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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 08.11.2016

GST DAILY DOSE OF UPDATION

GST DAILY DOSE OF UPDATION

In continuation of last update on dispute on distribution of assessees between centre and state, the conflict of interest on control of assessee is proving to be a big hurdle in the progress of GST and if not resolved it would not take time to convert into a bottleneck. Both the centre and state are agreeing that GST is self assessment procedure and only audit and scrutiny of selected assessees will be done by the state and central tax authorities. The dispute is on the audit of the assessee and basically both the centre and state does not want to lose this “lucrative” section of departmental holdings. 
We all know that GST will be something highly efficient in the use of technology and almost everything will be online. The filing of returns is self contained and verify everything online. The sale figures uploaded by the assessee will be auto populated in return of buyer and he will take the credit online. Hence, it will be verified online. If there is any mismatch then the system will issue notices. Moreover, the GST audit is to be conducted by a Chartered Accountant. Even the annual return is designed to reconcile with the balance sheets and reconciliation statement is also to be uploaded online. The provisions relating to returns are so strict that non payment of taxes would render the returns invalid. Now to put the major question forward and that is whether the departmental audit in the new regime is really necessary? The government should realise that after a technological revolution in taxation, the audit routine of department will also lose its relevance. It is worth noting that the income and taxes will be matched by the GST portal and then the statutory GST audit will be conducted by chartered accountant also. Looking to above situation, there is absolutely no need of audit by the departmental officers. 
Also, look from the point of view of assesses. After filing three returns monthly, getting audit done from a Chartered Accountant, he has to file annual returns also. There are other 12 returns of input service distributor and that of TDS. Then there is departmental audit which is to be completed within three months ( contrary to current department audit which is completed in two or three days). Now the big question is whether he has to do some business also or only to comply with GST rules and regulations? Are we heading towards "EASE OF DOING BUSINESS" ?

It has been argued that even if the departmental audit is not abolished completely, it should be restricted to highly evasion prone units only. But this argument does not hold good. The evasion can be controlled by Anti evasion activities and not by audit. The online GST mechanism will control the accounted frauds very well. But there is no need of audit for the same when the number of returns prescribed are reconciling everything online.
Another issue which is also very important in this discussion of dual jurisdiction. Yes, it is a hard reality which is to be accepted as a necessary consequence of GST, but even if talk of a specific aspect such as refunds, the difficulties arising by it can be clearly visible. It has been mentioned by the model law that not only the refund of CGST & SGST will have to be applied for separately but the assessing authority and the sanction of refund will also be carried separately. Thus, it is inbuilt in the system as well as draft GST law that there will be dual jurisdiction and we cannot avoid it. An exporter, who will apply for the refund of unutilised cenvat credit, has to apply to CGST authorities for refund of CGST and SGST authorities for refund of SGST portion. The concerned authorities will make payment of their part to the exporters. Hence, we cannot avoid the dual jurisdiction in this federal system of dual GST.

We will continue to update you on the latest developments under GST. Till then you may also visit our FB page at the following link

 

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

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