Goods and Services Tax

Goods and Services Tax – GST Dated:- 5-12-2024 – News – Advisory on mandatory Sequential Filing of GSTR-7 Returns as per Notification No. 17/2024 Dated:- 5-12-2024 – Multiple tickets have been received regarding sequential filing of return in Form GSTR-7. Taxpayers are referencing FAQs for the same, wherein it is not mandatory is mentioned. To clarify, It is to inform that following changes have been introduced in the return filing process for GSTR-7 with effect from 01.11.2024 onwards. Seque

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Case-Laws – GST – Highlights – The High Court dismissed the writ petition. The petitioner, being a registered person not liable for registration before the appointed day of 01.07.2017, sought entitlement to transitional credit of excise duty through Credit Transfer Document by filing TRAN-3 without submitting TRAN-1 declaration within the stipulated time u/r 117 of the Central Goods and Services Tax Rules, 2017. The Court held that the requirement of submitting TRAN-1 declaration is not merely procedural but substantive and mandatory u/s 140(3) of the CGST Act, 2017. The time limit prescribed for making the declaration is a statutory mandate, and the Rule Making Authority had to prescribe it consistently with the eligibility conditions in the law. Submission of TRAN-1 is not a mere formality but enables smooth availment of input tax credit by binding the claimant to solemnly declare eligibility. The Court rejected the argument that Rule 117 is merely directory, stating that such a provision in a fiscal statute providing time limit to avail credit is not only substantive but also mandatory. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – Highlights – The circular amends the previous Circular No. 31/05/2018-GST to empower more Additional Commissioners/Joint Commissioners of specified Central Tax Commissionerates with All India jurisdiction for adjudication of show cause notices issued by DGGI officers. It provides criteria for allocating such notices to the concerned Additional/Joint Commissioners based on the location of the principal place of business of the noticee with the highest tax demand. It clarifies the procedure for adjudication of subsequent notices on the same issue involving different noticees. Notices issued before the amendment can be made answerable to the empowered officers by issuing corrigenda. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court quashed the assessment order dated 06.08.2024, holding that the Assessing Authority violated the principles of natural justice by denying an opportunity of personal hearing to the petitioner despite a specific request. Although the show-cause notice indicated 'NA' for personal hearing, the petitioner marked 'Yes' in the reply and sought an opportunity. The Court ruled that any previous opportunity before issuing the show-cause notice was inconsequential. The impending expiry of the limitation period did not justify denying a hearing. The authorities were directed to pass a fresh order after affording an opportunity of hearing to the petitioner. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court quashed the impugned orders denying refund application, based on the respondents' clarification that refund would not be denied if export proceeds are realized in Indian Rupees routed through a non-resident bank's freely convertible Vostro account outside the Asian Clearing Union or Nepal and Bhutan. However, the respondents contended that the applicability of the clarificatory circular to all exports or specific commodities required examination, and this aspect was kept open for verification by the respondents. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court disposed of the writ petition, modifying the requirement to deposit only 10% of the remaining disputed tax amount for the impugned order to remain stayed. This decision was based on a Central revenue notification dated 16th August, 2024, reducing the deposit to 10%, and a corresponding State revenue notification dated 29th October, 2024. The petitioner's submission regarding the reduced deposit requirement of 10% for the first appellate order to remain stayed was accepted by the High Court. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court quashed the orders of the Appellate and Adjudicating Authorities imposing penalty on the petitioner for transporting goods after the expiry of the e-way bill. The Court held that while procedural compliance under the GST framework is crucial, penalties imposed purely for procedural lapses without evidence of tax evasion or malicious intent may not serve the legislative intent. Given the petitioner's compliance record and absence of any attempt to divert the goods or evade tax, the Court observed that imposing a penalty was unwarranted. The Court emphasized that rules, including those on e-way bill validity, should be applied contextually, taking into account the facts and intentions involved. The penalty imposed was found to be excessive and not aligned with the principles of natural justice. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court quashed the order imposing penalty u/s 129(3) of the CGST/SGST Acts for not generating e-invoices. The court directed refund of any amount collected from the petitioner pursuant to the quashed order and ordered the competent authority to pass fresh orders after considering Sections 122 and 126 of the CGST/SGST Acts. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court held that the levy of Integrated Goods and Services Tax (IGST) on ocean freight paid by the petitioner was unconstitutional. The Court relied on the Supreme Court's decision in Union of India & Anr. v. M/s Mohit Minerals Pvt. Ltd. and its own decision in Bla Coke Pvt. Ltd. v. Union of India & Ors., wherein it was categorically held that when the Notification itself is struck down, the authorities cannot insist on the levy of IGST on the amount of ocean freight. The High Court determined that this was not a case of unconstitutional levy or illegal levy but rather a voluntary payment made under a mistake of law. Applying the principles laid down by the Supreme Court in Mafatlal Industries Ltd. v. Union of India, the High Court held that the writ petition filed by the petitioner seeking refund of the IGST was maintainable and allowed the petition, directing the respondents to refund the IGST amount to the petitioner. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The appellant M/s. Gajanand Foods P Ltd's various flour mixes containing spices and ingredients like sugar, semolina, salt, sesame seed, chili powder, garam masala, etc. in addition to flours of dried leguminous vegetables, rice and wheat, were held to be excluded from classification under Chapter Heading 1102 or 1106 of the Customs Tariff Act, 1975 attracting 18% GST. The products cannot be considered as mere flours improved by addition of very small quantities of specified substances. The appeal filed by the appellant against the Advance Ruling passed by the Gujarat Authority for Advance Ruling rejected by the Appellate Authority for Advance Ruling. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court dismissed the writ petition challenging the constitutional validity of clauses (c) & (d) of Section 17(5) of the Central Goods and Services Tax Act, 2017. The Supreme Court had previously upheld the validity of these clauses in the case of M/s Safari Retreats Private Ltd. However, the High Court granted liberty to the petitioner to raise the issue of whether the construction of immovable property carried out by the petitioner amounts to a 'plant' within the meaning of Section 17(5)(d) of the Act, subject to adjudication based on the facts and the functionality test laid down by the Supreme Court. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court held that the petitioner failed to establish lack of jurisdiction for issuance of the show cause notice (SCN) by the State Tax Authority, despite the absence of a notification u/s 6(1) of the Central Goods and Services Tax Act, 2017. The Court opined that a notification is required only when restrictions or conditions are to be imposed on the exercise of power by officers appointed under the State Goods and Services Tax Act. However, considering the contrary view expressed by the Madras High Court in Tvl. Vardhan Infrastructure, the matter was referred to a Division Bench for an authoritative pronouncement. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court dismissed the petition challenging the notice in Form ASMT-10 issued by the state authorities for blocking the electronic credit/cash ledger. The court held that the state authorities acted within their powers by blocking the input tax credit (ITC) u/r 86A of the GST Rules, 2017, as they had reasons to believe that the ITC of Rs. 13.10 crores was fraudulently availed. The court clarified that u/r 86A, the authorities can block the debit of an amount equivalent to the fraudulently availed ITC from the electronic credit ledger, irrespective of whether the ITC was available or already utilized. The issuance of Form DRC-01A by the central authorities for Rs. 71,798/- and remittance of the same did not determine the entire issue raised in Form ASMT-10 by the state authorities. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court allowed the petition in part and directed the respondents to restore the input tax credit (ITC) of Rs. 9,83,53,032/- in the petitioner's Electronic Credit Ledger within four weeks. The Court held that the reversal of ITC by the respondents during the summons proceedings without an adjudication process was a violation of Article 265 of the Constitution of India and contrary to the provisions of Sections 16, 41, and 73/74 of the CGST Act. The ITC was initially claimed by the petitioner for exports and was debited twice, once during the summons proceedings and again when filing the refund application, leading to the Court's directive to restore the ITC amount. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court dismissed the writ petition filed by the petitioner challenging the orders issued by the adjudicating authority u/s 62 of the CGST/SGST Acts. The Court held that the petitioner failed to file an appeal against the orders within the limitation period prescribed u/s 107 of the CGST/SGST Acts. Furthermore, the petitioner approached the High Court through a writ petition after an inordinate delay of four years from the date of issuance of the orders, which is another ground for dismissal. Consequently, the High Court declined to grant any relief to the petitioner under Article 226 of the Constitution of India. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court allowed the writ petition, quashing the impugned order dated February 27, 2024. The Court held that the delay in filing the appeal by the petitioner was due to circumstances beyond their control. The rigid approach adopted by the Appellate Authority in dismissing the appeal solely on timing considerations without considering the genuine extenuating circumstances was legally unsound and reflected a lack of judicial empathy. Moreover, the petitioner's statutory right to a higher appeal was obstructed due to the non-formation of the GST Appellate Tribunal. In light of the procedural irregularities, arbitrary actions, and misapplication of statutory provisions, the High Court found the petitioner's case meritorious and allowed the writ petition. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court quashed the order cancelling the petitioner's GST registration retrospectively from July 2, 2017. The cancellation was held to be effective from January 15, 2023, the date of issuance of the show cause notice. The court found that the absence of reasons in the show cause notice for retrospective cancellation rendered the impugned order unsustainable. The allegation of failure to furnish returns for a continuous period of six months u/s 39 of the GST Act formed the basis for the cancellation proceedings. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The petitioner had wrongly availed Input Tax Credit (ITC) which was reversed in the GSTR-3B filed for February 2020. Despite admitting the reversal, the second respondent included the demand for the wrongly availed ITC in the DRC-07 notice. The High Court held that the reason provided by the second respondent for including the demand was unacceptable. The demand under item No.3 of the impugned DRC-07 notice was set aside as erroneous since the first respondent had already ordered the reversal to be treated as payment u/s 73 of the CGST Act, 2017. For other claims, the petitioner was granted liberty to approach the concerned Authority seeking amnesty. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Gross and Net GST revenue collections for the month of Nov, 2024 – Goods and Services Tax – GST Dated:- 2-12-2024 – News – Gross and Net GST revenue collections for the month of Nov, 2024 Dated:- 2-

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Case-Laws – GST – Highlights – The High Court set aside the order dated 27.03.2024 bearing No. ACCT (Audit)-2/HPT/GST-ADJN/ORDER-2023/24/T for F.Y.2018-19 passed by respondent No. 1 and partly allowed the writ petition. The delay in filing the appeal was condoned by granting relief to the petitioner in line with the orders passed in the case of M/s. Sadhana Enviro Engineering Services, considering the peculiar facts and circumstances of the present case without examining the correctness of the Appellate Authority's order refusing to condone the delay u/s 107(4) of the KGST Act. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court set aside the impugned order dated 02.02.2024 rejecting the Rectification Application filed by the petitioner. The court found that the order lacked reasoning as to why there was no error apparent on the record to reject rectification. The court held that when an assessee seeks rectification, and the same is rejected without considering reasons or providing an opportunity to the assessee, it is contrary to Section 161. Consequently, the Rectification Application filed by the petitioner shall be considered afresh by the respondent after providing an opportunity to the petitioner, and appropriate orders shall be passed in accordance with law. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court set aside the order cancelling the Petitioner's GST registration. The cancellation order by the quasi-judicial authority suffered from non-application of mind as it failed to assign any reason, violating principles of natural justice. Consequently, the Petitioner's registration was restored to the status prior to the issuance of the show cause notice dated 02.02.2022. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court dismissed the writ petition filed by the petitioner seeking permission to rectify/amend the GST number of the purchaser in GSTR-1 return after the expiration of the limitation period u/s 37(3) of the Central Goods and Services Tax Act, 2017. The Court held that if a person submits an erroneous GSTR-1 and does not correct it within the timeline, the subsequent GSTR-2A and GSTR-3B would also reflect the erroneous information, leading to cascading effects. The time limitation u/ss 37(1) and 37(3) is directly linked to Section 16(4), which allows input tax credit to be availed till the due date of furnishing the return u/s 39 for the month of September following the end of the financial year or furnishing of the annual return, whichever is earlier. The petitioner could not rectify the error beyond the statutory time limit prescribed under the GST Act. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court granted anticipatory bail to the petitioners who were accused of fraudulently claiming Input Tax Credit (ITC) by creating fake forms, forging bills, and showing fictitious transactions through dummy firms. The court held that the allegations prima facie attract offenses under the Indian Penal Code (IPC) for availing ITC fraudulently based on false documents and sham transactions, as well as penal provisions under the GST law. While prosecution under two different enactments is permissible as per Section 26 of the General Clauses Act, the court noted that the petitioners had already been prosecuted u/s 132 of the CGST Act for the same allegations and had remained in custody for a substantial period. Considering the overlapping nature of the allegations, the fact that the petitioners were not absconding, and their previous custody, the court granted them anticipatory bail. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court dismissed the writ petition filed by the petitioner challenging the Order-in-Original and held that the petitioner has an adequate and efficacious statutory remedy of appeal u/s 107 of the CGST/AGST Act, 2017 against the Order-in-Original. The Court observed that it does not generally entertain writ petitions in revenue matters where the petitioner has a statutory remedy available. The Court found that there was no total violation of principles of natural justice as the petitioner was provided an opportunity to respond to the show cause notice. The Court disposed of the writ petition, reserving the liberty to the petitioner to avail the statutory remedy of appeal. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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