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Statutory Scope
Monetary limits fixed for filing appeals or applications by dept. for reduction of Government Litigation: Circular
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued circular and fixed the monetary limits below which appeal or application or Special Leave Petition, as the case may be, shall not be filed by the Central Tax officers before Goods and Service Tax Appellate Tribunal (GSTAT), High Court and Supreme Court under the provisions of CGST Act.
Key Details:
Statute Number: CIRCULAR NO. 207/1/2024-GST
Date of Statute: 26-06-2024
Clarifications on various issues pertaining to special procedure for the manufacturers of the specified commodities: Circular
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued circular to clarify that make and model number of machine are optional in Table 6 of FORM GST SRM-I. It is also clarified that special procedure as notified vide Notification No. 04/2024-CT dated 05.01.2024 is not applicable to the manufacturing units located in Special Economic Zone. The circular also provides clarification on several issues pertaining to special procedure for the manufacturers of the specified commodities.
Key Details:
Statute Number: CIRCULAR NO.-208/2/2024-GST
Date of Statute: 26-06-2024
Delivery address is POS in case of goods supplied to unregistered person and delivery address is different from billing address: Circular
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has clarified that in case of supply of goods to an unregistered person, where the address of delivery of goods recorded on the invoice is different from the billing address of the said unregistered person on the invoice, the place of supply of goods shall be address of delivery of goods recorded on the invoice.
Key Details:
Statute Number: CIRCULAR NO.209/3/2024-GST
Date of Statute: 26-06-2024
Clarification issued regarding valuation of supply of import of services by a related person where recipient is eligible to full ITC
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has circular to clarify that in cases where full ITC is available to the recipient and the invoice is not issued by the related domestic entity with respect to any service provided by the foreign affiliate to it, the value of such services may be deemed to be declared as Nil, and may be deemed as open market value in terms of second proviso to rule 28(1) of CGST Rules.
Key Details:
Statute Number: CIRCULAR NO.210/4/2024-GST
Date of Statute: 26-06-2024
CBIC issued clarification on applicability of Section 16(4) on RCM invoices for supplies received from unregistered persons
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has clarified that in case of supplies received from unregistered suppliers where tax has to be paid by the recipient under reverse charge mechanism (RCM), the relevant financial year for calculation of time limit for availment of ITC under section 16(4) of CGST Act will be the financial year in which the invoice has been issued by the recipient.
Key Details:
Statute Number: CIRCULAR NO. 211/5/2024-GST
Date of Statute: 26-06-2024
Mechanism for providing evidence of compliance of conditions of Section 15(3)(b)(ii) regarding ITC reversal on discount: Circular
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has clarified that till the time a functionality/ facility is made available on the common portal, the supplier may procure a certificate from the recipient of supply, issued by the Chartered Accountant (CA) or the Cost Accountant (CMA), certifying that the recipient has made the required proportionate reversal of input tax credit at his end in respect of such credit note issued by the supplier.
Key Details:
Statute Number: CIRCULAR NO.-212/6/2024-GST
Date of Statute: 26-06-2024
CBIC issued circular clarifying taxability of ESOP/ESPP/RSU provided by a company to its employees through its overseas holding company
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has clarified that no supply of service would take place between the foreign holding company and the domestic subsidiary company where the foreign holding company issues ESOP/ESPP/RSU to the employees of domestic subsidiary company, and the domestic subsidiary company reimburses the cost of such securities/shares to the foreign holding company on cost-to-cost basis.
Key Details:
Statute Number: CIRCULAR NO.213/07/2024-GST
Date of Statute: 26-06-2024
Clarification issued on the requirement of reversal of ITC on portion of premium for life insurance policies not included in taxable value
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has clarified that the amount of the premium for taxable life insurance policies, which is not included in the taxable value as determined under rule 32(4) of CGST Rules, cannot be considered as pertaining to a non-taxable or exempt supply and therefore, there is no requirement of reversal of input tax credit.
Key Details:
Statute Number: CIRCULAR NO.-214/8/2024-GST
Date of Statute: 26-06-2024
Clarification on taxability of salvage/ wreck value earmarked in the claim assessment of the damage caused to the motor vehicle: Circular
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has clarified that in cases where general insurance companies are deducting the value of salvage as deductibles from the claim amount, the salvage remains the property of insured and insurance companies are not liable to discharge GST liability on the same. However, in cases, where the insurance claim is settled on full claim amount, without deduction of value of salvage/ wreckage, the insurance company will be obligated to discharge GST on supply of salvage to the salvage buyer.
Key Details:
Statute Number: CIRCULAR NO.-215/9/2024-GST
Date of Statute: 26-06-2024
CBIC issues clarification on taxability and ITC availability in case of Warranty/ Extended Warranty
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued a new circular to provide clarification regarding GST liability and availability of input tax credit (ITC) in respect of cases where goods as such or the parts are replaced under warranty; cases where distributor replaces the parts/ goods out of his own stock etc.
Key Details:
Statute Number: CIRCULAR NO. 216/10/2024-GST
Date of Statute: 26-06-2024
CBIC issued clarification on entitlement of ITC by insurance companies on expenses incurred for repair of motor vehicles
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has clarified that ITC is available to Insurance Companies in respect of motor vehicle repair expenses incurred by them in case of reimbursement mode of claim settlement.
Key Details:
Statute Number: CIRCULAR NO. 217/11/2024-GST
Date of Statute: 26-06-2024
CBIC issued clarification on taxability of loans granted by an overseas affiliate to its Indian affiliate
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued circular to clarify that in cases where no consideration is charged by the person from the related person, or by an overseas affiliate from its Indian party, for extending loan or credit, other than by way of interest or discount, it cannot be said that any supply of service is being provided and there is no question of levy of GST on the same.
Key Details:
Statute Number: CIRCULAR NO.218/12/2024-GST
Date of Statute: 26-06-2024
ITC is not restricted on ducts and manholes used in network of optical fiber cables: Circular
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has provided clarification that availment of input tax credit is not restricted in respect of ducts and manhole used in network of optical fiber cables (OFCs), either under clause (c) or under clause (d) of sub-section (5) of section 17 of CGST Act.
Key Details:
Statute Number: CIRCULAR NO. 219/13/2024-GST
Date of Statute: 26-06-2024
Custodial services provided by banks or financial institutions to FPIs are not to be treated as services provided to 'account holder': Circular
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has clarified that the custodial services provided by banks or financial institutions to FPIs are not to be treated as services provided to 'account holder' and therefore, the said services are not covered under Section 13(8)(a) of the IGST Act. Therefore, the place of supply of such services has to be determined as per sub-section (2) of section 13 of the IGST Act.
Key Details:
Statute Number: CIRCULAR NO 220/14/2024-GST
Date of Statute: 26-06-2024
Clarification on time of supply of construction of roads & maintenance under HAM Model: Circular
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued clarification regarding the time of supply in respect of supply of services of construction of road and maintenance thereof of National Highway Projects in Hybrid Annuity Mode (HAM) model, where certain portion of Bid Project Cost is received during construction period and remaining payment is received through deferred payment (annuity) spread over years.
Key Details:
Statute Number: CIRCULAR NO.-221/15/2024-GST
Date of Statute: 26-06-2024
Case Chronicles
HC imposed cost of Rs. 50,000 on assessee for filing writ petition without clean hands
GST ?|? CASE LAW
GST: Where assessee had not filed reply to show cause notice but filed writ petition against order of cancellation submitting that reply was filed and same was not considered, assessee had tried to abuse process of Court, thus, petition of assessee was to be dismissed by imposing a cost of Rs. 50 thousand on assessee
Key Details:
Case Name: Jadapalli Munirathnam Royal vs. Assistant Commissioner (ST)
Citation: (2024) 19 Centax 480 (A.P.)
Bail to be granted to the applicant if there was no evidence establishing that he created fake firms & passed fake ITC
GST ?|? CASE LAW
GST: Where applicant was accused of creating fake firms and passing on fraudulent Input Tax Credit, since there is no evidence establishing that applicant created fake firms or passed on Input Tax Credit, and neither GST liability nor penalties have been assessed, applicant had made out a case for bail.
Key Details:
Case Name: Gaurav Singhal vs. Union of India
Citation: (2024) 19 Centax 479 (All.)
HC set-aside order as SCN was uploaded on portal under ‘Additional Notices’ and wasn’t communicated to assessee
GST ?|? CASE LAW
GST: Where show cause notice proposing a demand against assessee was uploaded on portal in category of 'Additional Notices' and was not communicated to assessee through any other mode of communication , impugned order disposing of show cause notice was to be set aside
Key Details:
Case Name: Udayraj Yadav vs. Sales Tax Officer
Citation: (2024) 19 Centax 482 (Del.)
Writ petition not maintainable if assessee has alternative remedy to challenge cancellation of GST registration: HC
GST ?|? CASE LAW
GST: Where assessee had alternative remedy under section 30 or section 107 to challenge order that cancelled assessee's registration on untenable grounds which he did not avail, therefore instant writ petition was to be dismissed, however giving an opportunity to assessee to either file application under section 30 for revocation of cancellation or challenge impugned order by way of filing appeal.
Key Details:
Case Name: A.R. Steels vs. Assistant Commissioner (ST)
Citation: (2024) 19 Centax 468 (A.P.)
HC remanded matter as documents relied upon in SCN weren’t provided to assessee before passing order
GST ?|? CASE LAW
GST: Where without copies of impounded documents along with show cause notice issued, assessee might not be even able to effectively respond to Show Cause Notice, thus order passed against assessee without giving an opportunity to reply to Show Cause Notice was to be set aside and matter was to be remanded back.
Key Details:
Case Name: Aditya Steel Trading vs. Joint Commissioner, Central Goods and Services Tax and Central Excise
Citation: (2024) 19 Centax 469 (Bom.)
Penalty was rightly imposed if assessee deliberately not paid GST under RCM on raw cotton purchased from agriculturist: HC
GST ?|? CASE LAW
GST: A registered dealer, who purchases raw cotton falling in Tariff Item 5201 from an agriculturist, was liable to pay GST on RCM with effect from 15-11-2017.
Key Details:
Case Name: Anjani Cotton Industries vs. Principal Commissioner of Central Goods and Services Tax
Citation: (2024) 19 Centax 470 (Guj.)
Matter to be remanded back for re-adjudication after giving opportunity to assessee to file further reply and personal hearing: HC
GST ?|? CASE LAW
GST: Where assessee/petitioner contended that proper officer did not consider detailed replies to show cause notice before passing demand order, impugned order was set aside and matter was remanded back to proper officer for re-adjudication after giving opportunity to assessee/petitioner to file further reply and personal hearing.
Key Details:
Case Name: Mudita Express Cargo Pvt. Ltd. vs. Commissioner, State Goods and Services Tax
Citation: (2024) 19 Centax 472 (Del.)
AO can’t reject refund without issuing SCN; HC remanded matter to adjudicating authority for de novo consideration
GST ?|? CASE LAW
GST: Where assessee’s/petitioner’s refund claim for accumulated input tax credit due to inverted duty structure was rejected without issuing show-cause notice or providing opportunity of hearing regarding liability to pay interest on reversed ITC, impugned orders was quashed and remanded matter back to adjudicating authority for de novo consideration of refund claims in accordance with law.
Key Details:
Case Name: Omkareshwar Embroideries Ltd. vs. Union of India
Citation: (2024) 19 Centax 473 (Guj.)
HC remanded matter to adjudicating authority since ITC was wrongly reported in GSTR-3B due to inadvertent error
GST ?|? CASE LAW
GST: Where petitioner inadvertently reported Input Tax Credit (ITC) on Import of Goods in wrong table while filing GSTR-3B and was unable to access a show cause notice due to fact that its consultant had left job without properly informing it, a bonafide error on part of petioner was evident and therefore, impugned order disposing of said SCN was to be set aside and matter was to be remanded to Adjudicating Authority
Key Details:
Case Name: Essel Kitchenware Ltd. vs. Joint Commissioner of State Tax
Citation: (2024) 19 Centax 478 (Cal.)
HC directs GST authorities to disclose details of application form filed by assessee at time of initial registration
GST ?|? CASE LAW
GST: GST Authorities were to be directed to disclose information with regard to application form filed by assessee at time of initial registration and steps taken by it on complaint made by assessee that his GST number and credentials had been misused
Key Details:
Case Name: Nirdosh Kumar Sadh vs. Commissioner, Delhi Goods and Service Tax
Citation: (2024) 19 Centax 481 (Del.)
Roasted areca nut are classifiable specifically under Tariff Item 2008 19 20 as “Other roasted nuts and seeds”: AAR
CUSTOMS ?|? CASE LAW
Customs: Roasting of areca nut (whole and cut), in ovens beyond 150 degrees celsius, cooled in room temperature and cycle repeated until moisture content is less than 6%, did not satisfy requirement of “moderate heat treatment” in Note 3 of Chapter 8, and hence, they are classifiable specifically under Tariff Item 2008 19 20 as “Other roasted nuts and seeds”, and not under Heading 08020.
Key Details:
Case Name: In Re : Exim Incorporation
Citation: (2024) 19 Centax 462 (A.A.R. - Cus. - Del.)
No merit in show cause notice to ship breaker proposing final assessment at price without considering LDT variance: CESTAT
CUSTOMS ?|? CASE LAW
Customs: Where as compared to ship braker’s initial agreement with ship buyer, there was short fall of Light Displacement Tonnage (LDT) of ship at time of its import, and fresh agreement was entered with price as per revised LDT, there was no merit in show cause notice to ship breaker proposing final assessment at price without considering LDT variance.
Key Details:
Case Name: Priyank Ship Breaking Co. Pvt. Ltd. vs. Commissioner of Customs (Prev.)
Citation: (2024) 19 Centax 463 (Tri.-Ahmd)
Agreement executed by assessee for supply of water by Govt. isn’t assignment of right to use natural resources: CESTAT
EXCISE & SERVICE TAX ?|? CASE LAW
ST: Agreement was for water supply by government to assessee on payment of charges based on volume of water drawn, was not agreement merely for access or assignment of right to assessee to use natural government resources, and charges paid by assessee were not liable to Service Tax as government had not provided service to assessee.
Key Details:
Case Name: Sasan Power Ltd. vs. Commissioner of Central Excise and CGST
Citation: (2024) 19 Centax 465 (Tri.-Del)
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