Section 83 of CGST Act permits provisional attachment of property belonging only to the taxable person. In instances where bank account (jointly held with third party) is attached, the aggrieved (third) party should duly file their objections under Rule 159(5) ibid and may seek judicial remedy if there is no response or belated response on the part of Revenue.
Background: The petitioner paid certain dues through web portal. However, due to failure of web portal system, receipt was not generated. Hence, it was forced to again pay the dues. It applied for refund of the dual payment. The statute (Section 19 of Lighthouse Act, 1927) provided that where Light Dues were paid more than […]
Whole-time directors were paid remuneration in the form of commission (based on percentage of profits). The Revenue demanded service tax on such variable pay. A whole-time director is one who is in full-time employment of the company, for which he is entitled to receive remuneration. Hence, it was held[1] by the Hon’ble CESTAT (Kolkata) that […]
The Revenue authorities instituted recovery proceedings and recovered the entire amount of demand within three months from the date of order of the first appellate authority (which had ruled in favour of the Revenue). It appears such recovery was on the strength of a subsisting provisional attachment. However, the assessee had the right to appeal […]
The appellant is a unit operating in the Special Economic Zone (SEZ). It is engaged in export of goods. It availed input tax credit (ITC) on inward supplies from entities in the Domestic Tariff Area (DTA). The SEZ unit applied for refund of un-utilised ITC. Such accumulation arose on account of export of goods. The […]
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 […]
Service by way of renting of residential dwelling, for use as residence, is exempt from GST vide Entry 12 of Notification No.12/2017-Central Tax (Rate) dated June 28, 2017 (as amended). Where an owner leases out his property and the lessee sub-lets / sub-licences to students / workers for long-term hostel accommodation, can the property owner […]
Property owners collect security deposit from tenants while renting out immovable property. Such deposit is refundable (usually, with no interest) to the tenant at the end of lease term / while vacating the premises, subject to deductions as per the terms of agreement between the tenant and the property owner. Hence, the property owner enjoys […]
Background: The Company re-sells pre-developed or pre-designed software, which are made available through the use of encryption keys. Such off-the-shelf software is not developed for any specific client, i.e., it is not customised. Observation: The term “Computer Software” is not defined under the GST law. However, according to the FAQs issued by the Government relating to […]
Query/ies: Whether hand sanitisers can be classified under HSN 3004.90.87 (viz., Antibacterial formulations, not elsewhere specified or included)? Whether hand sanitisers are exempt from GST (since they are classified as an essential commodity under the Essential Commodities Act, 1955)? Observation: From the submissions made, the Authority has opined that the firm is engaged in manufacture […]
Background: The firm purchases land. It converts the land into integrated residential plots with the following facilities: external compound wall, main entry gate, walls separating internal plots, internal roads, plantation surrounding the plots, rain water harvesting system, common bore well, drainage, children play area, club house, underground water supply / electricity connection, swimming pool, garden, […]
Facts: The taxpayer provides the service of storage of agricultural produce. It has taken cold storage facility on lease / rent. Query/(ies): What is the GST implication on the outward supply of storage of agricultural produce? What is the GST implication on the inward supply of leasing / renting of cold storage facility? Observations / […]
Background: The local branch of a foreign company contracted to undertake repairs and maintenance of machinery for an Indian company. Query(ies): Who is liable to pay GST on the aforesaid supply? That is: Should this transaction be treated as supply of service by the foreign company to the Indian company? If so, the Indian company […]
It is erroneous to construe amount of deposits / loans / advances extended as value of service. Rather, interest earned is actual value of supply.
Held: Rectification of errors or omission in Form GSTR-3B should be allowed in the period to which it relates, and not in the period in which it is noticed. Comment(s): For example, if there is an error or omission in Form GSTR-3B filed for April 2019, it should be rectified latest vide Form GSTR-3B filed […]
Supreme Court declined to interfere with High Court’s Order, in favour of assessee unable to file TRAN1 due to technical glitch. However, it kept questions of law open.
Background: Applicant manufactures steel dies, as specified by foreign customer. Without movement of such dies, the applicant invoices the recipient abroad in foreign currency. At the end of useful life, the applicant may sell such dies as scrap in India, as directed by the foreign customer. Alternately, the applicant may export such dies to the […]
Issue: Whether transitional credit can be availed by the assessee, wherein the assessee failed to furnish Form GST TRAN-1 within the time prescribed under the GST law? Background: The Hon’ble High Court of Delhi had ruled in favour of the assessee vide its Order dated May 05, 2020. For a gist of the Hon’ble High […]
Issues: Is the Parliament competent to levy GST compensation cess? Is it permissible to levy both CGST/SGST/IGST & GST compensation cess on the same taxable event? Can CEC paid by the assessee be allowed to be set off against GST compensation cess? Background: Assessee paid Clean Energy Cess (CEC) on coal imported prior to July […]
Background: Appellant proposes to enter into two agreements: (i) for supply of solar power generating system (viz., supply of goods); and (ii) erection, testing and commissioning (viz., supply of services for setting up the system). As per the service agreement, the appellant accepts responsibility for successful completion & commissioning of the plant and 5% of […]
Issue: Is imposition of time limit to avail credit under Section 140(3) of CGST Act harsh/unjust? Isn’t such a condition also arbitrary and discriminatory? Background: Assessee (who was a First Stage Dealer/”FSD” under the erstwhile Central Excise Law) could pass on the credit of excise duty paid on their purchases to the customers, who could utilize […]
Issue: Should the levy of liquidated damages be treated as supply of services by the appellant? Background: Appellant has awarded a contract to Bharat Heavy Electricals Limited for erection, testing & commissioning of a power plant. The contract provides for payment of liquidated damages if project completion is delayed beyond the scheduled date. Ruling: Appellant […]
Issue: Whether facilitating recruitment or enrolment of students to foreign universities is a taxable or zero-rated supply? Background: Applicant facilitates recruitment / enrolment of students to foreign Universities. It is paid commission, based on performance in recruiting students, which is a percentage of tuition fee collected from students enrolled through applicant. Ruling: From the terms […]