GST Law Does Not Bar More Than One Refund Application, Especially In Case Of Inadvertent Lapse: Bombay HC

The Bombay High Court has recently held that a GST refund claim cannot be rejected merely because the taxpayer had earlier filed another refund application for a broader tax period, where the later claim was filed within the limitation period and there is no statutory bar against such a claim. Referring to Section 54(1) of the Central Goods and Services Tax Act, which governs refund claims, the Court said: “Section 54 does not provide any bar for a party to maintain more than one application,...

Bombay High Court Quashes Post-Merger GST Demand Against Vodafone Mobile Services

The Bombay High Court has recently held that GST proceedings initiated against Vodafone Mobile Services Ltd. after it ceased to exist due to its merger with Idea Cellular Ltd. and Vodafone India Ltd. were void ab initio. The court set aside the adjudication order and held that the show cause notice itself was issued without jurisdiction. A Division Bench of Justice G. S. Kulkarni and Justice Aarti Sathe observed that, “the show-cause notice itself having been issued without jurisdiction, the...

Bombay High Court Issues LOC, Non-Bailable Warrant Against Elitecon Director In DGGI Contempt Case

The Bombay High Court has recently directed issuance of a lookout circular and a non-bailable warrant against Elitecon International Ltd. director Vipin Sharma. The court acted after Sharma failed to remain physically present before it despite an undertaking given through his counsel in contempt proceedings arising from an alleged breach of an assurance to appear before Directorate General of GST Intelligence (DGGI) officers whenever summoned. The court said Sharma had been in “continuous...

Rajasthan High Court Upholds GST Penalty Order Despite Absence Of DIN, Says RFN Is Sufficient

The Rajasthan High Court has held that a GST order communicated through statutorily recognised modes such as the GST portal, registered post or e-mail cannot be invalidated merely because it does not mention a Document Identification Number (DIN), where the communication carries a verifiable Reference Number (RFN). “Once service has been effected in any of the recognised statutory modes, we are of the view that the requirement of lawful communication clearly stands satisfied,” a division bench...

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...