GST Daily
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Today’s newsletter analytically summarizes the top GST stories reported at?taxmann.com.
In this case, the petitioner filed a writ petition against the assessment order and submitted that adequate opportunity to file a reply to show cause notices were not granted and no specific date of hearing was intimated. However, the department submitted that three adjournments were granted to the petitioner to submit a reply to show cause notices but the petitioner didn’t submit any reply.
The Honorable High Court noted that a detailed inquiry was made against the petitioner and summons under Section 70 were issued to the petitioner on several occasions and an opportunity was granted to provide information. However, the petitioner didn’t appear before the authority and didn’t seek disclosure of any documents or records and only avoided to file a reply. Therefore, the principle of natural justice was not violated and in absence of a breach of fundamental rights, the writ petition was not maintainable. The Court also directed the petitioner to avail the right of appeal as provided under section 107 for the correctness of the order of assessment.
The petitioner entered into agreements with TSIICL, a Government Entity for the execution of works contracts for the construction of godowns which in turn would be letting out godowns for its customers on rent. It filed an application for an advance ruling to determine whether a concessional rate of imposition of the tax would be applicable to providing works contract services to TSIICL.
The Authority for Advance Ruling observed that the concessional rate of GST as per Notification No.11/2017-Central Tax (Rate) was applicable to Government Entities and Governmental Authorities only if such construction was predominantly for use other than for commerce, industry or any other business or profession. However, in this case, godowns shall be given on rent by TSIICL which would amount to the use of constructed premises for purpose of business.
Moreover, the phrases 'Government Entity' and 'Governmental Authority' were deleted from Entry at Serial No. 3(vi) of Notification No. 11/2017 by Notification No. 15/2021, dated 18.11.2021. Thus, the works executed even for 'Governmental Entity or 'Government Authority' would be taxable at rate of 18%.
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com.
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