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News Bulletinby Kanishka

  • Chartered Accountant granted bail in GST refund fraud case after 5 months in custody.

    The case involves a Chartered Accountant (CA) who was arrested for allegedly facilitating fraudulent GST refunds by uploading fake certificates. The High Court granted him regular bail after considering that the investigation is complete, the chargesheet has been filed, and his continued custody may not serve any purpose. The court imposed strict conditions, including furnishing a bail bond and not tampering with evidence or intimidating witnesse ...

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  • Court grants interim anticipatory bail to M3M Group promoter Basant Bansal in alleged money laundering case involving IREO Group.

    The case involves an alleged money laundering case registered by the Enforcement Directorate (ED) against the IREO Group of companies. Basant Bansal, the promoter of the M3M Group, approached the Delhi High Court seeking anticipatory bail, apprehending arrest in connection with the case. The court granted interim anticipatory bail to Basant Bansal, subject to certain conditions, while directing the ED to file a status report within a week.

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  • Court Rules Against Tax Authorities Blocking Electronic Credit Ledger with Nil Balance Under Rule 86A of CGST Rules

    The court ruled in favor of the petitioners, stating that the tax authorities exceeded their jurisdiction under Rule 86A by blocking the electronic credit ledger with a nil credit balance. The court emphasized the strict interpretation of taxing provisions and directed the respondents to withdraw the negative block on the petitioners’ ledger. The petitioners were also entitled to a refund of the Rs. 20 lakh deposited by them under protest to enab ...

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  • Court Directs GST Dept to Unblock Electronic Credit Ledger and Refund Excess Payment Made by Assessee

    The High Court has ruled in favor of an Assessee, directing the GST department to withdraw the negative block of the electronic credit ledger at the earliest. The court held that the condition precedent for the exercise of power under Rule 86A of the GST Rules is the availability of credit in the electronic credit ledger, which is alleged to be ineligible. The court emphasized that the power should not be used as a tool to harass the Assessee and ...

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  • Go through me to strike the right balance between GST recovery provisions and taxpayer's rights, almost everytime.

    This piece explores the intricate balance between the government’s need to secure revenue through the Goods and Services Tax (GST) and the rights of taxpayers to fair appeal processes. It scrutinizes the legal framework governing the pre-deposit requirements for appeals, the statutory limits on recovery during the appeal process, and the exceptional circumstances that allow for more aggressive revenue protection measures. The article draws on rec ...

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  • Was GST right in recovering full GST post-appeal rejection?

    The Patna High Court, in Civil Writ Jurisdiction Case No.777 of 2023, ruled in favor of National Insurance Co. Ltd. against the State of Bihar and tax authorities. The case revolved around the recovery of tax amounts and the constitution of the Appellate Tribunal under the Bihar Goods and Services Tax Act. The court found that the tax authorities had acted high-handedly and ordered the refund of the entire amounts recovered, imposed a cost on the ...

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  • Patna HC Orders GST department to Refund ₹69,88,322 GST Within Two Weeks, Fines the Officer for Unjust Collection.

    The Patna High Court has delivered a landmark judgment in a case involving arbitrary tax recovery by the state authorities. The court criticized the tax officers for their “valorous overreach” and “high-handed” actions, which violated the principles of natural justice and the statutory provisions governing tax recovery.

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  • 50 FAQ on Deemed Exports under GST

    Deemed exports refer to the supply of goods manufactured in India that are treated as exports under GST, even though the goods do not physically leave the country. These supplies are notified by the government and must meet certain conditions, such as payment in Indian rupees or convertible foreign exchange. While deemed exports are not automatically zero-rated, suppliers can claim a refund of the GST paid on these supplies. The concept aims to p ...

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  • Court Rules in Favor of National Internet Exchange of India in Refund Claim Dispute

    The case involves the National Internet Exchange of India (petitioner) challenging the rejection of its claim for refund of Integrated Goods and Services Tax (IGST) in respect of zero-rated supplies. The rejection was based on the ground that the petitioner’s application was filed beyond the period stipulated under Section 54(1) of the Central Goods and Services Tax Act, 2017. The petitioner argued that its subsequent applications were filed onli ...

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  • Refund of GST on export of services allowed despite payment being received in Indian rupees through an intermediary.

    The petitioner, an exporter of services, received payments from foreign clients through an intermediary Paypal in Indian rupees after Paypal received the amounts in convertible foreign exchange. The tax authorities denied refund of GST paid on such export of services on the grounds that payment was not received in convertible foreign exchange by the petitioner directly as required under Section 2(6)(iv) of IGST Act. The High Court allowed the w ...

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  • High Court of Kerala Rules on Refund of Accumulated Input Tax Credit

    The High Court of Kerala at Ernakulam, presided over by the Honourable Mr. Justice Dinesh Kumar Singh, delivered a judgment on the 11th day of January 2024 regarding the refund of accumulated input tax credit (ITC) under the Central Goods and Services Tax Act, 2017. The case involved M/S. Malabar Fuel Corporation, which had filed writ petitions challenging the rejection of their claims for refund of accumulated ITC under Section 54(3)(ii) of the ...

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  • Refunds under GST: A Comprehensive Analysis

    This article provides an in-depth analysis of the provisions related to refunds under the Goods and Services Tax (GST) law in India. It covers the relevant sections of the CGST Act, IGST Act, and CGST Rules, along with important judicial precedents. The article examines the procedures, conditions, and limitations for claiming refunds, including refunds of unutilized input tax credit, zero-rated supplies, and excess tax paid. It also discusses the ...

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  • Comprehensive Guide to Refund Claims under GST

    The Goods and Services Tax (GST) regime has introduced a complex set of rules and procedures for claiming refunds across various categories. This comprehensive guide delves into the nuances of refund computation, eligibility criteria, and the intricate process involved. From exports and deemed exports to inverted duty structures and excess cash payments, it covers the gamut of scenarios where refunds can be sought. Backed by relevant statutory pr ...

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  • Court modifies GST cancellation order, limits retrospective effect to last return filing date.

    The High Court of Delhi, in the case of W.P.(C) 1262/2024 - KOXAN INDIA vs. ASSTT. COMMISSIONER OF GST & ANR., addressed the retrospective cancellation of GST registration. The petitioner challenged the order dated 24.03.2021, which cancelled their GST registration retrospectively from 01.07.2017. The Court found that the cancellation lacked proper justification and opportunity for the petitioner to object to the retrospective cancellation. Conse ...

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  • Court quashes GST cancellation order, cites lack of reasons for retrospective cancellation.

    In this case, the petitioner challenged the order cancelling their GST registration retrospectively from 28.05.2022. The court found that the show cause notice and cancellation order lacked details and reasons for the retrospective cancellation. Consequently, the court set aside the cancellation order and restored the petitioner's GST registration, directing them to file necessary returns and comply with the rules. However, the tax authorities we ...

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