[dated 14.08.2024, in Anil Rice Mill v. State of U.P., from Writ Tax no. 886 of 2023] The petitioner claimed input tax credit (ITC) on purchase of certain commodities on the basis of tax invoices and e-way bills. The department alleged that such ITC was availed based on forged tax invoices without physical movement of […]
Where ITC is denied on purchases from cancelled dealers, the taxable person should seek cross-examination of witnesses or authors of relied upon documents as a matter of right and use such opportunity judiciously. Denial of the right to cross-examine can cause grave and serious prejudice.
Imposing reverse charge mechanism to collect tax on some services cannot be challenged under Article 14. Also, ITC is available only if the statute permits and to the extent that it does. Denying ITC to service providers (who are not liable to pay tax on output services) is founded on a rational basis which has a clear nexus with the classification since such person has no liability against which ITC can be set off.
Assessee is a manufacturer of ghee and other food products. It procured certain goods / services (like televisions, air-coolers, gold coins, trips to Dubai, etc.). Such goods / services were awarded to its customers (viz., retailers) based on target quantity and value of purchases made by them. Hence, there was no consideration for such activities […]
Even if it is obligatory (under law) for the employer to provide canteen facility to its employees, ITC cannot be availed citing the proviso under Section 17(5)(b)(iii). Provision of canteen facility by the employer to the employee is a “supply” within the meaning of CGST Act.
Usually, business entities in the Fast-Moving Consumer Goods (FMCG) sector announce ‘buy one, get one free’ offers / schemes. These are directed towards better sales traction. Barring activities or transactions specified in Schedule I of the CGST Act, goods or services supplied free of cost (that is, without consideration) are not treated as ‘supply’ under […]
Circular No.135/05/2020-GST dated March 31, 2020 clarifies certain aspects related to refund of GST. However, the said Circular is riddled with certain issues, which this post delves into. Paragraph 6 of the said Circular has imposed a new requirement on the assessee to mention the HSN code for goods / services in the refund application […]
Many taxpayers discharge their Goods and Services Tax (GST) liability under the Reverse Charge Mechanism (RCM), on being pointed during audit. This could plausibly be attributed to lack of knowledge on the part of taxpayers. The immediate logical question is whether Input Tax Credit (ITC) can be availed on such GST paid under RCM, irrespective […]
Paragraph 2.3 of Circular No.59/33/2018-GST dated September 4, 2018 allows refund of unutilised Input Tax Credit (ITC) in respect of invoices not available in GSTR-2A. This is permitted to alleviate difficulty on the part of recipient to obtain refund, where filing of GSTR-1 by the supplier is either delayed or not done. The intent of […]
Rent-a-cab (RAC) operators typically either purchase or take cabs on rent for providing the outward taxable supply of RAC service. Input Tax Credit (ITC) is eligible to operators who take cabs on rent for providing the outward taxable supply of RAC service expressly under Section 17 of the Central Goods and Services Tax (CGST) Act, […]
Machinery is usually fastened to earth in factories. Whether it warrants classification as immovable property has always been a bone of litigation under the erstwhile CENVAT regime. Hence, the post delves into this topic in the context of recent decision of the Hon’ble High Court of Delhi in Vodafone Mobile Services Ltd. v. Commissioner of […]