GST
Supreme Court Grants Bail To Four Accused In Fake ITC Case After Consistent Trial Appearance
The Supreme Court recently granted bail to four persons accused of operating a network of fake firms to fraudulently avail Input Tax Credit (ITC) under the GST law. The top court held that their continuous appearance before the trial court amounted to “constructive custody” and that remanding them to jail would serve no useful purpose at this stage. A bench of Justice Dipankar Datta and Justice Satish Chandra Sharma was hearing appeals filed by the accused, who were arrested in 2021 by the...
Used Car Dealers Can Claim ITC On Repairs, Rent and Capital Goods Under GST Margin Scheme: Kerala AAR
The Kerala Authority for Advance Ruling (AAR) has held that dealers trading in second-hand motor vehicles under the GST margin scheme can claim Input Tax Credit (ITC) on inward supplies used in the course of business, except on the purchase of used vehicles. The ruling was delivered by IRS Jomy Jacob, Member (CGST), and Mansur M.I., Member (SGST), on an application filed by Goexotic Plus91 Motors Private Limited, a GST-registered dealer in old and used luxury vehicles. The applicant purchases...
Orissa High Court Sets Aside Ex Parte GST Order Over Notice Sent To VAT-Era Email
The court said that it was incumbent upon the CT and GST officer to verify whether the SCN had actually reached the taxpayer.
Differential GST On Pre-GST Works Contracts To Be Reimbursed By State Agencies: Karnataka High Court
The Karnataka High Court ruled that the additional GST liability arising out of the shift from the pre-GST VAT (Value Added Tax) regime to the GST regime in ongoing works contracts cannot be imposed on contractors.The bench consists of Justice M Nagaprasanna, who directed the State Departments and government agencies to reimburse the differential GST to contractors.All the contracts were awarded prior to July 2017 under the KVAT regime, where the contract rates factored in VAT and...
Gauhati High Court Quashes GST Registration Cancellation For Giving Only 7 Days To Respond
As per the CGST Rules, a taxpayer must be given at least 30 days to respond to a notice proposing cancellation of GST registration
GST Registration Cancelled For Non-Filing Of Returns Can Be Revived On Compliance: Gauhati High Court
The Gauhati High Court has reaffirmed that cancellation of a GST registration for continuous non-filing of returns does not permanently shut the door on restoration, so long as the taxpayer later files all pending returns and clears tax dues along with interest and late fees. A Single Judge Bench of Justice Sanjay Kumar Medhi observed that even where registration has been cancelled for prolonged non-compliance, the proper GST officer continues to have the authority to revive it upon full...
Cash Not 'Goods' Under GST; Authorities Cannot Seize It Without Evidentiary Link: Calcutta High Court
The Calcutta High Court reiterated that cash does not fall within the definition of “goods” under the Goods and Services Tax (GST) law and, therefore, GST authorities have no power to seize cash unless it is directly relevant to proceedings under the Act.A bench comprising Justice Om Narayan Rai referred to Section 2(52) of the CGST Act, which expressly excludes money from the definition of “goods.” The court observed, "A perusal of the said definition clearly reveals that money stands...
Gauhati High Court Rejects Bail Plea In ₹8.59 Crore GST Fraud Case
The Gauhati High Court has recently denied bail to a petitioner in Rs. 8.59-crore fake Input Tax Credit (ITC) scam, observing that the allegations disclose an organized and well-planned fraud involving misuse of the GST system. A bench comprising Justice Pranjal Das noted that custodial interrogation was necessary as the investigation was at a crucial stage and that granting bail could hamper efforts to unearth the larger conspiracy. Bahadur Islam, the petitioner, was arrested for alleged...
GST Refund Cannot Be Withheld Over Proposed Appeal: Bombay High Court
The Bombay High Court has held that GST authorities cannot refuse to comply with an appellate order directing a refund merely because an appeal against the order is contemplated. Such refusal is impermissible unless the appellate order is stayed or set aside. A Division Bench of Justice M. S. Sonak and Justice Advait M. Sethna was hearing a writ petition filed by Ma Agro Proprietor alleging non-compliance with an appellate order directing refund of GST along with interest. The court observed,...
GST Appeal Pre-Deposit Refund Not Hit By Limitation Applicable To Other Refunds: Supreme Court
The Supreme Court clarified that Section 54 of the GST Act, which prescribes two-year limitation for other refund claims, does not apply to refund of amounts deposited for filing GST appeals
Procuring Authority Liable For Differential GST In Government Contracts: Madras High Court Reiterates
Reiterating that additional GST arising from the rollout of the GST regime in government works contracts must be borne by the procuring authority, the Madras High Court has directed the Tamil Nadu Housing Board to consider a contractor's claim for reimbursement of differential tax.A Bench of Justice N Sathish Kumar relying on settled law, held that contractors cannot be fastened with liability for differential GST, interest, or penalties when tax was discharged strictly in accordance...
