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Corporate News *  The GSTN has issued an Advisory dated 21.04.2026 about the introduction of an Offline Tool for the Invoice Management System (IMS)  *  CBIC extends due dates for filing of FORM GSTR 3B  for the month of April 2026 *  Interest cannot be imposed in adjudication order, if not demanded/quantified in show cause notice : Allahabad HC *  Wheelchairs with toileting facility eligible for exemption: CESTAT affirms customs duty exemption to importer *  Industries urge GST council to allow inverted duty refunds on input services *  Tamil Nadu GST dept introduced virtual hearing facility for GST appeals under under section 107 of the TNGST act: detailed guidelines  *  CIC urges authorities to implement GST evasion complaint tracking system *  Even if the assessee opts "NO" for personal hearing in form DRC-06 ,The mandatory requirement under section 75(4) to grant opportunity of hearing cannot be waived:Gujarat High Court  *  Glufosinate imports curbs imposed by govt *  Government extends Re-import period for exported cut & polished diamonds *  CIC flags lack of tracking system for tax evasion complaints,urges GST authorities to improve transparency *  No Custodial Interrogation needed in GST fraud case based on documentary evidence already in Department's Possession : Chattisgarh HC *  Orders under section cannot be sustained if passed without considering the taxpayer's objections and without granting a personal hearing:Gujarat High Court *  Mere cancellation of supplier's registration cannot,by itself,justify denial of ITC or cancellation of the recipient's registration:Bombay High Court *  High Court sets aside GST notice citing factual errors and natural justice violations *  Provisional Bank Attachment under Section. 110 of Customs Act Unsustainable Beyond Statutory period without Extension order: Bombay HC orders to defreeze accounts *  Post Clearance MRP Alteration by Distributor Does not attract Differential Customs Duty: CESTAT *  DGFT Expands scope of 'Screws' classification under RoDTEP Scheme  *  E-way bills surze to all time high of 140.6 million in March *  GST Exemption Allowed on Pure Labour Services for Standalone Houses: AAR  *  GST Payable Only on Margin in Second-Hand Car Sales, Subject to Strict Conditions and No ITC Claim: AAR *  DGFT rolls out procedure for allocation of calcined coke *  GST portal update : Pre-deposit amount now editable in Appeals *  J&K HC declared TMT scrap a 'Specified Good' eligibile for GST refunds under Support Scheme  *  Pigmy agents are employees of banks; no GST can be levied on commission  paid to them : Karnataka HC *  DGFT Revises HS Code Description for Screws Under RoDTEP *  GST Registration Cancellation Invalid Without Proper Service of Notice: Allahabad High Court. *  Bengaluru CGST | GST Backlog Appeals Deadline Fixed at June 30, 2026 *  No Time Bar on Refund of Service Tax for Services Not Rendered: CESTAT  Remands Indiabulls Case for Unjust Enrichment Check. *  Supreme Court Holds Renewable Energy Incentive Must Benefit Generators, Not Be Adjusted in Tariff
Subject News *   Delhi HC Quashes Order, Says Reminder Cannot Validate Improperly Served GST SCN *  KARNATAKA HIGH COURT REMANDS GST SHORTFALL MATTER DUE TO ABSENCE OF PERSONAL HEARING   *  CESTAT cancels confiscation and penalties on imported computer cabinet cases: Custom duty restricted to 111 surplus units *  Deposit of tax during search or investigation cannot be treated as 'Voluntary Payment' : Bombay High Court *  Section 76 of the CGST cannot be invoked where the tax has already been duly deposited, even if through another registration of the same entity: Madras High Court *  Sec 74 allows use of material regardless of source; illegality or flaws in section 67 search do not vitiate valid adjudication: HC *  Inter-State transfer of ITC on Amalgamation permissible as given under section 18(3) read with rule 41 of the CGST rules, 2017: Gujarat High Court *  HC: No GST on commisson paid to Pigmy Agents *  IGST refund denial on illegible bill of lading invalid absent chance to furnish docs; merit reconsideration in appeals directed: HC *  ITC is not admissible on GST paid on leasehold rights of land used fpr setting up an air seperation plant: AAAR,Tamil Nadu *  GST: No penalty under Section 74 after voluntary ITC reversal due to non-existent supplier : High Court *  TN AAAR denies GST ITC on Land Lease under Sec. 17(5)(d) for setting up plant and machinery *  GST proceedings quashed as notices sent to old address, despite updated address in registration *  Importer Can’t Be Penalised for Alleged IGCR Procedural Lapses Without Evidence of Departmental Error: CESTAT *  Structured Healthcare Training Not ‘Charitable Activity’, 18% GST Payable: AAR  *  CESTAT As The Appellate Authority For Central Sales Tax Disputes: A Paradigm Shift Under Finance Act, 2023 *   Rs. 25K Cost Imposed On SGST Joint Commissioner for Attaching Bank  Accounts Without Forming Mandatory “Opinion”: Bombay HC *   Ex-Parte GST Order Without Hearing Violates Natural Justice: Karnataka  High Court Quashes Adjudication and Bank Attachment.  *   Retrospective GST Cancellation Can’t Invalidate Genuine Transactions:  Jaipur Commissioner (Appeals) Quashes Rs. 95,670 ITC Demand. *   GST Pre-Deposit Non-Compliance: Allahabad High Court Allows Appeal  Subject to Rs. 30 Lakh Balance Deposit, Recognises Offline Filing. *  Documentary Nature of Evidence: Allahabad High Court Grants Bail in Rs. 32.66 Crore Fake ITC Fraud Case *  Supreme Court Flags Systemic Bias in Army’s Permanent Commission Process for Women Officers *  Re-Determination of Land Compensation Can Be Based on Appellate Court Awards, Clarifies Scope of S. 28-A: Supreme Court. *  Supreme Court Imposes Rs. 5 Lakh Costs On Rent Authority Officer For Acting Beyond Jurisdiction. *  DGGI Meerut | Court Denies Bail to Accused in Claiming Fake ITC And Export Refunds *  Denial of GST Rate Revision Benefit to Contractor Violates Article 14: Rajasthan HC *  GST Registration Cancellation for Non-Filing of Returns: Gauhati High Court Directs Restoration on Compliance. *   Supreme Court Quashes FEMA Adjudication Orders, Revives Proceedings at  Show Cause Stage. *   Higher Rank, Harsher Punishment Justified: Supreme Court Restores Dismissal  of Bank Manager in Misappropriation Case. *   Limitation for Export Refund to Be Counted from Foreign Exchange Realisation,  Not From Export Invoices Issuance: CESTAT  

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GST Update 20.01.2016

DEFINATION OF PERSON PROPOSED IN GST ACT, 2016:-

GST DAILY DOSE OF UPDATION:-
 
DEFINATION OF PERSON PROPOSED IN GST ACT, 2016:-
 
Section 2(50) defines person as follows:-
 
‘Person’ includes-
(a)             An individual;
(b)             A Hindu Undivided Family;
(c)              A Company;
(d)             A Firm;
(e)              An association of persons or a body of individuals, whether incorporated or not, in India or outside India;
(f)               Any corporation established by or under any Central, State or Provincial Act or a government company as defined under section 2(45) of the Companies Act, 2013
(g)             Any body corporate incorporated by or under the laws of a country outside India;
(h)             A co-operative society registered under any law relating to co-operative societies;
(i)                A local authority;
(j)                Government;
(k)              Society registered under the Societies Registration Act, 1860;
(l)                Trust; and
(m)           Every artificial juridical person, not falling within any of the preceding sub-clauses;
 
It is worth mentioning that the proposed defination seeks to specifically mention trust as a person for the purpose of GST levy which is not mentioned in the present defination. Furthermore, the defination of the person proposed is wider in scope as it includes within its ambit the body corporate incorporated outside India. However, body corporate incorporated outside India was not specifically mentioned in the present defination. It means that if the body corporate incorporated outside India renders services/supplies goods to any person in India including its subsidiary, it will tantamount to involvement of 2 persons. It is worth noting that presently the explanation to the defination of service 3(b) clearly states that the establishment of a person in taxable territory and any of his other establishment in any territory shall be treated as establishments of distinct persons.
 
Furthermore, inclusion of the clause (e) by treating an association of persons or a body of individuals, whether incorporated or not, in India or outside India seeks to nullify the concept of mutuality of interest pronounced by various High Courts. In the past, several service tax demands have been quashed solely on the grounds that for provision of service, involvement of 2 persons is a pre-requisite. It has been concluded that for service tax to be levied on a service it is essential that there are two persons as one cannot provide service to oneself and this is called the concept of mutuality of interest. Accordingly, it has been concluded that services provided by a club to its members is not leviable to service tax in the absence of 2 persons because club and its members are one and the same. Reliance may be placed on the following judicial pronouncements:-

·        UNION OF INDIA VS KARNAVATI CLUB LTD. [2010 (20) S.T.R. J44 (S.C.)]

·        RANCHI CLUB LTD. VERSUS CHIEF COMMR. OF C. EX. & S.T., RANCHI ZONE [2012 (26) S.T.R. 401 (Jhar.)]

·        SPORTS CLUB OF GUJARAT LTD. VERSUS UNION OF INDIA [2013 (31) S.T.R. 645 (Guj.)]

·        SATURDAY CLUB LTD. VERSUSASSTT. COMMR., SERVICE TAX CELL, CALCUTTA [2006 (3) S.T.R. 305 (Cal.)]
 
However, by including the association of persons, body of individuals, trust etc. in the defination of person, the government seeks to nullify the ratio laid down by the Apex Court and various High Courts that no service tax is leviable if services are provided by a club to its members.

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