One very common issue is whether interest is payable under Section 50(1) on ITC wrongly availed but not utilized for making payment of output liability. At the outset, the issue can be further sub-divided for the sake of simplicity as follows: Situation-1-Taxpayer had the invoice and goods or service or both were received by the taxpayer and Input Tax Credit was reflecting in GSTR-2A, however...

Uniroyal Marine Exports Ltd. v. Commissioner of Central Excise- 122 taxmann.com 114 (Kerala) Facts of the Case- Appellant was a processor and exporter of seafood. The controversy was with respect to the refund of service tax paid by the appellant for services rendered prior to 18-4-2006 when service tax on foreign agency commission was not leviable. The appellant paid tax without demur. The High Court...

The judgement of Hon’ble Apex Court in the matter of Petroleum & Natural Gas ... vs Indraprastha Gas Ltd.& Ors lays down a very important ratio that If on reading of the statute in entirety, such a power does not flow, a delegated authority cannot frame a regulation as that would not be in accord with the statutory provisions nor would it be for the...

Case-1-Akas Garg  v. State of Madhya Pradesh- 121 taxmann.com 329-HIGH COURT OF MADHYA PRADESH Subject-Service of Notice on E-mail ID 6.1 A bare perusal of the aforesaid provision reveals that the only mode prescribed for communicating the show-cause notice/order is by way of uploading the same on website of the revenue. 7. The State in its reply has provided no material to show that show-cause...

It would be worthwhile to highlight that as per the provisions of Section 171(1) of CGST Act, 2017 benefit of input tax credit shall be passed on by the supplier to the recipient by way of commensurate reduction in prices. The moot point which the article tries to raise that can such condition be casted upon the supplier through Section 171 of CGST Act, 2017...

Today’s article briefly throws light upon the issue regarding levy of Interest under the provisions of Rules without there being an enabling provision in the Statute. Section 171 of CGST Act, 2017 Let’s take an example of Section 171 of CGST Act, 2017 which is being reproduced herewith- 171. Antiprofiteering measure.— (1) Any reduction in rate of tax on any supply of goods or services...

Today’s post would be sharing background behind constitution of Anti-Profiteering Authority in GST Regime. For reference, both provisions under the Model GST Law released in Nov 2016 and CGST Act, 2017 are being reproduced herewith- Model Draft GST Law -Section 163- (1) The Central Government may by law constitute an Authority, or entrust an existing Authority constituted under any law, to examine whether input tax...

The short post today tries to put in the background limited to the extent of seeking whether Section 171 of the CGST Act, 2017 passes the test of Constitutional Validity vis-à-vis Article 246A of the Constitution of India. Article 246A of Constitution of India It is understood that by insertion of Article 246A resulted in insertion of special provision with respect to GST and empowered...

Rule 86B (Restriction on use of Input Tax Credit for discharging the output liability) has been inserted into CGST Rules, 2017 vide notification no. 94/2020-Central Tax Dated 22nd December 2020 (Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020.) The rule is effective from 1st January 2021. The salient features of Rule 86B are as follows- a) Rule 86B has an overriding impact on any...

Section 122(1) of CGST Act, 2017 provides as hereinbelow for quantification of Penalty in GST- He shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded or the tax not deducted under section 51 or short deducted or deducted but not paid to the Government or tax not collected under section 52 or short collected or...