Latest Judicial Pronouncements on GST 2024

LATEST JUDICIAL PRONOUNCEMENTS ON GST

1. Exhibition services received outside India would be taxable at the hand of the assessee

[2024] 162 taxmann.com 607 (Rajasthan) Savio Jewellery v. Commissioner, Central Goods and Service Tax.

Where the assessee participated in a jewellery exhibition outside India, the supply of services had taken place outside India; since the receiver of service i.e., the assessee was a person registered in the taxable territory, services received outside India would be taxable at the hand of the assessee

2. Some contradictory judicial pronouncements on input credits.

i. [2024] 165 taxmann.com 217 (Kerala) Tirupati Balaji Traders v. Union of India

Where the assessee filed a writ petition challenging the constitutional validity of section 16(2)(c), since the right to avail input tax credit was a conditional right, the assessee could not be given the benefit of input tax credit unless the amount of tax collected from assessee had actually been paid to exchequer

ii. [2024] 165 taxmann.com 255 (Gauhati) National Plasto Moulding v. State of Assam*

Show cause notice issued against the assessee was to be set aside on the following case of On Quest Merchandising India Private Limited v. Government of NCT of Delhi [2017] 87 taxmann.com 179 (Delhi) wherein it was categorically held that a purchasing dealer could not be punished for act of selling dealer in case selling dealer had failed to deposit the tax collected by it.

3. Penalty u/s 73(9)

[2024] 165 taxmann.com 317 (Madras) Good Leather Shoes (P.) Ltd Vs. Deputy Commissioner of GST & Central Excise.

Where the department had issued a show-cause notice to the petitioner alleging that it had availed ineligible input tax credit and had imposed a penalty under section 73(9), since the assessee had remitted a sum towards ineligible ITC prior to the issuance of show-cause notice and penalty was imposed on it without taking into consideration said amount, a matter required reconsideration

4. HC set aside an order levying interest since interest can't be levied unless the ITC is both availed and utilized

[2024] 165 taxmann.com 218 (Calcutta) Utpal Das v. State of West Bengal

Where the assessee claimed excess ITC due to a clerical mistake however voluntarily debited its electronic credit ledger by fling Form GST DRC-03 to reverse ITC, interest could not be levied on assessee

5. Reconciliation between GSTR 3B and GSTR 2A

[2024] 165 taxmann.com 65 (Madras) Silk Junction v. Deputy State Tax Officer

Where the assessee had responded to show cause notice alleging a mismatch between assessee’s GSTR 3B return and auto-populated return in GSTR 2A, the same was not considered, impugned order passed thereafter was to be set aside and matter was to be remanded for re-consideration.

6. GST registration cancelled... principles of natural justice are a must.

[2024] 165 taxmann.com 644 (Delhi) Discovery India Service v. Principal Commissioner of Goods and Service Tax

Assessee’s GST registration cancelled as it was found ‘non-existent’, assessee’s reply to SCN annexing several documents in support of his assertion that it was existing at principal place of business not considered, impugned order not informed decision as it did not set out any reason for cancellation and did not indicate reply of assessee considered, inspection report, Panchnama and photograph of premises on which decision to cancel registration claimed to be premised not supplied to assessee, impugned order passed in violation of principles of natural justice was to be set aside.

7.  GST on Supply of Electricity:

[2024] 165 taxmann.com 310 (AAR - MAHARASHTRA)

In favour of Assessee: Where applicant-assessee has invoiced charges for 'supply of Electricity' only and it has not collected 'delivery charges' (transmission charges), further, supply of electrical energy is exempted under Sr. No. 104 of Notification No. 2/2017-Central Tax (Rate), dated 28-6-2017 and Notification No. 2/2017-Integrated Tax (Rate), dated 28-6-2017, respectively on Intra-State and Inter-state supplies respectively, therefore, supply of "Electrical Energy" by applicant-assessee is exempted from tax liability

Against Assessee: Where output supply of electrical energy by applicant-assessee is exempted from tax liability, therefore, applicant-assessee is also not entitled to claim Input Tax Credit on its inward supplies of goods or services or both or capital goods (procurement of solar power plant) used in generation of Electricity

8. HC Writ not to be exercised when the factual dispute is involved 

[2024] 165 taxmann.com 650 (Rajasthan) N.H. Lubricants v. State of Rajasthan

Writ jurisdiction is not to be exercised when factual dispute is involved and not involves any jurisdictional issue, much less violation of principles of natural justice