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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 ON E-WALLET

GST UPDATE ON E-WALLET

GST UPDATE ON E-WALLET

The GST Council’s 22nd meeting has proposed long term support to Exporters by introducing the concept of E-Wallet for the simplification of refund Process. E-Wallet shall be transferable and can be used for payment of duty but it cannot be given in cash as said by Revenue Secretary Hasmukh Adhia in his statement, which is reproduced as follows.

Asked by when the issue of refunds to exporters would be settled, Adhia said "it will be solved in a month or two".

After March 31, there will be a system of e-wallet, where a notional credit will be made into the holder's account so that the same could be used for payment of GST. The credit would be made to exporters based on their past performance or on the basis of export orders in hand, he said, adding this would mean no hard cash is spent on taxes.

"It is possible that the manufacturing exporter himself has no liability to pay, but the supplier who gave him inputs may have. So, he can transfer credit (from e-wallet) to the supplier account. So, the e-wallet would be transferable, just like any other wallets, but the only restriction is that it can't be given in cash, it can be only used for payment of GST," he said.

After executing the export order, a refund application will have to be made and the refund will be credited in form of credit to the same e-wallet.
"So, his account will get replenished by the refund. So, the refund process will take place, but he is not deprived of funds and will not have to invest his own working capital. Liquidity will be maintained with him," he said.

The Press note on Export Package has been issued supporting the above statement and that the council decides to make this operational from 1st of April 2018.

An abstract idea of E-Wallet can be interpreted with the help of an example. A specified amount in the e-wallet will be credited by the Government based upon the export performance of previous year. Suppose the amount so credited is Rs. 10 lacs in the e-wallet of exporter X Ltd. Suppose X Ltd. does not require any credit as there is sufficient amount of credit lying with it and it purchases inputs amounting to Rs. 2 lacs on which GST amount comes Rs. 20,000/-, thus, the total invoice value including the GST is Rs. 2,20,000/-. X Ltd. can transfer the amount of GST, i.e. Rs. 20,000/- from e-wallet to the supplier. So, he will be required to pay only the basic value of Rs. 2 lacs to the supplier in cash. Similarly, this can be done in every case of purchase of inputs, capital goods or input services. Therefore, the amount of GST can always be adjusted from e-wallet. Accordingly, only the net value of goods/services will be payable by the exporter. Further, it has also been clarified that the amount of refund will also be credited to the e-wallet only.

The first sight of the scheme sounds good except that the encashment of amount lying in the e-wallet will not be allowed. However, the amount of tax that will not be required to be paid in the cash is also a type of encashment only. But a lot of Clarifications are yet to be made from the Council about how the credit of input is to be transferred to the Supplier. Hope to get a much clearer picture of this. Cash payment of the same will be required. Say for example, the supplier of goods has enough balance and does not want to avail the e-wallet credit. The refund of the balance will be allowed in that case. Several clarifications of such type are required.

 

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