Goods and Service Tax (GST) Weekly Flashback from 23 to 29 March 2025.
Table of Contents
Supreme Court
Supreme Court Upholds Businesses’ Right to Rectify Tax Errors, Safeguards Buyers’ Input Tax Credit from Seller’s Mistakes
The Supreme Court has upheld the businesses’ right to rectify tax errors, safeguards buyers’ input tax credit from seller’s mistakes.
The bench of the Chief Justice Sanjiv Khanna, Justice Sanjay Kumar and Justice K.V. Viswanathan has observed that has reinforced the fundamental right of businesses to rectify clerical or arithmetical errors in tax filings. The inadvertent mistakes in tax records should not lead to undue hardships, emphasizing that rectification is an essential aspect of conducting business and should not be restricted by technical limitations.
Madras Bar Association Challenges Constitutional Validity Of Provisions Relating To GSTAT Constitution And Qualification Of Its Members: Supreme Court To Hear
The Madras Bar Association filed the writ petition challenging constitutional validity of constitution of Goods and Service Tax Appellate Tribunal (GSTAT) and qualification of tribunal members amended Sections 109 and 110 of the Central Goods and Services Tax (CGST) Act.
The bench of Justice Surya Kant and Justice Nongmeikapam Kotiswar Singh has scheduled for further proceedings on April 2, 2025.
Delhi High Court
Service Charge Misleadingly Seen As GST, Burdens Consumers with Double Levy: Delhi High Court
Recently, the Delhi High Court has held that the service charge collected by restaurants is not mandatory and Some customers confused service charge and Goods and Service Tax (GST) levied by the Government.
The bench of Justice Prathiba M. Singh has observed that in some cases, service charge is being confused with service tax or a mandatory tax imposed by the government. In fact, for the consumers, the collection of service charge is proving to be a double whammy i.e., they are forced to pay service tax and GST on the service charge as well. This position cannot be ignored by the Court.
Karnataka High Court
GST Applicable On Residential Bookings Made Before Completion Certificate: Karnataka High Court
The Karnataka High Court has held that the Goods and Service Tax (GST) is applicable on residential bookings made before completion certificate.
The bench of Justice M.G.S. Kamal has observed that if the transaction of booking a residential house is entered into before the completion of construction and the consideration was paid (partly or fully) before issuance of completion certificate, the same would amount to supply of services under GST and accordingly subject to GST.
Gujarat High Court
Dual GST Orders for Overlapping Period Alleging GSTR Mismatch: Gujarat High Court Stays Coercive Action
The Gujarat High Court has stayed the coercive action in the light of the Dual GST orders for overlapping periods alleging mismatch between From GSTR-3B and GSTR-2A for the same period.
AAAR
18% GST Applicable On Aluminium Composite Panel/Sheets: AAAR
The Telangana Appellate Authority of Advance Ruling (AAAR) has ruled that Aluminium Composite Panel/Sheets are classifiable under Heading 7606 and 18% GST is applicable.
