Tax
ITC Cannot Be Denied Solely Over GSTR-3B, GSTR-2A Mismatch: GSTAT Lucknow
The GST Appellate Tribunal (GSTAT), Lucknow on 18 September held that a mismatch between Input Tax Credit (ITC) claimed in GSTR-3B (a self-declared summary return) and the credit reflected in GSTR-2A (an auto-generated statement of supplier filings), by itself, cannot justify denial of the credit.A Division Bench of Judicial Member Narendra Kumar and Technical Member Alok Chopra remanded R R Infrastructure Projects' ITC dispute for fresh consideration, directing the adjudicating authority to...
Loading Ballast Into Railway Wagons Is Separate Service, Attracts 18% GST: Karnataka AAR
The Karnataka Authority for Advance Ruling (AAR) has held that supply of ballast to the Railways and its subsequent loading into railway wagons are separate and independently identifiable supplies. The two activities cannot be treated as a composite supply merely because they arise from the same tender or work order. A Bench comprising Central Member Kalyanam Rajesh Rama Rao and State Member Sivakumar S. Itagi, passed a ruling in an application filed by S.K. Swamy and Company concerning the GST...
GSTAT Directs Hyderabad Cinema Operator To Deposit ₹81,722 For Failing To Pass On GST Rate Cut Benefit
The Principal Bench of the GST Appellate Tribunal (GSTAT) on 19 September directed Hyderabad-based cinema operator Devi 70MM to deposit Rs. 81,722 towards profiteering for failing to pass on the benefit of the reduction in GST on cinema admission tickets priced at Rs. 100 or below, which was reduced from 18% to 12% with effect from 1 January 2019. A Single Member Bench comprising Judicial Member Justice Mayank Kumar Jain held that a cinema operator must pass on the benefit of a GST rate...
CESTAT Kolkata Sets Aside ₹13.20 Lakh Service Tax Demand On Restaurant Over Revenue-Sharing Arrangement
The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a ₹13.20 lakh service tax demand on a Kolkata-based restaurant.It held that the amounts received under a revenue-sharing arrangement with a caterer were not consideration for providing Business Support Services.The bench comprising Justice Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) held that sales incentives received from distributors of alcoholic beverages, linked to the...
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...
GST Authorities Arrest Man Who Appeared On Court's Direction: Punjab & Haryana HC Orders Immediate Release
The Punjab & Haryana High Court has ordered the immediate release of a man arrested by GST authorities after he appeared before them pursuant to the court's direction to cooperate with the investigation.A Bench of Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor observed that Goyal had appeared before the authorities with the documents sought by them. The matter was already pending before the court and was listed for September 29, when the authorities were expected to report on...
ITAT Delhi Sets Aside Rejection Of Charitable Status On Ground Scholarships Paid In India Were For Overseas Studies
The Delhi Income Tax Appellate Tribunal (ITAT) has directed the tax department to grant Oxonian India Foundation registration as a charitable organisation and approval under Section 80G. It held that scholarships paid in India to Indian students studying abroad cannot be treated as money spent outside India merely because the students later pursue their education overseas.“Admittedly, there is no dispute tha t the funds are being utilized on the scholarships to the Indian students and amount is...
CESTAT Kolkata Holds Road Construction Services Provided To West Bengal Govt Exempt From Service Tax
The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a ₹54.91 lakh service tax demand against a road construction contractor, holding that the services provided to the West Bengal Government were exempt from service tax.The Division Bench comprising Judicial Member Justice R. Muralidhar and Technical Member K. Anpazhakan was hearing an appeal filed by M/s Gouri Construction, a proprietorship concern engaged in construction of roads.The...
Licence Fees Paid By Odisha Beverages Corp To State Government Not Consideration For Service: CESTAT Kolkata
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata has held that licence fees and additional licence fees paid by Odisha State Beverages Corporation Limited to the Government of Odisha do not constitute consideration for any taxable service.A coram comprising Judicial Member R. Muralidhar and Technical Member K. Anpazhakan allowed the appeal filed by the state government undertaking. It set aside the service tax demand of ₹53.88 crore, along with interest and penalties.The...
CGST Act Permits Tax Liability To Be Determined After Death Of Person: Delhi High Court
The Delhi High Court has held that the Central Goods and Services Tax (CGST) Act permits tax, interest, or penalty liability to be determined even after the death of the person against whom the underlying liability arises.The Division Bench of Justices Anil Kshetarpal and Vimal Kumar Yadav held that Section 93 of the CGST Act does not require adjudicatory proceedings to have commenced during the lifetime of the deceased for liability to be determined after his death.“The provision preserves...
Delhi High Court Upholds ₹10.57 Crore GST Demand, Says Parallel Proceedings Barred Only For Same Subject Matter
The Delhi High Court has dismissed a plea challenging the ₹10.57 crore GST demand, holding that the subsequent proceedings initiated by the Delhi GST authorities were not barred merely because the Directorate General of GST Intelligence (DGGI) had earlier initiated proceedings against the Petitioner concerning overlapping transactions.The Division Bench of Justices Anil Kshetarpal and Rajneesh Kumar Gupta held that Section 6(2)(b) of the Central Goods and Services Tax Act, 2017, which seeks to...
“Very Dangerous Proposition”: Delhi HC On AAR View Treating Mastercard's Interface Processor In India As Permanent Establishment
The Delhi High Court on Friday orally observed that treating a network or towers as a permanent establishment (PE) of a foreign enterprise could be a “very dangerous proposition," warning that such an approach could be misused across jurisdictions.“AAR's view that towers and network itself constitute a PE is a very dangerous proposition ... it can be misused anywhere,” a Division Bench comprising Justice Dinesh Mehta and Justice Aditi Choudhary observed while hearing afresh Mastercard Asia...