"REVERSAL OF ITC FROM CANCELLED DEALERS": Part-2

In the landmark judgment of State of Maharashtra vs Suresh Trading Company [(1997) 11 SCC 378], the Supreme Court held that the subsequent retrospective cancellation of the seller's registration does not affect the deduction (ITC) 2. Madras High Court
2.1 TVL. SRI ESWARI TEXTILES
(2017) 5 GSTL 256

Tamil Nadu VAT: Subsequent registration cancellation does not affect the purchasing dealer's right to a deduction.

Your GST Registration cannot be cancelled on hyper-technical grounds as GST Laws cannot override the Right to Livelihood under Article 21 of the Constitution of India.

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Research by: Raja Abhishek, NIRC Candidate 2024 1. Poonamchand Saran - Rajasthan High Court
2022-TIOL-1278
Assessee Cannot Be Deprived Of Its Livelihood By Cancelling The GST Registration.

"RECTIFICATION IN GST RETURNS"

To "err is human."

Mistakes, typos, double punching, incorrect data entry, and missing information are common aspects of human nature.

GST Returns can be amended but with restrictions. Therefore, High Courts have come as saviour in such cases. 1. CHINTAMANISWAR CONSTRUCTIONS PVT. LTD. - Orissa High Court
(2024) 20 CENTAX 222 :: 2024-TIOL-1124

GSTR-1 - B2B instead of B2C - By permitting Petitioner to rectify the error, there will be no loss to the Revenue - Directions issued by the High Court

Top-10: Must read recent judgments of GST

1. Delhi High Court remanded the matter as the appeal was rejected because the certified copy of the order wasn’t filed within 7 days. Reva Giant Implex LLP vs. Assistant Commissioner of CGST. 2. E-way Bill: Typographical error not indicative of tax evasion intent. Active GSTIN, residential address not adverse. Penalty quashed for lack of evidence. Allahabd High Court in NANHEY MAL MUNNA LAL VS ADDITIONAL COMMISSIONER.

The Penalty Saga of Typographical Errors in E-Way Bills

Despite numerous judgments against Mobile Squad Officers imposing hefty penalties for typographical errors, the officers persist in their practices

Save d post to handle such cases effectively

Raja Abhishek
NIRC Candidate 1. Allahabad High Court
1.1 NANHEY MAL MUNNA LAL
(2024) 7 TMI 613
 Typographical error is not indicative of tax evasion intent. Active GSTIN, residential address not adverse. Penalty quashed for lack of evidence.

7 Years of GST, My Experience

"Facts matter, not truth."

There are two distinct groups of tax professionals: one who prioritizes facts and the other who values jurisprudence and law. In my seven years of experience with GST, it's become clear that the GST department frequently imposes its interpretations under the guise of the "intention of the legislature."

Who Should File Income Tax Return (ITR) Without Failing?

Filing an Income Tax Return (ITR) is a critical responsibility for individuals and businesses to comply with tax regulations.

The criteria for mandatory ITR filing are defined by the Income Tax Department of India.

Below are the conditions under which filing an ITR becomes essential:

1. Saving Bank Deposits
Individuals with saving bank deposits exceeding Rs. 50 lakhs in a financial year must file an ITR.
(1/n) 2. Current Account Deposits
If the total deposits in current accounts surpass Rs. 1 crore in a financial year, it is mandatory to file an ITR.
(2/n)

"RETROSPECTIVE CANCELLATION OF GST REGISTRATION"

As you are aware, the Department keeps canceling GST Registration from retrospective effect, Sharing with you a few judgments from VAT-Sales Tax era on this issue. 1. Jain Manufacturing India Ltd. - Delhi High Court
(2016) 93 VST 326 :: (2016) SCC Online 3656

Delhi CST: Retrospective cancellation adversely affects the rights of bona fide sellers from other states who rely on the validity of the C Forms provided at the time of transaction.

Title Slide - New AIS Reporting Requirements: 57 Types of Incomes & Expenses Slide 1: Introduction
Title: Introduction
Content: Brief overview of the new CBDT notification aimed at enhancing financial transparency and compliance by taxpayers.

Bombay High Court allowed the supplier to correct the GSTIN of the buyer in its GSTR-1 for FY 2018-19 so that buyer can avail ITC.

Facts of the Case 📅
• Petitioner made an error in their GSTR-1 form for the financial year 2018-19 by using the wrong GST number for their client. • On November 10, 2020, the client received an intimation regarding a mismatch in GSTR-2A and GSTR-3B.
• The Petitioner sought permission from GST authorities to amend the GSTR-1 form but received no response, leading to the filing of the petition.

"DEMAND OF ITC ON THE BASIS OF GSTR-2A AND GSTR-3B MISMATCH"

You all might have encountered such demand.

How much they are valid?

All judgments from Madras High Court. 1. Sri Lakshmi Silvers vs State Tax Officer - Madras High Court
(2024) 75 TLC 035

The HC Quashes GST Assessment Order, where the entire tax demand pertains to the disparity between the ITC claimed in the GSTR-3B return and that reflected in the auto-populated GSTR-2A returns.

🌿 Boosting Renewable Energy: IEEFA & JMK Research Call for GST Cuts on Hydropower and Wind Projects 🌿 Exciting developments in India's renewable energy sector! A recent study by the Institute of Energy Economics and Financial Analysis (IEEFA) and JMK Research has recommended crucial measures to help India achieve its ambitious target of 500 GW of renewable energy capacity by 2030

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.

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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;