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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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PJ/Case Law/2016-2017/3460

: The applicant is engaged in exclusive supply of wholly exempted goods and services in addition he is liable to pay tax under Reverse Charge mechanism as per Section 9(3) of the GST Act or 5(3) of the IGST Act. Whether the applicant will be liable for re
Case: JOINT PLANT COMMITTEE
Citation: 2018 (13) G.S.T.L. 89 (A.A.R. - GST)
Issue: The applicant is engaged in exclusive supply of wholly exempted goods and services in addition he is liable to pay tax under Reverse Charge mechanism as per Section 9(3) of the GST Act or 5(3) of the IGST Act. Whether the applicant will be liable for registration under any clause of Section 24 of the GST Act even if it is not making any taxable supply.
Brief facts: The issue involved in the appeal is filed by Joint Plant Committee(hereinafter referred to as the assessee). The assessee created under notifications of the Ministry of Steel, Managing and Operating Development Fund and other funds accumulated under Iron & Steel (Control) Order, 1956, and undertaking other allied activities, i.e., study and analysis of and maintenance of a comprehensive database on market situation in Iron & Steel Sector - Main source of income of applicant being interest earned on extending deposits, loans and advances, Sale of Journals and Renting of Guest Houses at rent below Rs.1000 .All these supplies are exempt from GST under various Notifications under Central and State GST laws .The assessee have filed an application, under Section 24 of the GST Act on 21-3-2018 for advance ruling hence the same is admitted.
Appellant contention:The Applicant is a non-profit organization set up by the Central Government under Clause 17 of the Iron & Steel (Control) Order vide SO 1567, dated 7-4-1971. The Applicant declares that it has not been registered under any of the repealed Acts and wants a ruling on whether it is required to be registered under the CGST/WBGST Act, 2017 The functions of the Applicant, as specified in the above notifications of the Ministry of Steel, Government of India, include Management and Operation of the Steel Development Fund and other funds accumulated under the Iron & Steel (Control) Order, 1956, study and analysis of and maintenance of a comprehensive database on market situation in the Iron & Steel Sector including fluctuation in market price, production, availability and movement of material etc. It appears from the statement of accounts for the year ending on 31-3-2017, submitted along with the Application, that the main source of the Applicant’s income is interest accrued on the deposits and on the loans provided from the Steel Development Fund. A secondary source of income is the consideration received from sale of journals and periodicals and from renting accommodation in its guest houses. The aggregate turnover from these sources well exceeds the threshold of twenty lakh rupees and makes it liable for registration under Section 22(1) of the GST Act, provided it does not make exclusively supply of goods or services that are not liable to tax or wholly exempt from tax under the GST Act.The Applicant’s supplies of journals and periodicals are wholly exempt under Serial No. 120 of Notification No. 2/2017-Central Tax (Rate).The Applicant’s case is that its supplies of services are not taxable either. The Applicant declares it makes no other supplies of goods or services.
Reasoning of Judgement:The Authority for Advance Ruling stated that it has considered the submissions made by the applicant in their application for advance ruling. It has also considered the question/issue on which advance ruling is sought by the applicant, relevant facts having bearing on the question/issue raised, the applicant’s understanding/interpretation of law in respect of the issue.The applicant sought advance ruling on the question that whether the applicant will be liable for registration under any clause of Section 24 of the GST Act even if it is not making any taxable supply but is liable to pay tax under Reverse Charge as per Section 9(3) of the GST Act or 5(3) of the IGST Act.
Reverse Charge Mechanism - Applicability to unregistered person - Advance Ruling - Since applicant is unregistered and also not liable to be registered, provisions of reverse charge under Section 9(4) of Central Goods and Services Tax Act, 2017 or Section 5(4) of Integrated Goods and Services Tax Act, 2017 will not apply - Section 9(4) of Central Goods and Services Tax Act, 2017. [para 11]
Section 24 is not subject to the provisions of Section 23 of the GST Act. If a person, therefore, is not liable to be registered for making exclusively exempt supplies but is liable to pay tax under Reverse Charges under Section 9(3) of the GST Act or 5(3) of the IGST Act, he shall be required to get himself registered under the GST Act, irrespective of the quantum of the aggregate turnover.
Based on information furnished along with the Application and the material presented at the time of Personal Hearing, it is, therefore, held that the Applicant is engaged exclusively in supplying goods and services that are wholly exempt from tax, and, therefore, not liable to be registered in accordance with the provisions under Section 23(1) of the GST Act, subject to the condition that the Applicant is not otherwise liable to pay tax under the Reverse Charge mechanism under Section 9(3) of the GST Act or 5(3) of the IGST Act.
As the applicant is unregistered and not liable to be registered, the provisions of Reverse Charge under Section 9(4) of the GST Act or 5(4) of the IGST Act will not apply.
Decision: The Advance ruling was in favour of assessee.
Comment: The gist of the case is that if the applicant is not required to be registered under the GST act, but is liable to pay Reverse Charge then the provision of reverse charge mechanism under Section 9(4) of the GST Act or 5(4) of the IGST Act will not apply.
Prepared by:Bhavika Kanjani
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