GSTAT Chandigarh Allows Deltron ₹2.90 Lakh GST Credit, Rejects ₹6.99 Lakh Claim

The GST Appellate Tribunal (GSTAT), Chandigarh, has allowed Deltron to claim ₹2.90 lakh in transitional tax credit on capital goods received after GST came into force. However, it rejected the company's claim for ₹6.99 lakh in credit on goods cleared for export before GST but exported after the new tax regime came into force.A Bench comprising Judicial Member Jatinder Pal Singh and Technical Member Pradeep Kumar Goel partly allowed the appeal filed by Deltron, a division of Continental Device...

GST Demand Cannot Be Confirmed Based On System-Generated Discrepancies Without Reconciliation: GSTAT Lucknow

The GST Appellate Tribunal (GSTAT), Lucknow Bench, has held that confirming a GST demand based purely on system-generated discrepancies, without a detailed one-to-one financial reconciliation, violates the spirit of law and fairness.The Division Bench of Judicial Member Santosh Kumar Srivastava and Technical Member Arvind Kumar made the observation while setting aside the original demand order and the first appellate order against Nitin Bakers Private Limited, involving ₹56.24 lakh in tax,...

GSTAT Ernakulam Allows Excess Output Tax Paid To Be Adjusted Against Ineligible ITC

The Goods and Services Tax Appellate Tribunal (GSTAT), Ernakulam Bench, has recently ruled that excess output tax paid by a taxpayer can be adjusted against ineligible Input Tax Credit (ITC). It held that when the excess tax paid exceeds the ITC disallowed, there is no short payment of tax warranting proceedings under Section 73 of the CGST/KGST Act.“Expecting the appellant to pay up the shortfall demanded and then file a claim for refund of the excess amount paid would be an exercise in...

ITC Cannot Be Denied Solely On Allegation That Supplier Is Bogus Without Examining Buyer's Evidence: GSTAT Agra

The GST Appellate Tribunal (GSTAT), Agra Bench, has recently ruled that an allegation that a supplier is bogus cannot, by itself, justify denying Input Tax Credit (ITC) without examining the evidence produced by the buyer to establish that the purchases were genuine.The bench comprising Judicial Member Ajeet Singh and Technical Member Vivek Kumar upheld ITC of ₹3.83 lakh claimed by Safecon Lifesciences Private Limited. It found that the company had produced documents supporting the purchases and...

GSTAT Trivandrum Allows Cashew Exporter's Refund Claim For IGST Paid Twice Due To Return Filing Error

On 16 October, the Thiruvananthapuram Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) allowed a cashew exporter Associated Cashews to recover approximately Rs. 19.79 lakh in Integrated Goods and Services Tax (IGST) paid twice, holding that a clerical error in GST returns cannot justify denying a refund of tax paid in excess, A Bench comprising Vice-President Subramanya Rayaprol and Technical Member Ramamoorthi Sriram observed that the GST Department cannot retain tax collected...

CA Certificate Cannot Be Rejected Merely Because It Was Issued After Transactions: GSTAT Lucknow

The Lucknow Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 6 October held that a Chartered Accountant's (CA) certificate supporting an Input Tax Credit (ITC) claim cannot be rejected solely because it was issued after the transactions in question, provided its contents can be verified against contemporaneous records. A Bench comprising Judicial Member Narendra Kumar and Technical Member Alok Chopra allowed Rameshwar Gupta's appeal against the rejection of his ITC claim for...

GSTAT Orders IRCTC To Deposit ₹50.41 Crore For Failing To Pass On GST Benefit On Rail Neer

The GST Appellate Tribunal (GSTAT) at Delhi has held that Indian Railway Catering and Tourism Corporation Limited (IRCTC) failed to pass on the benefit of a reduction in tax rates on Rail Neer packaged drinking water after GST was introduced in 2017. The tribunal found that although the Railway Board fixed the maximum retail price (MRP), IRCTC had the discretion to determine the transfer price at which it supplied the product to railway licensees and contractors.A special bench comprising...

GSTAT Delhi Directs Builder To Pay ₹31.20 Lakh To 66 Homebuyers For Failure To Pass On ITC Benefit

The Principal Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) at Delhi, on 30 September directed Mangalbela Real Estates Pvt. Ltd. to pay Rs. 31.20 lakh to 66 homebuyers of its Atri Green Valley Project in Kolkata, along with 18% annual interest. A Single Member Bench of Technical Member Anil Kumar Gupta rejected the company's objections to the re-investigation and held that it had violated Section 171(1) of the Central Goods and Services Tax (CGST) Act, 2017, by failing to pass...

GSTAT Bengaluru Blocks Resort Construction ITC, Rules Safari Retreats Functionality Test Inapplicable

The Bengaluru Bench of the GST Appellate Tribunal (GSTAT) on 30 September held that the functionality test laid down by the Supreme Court in Chief Commissioner of CGST v. Safari Retreats (P) Ltd. cannot be applied to claim Input Tax Credit (ITC) on the construction of a hotel or resort building, particularly after the retrospective amendment to Section 17(5)(d) of the Central Goods and Services Tax (CGST) Act, 2017. A Bench comprising Judicial Member Prabhakaran P.M. and Technical Member...

GSTAT Bengaluru Sets Aside ₹20.13 Lakh Penalty On Valuecart For E-Way Bill Lapse, Imposes ₹25,000 Fine

The Bengaluru Bench of the GST Appellate Tribunal (GSTAT) on 30 September partly allowed an appeal filed by Valuecart Private Limited against a penalty of Rs. 20,13,640 imposed under Section 129 of the Central and Karnataka Goods and Services Tax Acts, and reduced the penalty to Rs. 25,000 under Section 125 of the GST Acts for the procedural lapse. A Bench comprising Technical Member Sudha Koka and Judicial Member Srikanth Venkatraman held that failure to generate a fresh e-way bill for...

Commissioner's Approval Alone Cannot Sustain Departmental Appeal Below ₹20 Lakh: GSTAT Ghaziabad

On 1 October, the Goods and Services Tax Appellate Tribunal (GSTAT), Ghaziabad, held that a departmental appeal cannot be maintained when the disputed tax demand is below the prescribed monetary limit unless the Revenue establishes a recognised exception to the limit. A Division Bench comprising Judicial Member Dr. Sanjay Kumar Chandhariyavi and Technical Member Sungita Sharma dismissed the Revenue's appeal involving a disputed amount of Rs. 11.88 lakh at the threshold, without examining its...

GSTAT Lucknow Quashes ₹6.62 Lakh Demand Against Jai Enterprises, Says Suspicion Can't Prove Tax Evasion

The Lucknow Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 16 September held that tax and penalty cannot be sustained merely on an inference that goods had been transported earlier or that e-way bills had been reused without evidence establishing either. A Two-Member Bench comprising Judicial Member Santosh Kumar Srivastava and Technical Member Arvind Kumar allowed Jai Enterprises' appeal and set aside the order of the Additional Commissioner Grade-2 (Appeals), Kanpur, which...