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...

Digital Film Delivery Does Not Make It 'IT Software': Bombay HC Quashes GST Demand Against Dharma Productions

The Bombay High Court has quashed a ₹12.11 crore GST demand against Dharma Productions over licensing of copyright in cinematographic films, holding that electronic delivery of film content cannot by itself make the transaction one involving “Information Technology Software”. A bench of Justice M.S. Karnik and Justice Sandesh D. Patil was considering whether the manner in which the films were delivered, physically through encrypted hard disks or electronically, could determine their GST...

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...

GST | Disputed SCN Service, Personal Hearing Issues Cannot Be Raised In Writ Plea: Delhi High Court

The Delhi High Court has declined to exercise its writ jurisdiction over pleas by two directors of Sterne India Pvt. Ltd. challenging a ₹27.11 crore GST penalty. The court held that their claims over service of the show cause notice (SCN) and denial of personal hearing involved factual issues that could be examined by the statutory appellate authority. According to the court, these grievances did not justify bypassing the remedy of appeal available under Section 107 of the Central Goods and...

GST | Proceedings Under Sections 73, 74 Can Co-Exist If They Concern Distinct Infractions: Delhi High Court

The Delhi High Court has held that proceedings under Sections 73 and 74 of the Central Goods and Services Tax Act, 2017 (CGST Act) can co-exist where they concern distinct liabilities or contraventions.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while dismissing a plea filed challenging proceedings initiated by the Central GST authorities under Section 74 of the CGST Act in relation to alleged inadmissible Input Tax Credit (ITC) availed by...

Taxpayer's Assignment To State Tax Administration Doesn't Bar DGGI's Pan-India Jurisdiction: Delhi High Court

The Delhi High Court has reiterated that merely because a taxpayer is administratively assigned to the State tax administration, it does not bar the Directorate General of Goods and Services Tax Intelligence (DGGI) from exercising its pan-India jurisdiction to investigate alleged GST evasion.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while dealing with a batch of petitions filed by a real estate company which has GST registrations in Karnataka, Tamil Nadu...

Delhi High Court Upholds GST Circular Allowing Common Adjudication Of Composite SCNs Based On Highest Demand

The Delhi High Court has upheld the validity of a GST circular prescribing the 'highest amount of demand' criterion for selecting a Common Adjudicating Authority where a composite show-cause notice is issued to multiple noticees falling under different jurisdictions.The Division Bench of Justices Anil Kshetarpal and Shail Jain held that the circular does not confer any fresh jurisdiction on an officer. Rather, it merely provides an administrative mechanism for selecting, from among officers who...