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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 TRANSITIONAL CHANGES IN SERVICE TAX

GST UPDATE ON TRANSITIONAL CHANGES IN SERVICE TAX
 
GST UPDATE ON TRANSITIONAL CHANGES IN SERVICE TAX
 
Circular no. 207/5/2017-Service Tax dated 28th September, 2017 has been issued to clarify the most awaited ambiguity relating to admissibility of credit on services covered under reverse charge for the month of June, 2017. It is worthwhile to mention here that the last date of payment of service tax under reverse charge for the month of June, 2017 was 5th/6th July, 2017. Credit on these services can also be availed after making payment of tax. Thus, there was ambiguity on the admissibility of credit on such services, on which tax was paid after 1st July but before 5th /6th July, 2017.
 
Now the above mentioned Circular has allowed the credit on such input services received under reverse charge if the following conditions are satisfied:-
 
·        The services should have been issued upto 30/06/2017.
·        The payment of invoice raised in respect of these services should also have been made upto 30/06/2017.
·        The service tax on these services should have been paid after 1st July but before 5th/6th July, 2017.
 
If the above conditions are satisfied, credit of said service tax can be claimed by following the below-mentioned procedure:-
·        The ST-3 return filed for the month of April to June, 2017; shall have to be revised and the credit shall have to be shown in the revised return.
·        After revising the service tax return, the said credit shall have to be shown in TRAN-1.
·        In case TRAN-1 is also filed; the same has to be amended upto 31st October, 2017.
 
In the instant case, the last date of filing the ST-3 was 15th August, 2017. It is worth noting here that the benefit of this circular is being extended even to those assessees who filed the ST-3 return after 15th August, 2017 till 31st August, 2017. The assessees have not considered the above referred credits in the return so filed. Therefore, return is required to be revised. The time period for revision of return is 45 days from filing of return. In this case, going by the due date of ST-3 return (which is 15.8.2017); the due date of revising the return has also expired. It is therefore provided that the last date of filing the service tax return for the period from April, 2017 to June, 2017 shall be deemed as 31/08/2017. Therefore, in case where assessee has already filed his ST-3 returns by 31st August, 2017; they can now file the revised return within 45 days from 31/08/2017 i.e. till 14th October, 2017.
 
On revising the return such credit then should be indicated in part I of ST-3 after which the assessee can fill in such details in TRAN-1. If they have already filed TRAN-1; it is required to be revised by 31st October, 2017 as stated earlier.

It is worthwhile to mention here that the benefit of this circular will not be admissible if:-
·        The payment of the invoice value is done after 30th June, 2017; or
·        The payment of tax under reverse charge is being done after 5th or 6th of July, 2017.
 
Further, in the case of assessees who were not registered under ACES, who want to make payment of service tax on or after 1-7-2017, they may avail of the category of “non assessee registration” in the registration module of ACES.
 
 
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