GST Weekly Flashback for the period 17 To 23 November 2024.
Table of Contents – GST Weekly Flashback
Bombay High Court
Denying GST ITC On Advance Receipts Would Create Inconsistency And Disrupt Harmonious Functioning Of GST Provisions, Rules Bombay High Court
Case Title: L & T IHI Consortium Versus UOI
The Bombay High Court has ruled that denying (Input Tax Credit) ITC on advance receipts would create inconsistency and disrupt the harmonious functioning of GST provisions.
The bench of Justice G. S. Kulkarni and Justice Jitendra Jain has interpreted Section 7 of the Central Goods and Services Tax (CGST) Act, determining that it encompasses “supplies agreed to be made” within the definition of supply. The advance payments received by the petitioner are subject to GST, thereby expanding the definition of a taxable supply.
Chhattisgarh High Court
Chhattisgarh High Court Dismisses J.K. Lakshmi Cement’s Petition Challenging Constitutional Validity Of Clauses (c) & (d) Of Section 17(5) of CGST Act Citing Safari Judgement
Case Title: J.K. Lakshmi Cement Ltd. Versus Union of India
The Chhattisgarh High Court has dismissed the writ petition filed by J.K. Lakshmi Cement Ltd. challenging constitutional validity of clauses (c) & (d) Of Section 17(5) of CGST Act. Clauses (c) & (d) Of Section 17(5) of CGST Act relates to works contract services and goods and services received for construction of immovable property respectively.
GST Evasion | Chhattisgarh High Court Grants Bail To Accused Of Passing Unauthorised ITC Worth Rs. 63.37 Crores Based On Fake Bills
Case Title: Badal Gour Versus UOI
The Chhattisgarh High Court has granted bail to accused of passing unauthorised Input Tax Credit (ITC) worth Rs. 63.37 crores based on fake bills.
The bench of Chief Justice Ramesh Sinha has observed that no incriminating has been recovered at the instance of the present applicant and the applicant was not involved in any of the acts as alleged against him consciously or otherwise and the applicant is a transgender person, the applicant is languishing in jail since 06.08.2024.
Punjab & Haryana High Court
GST Number Of Purchaser In GSTR-1 Return Can’t Be Rectified After Expiry Of Limitation Period: Punjab & Haryana High Court
Case Title: Bar Code India Limited Versus Union of India and others
The Punjab & Haryana High Court in the case of Bar Code India Limited Versus Union of India held that the GST Number of purchasers in GSTR-1 return cannot be rectified after expiry of the limitation period.
The bench of Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth has observed that If there is a correction in the corresponding GSTR-1 within the timeline, ITC would be permissible in terms of the timeline specified in Section 64 of the Act, therefore, the petitioner cannot be permitted to rectify the return beyond the statutory time limit prescribed under the GST Act.
Punjab and Haryana High Court Grants Anticipatory Bail To Accused Uploading Fake Bills On GST Portal & Wrongfully Claiming ITC Worth Rs. 25 Crores
The Punjab and Haryana High Court in the case of Jatinder Menro Versus State of Punjab granted anticipatory bail to accused uploading fake bills on GST Portal and wrongfully claiming Input Tax Credit (ITC) worth Rs. 25 Crores.
The bench of Justice Gurvinder Singh Gill has observed that the allegations as in the complaint under Section 132 of CGST Act and in the FIR are more or less overlapping and also that the allegations pertaining to raising of false bills for showing false transactions would specifically be covered under offences under CGST and also that the petitioners have remained behind bars for a substantial period in respect of a complaint under Section 132 of CGST Act and neither the petitioners are alleged to been on the run during these five years nor the police had chosen to arrest them ever since lodging of the FIR, this Court is of the opinion that it is a fit case for grant of anticipatory bail to the petitioners.
BMW Entitled To ITC On Demo Vehicles: Punjab & Haryana High Court Quashes AAAR’s Ruling
Case Title: M/s BMW India Pvt. Ltd. Versus The Appellate Authority for Advance Ruling for the State of Haryana and another
The Punjab and Haryana High Court while quashing the ruling given by Appellate Authority of Advance Ruling (AAAR) held that BMW is entitled to Input Tax Credit (ITC) on demo vehicles.
The bench of Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth has observed that Circular No.231/25-HGST/2024/GST-II (CBIC Circular No.231/25/2024- GST, dated 11.09.2024), dated 13th September 2024 discussed the availability of Input Tax Credit on demo vehicles, which are motor vehicles for transportation of passengers having approved seating capacity of not more than 13 persons in terms of clause (a) of section 17(5) of Haryana Goods & Services Tax Act, 2017.
Karnataka Commercial Tax Department
Food Supply Under Prescribed Diet Package Is A ‘Composite Supply’, Different From ‘Normal Restaurant Services’, 18% GST Applicable: Karnataka Commercial Tax Dept.
Name of the Taxable Person: M/s Food Darzee
The Karnataka Commercial Tax Department held that food supply under prescribed diet packages is a ‘composite supply’, different from normal restaurant services, 18% GST is applicable.
