RATIO OF THE LATEST JUDGEMENT
Barhonia Engicon Private Limited Vs State of Bihar & 3 Ors. (CWJ No. 4180 of 2024) (Patna high Court)
The Hon’ble High Court has dismissed petitions challenging the validity of Goods and Services Tax (GST) orders and notices for the assessment years 2017-18, 2018-19, and 2019-20. Petitioners argued that the extensions of limitation periods due to the COVID-19 pandemic were no longer valid, as the pandemic had subsided by the time the notifications were brought into force. However, the court upheld the extensions, citing the Supreme Court’s suspension of limitation periods from March 15, 2020, to February 28, 2022, and the GST Council’s recommendations to extend deadlines due to the pandemic’s disruptions. The court found the extensions reasonable, necessary, and compliant with the law, reinforcing the importance of procedural flexibility in crisis situations.
UD Solutions Pvt. Ltd., West Bengal Vs Union of India & others (W.P.(C) No.28171 of 2024) (Orissa High Court)-Interim Order
The Petitioner challenges the Notification No 56/2023-Central Tax dated 28th December 2023, issued by the Central Board of Indirect Taxes and Customs and corresponding SGST Notification also issued, arguing that it was issued without making available the recommendation of the GST Council, despite claims in the Notification. The Petitioner cites judgment from the Gauhati High Court and a Circular from May 2024 that acknowledges the absence of such a recommendation by GST Council. The Respondents for the Central Revenue, confirm they are aware of the Petitioner’s claims and will consider disclosing the recommendation on the next date.
The Court, after hearing the parties, decides to stay the assessment order dated 24th July 2024, until the next hearing. The Petition is listed for further hearing on 4th December 2024.
Note: This is an interim order, and the next date of hearing is scheduled for 4th December 2024. An interesting issue challenging the claim of the Notification issuing authority that this Notification has been issued after getting the recommendation of the GST Council while as per the facts available in the public domain there was no agenda item for such discussions in the GST Council. If that be so, then it will be a false undertaking of authorization from GST Council as the matter was never discussed in the GST Council. Since the extension of period of limitation for issuing the notice for assessments is absolutely in the interest of revenue and its officers then a serious doubt is created about the functioning of CBIC and State Authorities responsible for issuing the Notification. |
Anita Agarwal Vs Union of India & 2 others (Writ Petition No.1474 Of 2023) (Delhi High Court)
The Hon’ble High Court has taken into consideration the view of Circular No.16 of 2019 and Circular No.131/1/2020 to ensure that the investigation in case of suspicious refund claim to be completed within the time frame provided. The court has emphasized that the refund plays a very important role in the working capital of an exporter, and therefore, any delay in the grant of the refund would affect the day-to-day running of the business. The court has analyzed the provision of Sec 54 of GST Act and have observed that the refund application must be processed within 60 days. Therefore, it was held that there is no reason why the Petitioner should be denied the interest under Section 56 of the CGST Act for the period of delay.
Baiju George Vs Commissioner of GST Department & 3 Others [WP(C) NO. 33866 OF 2024] [Kerala High Court]
The Hon’ble High Court has observed that the present writ is filed in 2024 against the order of February 2020 on account of sickness of the Appellant due to fatty liver and has taken a view that though Article 226 of the Constitution of India does not fix any period of limitation for the filing of a writ petition, it is settled law that a writ petition can be dismissed on the ground of inordinate delay in filing the writ petition. Further, it was held that it is settled law that a writ petition can be dismissed on the ground of inordinate delay in filing the writ petition. Accordingly, the writ was dismissed.
NEWS AND UPDATE- GST PORTAL
Advisory for Waiver Scheme Under Section 128A – Amnesty Scheme
To ease tax disputes, the GST Council has introduced a waiver of interest and penalties on demand notices or orders issued under Section 73 of the CGST Act for the financial years 2017-18, 2018-19, and 2019-20 (excluding cases involving fraud or willful misstatement). To benefit from this waiver, taxpayers must pay the full tax amount by March 31, 2025.
The procedural guidelines for this waiver, under Rule 164 of the CGST Rules, were notified on October 8, 2024, and are UA effective from November 1, 2024. Taxpayers must apply through Form GST SPL-01 (for demand orders) or Form GST SPL-02 (for notices) on the common portal by March 31, 2025.
These forms will be available on the portal by January 2025. In the meantime, taxpayers should ensure they pay the demanded tax by the deadline to avail of the waiver. Payments can be made via the “payment towards demand” option (for demand orders) or Form GST DRC-03 (for notices). If already paid via Form GST DRC-03, link it to the demand order using Form GST DRC-03A.
Advisory for Reporting TDS Deducted by scrap Dealers in October 2024
The Notification No. 25/2024-Central Tax, effective from 10.10.2024, introduced the requirement for registered persons receiving supplies of metal scrap (classified under Chapters 72 to 81 of the Customs Tariff Act, 1975) from another registered person to deduct TDS (Tax Deducted at Source) under Section 51 of the CGST Act, 2017.
Key Points of the Issue:
TDS Deduction Requirement:
- Taxpayers receiving metal scrap from other registered persons are required to deduct TDS under Section 51 of the CGST Act.
- This requirement came into effect from 10.10.2024 as per the notification.
Issue Faced by Taxpayers:
- Some taxpayers who applied for GST registration in October 2024 (as per the notification) had their registrations approved only in November 2024.
- The existing GST system restricts filing returns for tax periods prior to the registration month.
- Due to the GST system design, these taxpayers are unable to report the TDS deducted in the month of October 2024 in their return because the return option for October 2024 is not visible for those with a registration granted later (in November 2024).
Resolution:
- To resolve this, taxpayers who were granted GST registration in November 2024, but deducted TDS during October 2024 are advised to report the total TDS deducted for the period from 10.10.2024 to 30.11.2024 in the GSTR-7 return for November 2024.
- This consolidated TDS amount should be reported in the GSTR-7 return filed for November 2024.
This approach ensures that taxpayers are still able to comply with the TDS reporting requirement even though the system does not allow them to file a return for October 2024 directly.
LEGAL MAXIMS/ PHRASES
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DUE DATES:
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DUE DATES – GST COMPLIANCES IN DECEMBER 2024 | |||
Monthly | Quarterly | Other Due Dates | |
GSTR-3B (Nov, 2024) 20th Dec,2024 |
GSTR-3B (Oct-Dec, 2024) 22nd Jan, 2025, 24th Jan, 2025 |
GSTR-5 (Nov,2024) 13th Dec, 2024 |
GSTR-5A (Nov,2024) 20th Dec, 2024 |
GSTR-1 (Nov,2024) 11th Dec,2024 |
GSTR-1 (Oct-Dec, 2024) 13th Jan, 2025 |
GSTR-6 (Nov,2024) 13th Dec, 2024 |
GSTR-7 (Nov,2024) 10th Dec, 2024 |
IFF (Optional) (Nov 2024) 13th, Dec,2024 |
CMP-08 (Oct-Dec,2024) 18th Jan, 2025 |
GSTR-8 (Nov,2024) 10th Dec,2024 |
RFD-10 2 years from the last day of the quarter in which supply was received |
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