News Bulletinby Kanishka
-
The courts recently quashed 4 out of 5 GST Refund circulars on zero rated supplies that Revenue Authorities use to hold refunds.
These rulings have provided relief to exporters, clarified various aspects of GST refunds, ensuring that exporters receive their rightful refunds without unnecessary restrictions or denials - like Exporters can claim GST refunds for tax periods across two financial years, Exporters are entitled to IGST refunds despite availing a higher drawback rate, Tax authorities cannot deny GST refunds on export of services even if the payment is received in ...
Read more -
Gujarat HC rules - denying refund of unutilized input tax credit on input services for inverted duty structure is ultra vires.
The case revolves around several petitioners, including VKC Footsteps India Pvt. Ltd., who challenged the validity of Rule 89(5) of the Central Goods and Services Tax (CGST) Rules, 2017, which denied refund of unutilized input tax credit on input services in cases of inverted duty structure. The Gujarat High Court ruled in favor of the petitioners, holding that the restriction imposed by the Rule is ultra vires (beyond the scope) of Section 54(3) ...
Read more -
The revenue authorities cannot take advantage of their own mistakes and deny interest on delayed refunds.
The case revolves around a registered dealer, M/s Alok Traders, who sought interest on a delayed refund of the amount deposited for the release of goods under Section 129 of the CGST Act, 2017. The Allahabad High Court ruled in favor of the assessee, directing the revenue authorities to pay interest for the period from September 9, 2018, to March 31, 2022, at the rate notified under Section 56 of the CGST Act.
Read more -
Exporters' Boon or Bane? Navigating Rule 96(10)'s Complexities
A pivotal rule governing IGST refunds for exporters, Rule 96(10) of the CGST Rules has undergone numerous amendments, creating a labyrinth of conditions and exceptions. This intricate rule aims to strike a balance between facilitating exports and preventing misuse of tax benefits. Exporters must tread carefully, as non-compliance can lead to refund denials, interest liabilities, and penalties. Understanding the rule's nuances is crucial for seaml ...
Read more -
Court allows refund claim filed electronically within time, overriding circular's physical submission requirement.
The case involved a company, M/s Chromotolab and Biotech Solutions, that filed a refund claim electronically on the common portal within the prescribed time limit. However, the tax authorities rejected the claim as time-barred because the physical submission of the application and documents happened after the due date, as per a circular. The High Court of Gujarat ruled in favor of the company, directing the authorities to re-credit the refund amo ...
Read more -
Court grants bail to accused in GST fraud case involving fake firms and fraudulent input tax credit claims.
The Delhi High Court granted bail to Sudhir Gulati, who was accused of being involved in a GST fraud case. The court found that his continued detention was not necessary, as he had already been in custody for over a month, and the trial was likely to take a long time to conclude. The court emphasized the importance of personal liberty and the presumption of innocence.
Read more -
Court grants bail to accused in GST fraud case involving fake firms and fraudulent input tax credit claims.
The Punjab and Haryana High Court granted regular bail to Sunil Kumar and Vakil Chand alias Vicky, who were accused of being involved in a GST fraud case. The court found that their continued detention was not necessary, as they had already been in custody for over 1.5 years, and the trial was still in its early stages. The court emphasized the importance of personal liberty and the presumption of innocence.
Read more -
Court denies bail to alleged mastermind in GST fraud case involving fake firms and fraudulent input tax credit.
The Delhi High Court dismissed the bail application of Amit Kumar Jain, who was accused of being the mastermind behind the creation of fake firms and claiming fraudulent input tax credit worth crores of rupees. The court found that his pre-trial detention was necessary to prevent him from influencing witnesses and tampering with evidence.
Read more -
Bread-earning sons granted bail in GST fraud case after over a year in custody.
The Orissa High Court granted bail to two brothers, Smruti Ranjan Mohanty and his brother, who were accused of being involved in a GST fraud case. The court considered that they had been in custody for over a year and were the sole breadwinners for their family. The court emphasized the importance of personal liberty and the presumption of innocence until proven guilty.
Read more -
Accused in GST evasion case granted bail due to health issues and lack of evidence of being the ultimate beneficiary.
This case involves Ashish Aggarwal, who was accused of evading Goods and Services Tax (GST) by passing fake input tax credits (ITC) through various firms. The court granted him bail, considering his health conditions, the responsibility of taking care of his ailing mother, and the lack of evidence suggesting he was the ultimate beneficiary of the alleged evasion.
Read more -
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 ...
Read more -
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 ...
Read more -
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 ...
Read more -
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 ...
Read more -
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 ...
Read more
