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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 MISC POINTS IN 28TH COUNCIL MEET

GST UPDATE ON MISC POINTS IN 28TH COUNCIL MEET

              GST UPDATE ON MISC POINTS 28TH COUNCIL MEET
Some of the recommendations as discussed in the 28th Council meeting held on 21st July 2018 under the Chairmanship of Shri Piyush Goyal ,acting as Finance Minster along with our observations on these amendments are as under:-
1. Definition of Supply

  • The following transactions shall be not be treated as supply (no tax payable) under Schedule III:

a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable    territory without such goods entering into India;
This was important as trade and industry was demanding the same. The goods have not entered in to Indian Territory but the GST was payable only due to the fact that billing is done from India. This is a welcome step.
b. Supply of warehoused goods to any person before clearance for home consumption; and
c. Supply of goods in case of high sea sales.
This was also demanded and there was confusion whether the GST is payable twice on High sea Sale. First time, when High sea sale is done and secondly when the actual import takes place. The Government has clarified that GST is payable on import only. But the law suggested against the same. Another point was also raised that proportionate credit is to be reversed on high sea sales. Now, this amendment has put an end to all such disputes.
2. Appeals and Recovery

  • Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively.

 The amount of pre-deposit was 10% for first appeal and 20% for the next appeal before tribunal. The demand of trade and industry was that it should 7.5% and 10% as was in Service Tax and Central Excise regime. It was not adhered to but overall cap has been provided in these rules. Hence, this will benefit the large tax payers who have huge demands. But poor small assessee has to pay 10% in appeal before Appellate authority and 20% in appeal before appellate tribunal.

  • Recovery can be made from distinct persons even if present in different states.

 
This example will clear it. Suppose one assessee having two registrations, one in state of Rajasthan and another in Assam. If the PAN number is same and demand is pending in Rajasthan then it can be recovered from Assam unit. When the registrations are separate then the separate then the recovery should be separate only. But if refund is applied in Assam then recovery of Rajasthan will be adjusted by officer. But the modus operandi to implement this procedure is to be seen. The officer may delay the refund by saying that he has asked other unit of same PAN whether any demand is pending against him.   This should not happen.
3. Credit/ Debit Notes

  • Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year instead of issuing and co-relating one credit/debit note against each invoice.

This was also demanded by industry at large. Suppose, discount is given to buyers on overall turnover then it is very cumbersome to issue number of credit notes linking it with invoices. The whole industry was finding it difficult. Moreover, number of credit notes is to be raised for each invoice. This has been relaxed by the department.
4. Job Work

  • Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.

This is also a welcome step. Otherwise, in earlier provisions, it was said the material did not return in specified period will be termed as supply. But now the permission can be taken from the commissioner.

  • Place of supply in case of job work of any treatment or processdone on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India. 

This amendment will lead to non-payment of GST on such job work
5. Multiple Registrations

  • Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.

Earlier it was allowed only in case of separate business vertical. But now it is allowed if the assessee wishes so then he can take separate registration. This was needed by assessee as they have separate cost centre and it was very difficult to operate separate units and then compile the data of all the units in the same state.
 
 
 
We hope the above is useful to you.
 
Your Need Our Concern…
Thanking you,                                                                                 
Regards,
               
Pradeep Jain, F.C.A.
 

Opinion

              GST UPDATE ON MISC POINTS 28TH COUNCIL MEET
Some of the recommendations as discussed in the 28th Council meeting held on 21st July 2018 under the Chairmanship of Shri Piyush Goyal ,acting as Finance Minster along with our observations on these amendments are as under:-
1. Definition of Supply

  • The following transactions shall be not be treated as supply (no tax payable) under Schedule III:

a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable    territory without such goods entering into India;
This was important as trade and industry was demanding the same. The goods have not entered in to Indian Territory but the GST was payable only due to the fact that billing is done from India. This is a welcome step.
b. Supply of warehoused goods to any person before clearance for home consumption; and
c. Supply of goods in case of high sea sales.
This was also demanded and there was confusion whether the GST is payable twice on High sea Sale. First time, when High sea sale is done and secondly when the actual import takes place. The Government has clarified that GST is payable on import only. But the law suggested against the same. Another point was also raised that proportionate credit is to be reversed on high sea sales. Now, this amendment has put an end to all such disputes.
2. Appeals and Recovery

  • Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively.

 The amount of pre-deposit was 10% for first appeal and 20% for the next appeal before tribunal. The demand of trade and industry was that it should 7.5% and 10% as was in Service Tax and Central Excise regime. It was not adhered to but overall cap has been provided in these rules. Hence, this will benefit the large tax payers who have huge demands. But poor small assessee has to pay 10% in appeal before Appellate authority and 20% in appeal before appellate tribunal.

  • Recovery can be made from distinct persons even if present in different states.

 
This example will clear it. Suppose one assessee having two registrations, one in state of Rajasthan and another in Assam. If the PAN number is same and demand is pending in Rajasthan then it can be recovered from Assam unit. When the registrations are separate then the separate then the recovery should be separate only. But if refund is applied in Assam then recovery of Rajasthan will be adjusted by officer. But the modus operandi to implement this procedure is to be seen. The officer may delay the refund by saying that he has asked other unit of same PAN whether any demand is pending against him.   This should not happen.
3. Credit/ Debit Notes

  • Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year instead of issuing and co-relating one credit/debit note against each invoice.

This was also demanded by industry at large. Suppose, discount is given to buyers on overall turnover then it is very cumbersome to issue number of credit notes linking it with invoices. The whole industry was finding it difficult. Moreover, number of credit notes is to be raised for each invoice. This has been relaxed by the department.
4. Job Work

  • Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.

This is also a welcome step. Otherwise, in earlier provisions, it was said the material did not return in specified period will be termed as supply. But now the permission can be taken from the commissioner.

  • Place of supply in case of job work of any treatment or processdone on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India. 

This amendment will lead to non-payment of GST on such job work
5. Multiple Registrations

  • Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.

Earlier it was allowed only in case of separate business vertical. But now it is allowed if the assessee wishes so then he can take separate registration. This was needed by assessee as they have separate cost centre and it was very difficult to operate separate units and then compile the data of all the units in the same state.
 
 
 
We hope the above is useful to you.
 
Your Need Our Concern…
Thanking you,                                                                                 
Regards,
               
Pradeep Jain, F.C.A.
               GST UPDATE ON MISC POINTS 28TH COUNCIL MEET
Some of the recommendations as discussed in the 28th Council meeting held on 21st July 2018 under the Chairmanship of Shri Piyush Goyal ,acting as Finance Minster along with our observations on these amendments are as under:-
1. Definition of Supply

  • The following transactions shall be not be treated as supply (no tax payable) under Schedule III:

a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable    territory without such goods entering into India;
This was important as trade and industry was demanding the same. The goods have not entered in to Indian Territory but the GST was payable only due to the fact that billing is done from India. This is a welcome step.
b. Supply of warehoused goods to any person before clearance for home consumption; and
c. Supply of goods in case of high sea sales.
This was also demanded and there was confusion whether the GST is payable twice on High sea Sale. First time, when High sea sale is done and secondly when the actual import takes place. The Government has clarified that GST is payable on import only. But the law suggested against the same. Another point was also raised that proportionate credit is to be reversed on high sea sales. Now, this amendment has put an end to all such disputes.
2. Appeals and Recovery

  • Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively.

 The amount of pre-deposit was 10% for first appeal and 20% for the next appeal before tribunal. The demand of trade and industry was that it should 7.5% and 10% as was in Service Tax and Central Excise regime. It was not adhered to but overall cap has been provided in these rules. Hence, this will benefit the large tax payers who have huge demands. But poor small assessee has to pay 10% in appeal before Appellate authority and 20% in appeal before appellate tribunal.

  • Recovery can be made from distinct persons even if present in different states.

 
This example will clear it. Suppose one assessee having two registrations, one in state of Rajasthan and another in Assam. If the PAN number is same and demand is pending in Rajasthan then it can be recovered from Assam unit. When the registrations are separate then the separate then the recovery should be separate only. But if refund is applied in Assam then recovery of Rajasthan will be adjusted by officer. But the modus operandi to implement this procedure is to be seen. The officer may delay the refund by saying that he has asked other unit of same PAN whether any demand is pending against him.   This should not happen.
3. Credit/ Debit Notes

  • Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year instead of issuing and co-relating one credit/debit note against each invoice.

This was also demanded by industry at large. Suppose, discount is given to buyers on overall turnover then it is very cumbersome to issue number of credit notes linking it with invoices. The whole industry was finding it difficult. Moreover, number of credit notes is to be raised for each invoice. This has been relaxed by the department.
4. Job Work

  • Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.

This is also a welcome step. Otherwise, in earlier provisions, it was said the material did not return in specified period will be termed as supply. But now the permission can be taken from the commissioner.

  • Place of supply in case of job work of any treatment or processdone on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India. 

This amendment will lead to non-payment of GST on such job work
5. Multiple Registrations

  • Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.

Earlier it was allowed only in case of separate business vertical. But now it is allowed if the assessee wishes so then he can take separate registration. This was needed by assessee as they have separate cost centre and it was very difficult to operate separate units and then compile the data of all the units in the same state.
 
 
 
We hope the above is useful to you.
 
Your Need Our Concern…
Thanking you,                                                                                 
Regards,
               
Pradeep Jain, F.C.A.
 

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