Loading Ballast Into Railway Wagons Is Separate Service, Attracts 18% GST: Karnataka AAR

The Karnataka Authority for Advance Ruling (AAR) has held that supply of ballast to the Railways and its subsequent loading into railway wagons are separate and independently identifiable supplies. The two activities cannot be treated as a composite supply merely because they arise from the same tender or work order. A Bench comprising Central Member Kalyanam Rajesh Rama Rao and State Member Sivakumar S. Itagi, passed a ruling in an application filed by S.K. Swamy and Company concerning the GST...

GSTAT Directs Hyderabad Cinema Operator To Deposit ₹81,722 For Failing To Pass On GST Rate Cut Benefit

The Principal Bench of the GST Appellate Tribunal (GSTAT) on 19 September directed Hyderabad-based cinema operator Devi 70MM to deposit Rs. 81,722 towards profiteering for failing to pass on the benefit of the reduction in GST on cinema admission tickets priced at Rs. 100 or below, which was reduced from 18% to 12% with effect from 1 January 2019. A Single Member Bench comprising Judicial Member Justice Mayank Kumar Jain held that a cinema operator must pass on the benefit of a GST rate...

GST Payable On Godown Rent Even For Exempt Agricultural Warehousing: Gujarat AAR

On 21 September, the Gujarat Authority for Advance Ruling (AAR) held that rent paid for hiring godowns from unregistered persons is taxable under GST under reverse charge, even when the godowns are used exclusively for providing exempt storage and warehousing services for agricultural produce. A Bench comprising SGST Member Sushma Vora and CGST Member Vishal Malani disposed of the application filed by Gujarat State Warehousing Corporation, holding that the hiring of godowns and the subsequent...

GSTAT Ernakulam Says ITC Eligibility Must Be Decided Under CGST Act, Sets Aside ₹7.07 Lakh Denial

The Ernakulam Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 8 September held that refund of unutilised Input Tax Credit (ITC) cannot be denied on the ground of ineligibility unless the credit is first disallowed through proceedings under the prescribed provisions of the GST law. A Bench comprising Vice-President Subramanya Rayaprol and Technical Member Ramamoorthi Sriram allowed the appeal filed by Augustan Textile Colours, a unit of Augustan Knitwear Pvt Ltd, and set aside...

E-Way Bill Generated After Detention Cannot Cure GST Violation: GSTAT Bengaluru

The GST Appellate Tribunal, Bengaluru Bench, has dismissed an appeal against a penalty imposed on a taxpayer after GST authorities found that goods were being unloaded at a destination different from the one mentioned in the accompanying tax documents.The Tribunal held that the subsequent generation of an e-way bill and invoice after interception could not cure the violation under Section 129 of the CGST Act, as the required documents for the actual destination were not available when the...

Original Goods' Value Need Not Be Included In E-Way Bill For Job Work Returns: GSTAT Thiruvananthapuram

The GST Appellate Tribunal, Thiruvananthapuram Bench, has held that when a job worker returns goods to the principal after completing the job work, the transaction value is limited to the job-work charges and applicable duties. The value of the original goods subjected to job work cannot be included in the consignment value declared in the e-way bill. The Division Bench of Vice-President Subramanya Rayaprol and Technical Member Ramamoorthi Sriram further held that where the transaction value of...

Kerala Water Authority Not 'Local Authority,' Works Contract Services Taxable At 18% From 2022: GSTAT Thiruvananthapuram

The GST Appellate Tribunal (GSTAT), Thiruvananthapuram Bench, has held that the Kerala Water Authority (KWA) is not a “local authority” under the CGST Act. It consequently ruled that works contract services supplied to KWA were taxable at 18% from January 1, 2022, instead of the 12% rate paid by the assessee. A coram of Vice-President Subramanya Rayaprol and Technical Member Ramamoorthi Sriram held that KWA does not fall within any of the categories of “local authority” specified under Section...

Mismatch In ITC Claim And Supplier Credit Alone Cannot Prove Wrongful ITC : GSTAT Bengaluru

The GST Appellate Tribunal, Bengaluru Bench, has held that a difference between the input tax credit (ITC) claimed by a taxpayer in its GST return and the credit reflected in the supplier-linked GSTR-2A statement cannot, by itself, prove that the ITC was wrongly availed.It observed that a mismatch between GSTR-2A and GSTR-3B, by itself, cannot establish that Input Tax Credit was wrongly claimed.The Division Bench of Judicial Member Prabhakaran P.M. and Technical Member (State) Ravi Jesuraj S....

Delhi High Court Sets Aside Rejection Of GST Cancellation Revocation Plea Over Unidentified Officer

The Delhi High Court has set aside an order rejecting a taxpayer's application for revocation of cancellation of its GST registration, after finding that the notice granting an opportunity of personal hearing did not disclose the details of the officer before whom the taxpayer was required to appear.The Division Bench of Justices Anil Kshetarpal and Amit Mahajan directed the GST authorities to grant the taxpayer a fresh opportunity of personal hearing and thereafter pass a fresh order on its...

Gauhati High Court Bars Coercive GST Recovery During Search, Directs Authorities To Follow Investigation Guidelines

The Gauhati High Court has directed GST authorities not to take coercive steps against a taxpayer for discharge of any liability during an ongoing search and directed them to adhere to the prescribed GST investigation guidelines till the returnable date.Justice Manish Choudhury passed the order while hearing a writ petition filed by Deepak Construction Co., a partnership firm having its principal place of business at Hijuguri, Tinsukia, Assam.The petitioner's principal place of business was...

GST | Same Assessee, Overlapping Periods Not Enough To Bar DGGI Proceedings: Delhi High Court

The Delhi High Court has held that proceedings initiated by State GST authorities and the Directorate General of GST Intelligence (DGGI) are not barred under Section 6(2)(b) of the Central Goods and Services Tax Act, 2017, merely because they relate to the same assessee, overlapping financial periods, or involve Input Tax Credit (ITC).The Division Bench of Justices Anil Kshetarpal and Shail Jain observed that the statutory bar under Section 6(2)(b) is attracted only when the subsequent...

Objection To Parallel State GST, DGGI Proceedings Can Be Raised In Statutory Appeal: Delhi High Court Refuses Writ

The Delhi High Court has held that a taxpayer challenging proceedings initiated by the Directorate General of GST Intelligence (DGGI) on the ground that the same subject matter had already been dealt with by State GST authorities can raise the objection under Section 6(2)(b) of the Central Goods and Services Tax Act, 2017 (CGST Act), before the statutory appellate authority.The Division Bench of Justices Anil Kshetarpal and Shail Jain was dealing with a plea by challenging show cause notice...