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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 FAQ

GST UPDATE ON FAQ’S RELEASED ON REAL ESTATE AMENDMENTS PART-11
GST UPDATE ON FAQ’S RELEASED ON REAL ESTATE AMENDMENTS PART-11:-
 
In earlier update, we have discussed about some of the important FAQs pertaining to the recent amendments made for real estate sector given vide Circular No. 354/32/2019-TRU dated 07.05.2019. In the present update, we seek to discuss some more clarifications issued by the aforementioned circular.
Question no. 17:Someone booked a flat from XYZ Developers in June, 2018. As of 31-03-2019, he had paid 40 % of the value of the flat. What shall be the GST rate applicable on the remaining portion of value of the flat?
Answer:GST on the remaining portion of the value of flat payable to the promoter on or after 01-04-2019 as per the contract between the promoter and buyer shall be payable at effective rate of 1% or 5%, subject to the condition that the builder has not exercised the option to pay tax on construction of apartments at the old rates of 12% or 18%. If the XYZ developer exercises option to continue to pay tax at old effective rate of 8% or 12% by 10th May, 2019, then GST has to be paid @ 8% or 12% on remaining portion of the value of the flat; in such cases, the promoter would be entitled to permissible credit of input taxes and, as such, the price that he charges from the buyer should appropriately reflect this credit.
 
The above clarification indicates that GST is to be charged by the developer as per statutory provisions in force irrespective of the agreement entered into by the developer and the buyer.
 
Question No. 18:I am a beneficiary of PMAY- CLSS and carpet area of my house being constructed in an ongoing project is 150 sqm. Am I eligible for new rate of 1% on same?
 
Answer: You are eligible for new GST rate of 1%, subject to the condition that the developer-promoter with whom you have booked the house has not exercised option to pay tax on construction of apartments at the old rate of 8%.
 
The above clarification supports the view taken by us in our GST Update on Real Estate Sector Part-5 wherein we had mentioned that the definition of ‘affordable residential apartment’ given in the notification no. 03/2019-Central Tax (Rate) dated 29.03.2019 includes apartment being constructed in an ongoing project under any of the specified housing schemes, in respect of which promoter has not exercised option to pay central tax on construction of such apartments at the old rates. Consequently, apartments constructed under any of the specified housing schemes of the government such as Credit Linked Subsidy Scheme with respect to an ongoing project will be eligible for concessional GST rate of 1% applicable for affordable residential apartments irrespective of the fact that the said apartments do not satisfy the criteria of carpet area of 60/90 square meters and consideration upto Rs. 45 Lakhs. However, after amendment made vide notification no. 03/2019-Central Tax (Rate) dated 29.03.2019, the commencement of new project under any of the specified housing schemes of the government like Pradhan Mantri Awaas Yojana/Credit Linked Subsidy Scheme would not be eligible for benefit of concessional GST rate of 1% unless it satisfies the criteria of affordable residential apartment being carpet area of 60/90 square meters and consideration upto Rs. 45 Lakhs. Therefore, the benefit of concessional GST rate of 1% is admissible for apartments constructed under specified housing schemes only for ongoing projects even if the criteria of carpet area and consideration is not satisfied.
The other important questions will be discussed in our next update.
This is solely for the educational purpose.
You can reach us at www.capradeepjain.com, at our facebook page on
https://www.facebook.com/GSTTODAYBYPRADEEPJAIN/ as well as follow us on Twitter at https://www.twitter.com/@capradeepjain21
 
 GST UPDATE ON FAQ’S RELEASED ON REAL ESTATE AMENDMENTS PART-11:-
 
In earlier update, we have discussed about some of the important FAQs pertaining to the recent amendments made for real estate sector given vide Circular No. 354/32/2019-TRU dated 07.05.2019. In the present update, we seek to discuss some more clarifications issued by the aforementioned circular.
Question no. 17:Someone booked a flat from XYZ Developers in June, 2018. As of 31-03-2019, he had paid 40 % of the value of the flat. What shall be the GST rate applicable on the remaining portion of value of the flat?
Answer:GST on the remaining portion of the value of flat payable to the promoter on or after 01-04-2019 as per the contract between the promoter and buyer shall be payable at effective rate of 1% or 5%, subject to the condition that the builder has not exercised the option to pay tax on construction of apartments at the old rates of 12% or 18%. If the XYZ developer exercises option to continue to pay tax at old effective rate of 8% or 12% by 10th May, 2019, then GST has to be paid @ 8% or 12% on remaining portion of the value of the flat; in such cases, the promoter would be entitled to permissible credit of input taxes and, as such, the price that he charges from the buyer should appropriately reflect this credit.
 
The above clarification indicates that GST is to be charged by the developer as per statutory provisions in force irrespective of the agreement entered into by the developer and the buyer.
 
Question No. 18:I am a beneficiary of PMAY- CLSS and carpet area of my house being constructed in an ongoing project is 150 sqm. Am I eligible for new rate of 1% on same?
 
Answer: You are eligible for new GST rate of 1%, subject to the condition that the developer-promoter with whom you have booked the house has not exercised option to pay tax on construction of apartments at the old rate of 8%.
 
The above clarification supports the view taken by us in our GST Update on Real Estate Sector Part-5 wherein we had mentioned that the definition of ‘affordable residential apartment’ given in the notification no. 03/2019-Central Tax (Rate) dated 29.03.2019 includes apartment being constructed in an ongoing project under any of the specified housing schemes, in respect of which promoter has not exercised option to pay central tax on construction of such apartments at the old rates. Consequently, apartments constructed under any of the specified housing schemes of the government such as Credit Linked Subsidy Scheme with respect to an ongoing project will be eligible for concessional GST rate of 1% applicable for affordable residential apartments irrespective of the fact that the said apartments do not satisfy the criteria of carpet area of 60/90 square meters and consideration upto Rs. 45 Lakhs. However, after amendment made vide notification no. 03/2019-Central Tax (Rate) dated 29.03.2019, the commencement of new project under any of the specified housing schemes of the government like Pradhan Mantri Awaas Yojana/Credit Linked Subsidy Scheme would not be eligible for benefit of concessional GST rate of 1% unless it satisfies the criteria of affordable residential apartment being carpet area of 60/90 square meters and consideration upto Rs. 45 Lakhs. Therefore, the benefit of concessional GST rate of 1% is admissible for apartments constructed under specified housing schemes only for ongoing projects even if the criteria of carpet area and consideration is not satisfied.
The other important questions will be discussed in our next update.
This is solely for the educational purpose.
You can reach us at www.capradeepjain.com, at our facebook page on
https://www.facebook.com/GSTTODAYBYPRADEEPJAIN/ as well as follow us on Twitter at https://www.twitter.com/@capradeepjain21
 
 

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