Madras HC: Amount debited from electronic cash and credit ledgers before expiry of statutory period for filing appeal to be refunded

CA Chandrasekhar Kutty. B.Com, F.C.A.
Tvl. Cargotec India (P.) Ltd Recovery of amount - Recovery proceedings - Assessment orders were passed by respondent authority - Period of limitation for filing appeal was three months - However, recovery proceedings were initiated against petitioner-assessee even prior to expiry of three months - Amount was debited from Electronic Cash and Credit Ledgers of assessee - HELD : Proviso to section 78 could be invoked only if proper officer recorded in writing reason as to why he considers it expedient in interest of revenue to require taxable person to make payment even before expiry of prescribed three month period - In instant case, no material was placed on record to justify invoking proviso to section 78 - Respondent had failed to satisfactorily explain recourse to proviso to section 78…
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Can purchasing dealer be denied ITC for non-payment by supplier?’; Reduces deposit

CA Chandrasekhar Kutty. B.Com, F.C.A.
Subhash Singh vs. Deputy Commissioner, SGST Uttarakhand HC citing appeal provisions modifies assessment order to the extent that “appellant will deposit 10% of the amount, which is being demanded by the respondents”; A demand of about Rs. 79 lakhs was raised by the Deputy Commissioner, SGST which was decreased to about Rs. 46 lakhs in the show cause notice and further to about Rs. 19 lakhs in the order; Assessee is into retail and wholesale business of iron scrap and waste; It purchased goods with proper invoices, and made proper payments through banking channels along with applicable GST coupled with recording of details of the invoices and the payment in its books of accounts; HC ruling in favour of assessee (the purchasing dealer) posits twin queries “If the appellant’s suppliers…
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GST-Arrest Provisions’; SC observes on need for safeguards, coercion, payment; To hear Revenue tomorrow

CA Chandrasekhar Kutty. B.Com, F.C.A.
SC continues hearing the Petitioners in 200+ criminal writ petitions challenging  constitutional validity of 'Arrest’ provisions under GST and deliberates upon the need for incorporating safeguards against ‘Arrest’ under the GST law, embarks on doctrine of ‘checks and balances’ as far as the construct of the provision goes since it is seen that summons issued under section 70 are directly leading to arrest on the spot under section 69; Primarily, the Petitioners canvass arguments around powers of search, seizure, investigation, provisional attachment, arrest/authorization to arrest and even the initiation of proceedings having vested in  one ‘Proper Officer’; Further, ‘Power to Arrest’ being ‘exclusive’ and not ‘incidental’; Petitioners also identify gaps in ‘investigation’ mechanism and urge the Bench to examine power of tax authorities to ‘Arrest’ under GST and cite Radha…
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Madras HC: Taxpayers who are assigned to either CGST or SGST authorities can’t be adjudicated by counterparts

CA Chandrasekhar Kutty. B.Com, F.C.A.
in the case of Ram Agencies Assessees who are assigned to either Central Tax authorities or State Tax authorities under respective Central Goods and Services Tax Act, 2017 and/or State Goods and Services Tax Act, 2017 cannot be subjected to further proceeding by counterparts under respective GST enactments. Centre/State GST Officers – Cross empowerment - Assessment years 2017-18 to 2019-20 - Assessee had challenged Order-in-Original for assessment years 2017-18, to 2019-20 - Specific case of assessee was that impugned order had been passed despite stay granted by instant court against extending period of limitation which had been stayed – Impugned order was further assailed on ground that assessee was assessed to State Tax Authorities and therefore, impugned order passed by Central Tax Authorities was contrary to law settled in Tvl.…
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Punjab & Haryana HC stays CBIC Circular on corporate guarantee which seeks to take away adjudicatory power of authorities

CA Chandrasekhar Kutty. B.Com, F.C.A.
M/S Acme Cleantech Solutions Pvt Ltd v. Union of India M & C comment: High court stayed the CBIC circular which arbitrarily levies GST on personal guarantee or corporate guarantee given to banks or financial institutions. The circular says the personal guarantee (by director of the company) or corporate guarantee (one corporate to another corporate) given to banks or financial institutions shall be treated as supply even if made without consideration. This view of the Government will put many transactions under the scanner and litigations will only mount. The case: The petitioner filed a writ petition to challenge the part of the Circular issued by CBIC which clarified the taxability of corporate guarantees provided by a company. The challenge to the said Circular was on the ground that it seeks to…
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Calcutta HC: Penalising recipient without causing enquiry with supplier for tax non-remittance “illegal and without jurisdiction”.

CA Chandrasekhar Kutty. B.Com, F.C.A.
Calcutta HC holds that to penalise the assessee (recipient) without causing enquiry with the supplier "would be arbitrary, illegal and without jurisdiction”, emphasizes "on the elementary principle" i.e. the necessity for the Department to conduct an inquiry with the supplier before penalizing the recipient by reversing ITC based on the allegation of non-remittance of tax by supplier to State exchequer; Allowing assessee’s appeal against the order passed in writ petition where the SCN was challenged, and the writ court initially issued directions without quashing the said SCN, HC remarks “decision in Suncraft…applies with full force to the case on hand.”; HC finds that Revenue authorities disregarded tax invoices and CA certificates produced by the assessee, opting instead to immediately proceed with reversal despite acknowledging that the assessee had already paid…
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Chhattisgarh HC: Scheduling personal hearing before SCN-reply ‘superfluous’; Sets-aside Single Judge’s order in Mahindra’s case

CA Chandrasekhar Kutty. B.Com, F.C.A.
Chhattisgarh HC raps Revenue authorities for scheduling Mahindra’s personal hearing even before filing a reply to SCN, observes that Section 75(4) of the CGST Act was completely shelved by Authorities before the order in dispute was passed, sets-aside the order of the learned Single Judge; Opining that, when the assessee is burdened with a tax liability, the intent and the object of the statute are strictly to be complied with, HC renders it to be against the normal procedure that personal hearing is preponed even before the filing of reply as it is not expected that before the reply is filed, an assessee can be heard and thereafter the reply is filed and hence such action is superfluous;  HC explains that as the opportunity of hearing when is contemplated under…
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Order to be set aside and matter to be remanded as no reasons were specified for denying ITC: Madras HC

CA Chandrasekhar Kutty. B.Com, F.C.A.
APL Apollo Tubes Ltd. v. State Tax Officer (Intelligence) - [2024] The petitioner is engaged in the manufacture and supply of tubes and pipes of iron and steel. The department issued SCN and the petitioner replied to the same. Thereafter, the order was passed by the department. It filed writ petition to challenge the order and contended that the order was passed without recording proper reasons.The Honorable High Court noted that the petitioner had placed on record sample invoices and also bifurcated amounts paid towards freight for the Hosur unit, which is the relevant unit and enclosed both a reconciliation statement and a statement from the Chartered Accountant in respect of such bifurcation. However, the department recorded that the petitioner had not filed any documents or evidence with regard to…
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Important for all Principal sending goods for job work – File ITC 04 before 25th April.

CA Chandrasekhar Kutty. B.Com, F.C.A.
The GST laws providesthat the principal can send the goods to the job worker under an intimation. In this regard, the CBIC has clarifiedthat the Form GST ITC-04 will serve as an intimation for the purpose of above provision. The principal is required to furnish the details of following delivery challans in Form GST ITC -04: (a) Goods which are dispatched by the principal to the Job worker (b) Goods which are received back from the job worker (c) Goods which are sent from one job worker to another job worker With effect from October 01, 2021, the frequency of filing Form GST ITC-04 has been reducedfrom quarterly basis to half yearly/yearly basis as under: SL. No.Aggregate turnover in preceding financial yearFrequencyDue date1More than 5 Crore rupeesHalf YearlyApril to September…
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Telangana HC grants interim-relief in Zoomcar’s challenge to ITC-denial for GSTR-2A/3B mismatch:

CA Chandrasekhar Kutty. B.Com, F.C.A.
Telangana HC grants interim-relief in a writ petition filed by Zoomcar India challenging an order passed u/s 73 of the CGST Act, 2017 disallowing ITC on basis of mismatch between Form GSTR-2A and Form GSTR-3B; Petitioner argues that the pre-condition to avail ITC based on figures appearing in Form GSTR-2A contained in Section 16(2)(aa) was introduced w.e.f. January 1, 2022 and cannot be applied retrospectively and in this regard, refers to Calcutta HC decision in Suncraft Energy ; Hearing such contentions, HC states "till next date of hearing, no coercive steps be taken against the petitioner" pursuant to the said order and lists the matter on June 07.
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Patna HC: ‘Payment of Tax’ from ECL occurs only upon return-filing; ‘Interest’ liability automatic upon delay. 

CA Chandrasekhar Kutty. B.Com, F.C.A.
Patna HC rules that "on furnishing of delayed returns, interest liability would be automatic, whether the payment be made from the Electronic Credit Ledger or Electronic Cash Ledger as per the provisions of Section 50(1)"; Dismisses writ petition challenging peremptory order of recovery in relation to interest passed by the Proper Officer;  Holds that furnishing of return results in ‘Payment of tax’ and not when deposit is made in cash ledger or remittances made on tax paid on purchases; Remarks "The deposit is akin to a current account maintained, from which debits have to be made for the purpose of payment of tax, interest, penalty or other amounts due under the Act. Such debits would be made and a resultant payment to the coffers of the State, only when a…
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Madras HC quashed order confirming tax demand as disparity was due to wrong reporting of CGST & SGST instead of IGST

CA Chandrasekhar Kutty. B.Com, F.C.A.
Where show cause notice issued in respect of disparity between GSTR-1 and GSTR-3B returns, assessee explained disparity by pointing out that error occurred on account of reflecting amount wrongly towards CGST and SGST instead of IGST, impugned order confirming demand was to be quashed, matter to be remanded subject to condition.
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Assessment order to be quashed if assessee’s explanations to SCN were disregarded in order & no hearing granted: Madras HC

CA Chandrasekhar Kutty. B.Com, F.C.A.
Tvl. Saravanaa Projects & Co. Turnover Discrepancies - Violation of Natural Justice - Petitioner-assessee was engaged in executing road contracts and civil contracts for Highways Department of the State of Tamil Nadu - Assessee received a show cause notice, citing approximately ten discrepancies - Assessee responded to notice, addressing each discrepancy - Assessee contended that their explanations were disregarded in assessment order- Revenue particularly emphasized defects regarding turnover discrepancies and erroneous entries in the GSTR 9C return HELD: Since no personal hearing was granted after assessee’s reply dated 12.12.2023 and principles of natural justice were not adhered to, impugned assessment order was to be quashed and assessee was directed to submit all relevant documents before revenue within a period of 15 days [Section 75 of Central Goods and Services Tax…
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Advisory: Auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1

CA Chandrasekhar Kutty. B.Com, F.C.A.
09/04/2024 Dear Taxpayers, GSTN is pleased to inform that a new feature to auto-populates the HSN-wise summary from e-Invoices into Table 12 of GSTR-1 is now available on the GST portal. This allows for direct auto-drafting of HSN data into Table 12 based on e-Invoice data. Please note that the HSN-wise summary data auto-populated into Table 12 is intended for your convenience. Please ensure that you reconcile the data with your records before its final submission. Any discrepancies or errors should be manually corrected or added in Table 12 before final submission. Thanking you,Team GSTN
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Advisory on Reset and Re-filing of GSTR-3B of some taxpayers

CA Chandrasekhar Kutty. B.Com, F.C.A.
09/04/2024 Dear Taxpayers, This has reference to the facility for re-filing of GSTR-3B for some of the taxpayers. It was noticed that there were discrepancies in the returns of some taxpayers during the filing process between the saved data in the GST system and actually filed data in the fields of ITC availment and payment of tax liabilities. The matter was examined and deliberated by the Grievance Redressal Committee of the GST Council and as a facilitation measure the Committee decided that these returns shall be reset, in order to give opportunity to such taxpayers to correct the discrepancy. Accordingly, only the affected taxpayers have been communicated on their registered email-ids and the affected returns are visible on their respective dashboards for the purpose of refiling with the correct data.…
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Investigation-Officer’s unregulated use of power in issuing repeated summons challenged before Kerala HC

CA Chandrasekhar Kutty. B.Com, F.C.A.
Kerala HC grants interim stay of further proceedings initiated pursuant to tsunami of summons issued by the  State Tax Officer (Investigation Branch), after the Pr. Addl DGGSTI has already closed the investigation; Challenging the unregulated use of power of summons, Petitioner (engaged in education sector) argues that the barrage of summons u/s 70 by the STO (Inv), during the pendency of SCNs since 2019, amounts to harassment, blatant abuse of power and non-compliance with CBIC’s Circulars/Instructions; Drawing attention of court to the incident where the STO (Inv) has openly threatened the assessee of dire consequences in he fails to appear despite having questioned the officer’s jurisdiction, Petitioner contends that the matter of unregulated power regarding issue of summons is currently pending consideration before the SC; Therefore, Petitioner pleas that the high-handedness of STO…
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State wise GST collection for the month of March 2024

CA Chandrasekhar Kutty. B.Com, F.C.A.
RankState/UTGST Revenue (March 2024) in Crore1Maharashtra27,6882Karnataka13,0143Gujarat11,3924Tamil Nadu110175Haryana95456Uttar Pradesh90877Delhi58208West Bengal54739Telangana539910Odisha510911Rajasthan479812Andhra Pradesh408213Madhya Pradesh397414Jharkhand324315Chhattisgarh314316Kerala259817Punjab209018Bihar199119Uttarakhand173020Assam154321Himachal Pradesh85222Jammu and Kashmir60123Goa56524Dadra and Nagar Haveli and Daman & Diu45225Sikkim30326Chandigarh23827Puducherry22128Center Jurisdiction22029Meghalaya21330Other Territory19631Arunachal Pradesh16832Tripura12133Nagaland8334Manipur6935Mizoram5036Ladakh4137Andaman and Nicobar Islands3238Lakshadweep2
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Guidelines for CGST Field Formations (Instruction No. 01/2023-24-GST)

CA Chandrasekhar Kutty. B.Com, F.C.A.
The Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, issued guidelines to ensure ease of doing business while conducting investigations involving regular taxpayers. Dated 30th March 2024, the document outlines specific procedures for Central Goods and Services Tax (CGST) field formations to follow: Jurisdictional Accountability: Commissionerates are tasked with developing intelligence, conducting searches, and completing investigations within their jurisdiction as defined in notification No. 2/2017-Central Tax. Approval Process for Investigations: Prior approval from the (Pr.) Commissioner is mandatory for initiating investigations, with specific scenarios requiring the zonal (Pr.) Chief Commissioner's written consent, including cases involving major industrial houses, matters with national implications, or issues before the GST Council. Collaboration and Information Sharing: When investigations concern taxpayers in different jurisdictions or are simultaneously undertaken by the…
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Make outstanding payments to all MSME creditors before 31st March 2024 else pay taxes on the outstanding: Sec 43B(h) of the Income Tax Act

CA Chandrasekhar Kutty. B.Com, F.C.A.
As per the new provisions, payment to MSME will be allowed as deduction for Income Tax purpose in the year in which payment is made, if the payment is made beyond due date.  As per the new provisions, payment to MSME will be allowed as deduction for Income Tax purpose in the year in which payment is made, if the payment is made beyond due date. Steps to be followed to check if you have to make payment by 31st March 2024. 1) Login into this portal and enter the Udhayam number of your supplier https://udyamregistration.gov.in/Udyam_Verify.aspx 2) After entering the udhaym number and submit, details of the enterprise will be displayed. Check in the Section 'Enterprise Type', if the Enterprise Type is Micro or Small. If yes, then this section…
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Madras High Court Decision on Jurisdictional Authority and Cross-Empowerment under GST Regime

CA Chandrasekhar Kutty. B.Com, F.C.A.
The judgement delivered by the High Court of Judicature at Madras, presided over by Hon'ble Mr. Justice C. Saravanan, addressed the issue of cross-empowerment of tax authorities under the Central Goods and Services Tax Act 2017 (CGST Act) and Tamil Nadu Goods and Services Tax Act 2017 (TNGST Act). The court considered a batch of writ petitions challenging the jurisdiction of the Central and State tax authorities over taxpayers assigned to one but subjected to actions by the other. The court examined the recommendations of the GST Council, the constitutional amendments that enabled the GST regime, and the division of taxpayer base between the central and state governments to ensure a single interface under GST. The court noted the issuance of Circular No.1/2017-GST for the division of taxpayer base and…
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Madras HC: Hostel services to girls/working women amount to ‘residential dwelling’; Quashes AAR-Ruling

CA Chandrasekhar Kutty. B.Com, F.C.A.
Thai Mookambikaa Ladies Hostel vs. UOI heading 9963 and is taxable at 18% GST; Carves an important angle that “imposition of GST on the Hostel accommodation should be viewed from the perspective of the recipient of service and not from the perspective of service provider” and places relying upon judgement in Taghar Vasudeva Ambrish case; Observes that “‘hostel services' provided by the petitioners to the girl students and working women will squarely amount to the 'residential dwelling' and accordingly, the same will be squarely covered under the Entry No.12 of Exemption Notification No.12 of 2017”; Finds it evident that the expression ‘residence’ and ‘dwelling’ have more or less the connotation in common parlance and therefore, no different meaning can be assigned to the expression ‘residential dwelling’ and accordingly, the same does include hostel which…
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SC 9-Judge Bench hears Intervenor’s application advancing GST related arguments in ongoing ‘royalty’ matter

CA Chandrasekhar Kutty. B.Com, F.C.A.
SC 9-Judge Bench concludes hearing the submissions on behalf of private parties and PSUs in the 9 judge Constitutional Bench matter on the issue of nature of ‘royalty’ payable to State Government u/s 9 of Mines & Minerals (Regulation & Development) Act, 1957; Reference is made to 9-judge bench in view of conflict between 7-judge bench decision in the case of India Cement Ltd. and 5-judge bench decision in the case of Kesoram Industries Ltd.; The ongoing marathon hearing is about States’ power to tax mineral rights and other substantive issues pertaining to (i) power of State Legislature to levy tax on land under Entry 49 List II, (ii) meaning of taxation on mineral rights subject to limitations imposed by Parliament by law relating to mineral development under Entry 50 of List of Seventh Schedule, (iii) construction of expression “tax on land…
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Calcutta HC: Non-consideration of extension application for reply ‘colorable exercise of power’

CA Chandrasekhar Kutty. B.Com, F.C.A.
In the case of Anurag Garodia Calcutta HC deems as ‘a colorable exercise of power’ the manner in which Assistant Commissioner of State Tax (Revenue) passed final order u/s 73 “without granting extension to the petitioner either to file its response or to be offered personal hearing, despite the petitioner showing sufficient cause,”; Rules that once, the Assessee had sought for an extension to file reply to show cause notice (SCN) Revenue was obliged to consider such extension application and ought not to have passed the final order; Perusing SCN, HC observes that Revenue had granted liberty to the Assessee to file its response on/or before October 25, 2023, though personal hearing was offered only on October 10, 2023; Considers Assessee’s stance that immediately after reopening of the office of the Authority…
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Advisory on GSTR-1/IFF: Introduction of New 14A and 15A tables

CA Chandrasekhar Kutty. B.Com, F.C.A.
It is informed to all taxpayers that as per Notification No. 26/2022 – Central Tax dated 26th December 2022 two new Table 14A and Table 15A have been introduced in GSTR-1 to capture the amendment details of the supplies made through e-commerce operators (ECO) on which e-commerce operators are liable to collect tax under section 52 or liable to pay tax u/s 9(5) of the CGST Act, 2017. These tables have now been made live on the GST common portal and will be available in GSTR-1/IFF from February 2024 tax period onwards. These amendment tables are relevant for those taxpayers who have reported the supplies in Table 14 or Table 15 in earlier tax periods. Please click here to view the complete advisory on the captioned subject.Team GSTN
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Madras HC: Quashes assessment against Future General India Insurance Co. for ‘patent errors’

CA Chandrasekhar Kutty. B.Com, F.C.A.
Madras HC quashes assessment orders owing to ‘patent errors’ like (i) imposing GST at the rate of 36% instead of applicable rate of 18% (ii) non-consideration of variance in turnover for an entity operating in multiple States in India, as reflected in the financial statements, and the turnover attributable to its operations in Tamil Nadu; Accordingly, disposes of writ petition.
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Delhi HC: Quashes demands imposed without consideration of SCN reply, remands matter

CA Chandrasekhar Kutty. B.Com, F.C.A.
In the matter of Max Health Care Institute Ltd Delhi HC quashes order passed imposing demand u/s 73 of the CGST Act as unsustainable, holds that the Proper Officer has not applied his mind to the Assessee’s reply and didn’t consider it on merits; Thus, remands the matter for re-adjudication with a direction that hearing opportunity shall be granted and a fresh speaking order u/s 75(3) of the CGST Act shall be passed; As regards the Officer’s stance that reply to SCN was unsatisfactory, HC opines that the reply is a detailed reply and the Proper Officer had to at least consider the reply on merits and then form an opinion whether the reply was devoid of merits; Observes that if the Proper Officer was of the view that further details…
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Rajasthan HC: Denies absolute-stay on demand against HUL basis failure to produce ITC-reversal proof

CA Chandrasekhar Kutty. B.Com, F.C.A.
In the case of Hindustan Unilever Limited Rajasthan HC, in petitions challenging the workability of section 15(3)(b)(ii) of the CGST Act, 2017 due to the absence of a matching mechanism between a supplier's credit note and the reversal of ITC by recipient/customer, refuses to grant absolute stay of the entire demand raised against HUL and Tata Motors; Opines that while the provision may seem “a harsh provision” by requiring suppliers to provide evidence of ITC reversal by customers w.r.t post sales discount given by supplier, “.. it being a tax statute, one may not jump to the conclusion that the provision suffers from manifest arbitrariness”; Assessees argued that since the matching mechanism u/s 43 was omitted, they're burdened with an impossible task of producing statutory records of the recipient's electronic credit ledger for proof of reversal, making the current process manifestly arbitrary;…
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Madras HC: Quashes assessment order rejecting ITC claim solely for non-reflection in GSTR-3B

CA Chandrasekhar Kutty. B.Com, F.C.A.
Madras HC quashes assessment orders rejecting Input Tax Credit (ITC) of assessee entirely on the ground that the GSTR-3B returns did not reflect the ITC claim; Perusing the operative portion of assessment order, HC observes that when the registered person asserts that he is eligible for ITC by referring to GSTR-2A and GSTR-9 returns, the assessing officer should examine whether the ITC claim is valid by examining all relevant documents, including by calling upon the registered person to provide such documents; Thus, permits assessee to place all documents pertaining to its ITC claims before the assessing officer, directs assessing office to pass fresh assessment orders.
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Allahabad HC: No penalty for carrying e-invoice without signature absent challenge to EWB-authenticity

CA Chandrasekhar Kutty. B.Com, F.C.A.
Allahabad HC quashes the penalty imposed u/s 129(3) of the CGST Act for carrying e-invoice without the signatures of authorised signatory, underscores the statutory scheme that as per fifth proviso to Rule 46 of the CGST Rules, 2017 “the requirement of signatures is dispensed with as regards digital invoice”; Noting that not only the driver of vehicle carrying the goods was carrying e-invoice and e-way bill (EWB) in his mobile, but at the time of interception by Mobile Squads, the representative of assessee also reached and produced hard copies of same documents, and therefore, “there was no cause for detention, seizure or imposition of the penalty as has been done by the authorities in this case.”; Emphasizing on the responsibility of the Revenue to verify digital copies, the court notes…
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HC: Rules on importer’s entitlement to IGST-refund on ‘ocean freight’ as levy remains ‘unconstitutional’

CA Chandrasekhar Kutty. B.Com, F.C.A.
Gujarat HC allows refund of IGST paid on ocean freight in light of Top Court’s dicta in case of Mohit Minerals which struck down the levy stemming from Notification No.10/2017 dated June 28, 2017 (IGST Reverse Charge Notification); In turn, allows refund to assessee basis principle of unjust enrichment and clarifies that when the IGST Reverse Charge Notification for levy of IGST on ocean freight is held to be unconstitutional, assessee/ importer is entitled to the refund of such IGST on ocean freight paid under protest; Citing ‘trite law’ that “once the Apex Court declares a Notification being ultra vires and unconstitutional, such law becomes the law of land and is liable to be followed by the respondent authorities without raising any objection.” observes that the Assistant Commissioner of CGST and Central Excise (Revenue)…
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Madras HC: Quashes small-dealer’s registration cancellation; Stresses on uneducated background, unawareness about consequences

CA Chandrasekhar Kutty. B.Com, F.C.A.
Madras HC quashes order cancelling GST registration of the Assessee (executing contract works for Government and its Agencies) on account of lapse by assessee’s accountant in filing returns on time; Harping on uneducated background of small enterpreneurs who are not accustomed with handling of e-mails, HC states that, “They are also not aware about the consequences of not paying the Returns in Time”; Suggests the Department to workout the possibilities of issuing these notices in the respective regional languages and also by SMS and registered post so that, the uneducated traders can also respond to these notices to some extent; Follows decision in Suguna Cutpiece Center.
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Telangana HC: ‘Transfer of development rights’ by landowner to developer a service, not outright ‘sale of land’

CA Chandrasekhar Kutty. B.Com, F.C.A.
Telangana HC rules that transfer of development rights (TDR) "is a service" under GST Law which the landowner is offering to Developer and that too for a consideration and thus, same is "not an outright sale" of an immovable property, dismisses realtor’s writ; For the core issue relating to TDR getting covered under Entry 5 of Schedule III of the CGST Act, 2017 which deals with sale of land being not exigible to GST, HC explains how it cannot be brought under the purview of Entry 5; Finding no quarrel to the fact that ownership, title and possession of the property is vested with the landowners and assessee is engaged as an agency by the landowners for the purpose of developing their property into a commercial complex, HC observes that, neither there is “mere transfer of development rights” nor is “automatic…
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Advisory on GSTR-1/IFF: Introduction of New 14 and 15 tablesNotification No.: 26/2022 – Central Tax dated December 26, 2022

CA Chandrasekhar Kutty. B.Com, F.C.A.
Purpose: The purpose of this advisory is to make taxpayers aware of the new Table 14 and 15 in FORM GSTR-1 and IFF. These tables are relevant for only those taxpayers who either supply through E-Commerce operator (ECO) or are themselves liable to pay tax under Section 9(5) of the GST Act. Introduction: As per Notification No. 26/2022 – Central Tax dated 26th December 2022 two new tables Table 14 and Table 15 were added in GSTR-1 to capture the details of the supplies made through e-commerce operators (ECO) on which e-commerce operators are liable to collect tax under section 52 of the Act or liable to pay tax u/s 9(5). These tables have now been made live on the GST common portal. These two new tables will be available…
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Madras HC: ‘Voucher’ is ‘actionable claim’; Modifies AAR, AAAR over taxability at the point of issuance

CA Chandrasekhar Kutty. B.Com, F.C.A.
In the case of Kalyan Jewellers India Pvt Ltd Madras HC modifies AAAR by clarifying that ‘Gift Voucher’ is an ‘actionable claim’ which constitutes as neither a supply of goods nor supply of services specifically mentioned in Schedule III at sl. No. 6 and consequently, assessee is not liable to pay tax;  In turn, holds that ‘Gift Voucher/Cards’ is a ‘Prepaid Instrument’ which acknowledges debt and so becomes a “debt instrument” which in case of breach (i.e. failing to allow redemption)becomes enforceable at the hands of the customer  who has a “right to approach a civil court to recover the amount paid” in terms of RBI’s Master Circular; As for when can ‘Gift Vouchers’ be taxed, HC observes that if the ‘Gift Voucher/Card’ are issued for a specified and identified goods, or for a…
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Advisory on the functionalities available on the portal for the GTA taxpayers:

CA Chandrasekhar Kutty. B.Com, F.C.A.
The following Functionalities are made available on the portal for the GTA Taxpayers. Filing of Online Declaration in Annexure V and Annexure VI for the existing GTA Taxpayers: As per the Notification No. 06/2023-Central Tax (Rate), dated 26.07.2023 (https://taxinformation.cbic.gov.in/view-pdf/1009783/ENG/Notifications), the option by GTA to pay GST on Forward Charge mechanism or the Reverse Charge mechanism respectively on the services supplied by them during a Financial Year shall be exercised by making a declaration in Annexure V or Annexure VI from the 1 January of the current Financial Year till 31 March of the current Financial Year, for the next Financial Year. To comply with the above notification, online filing in Annexure V Form and Annexure VI Form is available on the portal for the existing GTA taxpayers for filing declaration in…
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CBIC extends time limit for issuance of Order for tax/ITC recovery for FY 2018-19 and FY 2019-20

CA Chandrasekhar Kutty. B.Com, F.C.A.
CBIC extends time limit for issuance of Orders u/s 73(9) for recovery of tax not paid or short paid or of ITC wrongly availed or utilized for the FY 2018-19 to April 30, 2024 and FY 2019-20 to August 31, 2024 Note: Notice time limit is now extended for FY 2018-19 from Dec 31st 2023 to January 31st 2024 and for FY 2019-20 notice has to be issued before March 31st 2024.
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GSTN enables Feature for Online Filing of Annexure-V by Newly Registered GTAs Opting for Forward Charge

CA Chandrasekhar Kutty. B.Com, F.C.A.
The GSTN has introduced the much-awaited feature to file Annexure-V online on the GST Portal. This option is specifically designed for newly registered Goods Transport Agencies (GTAs) opting for Forward Charge. The new facility allows users to upload manual Annexure-V, which might have been submitted to the jurisdictional office before the commencement of the online filing option. If you are a GTA providing services and wish to pay tax under Forward Charge for the current financial year and beyond, filing your declaration Annexure V Form by January 28, 2024, is essential. By selecting “YES,” you will be directed to the Annexure V Form. If you are not involved in providing GTA services or prefer to pay tax under Reverse Charge, you can choose “NO.” It’s important to note that the…
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SC: Dismisses SLP against HC-order quashing demand against service recipient for GSTR 2A- GSTR 3B mismatch

CA Chandrasekhar Kutty. B.Com, F.C.A.
SC dismisses Revenue’s SLP against  Calcutta HC decision which quashed demand of ITC against service recipient for mismatch in GSTR 2A and GSTR 3B in absence of any investigation done at the end of the supplier whose invoices are not reflecting in GSTR 2A; HC cited lack of exceptional case like missing dealer, closure of business by supplier or supplier not having adequate assets etc. and concluded that, straight away Revenue “was not justified” in directing the assessee to reverse the ITC availed by it. Order copy awaited
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CBIC issues clarification vide instruction No. 05/2023-GST dated December 13th 2023

CA Chandrasekhar Kutty. B.Com, F.C.A.
Judgment of the Hon’ble Supreme Court in the case of Northern Operating Systems Private Limited (NOS). Attention is invited to the Hon’ble Supreme Court’s judgment dated 19.5.2022 in the case of CC, CE & ST, Bangalore (Adj.) etc. Vs. Northern Operating Systems Private Limited (NOS) in Civil Appeal No. 2289-2293 of 2021 on the issue of nature of secondment of employees by overseas entities to Indian firms and its Service Tax implications. Representations have been received in the Board that, subsequent to the aforesaid judgment, many field formations have initiated proceedings for the alleged evasion of GST on the issue of secondment under section 74(1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the ‘CGST Act’).  The matter has been examined by the Board. It…
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GSTN’s Advisory for online compliance pertaining to ITC mismatch in GSTR-2B & 3B

CA Chandrasekhar Kutty. B.Com, F.C.A.
GSTN issues advisory for online compliance pertaining to ITC mismatch, explains that, a new functionality has been developed to generate automated intimation in Form GST DRC-01C which enables a taxpayer to explain the difference in ITC available in GSTR-2B statement & ITC claimed in GSTR-3B return online as directed by GST Council; Notifies that, the functionality compares the ITC declared in GSTR-3B/3BQ with ITC available in GSTR-2B/2BQ for each return period and if the percentage difference exceeds the configurable threshold, taxpayer will receive an intimation in the form of DRC-01C; On such intimation, the taxpayer shall file a response using Form DRC-01C and has the option to either provide details of the payment made to settle the difference using Form DRC-03, or provide an explanation for the difference, or even choose a combination of both…
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