Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
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.  

Comments
Print   |    |  Comment

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.

Post a Comment
Department News


Query
 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com