error; No Intent to Evade Taxes Found, Court Invalidates Penalty Under UPGST Act.
Case-Laws
GST
Detention of goods on onward journey – detention on ground goods dispatched to different place than mentioned in documents – levy of penalty u/s 129 of UPGST Act – existence of mens rea or not – Held: It is undisputed purchaser was of Chandpur, but goods consigned to M/s Udit Engineers, Aligarh. When goods on onward journey, intercepted as e-way bill mentioned

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Vehicle detained for expired E-Way bill, mismatch details. Proceedings initiated u/s 129 TSGST Act. Opportunity for hearing. :
Case-Laws
GST
Proceedings initiated u/s 129 of TSGST Act for detention of vehicle with goods, movement of taxable goods without E-Way bill. Vehicle bearing No. TR-01-AH-1562 detained on 09.07.2024 allegedly loaded for delivery from petitioner's warehouse at Bypass Road, Dukli to Udaipur after E-Way bill expired on 07.07.2024. Mismatch in vehicle number with E-Wa

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Court Upholds GST on Services by Associations; Retrospective Application from July 1, 2017, Invalid; Effective January 1, 2022.
Case-Laws
GST
Doctrine of mutuality – Levy of GST on services provided by association to members – Constitutional validity of relevant provisions of Central and State GST Acts questioned – Held, provisions are within legislative competence and do not violate fundamental rights or principles of taxation – However, retrospective operation from 01.07.2017 not perm

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Recipient liable for reverse charge eligible for Advance Ruling despite definition – Section 95 contextual interpretation
Case-Laws
GST
Advance Ruling application maintainable for recipient liable to pay tax on reverse charge basis, despite definition of 'advance ruling' – Section 95 to be interpreted contextually – Fiction u/s 9(3) brings recipient within ambit of Chapter XVII for seeking Advance Ruling – Application erroneously rejected at threshold u/s 98(2) – No appeal lies against

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Court Allows Petition on Transitional Credit; No Filing Restriction on Telangana GST Portal, Section 140 Permits CENVAT Credit Transfer.
Case-Laws
GST
Maintainability of petition – availability of alternative remedy – transitional credit – no bar for filing return in GST portal of Telangana where petitioner's branch exists – Section 140 entitles registered person to take CENVAT credit in electronic credit ledger – petitioner's registration number/PAN same nationwide – last proviso to Se

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Human Error in GSTIN Filing Denies ITC Claim; Court Allows Rectification to Prevent Business Closure.
Case-Laws
GST
Inadvertent human error in filing a return led to denial of input tax credit (ITC) claim due to incorrect GSTIN number. The digital platform foreclosed the remedy to rectify the error due to passage of time. The court held that the denial was a bona fide mistake, and the IDA who deducted and paid the tax was made a party. Refund denial could lead to the petitioner's compan

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Central Tax formations under Central Board of Indirect Taxes and Customs (CBIC) detect Rs. 36,374 crore worth of fake Input Tax credit (ITC) involving 9,190 cases in FY 2023-24
GST
Dated:- 29-7-2024

The Central Tax formations under Central Board of Indirect Taxes and Customs (CBIC) detected Rs. 36,374 crore worth of fake Input Tax credit (ITC) that involved 9,190 cases in the Financial Year (FY) 2023-24. This was stated by Union Minister of State for Finance Shri Pankaj Chaudhary in written reply to a question in Lok Sabha today.
The details of the fake Input Tax Credit (ITC) cases booked by Central Tax formations during the F.Y. 2022-23 and 2023-24 are as under:
F.Y.
No. of cases
Detection (Rs. in Cr.)
Voluntary
Deposit

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T Rules, 2017 to provide for requirement of bank account furnished as a part of registration process to be in the name of the registered person and obtained on PAN of the registered person and also linked with Aadhaar in case of proprietorship firm and that the details of bank account will be required to be furnished within 30 days of grant of registration or before filing of GSTR-1, whichever is earlier.
* Restriction on availment of ITC to invoices and debit notes furnished by the supplier in their statement of outward supplies.
* Filing of FORM GSTR-1 made mandatory before filing of FORM GSTR-3B for a tax period and filing of FORM GSTR-1 made mandatorily sequential.
* Making the beneficial owner liable for penal action and prosecut

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Gross and Net GST revenue collections for the month of June, 2024
GST
Dated:- 29-7-2024

Please click on the link below to view the gross and net GST revenue collections for the month of

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Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Uttarakhand
GST
Dated:- 29-7-2024

This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process.
1. Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.
2. The above-said functionality has been dev

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the existing process.
5. However, if the applicant receives the link as mentioned in point 3(b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail. Once the applicant gets the confirmation of appointment through e-mail (the appointment confirmation e-mail), she/he will be able to visit the designated GSK as per the chosen schedule.
6. At the time of the visit of GSK, the applicant is required to carry the following details.
(a) a copy (hard/soft) of the appointment confirmation e-mail
(b) the details of jurisdiction as mentioned in the intimation e-mail
(c) Aadhaar Card and PAN Card (Original Copies)
(d) the original documents that were uploaded with the application,

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High Court Overturns GST Demand on Unbilled Revenue, Remands Case for Reconsideration Due to Natural Justice Breach.
Case-Laws
GST
Petitioner challenged demand for GST on unbilled revenue, explaining position. Adjudicating Authority rejected explanation without reasons, violating natural justice principles. Impugned order set aside, matter remanded to Adjudicating Authority for fresh consideration. Petition allowed by way of remand by HC.
TMI Updates – Highlights, quick notes, marqu

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Bank account provisionally attached for wrongful ITC claim due to fake supplies. Commissioner's action justified to protect revenue.
Case-Laws
GST
Provisional attachment of bank account u/s 83 of Central Goods and Services Tax Act, 2017 for wrongful claim of Input Tax Credit (ITC) due to fake supplies. Commissioner considered appropriate to provisionally attach petitioner's bank account to extent of Rs. 26.91 lacs being amount of ITC claimed for allegedly fake supplies. Exercise of powe

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Petitioner denied access to relied upon docs, alleged nat justice violation. Held: Ample hearing opp, avail remedy u/s 107.
Case-Laws
GST
Challenge to order u/s 74(9) of the Central Goods and Services Tax Act, 2017 – petitioner denied access to relied upon documents despite requests – alleged violation of principles of natural justice. Held: Petitioner afforded ample opportunity for hearing by respondent authority as per impugned order. In view of Supreme Court decision in Assistant Com

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Order Issued Without Reasons Violates Natural Justice, Fails to Address GST Discrepancies; Case Remanded for Reevaluation.
Case-Laws
GST
Impugned order passed without reasons based on Special Audit Report, violating principles of natural justice. Order lacks analysis on contentious issues regarding mismatch between GST returns and credit entries in bank account, merely confirming demand in show-cause notice. Adjudicating Authority failed to consider contentious issues. Matter remanded f

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