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Corporate News *  GST registration cancellation without reasons amounts to ‘Economic Death’ of business: Supreme Court. *  No GST refund if appeal before GSTAT is filed late: Gujarat High Court. *  Mere upload of GST notice on portal not valid service, appeal limitation won’t start: Punjab & Haryana High Court. *  Taxpayer can’t be penalised for missing notices hidden under ‘Additional Notices/Orders’: Calcutta High Court allows fresh adjudication. *  State tax officer can’t issue GST SCN beyond CBIC-assigned jurisdiction: Bombay High Court stays recovery proceedings. *  Earlier 7.5% Pre-Deposit must count towards mandatory 10% for Appeal: Uttarakhand high court quashes CESTAT Order. *  Third Parties can’t challenge GST Advance Rulings merely due to financial impact: Karnataka HC *  GST SCN generated using AI tool quashed: Punjab & Haryana High Court *  Bank Attachment Quashed as Madras HC Quashes GST Order Issued Against Deceased Person *  ITC Blocking Order for Failure to Record ‘Reason to Believe’ U/R 86A Quashed: Allahabad High Court *  Govt Extends GSTAT Appeal Filing Deadline From 30 June to July 31, 2026 *  GST Demand on RWA Stayed: Allahabad High Court Questions Taxability of Electricity Distribution to Flat Owners *  CBIC Clarifies Jurisdiction After GST Registration Transfer: Earlier Proceedings Remain Valid, New Officer to Continue Action *  GST authorities’ certification not mandatory for reimbursement, but tax payment must be proven: Karnataka HC *  Contractor can’t seek gst reimbursement through writ when contract has arbitration clause: Karnataka HC *  Unsigned Order Is No Order in Law: AP HC Quashes GST Assessment Order for Want of Officer’s Signature *  Customs Can’t Levy Rs. 1.36 Crore Cost Recovery Charges Without Proof of Full-Day Officer Deployment: CESTAT  *  12% IGST Payable On Imported Dialysis Machine Parts: CESTAT *  Bombay High Court Admits Challenge to GST Limitation Extension Notifications; Grants Protection Against Coercive Recovery *  Criminal Case Can’t Run Parallel to GST Proceedings on Same Facts: Allahabad High Court *  Allahabad High Court Stays GST Detention Order; Directs Release of Vehicle and Goods on Deposit of Rs. 1.44 Lakh *  Service Tax Can’t Be Levied on Loss-Making Contracts: Gujarat High Court *  GSTN Mandates Ship-to GSTIN in e-Invoice and e-Way Bill APIs; Introduces Voluntary e-Way Bill Closure Facility from August 1, 2026 *  GST Appeal Can’t Be Rejected as Time-Barred When Taxpayer Was Pursuing Rectification Remedy: Telangana High Court *  Absence of E-Way Bill and Transport Documents Justifies Customs Seizure U/s 110: Gauhati HC *  Madras High Court Upholds GST Late Fee and Penalty for Non-Filing of Annual Return, Dismisses Challenge  *  GST Records, Purchase Documents Sufficient to Discharge Burden Under Customs Act: CESTAT Orders Release of 3.65 Kg Gold  *  No Sugar Cess Payable on Sugar Exported Out of India: CESTAT *  Road Construction Services Exempt and SCN Time-Barred: CESTAT Quashes Service Tax Demand Based Solely on Form 26AS  *  ITC Freeze Upheld After GST Dept Find Suppliers Were Allegedly Fake Bill-Trading Entities: Madras HC 
Subject News *  Input service benefits can’t be denied: CESTAT allows export refund despite MMTC acting as Canalising agency. *  No service tax demand without proof of service of SCN: CESTAT. *  Service tax demand quashed as dept. fails to prove service of SCN: CESTAT *  GST : Mere allegation of inadequate consideration of reply not enough to invoke writ jurisdiction: Delhi High Court *  Onerous conditions imposed for provisional release of seized imported goods shouldn’t amount to virtual denial of relief: CESTAT. *  GST SCN without alleging fraud cannot invoke sec. 74: Karnataka High Court quashes adjudication order. *  Extended Limitation Can’t Be Invoked Merely on Form 26AS Data: CESTAT *  Revenue-Sharing with Restaurants Not Taxable as Business Support Service: CESTAT *  R. 6(3) Option Can’t Be Forced on Taxpayer; CESTAT Quashes Rs. 12.36 Crore CENVAT Credit Demand *  Excise Duty | Power Consumption Alone Can’t Prove Clandestine Manufacture: Karnataka High Court *  Madras High Court Examines DGGI’s Authority to Issue GST Penalty Orders Under Section 122, Adds DGGI as Party *  Proceedings under omitted r. 96(10) can’t survive without saving clause: andhra pradesh high court quashes gst refund recovery *  Excise duty power consumption alone can’t prove clandestine manufacture: karnataka high court *  Madras high court rules GST show cause notices must disclose grounds for invoking extended limitation *  Court Can’t Direct Extension GST Return Deadlines or Waive Interest and Penalties: Karnataka High Court *  GST Notifications Can’t Go Beyond GST Council Recommendations: Madras High Court Quashes SCN on Branded Pulses *  Appeal Can’t Be Dismissed for Delay When Dept’s Own Order Mis-states Limitation Period: CESTAT *  No Evidence of KYC or Due Diligence Breach By Customs Broker: CESTAT Quashes Licence Revocation in Export Overvaluation Case *  Glucometers Are Chemical Analysis Instruments Classifiable Under Tariff Heading 9027: CESTAT *  Validity of Post-GST Service Tax Proceedings Upheld: Gujarat High Court Dismisses Challenge to S. 73 SCN *  Rectified GST Refund Applications Can’t Be Rejected as Time-Barred If Original Refund Claim Was Filed Within Limitation: Gujarat HC *  Service Tax Refund Can’t Be Denied as Time-Barred When Levy Itself Is Unconstitutional: Gujarat High Court *  Same Officer Can’t Act As Auditor & Adjudicator: Karnataka High Court *  Karnataka High Court Condones 324-Day Delay, Revives Customs Appeal in Jewellery Pilferage Case  *  Madras High Court Quashes GST Assessment Order Passed Ex Parte Despite Prior ITC Reversal; Lifts Bank Attachment *  Tobacco Process Doesn’t Amount to Manufacturing: Madras High Court Quashes Rs. 1.32 Crore Compensation Cess Demand  *  Recovery Notice Unsustainable After Voluntary Reversal of Unutilised Credit: CESTAT  *  GST | ‘System Generated’ SCN Without Officer Details Invalid: Allahabad HC  *  Electronic Records Without Statutory Certification Requirements Can’t Justify Undervaluation Allegations: CESTAT *  Madras High Court Stays GST Order, Finds Prima Facie Merit in Plea Against S. 74 Proceedings Based on S. 73 Intimation  

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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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