Bombay High Court Directs Emirates To Pursue GST Appeal In Air Cargo Services Tax Dispute

The Bombay High Court recently disposed of a writ petition filed by Emirates challenging a GST demand order passed by the Maharashtra State Tax Department over taxation of air cargo transportation services. The airline argued that transportation of goods by aircraft from India to destinations outside India, along with ancillary services, formed part of a composite supply exempt from GST under a Central Government notification issued in 2018 granting exemption to export air cargo transportation...

Tuition Classes For School Students Not Eligible For GST Exemption As Educational Institution: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has recently ruled that coaching services provided by Surat-based Friends Classes to students of Standards 5 to 12 are taxable at 18% GST and do not qualify for exemption available to educational institutions. A bench of CGST Member Vishal Malani and SGST Member Sushma Vora held that the applicant did not fall within the definition of an “educational institution” under the GST exemption framework and therefore could not claim exemption from GST...

Electric Bus Rental Services With Operators Attract 18% GST As Electricity Not 'Fuel': Gujarat AAR

The Gujarat Authority for Advance Ruling has held that the rental of electric buses with operators by JBM Ecolife Mobility in Surat will attract 18% GST, ruling that electricity cannot be treated as “fuel” to claim a lower tax rate. The bench of Member (CGST) Vishal Malani and Member (SGST) Sushma Vora passed the ruling.JBM Ecolife Mobility operates 150 air-conditioned electric buses in Surat and is paid a fixed ₹59.29 per kilometre under its contract. It approached the Authority to determine...

No Fresh GST Demand For Same Amount Without Credit For Reversed ITC: Orissa HC Sets Aside Tax Demand

The Orissa High Court has set aside GST proceedings against an individual taxpayer, holding that once input tax credit (ITC) is reversed, the tax department cannot demand the same amount again without giving due credit for such reversal. “Once it is conceded by the Revenue that the amount of input tax credit for a sum of Rs.4,39,970/- has been reversed, raising demand to the same without giving due credit to such reversal is unethical and without authority of law. In such an event, since net...

Gujarat AAAR Upholds Denial Of ITC On Lease Rent For Industrial Land Used In Factory Construction

The Gujarat Appellate Authority for Advance Ruling (AAAR) held that Input Tax Credit (ITC) of GST paid on lease rentals for land taken on a long-term lease for setting up a factory is blocked under Section 17(5)(d) of the CGST Act, as the provision bars credit on inputs and input services used for construction of immovable property. A Bench comprising SGST Member Arti Kanwar and CGST Member Sunil Kumar Mall dismissed the appeal by Agratas Energy Storage Solutions Pvt. Ltd. and upheld the...

University Affiliation, NOCs Not 'Supply', No GST On Statutory Functions: Andhra Pradesh High Court

The Andhra Pradesh High Court, on 27 April, held that services provided by universities, such as grant of affiliation and issuance of No Objection Certificates (NOCs), are not liable to GST, as these activities are statutory in nature and do not qualify as “business” or “supply” under GST law. A Division Bench of Justices R. Raghunandan Rao and T.C.D. Sekhar, while hearing a batch of writ petitions including those filed by Jawaharlal Nehru Technological University, Kakinada and other similarly...

Additional ITC Benefit Must Be Passed On Even If Unutilised: GSTAT Delhi

The GST Appellate Tribunal (GSTAT) at Delhi has recently observed that a GST-registered taxpayer cannot avoid passing on additional input tax credit benefits to buyers merely because the credit remains unutilised. A bench comprising Technical Member A. Venu Prasad made the observation while adjudicating anti-profiteering proceedings concerning Bengal Shapoorji Housing Development Private Limited. “The mere accrual of additional ITC reduces the cost of supply, irrespective of whether such...

Jharkhand High Court Refuses To Entertain Writ Against Delayed GST Order, Cites Alternative Remedy

The Jharkhand High Court refused to entertain a writ petition challenging a GST adjudication order passed after a delay of five years, holding that the taxpayer must avail themselves of the statutory appellate remedy instead of invoking writ jurisdiction. A bench comprising Chief Justice M.S. Sonak and Justice Rajesh Shankar observed that where a statutory appeal is available, the High Court should not ordinarily entertain a writ petition. The Court noted, “Since the petitioner has an...

Bombay High Court Rules Damages Under Arbitral Award Not Taxable Under GST In Tata Sons–NTT Docomo Case

The Bombay High Court has held that the Rs. 8,450 crore paid by Tata Sons to NTT Docomo under an arbitral award cannot be subjected to GST.The payment arose from a dispute over Docomo's exit rights under a shareholders' agreement in Tata Teleservices, and the Court rejected the tax department's claim that it amounted to a taxable service. A Division Bench of Justices G.S. Kulkarni and Aarti Sathe was considering whether settlement of the arbitral award and the accompanying consent terms could...

Consolidated GST Show Cause Notices Across Multiple Years Permissible: Karnataka High Court

The Karnataka High Court has recently ruled that GST authorities can issue a single show cause notice covering multiple financial years, settling a dispute over whether such notices must be confined to one year. The question before the court was, “Whether it would be permissible to issue consolidated/common show cause notice under Sections 73 and 74 of the Act covering multiple financial years or multiple tax periods?” Answering this, a bench of Justice S.G. Pandit and Justice K.V. Aravind...

Bombay High Court Quashes GST Demand On Mumbai University, Says Affiliation Not 'Supply' Of Service

The Bombay High Court has recently set aside a GST demand of Rs 16.90 crore on the University of Mumbai, holding that affiliation fees collected by the university are part of its statutory duties and not taxable. “Thus, having examined Section 7 and its purport in regard to its applicability in the context of the petitioner University receiving affiliation fee, in our opinion, there ought not to be any ambiguity that the collection of affiliation fees by the petitioner University in the...

Mere GST Deposit In Electronic Ledger Not Payment Until Appropriated To Government: Andhra Pradesh High Court

The Andhra Pradesh High Court has recently held that merely depositing GST in the electronic ledger does not amount to payment to the Government, while setting aside a tax and penalty order against Sona Enterprises. "The provisions of Section 49(1) of the CGST Act read with Rule 87(6) & (7) of the CGST Rules makes it clear that the deposit of cash or the credit of input tax credit into the electronic ledger of the tax payer would not amount to payment of tax. Such payment of tax would...