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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 - Notification 11/2020 dated 21st March 2020 & Circular 134/04/2020 dt 23rd March 2020 & relating to the Companies Covered under the Insolvency & Bankruptcy Code 2016- Part 1

GST UPDATE - Notification 11/2020 dated 21st March 2020 & Circular 134/04/2020 dt 23rd March 2020 & relating to the Companies Covered under the Insolvency & Bankruptcy Code 2016- Part 1


As per Insolvency and Bankruptcy Code, 2016 (IBC), once an entity defaults certain threshold amount, Corporate Insolvency Resolution Process (CIRP) gets triggered & the management of such entity (Corporate Debtor) and its assets vest with an interim resolution professional (IRP) or resolution professional (RP). It continues to run the business and operations of the said entity as a going concern till the insolvency proceeding is over and an order is passed by the NCLT.

The CBIC vide Notification No. 11/2020- Central Tax dt 21st March 2020 has prescribed the special procedures for the corporate debtors under the provisions of IBC, who are undergoing the CIRP and the management of whose affairs are being undertaken by IRP or RP. These special procedures are related to following main areas:-
·         Registration
·         Filing of Returns &
·         Availability of ITC
 
1. Registration: -New registration has to be taken within 30 days of the appointment of the IRP/RP in respect of said class of persons, in each & every States /UTwhere the corporate debtor was registered earlier since they will be treated as a distinct person of the corporate debtor.
However, where the IRP/RP has been appointed prior to the date of this notification, he shall take registration within 30 days from the commencement of this notification,
This has been done to overcome the ruling of High Court wherein it was held that the units working under this scheme shall be allowed to file returns without filing earlier period returns. Now, since they have to obtain new registration then they need not to file the returns for the earlier period.

2.Filling of Returns: -After obtaining new registration they shall have to file the first returnunder section 40 of the GST Act which states from the date on which he becomes liable to registration till the date on which registration has been granted. As already narrated, these provisions have been brought to implement smoothly the High Court verdict.

3.Availability of ITC: - (A) While filing their first return, said persons shall be eligible to avail ITC on the invoices received since his appointment as IRP/RP but bearing the GSTIN of the erstwhile registered person, bounded by the conditions of Chapter V (rules relating to ITC from Rule 36- Rule 45) except the provisions of sub-section (4) of section 16 of the said Act and sub-rule (4) of rule 36 of the CGST Rules, 2017. Section 16(4) prescribes the time limit of taking of credit and Rule 36(4) prescribes limitation of taking extra credit of 10% of invoices shown in GSTR-2A.

(B) Registered persons who are receiving supplies from the said class of persons shall, be eligible to avail input tax credit on invoices issued using the GSTIN of    the erstwhile registered person for the period from the date of appointment of IRP / RP till the date of registration as required in this notification or 30 days from the date of this notification, whichever is earlier subject to the conditions of Chapter V of the said Act and the rules made thereunder, except the provisions of sub-rule (4) of rule 36 of the said rules.

A point worth to be noted here is that the time limit for availing the ITC as prescribed by Sec 16(4) shall not be applicable and the newly registered IRP/RP can avail the ITC after the time limit for the month of September or the filing of date of Annual Return too. Moreover, the limitation for the availment of ITC as per Rule 36(4) subject to 20% (now 10%) shall also not be applicable to the said class of persons.

  • Refund shall also be granted on the amount deposited in the cash ledger by the IRP/RP, in the existing registration, from the date of appointment of IRP/RP to the date of registration in terms of this notification.

The discussion relating to the Circular No.13 CT dated 23rd March shall be discussed in the Next Part.
To be continued……

This is solely for educational purpose.
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