RATIO OF LATEST JUDGEMENTS ON GST
Dee Control and Electric Private Ltd Vs Additional Commissioner Grade-2 and another (Writ Tax No. 1376 of 2024) (Allahabad High Court)
The Hon’ble Court ruled that if excess stock is discovered during a survey, proceedings should be initiated under Section 73 or 74 of the UPGST Act, rather than under Section 130 of the UPGST Act. The court relied on the decision in Dinesh Kumar Pradeep Kumar Vs. Additional Commissioner, wherein it was held that Section 130 particularly Clauses (ii) and (iv) could only apply under specific conditions. Clause (ii) applies when goods are not accounted for after the point of supply, but in this case the tax liability arises at the time of supply, not before. Clause (iv) requires proof of intent to evade tax, which was absent in the show cause notice and orders. The court allowed the petition, concluding that the proceedings under Section 130 were not legally justified and the orders could not stand.
Sterling and Wilson Private Limited Vs the Joint Commissioner and Others (Writ Petition No. 20096 of 2020) (Andhra Pradesh High Court)
The Hon’ble Amaravati Bench of the Andhra Pradesh High Court ruled that 5% GST is applicable on the supply of a ‘Solar Power Generating System’, as it constitutes a composite supply and does not qualify as a works contract. The Divisional Bench stated that the ‘solar power system’ does not meet the definition of immovable property and therefore does not fall under the “works contract” category as defined under Section 2(119) of the GST Act. Relying on the Supreme Court’s decision in Excise, Ahmedabad v. Solid and Correct Engineering Works, the Divisional Bench clarified that immovable property refers to items attached to the earth for permanent use, such as trees, buildings, or goods embedded in the earth. However, ‘solar power modules’ are not trees, shrubs, or embedded structures, but rather are attached to a civil foundation for functional purposes.The court further observed that the solar modules are not attached to the civil foundation for the enjoyment of the foundation itself, but the foundation is embedded for the better functioning of the ‘Solar Power Generating System’. As a result, the ‘solar power system’ cannot be classified as immovable property or a works contract.
Shivaji Udhyog Vs Additional Commissioner Grade-2 Appeal and Anr. (Writ Tax No. 1234 of 2024) (Allahabad High Court)
The Hon’ble Allahabad High Court quashed the detention order, ruling that the seizing authorities failed to prove the intention of tax evasion. The Hon’ble Court, noted that the authorities did not conduct a sample test or obtain an expert report to confirm that the seized goods were mustard oil, as claimed in the documents (e-tax invoice and e-way bill). The court emphasized that without any evidence or finding of intent to evade tax, the proceedings initiated under Section 129(3) of the GST Act were unjustified. The petitioner, engaged in the business of manufacturing and selling edible oils, had dispatched R.B. Oil to a registered firm in Bihar, generating the required invoices and e-way bill. The goods were intercepted while passing through Uttar Pradesh, leading to the detention order after a physical verification. The petitioner argued that the proper notices and procedures under Section 129(3) of the GST Act were not followed. The court agreed, stating that the authorities failed to establish the intention to evade tax, which is a critical requirement under the law. As a result, the court allowed the petition and quashed the detention order, holding that the authorities’ failure to prove the intention to evade tax rendered the proceedings invalid.
Akriti Food Industry LLP Vs State of UP (Writ Tax No. 2070 Of 2024) (Allahabad High Court)
The Hon’ble Allahabad High Court held that inherent defects in the decision-making process, such as failing to comply with mandatory procedural requirements, cannot be rectified by the GST department at a later stage. The Hon’ble Court emphasized that when the proper procedures are not followed by the assessing or competent authority before deciding, it creates an inherent flaw in the process that cannot be cured afterward. The petitioner, a Limited Liability Partnership engaged in manufacturing and selling goods, challenged an order passed by the Additional Commissioner, arguing that the order imposing tax, interest, and penalty was made ex parte. The petitioner claimed that they were never properly served with the show cause notice (GST DRC-01A), and they only became aware of the proceedings when the order was uploaded on the online dashboard. As a result, the petitioner could not respond or present a defence.
The petitioner raised two main points:
- The failure to serve the notice denied them the opportunity to defend themselves against the tax liability.
- The denial of the appeal remedy due to a delay caused by lack of knowledge left the petitioner without a remedy.
The court directed that the order issued by the assessing officer should be treated as a valid notice under Section 73 of the GST Act, enabling the petitioner to file objections and submit documents within eight weeks. After receiving the objections, the assessing officer must consider the submissions, provide an opportunity for a hearing, and make a fresh decision within four weeks.
Anand Kumar Hirawat Vs The Senior Joint Commissioner of Commercial Taxes & WBGST, Burrabazar Circle & Ors. (WPA 28195 of 2024) (Calcutta High Court)
The Hon’ble High Court while quashing the appeal rejection order on the question of the Limitation emphasized that the Appellant Authority must interpret the limitation provision under Section 107 of the CGST Act, 2017 liberally where genuine hardships are demonstrated by the Appellant.The Petitioner filed an appeal in Form APL-01, before the concerned Appellate Authority and explained the delay in filing the appeal, attributing it to the negligence of the former tax consultant and the lack of prior knowledge about the adjudication proceedings. However, the appeal was rejected solely on the ground of delay, prompting the Petitioner to approach the High Court for relief.
Generation Date for Draft GSTR 2B for December 2024
This is to inform you that, in light of the extended due dates for filing GSTR-1 and GSTR-3B returns for the month of December 2024 (Quarter Oct-Dec 2024) as per Notifications No. 01/2025 and 02/2025 dated 10th January 2025, in the same line the Draft GSTR-2B for the month of December 2024 (Quarter Oct-Dec 2024) will also now be generated on 16th January 2025 in accordance with the Rule 60 of CGST Rules, 2017.
Advisory For Waiver Scheme Under Section 128a
It is to inform that both Forms GST SPL 01 and GST SPL 02 are available on the GST portal and the taxpayers are advised to file required applications under waiver scheme to claim the benefit.
One of the eligibility conditions for filing application under waiver scheme is to withdraw the appeal if any filed against the demand order/notice/statement for which waiver application is to be submitted. For the withdrawal of Appeal (APL 01) filed before First Appellate Authority, the option is already available in the GST portal. However, for the old Appeal (APL 01) filed before 21.03.2023, the withdrawal option is not available in GST portal, the taxpayers are advised to manually submit their request for withdrawal of appeal before the concerned Appellate Authority. The Appellate Authority will forward such requests to GSTN through State Nodal officer for withdrawal of such Appeal (i.e. filed before 21.03.2023 and not disposed off) from backend.
Instruction No. 01/2025-GST – Guidelines for Arrest and Bail in relation to Offences Punishable Under the CGST Act, 2017
In reference to the Judgement dated 16/12/2024 of the Hon’ble High Court of Delhi in case of Kshitij Ghildiyal versus Director General of GST Intelligence, Delhi [W.P. (CRL) No. 3770/2024], the previous instruction No. 02/2022-23 GST (Investigation) dated 17.8.2022 is thereby amended, making it necessary now to explain the Grounds of Arrest to the arrested person as well as such Grounds to be furnished in writing as Annexure along with the Arrest Memo. Further, acknowledgement of the same is also required to be taken from the arrested person along with the Arrest Memo.
The Central Government has issued various Notifications Central Tax (Rate) dated January 16, 2025 bringing amendments to the GST rates giving effect to the recommendations of the GST Council.
Notification No. 01/2025- Central Tax (Rate): GST Rate on ‘Fortified Rice Kernels’ (FRK) classified under Heading 1904 has been reduced from 18% to 5%.
Definition of ‘Pre-packaged and labelled’ amended: The definition has been amended to include all retail commodities in packages not exceeding 25 kg or 25 litres which must be labelled as per the Legal Metrology Act.
Notification No. 02/2025- Central Tax (Rate): A New Entry 105A has been inserted in Notification No. 02/2017-Central Tax (Rate) to fully exempt ‘Gene Therapy’ from GST.
Notification No. 03/2025- Central Tax (Rate): Amendment has been made in Notification No. 39/2017 – Central Tax (Rate) where Concessional 5% GST rate had been notified on ‘food inputs of food preparations’ under HSN 19 or 21 that are supplied for food preparations intended for free distribution to economically weaker sections under a government program subject to the existing conditions.
Notification No. 04/2025-Central Tax (Rate): Amendments in the Notification No. 8/2018-Central Tax (Rate), dated the 25th January, in the TABLE, against S. No. 4, in column (4), for the entry “6%”, the entry “9%” shall be substituted.
Notification No. 05/2025-Central Tax (Rate): A new definition has been introduced for “Specified Premises” used for hotel accommodation, based on the value of accommodation services and specific declarations to be made by registered persons.
Category (a): Premises that provided hotel accommodation in the preceding financial year, where the value of accommodation exceeded ₹7,500 per unit per day or equivalent.
Category (b): Premises declared as “specified premises” by a registered person supplying hotel accommodation services. Such declarations must be made between January 1 and March 31 of the preceding financial year.
Category (c): Premises declared as “specified premises” by a person applying for GST registration. This declaration must be filed within 15 days of receiving acknowledgment for the registration application.
Insertion of New Annexures: Amendment in the notification number 11/2017-Central Tax (Rate), New Annexures have been added following Annexure VI, including:
Annexure VII, Annexure VIII, and Annexure IX.
Notification No. 06/2025-Central Tax (Rate): Contributions made by general insurance companies from third-party motor vehicle premiums to the Motor Vehicle Accident Fund (MVA Fund) are now exempt from GST.
The wording in Entry No. 25A of Notification No. 12/2017 has been amended, changing “transmission and distribution” to “transmission or distribution.”
Services provided by training partners approved by the National Skill Development Corporation (NSDC) are now exempt from GST, in line with Entry 69 of Notification No. 12/2017.
Notification No. 07/2025-Central Tax (Rate): Further amendments in the notification number 13/2017-Central Tax (Rate), against serial number 4, in column (3), after the words “Any person”, the words “other than a body corporate” shall be inserted.
Against serial number 5AB, in column (4), after the words “Any registered person”, the words “other than a person who has opted to pay tax under composition levy” shall be inserted.
Notification No. 08/2025-Central Tax (Rate) : Vide this Notification, amendment has been made in term ‘Specified premises’ to align with clause (xxxvi) of paragraph 4 of Notification No. 11/2017-Central Tax (Rate).
DUE DATES | |||||
LAST DATE TO ISSUE GST SHOW CAUSE NOTICE & ORDER FOR F.Y. 2017-18 TO F.Y. 2020-21 | |||||
TAX PERIOD (F.Y.) DUE DATE OR EXTENDED DATE OF ANNUAL RETURN | NON-FRAUD CAESE u/s 73 of CGST | FRAUD CASES u/s 74 of CGST | |||
NOTICE | ORDER | NOTICE | ORDER | ||
3 MONTHS BEFORE ORDER | WITHIN 3 YRS OF DUE DATE OF ANNUAL RETURN | NOTICE 6 MONTHS BEFORE ORDER | WITHIN 5 YR OF DUE DATE OF ANNUAL RETURN | ||
2017-18 | 05-Feb-2020 | 30-Sep-2023 (Time barred) | 31-Dec-2023 (Time Barred) | 05-Aug-2024 (Time Barred) | 05-Feb-2025 (Approaching) |
2018-19 | 31-Dec-2020 | 31-Jan-2024 (Time Barred) | 30-Apr-2024 (Time Barred) | 30-June-2025 | 31-Dec-2025 |
2019 -20 | 31-Mar-2021 | 31-May- 2024 (Time Barred) | 31-Aug-2024 (Time Barred) | 30-Sep-2025 | 31-Mar-2026 |
2020-21 | 28-Feb-2022 | 30-Nov-2024 (Time Barred) | 28-Feb-2025 (Approaching) | 31-Aug-2026 | 28-Feb-2027 |
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