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Corporate News *  Missing seized records must be considered while testing ITC claim; duplicate GST demands ordered corrected: Delhi High Court. *  GST appeal can’t be rejected without addressing taxpayer’s grounds: Allahabad High Court. *  Surplus IGST credit can offset CGST, SGST shortfall: GSTAT. *  GST refund can’t be denied when cancelled airfares are returned with tax: GSTAT. *  3 Hearing notices issued within 2 minutes: Gujarat High Court flags portal flaw, seeks report. *  GSTR-9, GSTR-9C filing for FY 2025-26 enabled; pending GSTR-1 and GSTR-3B must be filed first. *  Dupattas are exempt fabrics, can’t be taxed as fibres at 4%: Madras High Court. *  Full transitional credit allowed on capital goods received after GST rollout: GSTAT denies Rs. 6.99 lakh export duty credit. *  GST return mismatch alone can’t justify fraud proceedings: GSTAT orders fresh adjudication under section 73. *  Supplier found non-existent later can’t alone justify input tax credit denial: GSTAT. *  GST interest stops once tax reaches government account, can’t run until return filing: GSTAT. *  Cancelled flat booking- GST refund can’t be denied without excluding COVID period from limitation: GSTAT. *  India notifies rules of origin for India–New Zealand FTA. *  Incomplete E-bike kits classifiable as complete vehicles, but not eligible for CKD duty concession: CESTAT. *  Same GST rate on main input and output can’t by itself bar inverted duty refund: GSTAT. *  Unjust enrichment doesn’t apply to customs refunds from assessments finalised before July 13, 2006: Gujarat High Court. *  CENVAT credit can’t be denied solely because plant And machinery are embedded in earth: Karnataka High Court. *  DFIA exports ineligible for RoDTEP benefits; customs directs repayment with applicable interest. *  Second E-Way bill alone doesn’t prove another supply: GSTAT. *  Bail denied in Rs. 1.19 crore fake GST refund case over risk of accused absconding again: Punjab and Haryana High Court. *  GST registration can be restored after revocation deadline if outstanding dues are paid: Gauhati High Court. *  Multiple GST proceedings over same suppliers: Calcutta High Court directs dept. to share findings for adjudication. *  E-Governance portal services not OIDAR, fixed deposit interest not taxable: CESTAT. *  Rs. 500 Stamp duty required on authority letters for CAs, CMA and GST practitioners in Pune GST division.  *  Rs. 1.10 crore GST refund must be paid in cash after business closure: Allahabad High Court. *  Godown rent attracts 18% GST even when used exclusively for exempt agricultural warehousing: AAR. *  GST portal launches "Multi-State Registration" facility: one master TRN for registration applications across multiple States/UTs. *  RoDTEP scheme extended till 31st December, 2026.  *  Mere disagreement with order can’t override Rs. 20 lakh appeal limit: GSTAT. *  Customs interest can’t be backdated before confiscation liability is determined; nearly 8 year period excluded: Delhi High Court.
Subject News *  GST summons: anticipatory bail maintainable without arrest order, but relief denied in evasion case: Allahabad High Court. *  GST Appeal can’t be decided without hearing taxpayer’s objections to fresh evidence: Allahabad High Court. *  GST ITC can’t be reversed merely because supplier grants discount without reducing tax liability: GSTAT. *  Mere quoting of GST provision is not a valid charge: GSTAT quashes ITC denial. *  Personal hearing mandatory before adverse GST order, even without taxpayer’s request: Rajasthan High Court. *  Parallel bail pleas without full disclosure amount to abuse of process Rs. 43.08 crore GST case sent for fresh hearing: Supreme Court. *  GST refund based on unchallenged advance ruling can’t be recovered using later circular: GSTAT. *  Payment of GST alone doesn’t end interest and penalty liability when tax and interest remain unpaid beyond 30 days of notice: GSTAT. *  GST demand over builders’ 80% procurement rule requires reasoned adjudication: GSTAT. *  Eligible ITC doesn’t automatically entitle taxpayers to compensation cess refund on domestic sales: GSTAT. *  GST confiscation order passed before reply deadline invalid: GSTAT. *  GST interest can’t be retained after tax refund on delayed export receipts: Punjab & Haryana High Court. *  GST appeal can’t be dismissed over pre-deposit shortfall without opportunity To respond: Bombay High Court. *  DGGI SCN can’t be challenged before reply and adjudication:Chhattisgarh High Court. *  GST input tax credit can’t be denied solely due to supplier’s retrospective registration cancellation: GSTAT. *  GST notice must explain fraud allegations; merely repeating section 74 Is not enough:  Himachal Pradesh High Court. *  Audit detection alone can’t justify GST fraud penalty; specific suppression must be proved: GSTAT. *  GST order uploaded only under ‘Additional Notices’ tab without separate intimation set aside: Calcutta High Court. *  Service Tax appeal can’t be rejected for missing pre-deposit proof when payment is already recorded: CESTAT. *  SGST dept. can’t hear appeal against CGST order: Calcutta High Court. *  Mere dispatch of tax order can’t prove service or make appeal time-barred: CESTAT. *  Dealer incentives can’t be taxed merely on ledger entries: CESTAT. *  DGFT orders quashed for failure to supply DRI letter relied upon in SCN: Bombay High Court. *  GST penalty u/s 122(1A) can’t apply to Pre-2021 transactions; unregistered beneficiaries also covered: Delhi High Court. *  Expired E-way bill caused by wrong PIN code can’t justify GST penalty without intent to evade tax: GSTAT. *  Used railway rails can’t be taxed as track material without proof they are fit for reuse: CESTAT. *  Earlier DGGI notice doesn’t bar separate GST demand on different issue: Delhi High Court. *  ITC dispute involves no question of law: GSTAT directs appeal to Vice-President. *  Earlier DGGI notice doesn’t bar separate GST demand On different issue: Delhi High Court. *  No E-way bill required for interstate goods movement in november 2017: GSTAT quashes detention and penalty.  

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GST Update 05.11.2016

Daily dose of GST update on Control dispute between centre and state

Daily dose of GST update:- Control dispute between centre and state


The dispute is going among centre and state in respect of control of assessees. The trade and industry has demanded that they want single jurisdiction and not dual control as suggested in GST draft law. 
In the first meeting of GST council, it was decided that traders having turnover of less than Rs. 1.5 crore will be controlled by the State government as these are under their jurisdiction in current VAT regime also. On the same analogy, the centre said that the service tax assessees will be assessed by Central Excise department only. The assessee having turnover more than Rs. 1.5 crore will be looked after by both state VAT department and Central Excise authorities under proposed GST regime. The manufacturers having turnvoer of more than Rs. 1,5 crore were already registered with VAT as well as Central Excise department, Hence there was no problem with them for dual control. But the traders having turnover of more than Rs. 1.5 crore are registered with VAT authorities in current scenario but now they will controlled by Central as well as State authorities. 
Even the experts were also in favour of such control by Central and state authorities. As service tax providers are being handled by central authorities for last 20 years and they have expertise to handle them but the state taxing authorities does not have such expertise but they can handle VAT assessees. Hence, they can handle them. But there are assesses who registered with both state VAT as well as service tax authorities. Mostly VAT assessees pays service tax under reverse charge and hence are registered with the service tax department also. The services like works contract fall under both jurisdiction. Hence, there will be dispute on division of assesses. Even the traders may cross the limit of Rs. 1.5 crore. Earlier they were being assessed by state authorities and after crossing the limit, both by Centre and state authorities. They will be administrative difficulties in implementing the same. 
But this consensus did not last for more time. In next meeting itself, the state finance ministers opposed the move that service tax assessees will be looked after by central authorities only. They wanted that the control should be given to them also. Even the association of Central employees as well as state employees opposed this bifurcation of GST assessees. They are of the view that this will hamper their promotion prospects. 
Thereafter, no solution could be found of this issue in next GST meetings. In the recent last meeting, the power struggle continued. When the state finance ministers are reopening the issue of service tax assessees, the centre has also reopened the issue of division of manufacturer/traders below Rs. 1.5 crore. But they agreed to concept of one assessee-one authority but no solution could be found for the distribution of assessee between centre and state. After evaluating many options, the two sides have shortlisted two — a mutually acceptable formula for horizontal division of the assessee base between the Centre and states and a vertical, 1:2 split.
Although it was decided that the union and state finance minister will meet unofficially on November 20 to find out any solution to the problem politically and this view will be finalised in GST council meeting on 24-25 th November.
We have found a very good comment on the same situation on whatsapp groups. " Those who intend to control the GST are fighting with each other for their area of control. But those who are to be controlled are sleeping.

You may also visit our FB page at the following link

 

https://www.facebook.com/GSTTODAYBYPRADEEPJAIN/

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