GST Weekly Flashback for the period 16 December 2024 to 22 December 2024.
Table of Contents
Supreme Court
5% GST On Coconut Oil Sold In Small Packages : Supreme Court
Case Title: Commissioner of Central Excise, Salem Versus M/s. Madhan Agro Industries (India) Private Ltd.
The Supreme Court while putting an end to the 15-years old dispute held that coconut oil classified edible oil and 5% GST is applicable.
The bench of Chief Justice Of India Sanjiv Khanna, Justice Sanjay Kumar and Justice R. Mahadevan has observed that pure coconut oil sold in small quantities as ‘edible oil’ would be classifiable under Heading 1513 in Section III-Chapter 15 of the First Schedule to the Central Excise Tariff Act, 1985, unless the packaging thereof satisfies all the requirements set out in Chapter Note 3 in Section VI-Chapter 33 of the First Schedule to the Central Excise Tariff Act, 1985, read with the General/Explanatory Notes under the corresponding Chapter Note 3 in Chapter 33 of the Harmonized System of Nomenclature, whereupon it would be classifiable as ‘hair oil’ under Heading 3305 in Section VI- Chapter 33.
Figure Out & Pay 5% GST If Coconut Oil Used As Hair Oil Is Fit For Human Consumption, If It Contains This Mark
The Supreme Court in the case of Commissioner of Central Excise, Salem Versus M/s. Madhan Agro Industries (India) Private Ltd. has recently ruled that the coconut oil classified edible oil and 5% GST is applicable.
However the question arises, whether coconut oil which is being used as hair oil is fit for human consumption? Who is the competent authority to decide the nature of edible oil?
Delhi High Court
Mismanagement Of Arrest Process By DGGI: Delhi High Court Declares Arrest Of Person Accused Of Wrongful ITC Availment Illegal
Case Title: Kshitij Ghildiyal Versus DGGI
The Delhi High Court while pointing out that the mismanagement of arrest process by Director General of GST Intelligence (DGGI) declared the arrest of person accused of wrongful Input Tax Credit (ITC) availment illegal citing that the grounds of arrest were not communicated to the accused.
The bench of Justice Anish Dayal has relied on the decision of the Supreme Court in the case of Arvind Kejriwal v. Directorate of Enforcement in which it was held that the pre-conditions act as stringent safeguards to protect the life and liberty of individuals.
Telecom Towers Are Movable Properties : Delhi High Court Allows ITC To Bharti Airtel
Case Title: M/S Bharti Airtel Limited Versus Commissioner, Cgst Appeals-1 Delhi
The Delhi High Court has allowed the Input Tax Credit (ITC) to Bharti Airtel and held that telecom towers are movable properties.
The bench of Justice Yashwant Varma and Justice Girish Kathpalia has observed that the specific exclusion of telecommunication towers from the scope of the phrase “plant and machinery” would not lead one to conclude that the statute contemplates or envisages telecommunication towers to be immovable property. Telecommunication towers would in any event have to qualify as immovable property as a precondition to fall within the ambit of clause (d) of Section 17(5). Their exclusion from the expression “plant and machinery” would not result in it being concomitantly held that they constitute articles which are immovable.
GST Assistant Commissioner (Refund) Adopts Dual Standards, Resulting In Differential Tax Treatment To Similarly Placed Assesses : Delhi High Court
Case Title: Telecommunications Consultants India Ltd. Versus Union Of India
The Delhi High Court has held that the GST Assistant Commissioner (Refund) adopts dual standards, resulting in differential tax treatment to similarly placed assesses without any rational basis.
The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that the differential tax treatment to similarly placed assesses is a discriminatory treatment that violates the rights of the petitioner protected under Article 14 of the Constitution of India, 1950.
Bombay High Court
Bombay High Court Restore Refund Application Made In Form GST RFD 01 Subject To Cost Of Rs. 2 Lakhs
Case Title: Raiden Infotech India Private Ltd. Versus The State of Maharashtra
The Bombay High Court has restored the refund application made in Form GST RFD 01 subject to cost of Rs. 2 Lakhs.
The bench of Justice M.S. Sonak and Justice Jitendra Jain have observed that merely seeking adjournments and then contending that adjournment applications were not responded to or decided one way or the other is not grounds to complain about any failure of natural justice.
Provisional Acknowledgement Receipt Generated On GST Portal; Appeal Can’t Be Dismissed Alleging Non-Payment Of Pre-Deposit : Bombay High court
Case Title: Delphi World Money Ltd. Versus The Union of India
The Bombay High Court has held that appeal cannot be dismissed alleging non-payment of pre-deposit when provisional acknowledgement receipt generated on GST portal.
The bench of Justice M.S. Sonak and Justice Jitendra Jain has observed that in the memorandum of appeal, the amount of pre-deposit paid has been specified under S.No.15 of Form APL-01. The Petition has the screenshots of the Electronic Credit Ledger, and the Electronic Cash Ledger of the Petitioner downloaded from the GSTN portal. The document shows that the Petitioner has made a payment of Rs. 3,20,22,340 from the Electronic Credit Ledger and a payment of Rs. 1,22,33,134/- from the Electronic Cash Ledger.
GST Appeal Can’t Be Rejected Merely For shortfall Of Pre-Deposit : Bombay High Court
Case Title: D N Polymers Versus Union of India & Ors.
The Bombay High Court has held that the GST appeal cannot be rejected merely for a shortfall of pre-deposit.
The bench of Justice M. S. Sonak and Justice Jitendra Jain while relying on the judgement in the case of Delphi World Money Ltd. Vs. The Union of India observed that if there was a deficiency of short payment of pre-deposit, the petitioner should have been put to notice to rectify such deficiencies.
PayU Challenges DGGI SCN Alleging Rs. 38 Crores Wrongful ITC Availment Before Bombay High Court : What Happened?
Case Title: PayU Payments Private Limited Versus The Union of India
The Digital Payment Solution Giant, PayU has challenged the show cause notice (SCN) issued by the Directorate General of GST Intelligence (DGGI) before Bombay High Court. The show cause notice alleges that PayU has availed the wrongful Input Tax Credit (ITC) worth Rs. 38 Crores.
The bench of Justice M.S. Sonak and Justice Jitendra Shantilal Jain while dismissing the petition of PayU asked PayU to file a reply to the show cause notice before the adjudicating authority.
Calcutta High Court
Regulatory Measures Under GST Laws Ensures To Prevent Tax Evasion, Not Violative Of Fundamental Rights : Calcutta High Court
Case Title: Ashok Sharma Versus The State of West Benal
The Calcutta High Court has held that regulatory measures under the GST laws are necessary to ensure compliance and prevent tax evasion and do not constitute a violation of fundamental rights.
The bench of Justice Rajarshi Bharadwaj has observed that the petitioner’s failure to maintain consistent and transparent inventory records further supported the inference of intent to evade taxes.
Madhya Pradesh High Court
BIG Relief To GST Dept.: Madhya Pradesh High Court Dismissed Petition Challenging Single SCN For Multiple AYs Contrary To Other HC Rulings
Case Title: M/S Rahul Steels Through And Others Versus Union Of India And Others
In a major relief to the GST department, the Madhya Pradesh High Court has Dismissed Petition Challenging Single show cause notice (SCN) for multiple Assessment Years (AYs) in circular trading case, which is contrary to other High Court rulings.
The bench of Justice Vivek Rusia and Justice Binod Kumar Dwivedi has observed that the total period during which these fake ITCs were generated is from 2017 to 2022, therefore, a joint assessment is liable to be conducted of six companies / notice in the aforesaid period. In such types of circular trading matters, the assessment can be done by calling all the firms / companies involved in trading in the relevant years by the proper office. This matter cannot be proceeded individually in a given facts and circumstances under Section 74 of CGST Act, 2017.
55th GST Council Meet
55th GST Council Meet : Live Updates
The 55th GST Council Meeting will be held today (December 21, 2024) in Jaisalmer, Rajasthan.
The 55th GST Council Meeting is anticipated to have a bucket list of decisions on various key topics such as life and health insurance, luxury goods, tax treatment of gift vouchers, Floor Space Index (FSI) charges, aviation turbine fuel (ATF), etc.
Safari Retreats Judgment: 55th GST Council Meet Recommended Retrospective Amendment to GST Act To Correct Error
The GST Council has proposed amending the GST Act retrospectively to address the implications of the Supreme Court’s landmark judgment in the Safari Retreats case. In this judgment, the court applied the “functionality test” to determine the availability of input tax credit while distinguishing between the definitions of “plant or machinery” and “plant and machinery.”
55 GST Council Meet: 5% GST On Fortified Rice Kernel
The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today. The council recommended 5% GST on fortified rice kernel.
In a major relief to the poor, the GST council recommended to reduce the GST rate on Fortified Rice Kernel (FRK), classifiable under 1904, to 5%.
55th GST Council Meet: GST Exemption On Gene Therapy
The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today. The council fully exempted GST on gene therapy.
Gene therapy is a technique that uses a gene(s) to treat, prevent or cure a disease or medical disorder. Often, gene therapy works by adding new copies of a gene that is broken, or by replacing a defective or missing gene in a patient’s cells with a healthy version of that gene.
55th GST Council Meet: GST Exemption On Contributions By General Insurance Companies From Third-Party Motor Vehicle Premiums For Motor Vehicle Accident Fund
The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today. The council recommended the GST exemption on contributions by general insurance companies from third-party motor vehicle premiums for motor vehicle accident fund.
55th GST Council Meet: No GST On Vouchers Transactions
The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today. The council recommended the GST exemption on vouchers transactions as they are neither supply of goods nor supply of services. The provisions related to vouchers is also being simplified.
55th GST Council Meet: No GST On ‘Penal Charges’ Levied By Banks And NBFCs From Borrowers For Non-Compliance With Loan Terms
The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today.
The 55th GST Council meet recommended that no GST is payable on ‘penal charges’ levied and collected by banks and Non-Banking Financial Company (NBFCs) from borrowers for non-compliance with loan terms.
55th GST Council Meet: GST Rate Increase from 12% to 18 % On Sale Of All Old And Used Vehicles, Including EVs
The council has recommended to increase the GST rate from 12% to 18 % on sale of all old and used vehicles, including EVs other than those specified at 18%.
55th GST Council Meet: No GST On Transaction Less Than Rs. 2k Via Payment Aggregators
The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today.
The council has recommended that no GST is payable on payment Aggregators who do less than Rs. 2k payment are eligible for GST exemption. However, GST exemption is not applicable on payment gateways and other fintech services.
55th GST Council Meet: 18% GST On Caramel Popcorn, 5% GST On Salted Ones
The council has recommended that ready to eat popcorn which is mixed with salt and spices are classifiable under HS 2106 90 99 and attracts 5% GST if supplied as other than pre-packaged and labelled and 12% GST if supplied as pre-packaged and labelled.
Key Amendments Under GST Laws Recommended By 55th GST Council Meet
The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today has recommended amendments under GST laws.
55th GST Council Meet: Reduction In Compensation Cess Rate to 0.1% On Supplies To Merchant Exporters At Par With GST Rate
The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today.
The council has recommended reduction in compensation cess rate to 0.1% on supplies to merchant exporters at par with GST rate.
55th GST Council Meet: Measures For Streamlining GST Compliances
The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today.
The council has recommended measures for streamlining Streamlining GST.
55th GST Council Meet: 5% GST On Food Inputs In Food Supplied To Economically Weaker Sections
The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today.
The council has recommended the concessional 5% GST rate on food inputs of food preparations under HSN 19 or 21 that are supplied for food preparations intended for free distribution to economically weaker sections under a government program subject to the existing conditions.
55th GST Council Meet: Issues Clarifications On To Remove Ambiguity And Legal Disputes
The council has recommended to issue circulars to provide clarity in the issues due to varied interpretations by the field formations so as to remove Ambiguity And Legal Disputes.
55th GST Council Meet: Nirmala Sitharaman Proposes To Bring Supply Of Sponsorship Services Provided By Body Corporates Under Forward Charge Mechanism
The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today.
The council has recommended to bring supply of the sponsorship services provided by the body corporates under Forward Charge Mechanism.
55th GST Council Meet: 18% GST On Value Of Supply For Hotel Accommodation Exceeding Rs. 7500 W.E.F. April 2025
The council has recommended that 18% GST with Input Tax Credit on value of supply for hotel accommodation exceeding Rs. 7500 W.E.F. April 2025.
First Day Bail Within Few Hours Of Arrest To Accused Involved In Wrongful ITC Availment : ACJM Terms Arrest Illegal
The bench of G. R. Dhepe, Additional Chief Judicial Magistrate has observed that the offence under Section 132 of the GST Act is punishable upto 5 years. Pursuant to the second summons accused could have attended the office of the complainant for recording his statement. Therefore, the arrest of the accused was in a hasty manner though issued second summons for recording his statement on 30.12.2024.
