Reversal Of ITC For Earlier Tax Period Cannot Be Deducted From ITC Availed During Refund Period: GSTAT

The Goods and Services Tax Appellate Tribunal (GSTAT), Ranchi, has held that an ITC reversal relating to an earlier tax period cannot automatically be deducted from the ITC availed during a refund period merely because the reversal was recorded during that period.The ruling concerned paragraph 43(c) of CBIC Circular No. 125/44/2019-GST, which the Revenue relied on to argue that ITC reversed through GSTR-3B during the refund period could not be treated as ITC availed during that period. Rejecting...

GSTAT Ernakulam Says ITC Eligibility Must Be Decided Under CGST Act, Sets Aside ₹7.07 Lakh Denial

The Ernakulam Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 8 September held that refund of unutilised Input Tax Credit (ITC) cannot be denied on the ground of ineligibility unless the credit is first disallowed through proceedings under the prescribed provisions of the GST law. A Bench comprising Vice-President Subramanya Rayaprol and Technical Member Ramamoorthi Sriram allowed the appeal filed by Augustan Textile Colours, a unit of Augustan Knitwear Pvt Ltd, and set aside...

E-Way Bill Generated After Detention Cannot Cure GST Violation: GSTAT Bengaluru

The GST Appellate Tribunal, Bengaluru Bench, has dismissed an appeal against a penalty imposed on a taxpayer after GST authorities found that goods were being unloaded at a destination different from the one mentioned in the accompanying tax documents.The Tribunal held that the subsequent generation of an e-way bill and invoice after interception could not cure the violation under Section 129 of the CGST Act, as the required documents for the actual destination were not available when the...

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....

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...

Clerical Error Cannot Justify Denial Of Refund Of IGST Paid Twice: GSTAT Thiruvananthapuram

On 17 September, the Thiruvananthapuram Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) held that a clerical error in reporting export turnover in GSTR-3B cannot by itself justify denial of refund of IGST paid twice by an exporter. A Division Bench comprising Vice-President Subramanya Rayaprol and Technical Member Ramamoorthi Sriram set aside the Orders rejecting Choice Cashew Industries' refund claims and allowed the three appeals with consequential reliefs. The Bench described...

Electronic Gift Vouchers Can Be Valid Mode Of Passing GST Rate-Cut Benefit If Unconditional: GSTAT Delhi

The GST Appellate Tribunal at Delhi has recently held that electronic gift vouchers (EGVs) can be a mode of passing on a GST rate reduction, where they provide customers a direct monetary credit without conditions, expiry or usage restrictions.The ruling came in proceedings involving Sane Retails Pvt. Ltd., accused of failing to pass on a reduction in GST from 28% to 18% on MI LED Television 4A 80 cm from January 1, 2019. The tribunal found that the company had substantially complied with the...

10% Pre-Deposit For Penalty-Only GST Appeals Cannot Apply Retrospectively: GSTAT Hyderabad

The Hyderabad Goods and Services Tax Appellate Tribunal (GSTAT) on 28 July held that the 10% pre-deposit requirement introduced for penalty-only appeals under the proviso to Section 112(8) of the Central Goods and Services Tax (CGST) Act cannot be applied retrospectively. A Bench comprising Judicial Member Justice Sushil Kumar Sharma and Technical Member Duvvuri Krishna Srinivas allowed the appeal filed by Reddy Veeranna Constructions Pvt. Ltd. and held that the amended provision would not...

Recovery Of Inadmissible Pre GST CENVAT Credit Must Proceed Under Earlier Tax Laws: GSTAT Thane

The Goods and Services Tax Appellate Tribunal (GSTAT), Thane Bench, has recently clarified that GST authorities cannot use Section 74 of the Central Goods and Services Tax (CGST) Act to question tax credits that businesses earned before GST came into force and later carried forward into the GST system. Section 74 allows tax authorities to recover tax where they allege fraud, suppression of facts or wilful misstatement. The tribunal held that this provision cannot be used to determine whether...

GSTAT Launches Token Facility For Appellants Facing Issues In E-Filing Appeals

The Goods and Services Tax Appellate Tribunal (GSTAT) has activated the token generation facility for appellants facing issues while filing appeals on its e-filing portal. The facility is available through the scrolling highlights on the portal's home page. A token generated on or before July 31, 2026, will be treated as sufficient compliance with the appeal filing deadline. The appellant must, however, complete the actual filing within 60 days from the date of token generation. The tribunal...