A Landmark Judgement on GST: A New Perspective on Input Tax Credit

In a recent case law concerning the Goods and Services Tax (GST) in India, a significant judgement was passed that could potentially reshape the way we understand and apply the concept of Input Tax Credit (ITC). The case revolved around Section 16(2)(c) of the Central Goods and Services Tax (CGST) Act, 2017, which pertains to the denial of ITC on account of non-payment of tax by the supplier.

Kerala High Court set-aside the order denying ITC due to a mismatch between GSTR-2A and GSTR-3B without providing hearing opportunity.

Facts of the Case 📅:
GMA Pinnacle Automotives Pvt. Ltd., the petitioner, faced an assessment for the period from July 2017 to March 2018. Their claim for an Input Tax Credit (ITC) was denied as per the order.

Despite the petitioner’s efforts to rectify this by aligning with the GST guidelines and even expressing willingness via email dated 15.12.2023 to produce necessary documents, their claim was still rejected.

Register DSC

I have procured a DSC. How can I register my DSC with the GST Portal?
Before you register your DSC at the GST Portal, you need to install the emSigner utility. The utility can be downloaded from the Register DSC page. DSC registration is PAN based and only Class 2 and Class 3 DSC are accepted at the GST Portal.

To register your DSC with the GST Portal, perform the following steps:

1. Access the URL. The GST Home page is displayed.

In case of New Registration:

a. Click the REGISTER NOW link.
b. Select the Temporary Reference Number (TRN) option.
c. In the Temporary Reference Number (TRN) field, enter the TRN received.
d. Click the PROCEED button.gst.gov.in e. In the Mobile / Email OTP field, enter the OTP you received on your mobile number and e-mail address. OTP is valid only for 10 minutes.

Note:

• OTP sent to mobile number and e-mail address are same.
• In case OTP is invalid, try again by clicking the Click here to resend the OTP link. You will receive the OTP on your registered mobile number or e-mail ID again. Enter the newly received OTP again.

f. Click the PROCEED button.

📣 Landmark GST Ruling Alert: Safeguarding Taxpayer Rights

Delhi High Court stands against coercion in GST searches, mandates refund of involuntarily deposited ITC. In a noteworthy judgment by the High Court of Delhi, the essence of fair procedure and the protection of taxpayer rights under the GST regime were emphatically underscored.

Select Five Judgments of Delhi High Court in Mar'2024.

Bookmark this for future reference.

Compiled by: Abhishek Raja Ram 1. Max Healthcare Institute Ltd. (05-Mar-2024)
When the impugned SCN was adjudicated by an order that was cryptic and did not consider the reply submitted by the assessee, the matter needed to be remitted back to the Adjudicating Authority for a fresh adjudication.

The GST and/or Service Tax Department may issue notices or demand orders based on the income or amounts shown in Form 26AS.

Not every receipt of an amount is taxable..!

Compilation of case laws that would help you in drafting.

Please bookmark.

Research by: Abhishek Raja Ram 1. Tribunal-Delhi CESTAT
1.1 Jyoti Sarup Mittal (03-Jan-2024)
ARR: Some amounts received by appellants as per Form 26AS of appellant cannot be charged to service tax unless amounts so received are consideration for taxable service rendered.

Revocation of Cancelled Registration

To file an application for revocation of cancellation of registration done by the Tax Official suo moto, perform the following steps within 30 calendar days from the date on which Cancellation Order was passed:

1. Access the URL. The GST Home page is displayed. Login to the GST Portal using your earlier login credentials (i.e. credentials using which you were logging into the GST Portal earlier).
2. Click Services > Registration > Application for Revocation of Cancelled Registration option.gst.gov.in Note: To proceed filing Application for Revocation of Cancelled Registration, taxpayer has to authenticate Aadhaar or upload e-KYC documents.

To learn how to authenticate Aadhaar/upload e-KYC documents, refer, Registering with GST > Aadhaar Authentication for Existing Taxpayers (Regular and Composition) manual.

In case neither Aadhaar has been authenticated or e-KYC documents are uploaded, following message will be displayed and you will be redirected to your My Profile page.

The Madras High Court has set aside an order that denied Input Tax Credit #ITC citing the cancellation of the supplier's GST registration with retrospective effect.

ITC will now be granted based on the provided documents, and the Proper Officer is instructed to verify them. The High Court directs reassessment on the basis of evidence to prove the genuineness of purchases such as:
1 Tax Invoice
2 E-Way Bills
3 Transport Documents
4 Proof of Payments to Supplier through Banking Channels

Rectification under section 161 has turned into a challenge instead of a solution..!

This statement is based on personal experiences with the GST Department who are not willing to pass the Rectification Order timely, and therefore, we are running short of time

Relevant Caselaws 1. Bombay High Court
1.1 Anvita Associates (2024)
Where assessee had inadvertently not disclosed certain sales invoices in Form GSTR-1 and hence said invoices were not reflected in Form GSTR-2A of its customer;

Orissa High Court grants relief for inadvertent GST filing errors where the input under IGST has been wrongly claimed under CGST and SGST, which is required to be deducted from CGST and SGST and added to IGST.

Summary by: Abhishek Raja Ram The petitioner sought judicial intervention for permission to correct an inadvertent error in the Form GSTR-3B for the fiscal year 2018-19.

Maximum Notices and Orders in GST are on the Issue of ITC.

Here are some general common issues related to the ITC and tentative replies or case law that you can use while drafting.

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Rights of Post with: Abhishek Raja Ram Issue-1: IGST claimed as CGST-SFGST or vice-versa

You can use the judgments
1.1 Kerala High Court
1.1.1 Diva S.R (2024)
1.1.2 Jayakrishnan K.S. (2024)

Select few High Court Judgments on ITC denial because your Suppliers registration has been cancelled retrospectively.

Don't forget to follow me and save this post for your litigation.

Compiled by: Abhishek Raja Ram 1) Madras High Court in Engineering Tools Corporation vs Assistant Commissioner (ST) (15-Feb-2024)

Assessee's #ITC reversed due to supplier's cancelled GST registration with retrospective effect. Submitted documents were disregarded, making the assessment order unsustainable.

Assessee was unable to respond to the Show Cause Notice due to the death of the husband of the proprietor.

GST Department confirms the demand.

Delhi High Court set aside the order passed by Adjudicating Authority and directs them to provide opportunity and pass a speaking order the petitioner challenging an order dated 24.12.2023, which was a consequence of a Show Cause Notice issued on 24.09.2023. The Show Cause Notice sought to impose a demand on the petitioner under Section 16(2)(c) and Section 17(5) of the Goods and Services Tax Act, 2017.

Submitting Intimation on Account of Refund Not Received

How can I submit an intimation for the refund application for which refund amount has not been received on the GST Portal?

This functionality is made available to taxpayers to intimate about a case, for which they have not received refund amount, on any of the refund application filed through Form GST RFD-01A. To submit an intimation for the refund application, for which refund amount has not been received on the GST Portal, perform following steps:

1. Access the URL. The GST Home page is displayed. Login to the portal with valid credentials. Dashboard page is displayed. Click Services > Refunds > Intimation on account of Refund not Received.gst.gov.in 2. Intimation on account of Refund not Received page is displayed.

Rule 108 (3): Appeal to the Appellate Authority - Analysis of submission of self certified copies.

Here's a brief summary: Rule 108 (3) of the GST Laws outlines the procedure for filing an appeal to the Appellate Authority and the issuance of an acknowledgment. It differentiates between situations where the decision or order appealed against is uploaded on the common portal and where it is not.

Searching BoE (Bill of Entry) Details
How can I search the details of BoE (Bill of Entry) on the GST Portal?
To view the details of BoE (Bill of Entry) on the GST Portal, perform following steps:

1. Access the URL. The GST Home page is displayed. Click the Services > User Services > Search BoE option.gst.gov.in 2. Search BoE Records page is displayed.

GST Registration can't be canceled without reason. Revocation Application can't be rejected without reason.

Case: Arsh Traders Through Proprietor Aslam Sodagrbhai Shekh vs Commercial Tax Officer, Surat in Gujarat High Court, R/SPECIAL CIVIL APPLICATION NO 3224/2022 (17-Feb-2023) Facts and Timelines:
The petitioner is a proprietary concern dealing in all types of scrap.

It was granted TIN Number on 13.06.2013 under the Gujarat Value Added Tax Act, 2003 and he is a regular tax payer.

CBDT announces tax demands up to ₹1L waived off for assessees as of Jan 31, 2024! 🎉 #TaxRelief #FinanceUpdate The Central Board of Direct Taxes (CBDT) issued an order, referenced . 375/02/2023 and dated February 13, 2024, following Finance Minister Nirmala Sitharaman's announcement during the Union Budget 2024 speech.F.no

Recent writ petitions have successfully enabled taxpayers to rectify their GSTR-1 and GSTR-3B data.

Please bookmark this tweet for future use and please don't forget to follow me. Bombay High Court in RAILROAD LOGISTICS (INDIA) PVT. LTD. (15-Jan-2024)
Error was party submitted number of Mahindra & Mahindra (Rajasthan) instead of Mahindra & Mahindra (Orissa).

Submitting Intimation on Account of Refund Not Received

How can I submit an intimation for the refund application for which refund amount has not been received on the GST Portal?

This functionality is made available to taxpayers to intimate about a case, for which they have not received refund amount, on any of the refund application filed through Form GST RFD-01A.

To submit an intimation for the refund application, for which refund amount has not been received on the GST Portal, perform following steps:

1. Access the URL. The GST Home page is displayed. Login to the portal with valid credentials. Dashboard page is displayed. Click Services > Refunds > Intimation on account of Refund not Received.gst.gov.in 2. Intimation on account of Refund not Received page is displayed.

Important Judgment: Please Bookmark

The Delhi High Court quashes the Order where the Order was passed without considering a detailed reply filed by the Petitioner. The reply was rejected with single line, "Reply was NOT SATISFACTORY."

We all must have encountered such cases. 28-Sep-2023: SCN issued proposing a demand against the petitioner. Specific details given by the Department on alleged tax under declaration, excess claim ITC, ineligible ITC, and ITC claim from cancelled dealers, return defaulters, and tax non-payers.