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Snapshot-9-One Pager Snapshot of Round up of Latest GST Cases..

-Taxability of clubs with insertion of 7(1)(aa)
-Eligibility of Main contractor to claim ITC
-Classification of Tax Rate on Mattresses
-Treatment of subsidized food provided to Employees and availability of ITC



Case Subject



Cases Referred


Section 7
and Section

Taxability of club with
the insertion of Section
7(1)(aa) and question of
interference by High
Court at the stage of

Bankipore Club Ltd. v.
Union of India [2023] 150 76 (Patna)

It was contended by the petitioner that club operates on the principles of agency and
having its relationship with the individual members based on the principle of mutuality,
the CGST Act was not applicable to it till the CGST Act was amended with the
insertion of Clause (aa) to Section 7 of the CGST Act by Finance Act, 2021 with effect
from 01.01.2022. Therefore, petitioner ought not to have been directed to produce
any document for the transactions prior to 01.01.2022.
In view of the wide scope of Section 70 of the CGST Act regarding power to summon
persons to give evidence and produce documents, the High Court was not inclined to
interfere with the impugned summons



17(5)(c) and

Eligibility of Main
contractor to claim
Input Tax credit of the
Tax charged by Subcontracto

SR Constructions v.
Union of India [2023] 150 75

The petitioner is a construction company. They had a works contract agreement with
the M/s Hotel Polo Pvt. Ltd. and to construct a hotel. In the process of construction
they procured materials and also took the services of Sub-contractors. However,
demand on the ground that such ITC availed on works contract service for supply of
construction of an immoveable property was in violation of Section 17(5) of CGST Act
was created against the petitioners under Section 74.
It was held by the High Court that the petitioner has been providing work contract
services to the owner of the hotel and not for it’s own and thus they are entitled to
take Input Tax Credit on the Goods and Services being utilized for providing the
taxable work contract services. The demand raised and penalty imposed under
Section 74(1) of the CGST Act,2017 was held to be ultra vires



HSN 9404

Classification of Tax
Rate on Mattresses

Hosur Coir Foams (P.)
Ltd [2023] 150 74 (AAR -

Mattresses classifiable under HSN 940429 are liable to Tax @ 18% vide serial
number 438 under Schedule III of Notification No.01/2017 I.T (Rate) dated
28.06.2017, as amended.



Section 7
and Section

Section 7
and Section

Section 7
and Section

Section 7
and Section

M/s Tata Motors Ltd,
dated 22.12.2022