BlogsAugust 8, 2017
Whether mere issuance of GST Summons constitutes a valid defence against parallel proceedings?
Introduction To prevent multiple or parallel proceedings on the same subject matter, Section 6(2)(b) of the CGST/SGST Act ("Act") was incorporated. However, despite its well-intended objective, this provision has frequently been a point of contention between taxpayers and tax authorities. A recurring issue arises when one authority (either the Central...
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Provisional Attachment of Bank Accounts in GST: Safeguarding Revenue vs Protecting Rights
Introduction In order to safeguard the interest of revenue, wide-ranging powers have been conferred upon the authorities under Section 83 of the CGST/relevant SGST Act, enabling them to provisionally attach the property of a taxable person during the pendency of any proceedings. However, instances have been observed where, in the...
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Looming Threat of 100% Penalty for Delayed GST Compliance: Taxpayer’s Shield and Safeguards
Introduction Taxpayers, due to various reasons, may fail to file their monthly GST returns within the prescribed due date. A pertinent issue arises as to whether such non-filing constitutes suppression of facts, thereby warranting the imposition of a 100% penalty. Additionally, it is crucial to examine whether a taxpayer, having...
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CBIC Circular 212 – A cumbersome remedy?
Introduction Offering discounts to recipients is an age-old tradition prevalent in the Indian trade system. Further, such discounts can be broadly classified into (a) Pre-Supply discounts (ie. Discounts offered at the time of supply) and (b) Post-Supply discounts. Pre-supply discounts are reflected in the Tax Invoice itself whereas post-supply discounts...
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CBIC Circular No.211/5/2024-GST dated 26th June 2024 offers Lifeline to ITC availed on delayed payment of Reverse Charge Liability
Introduction: Availement of Input Tax Credit (ITC) has always been a contentious issue. Taxpayers would like to avail most of the ITC whereas the department more often than not would like to challenge the availment of ITC. This tug of war often results in never-ending litigation. Further, the situation is...
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Likely Impact of Recommendations Proposed in the 50th GST Council Meeting
Introduction GST Council met for the record 50th time on 11th July 2023 and deliberated upon various issues faced by the taxpayers as well as tax collectors. Press release issued pursuant to the said meeting is available in the public domain. In this blog, we have made an attempt to...
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Whether tax deposited by the taxpayer during the GST search is eligible for a Refund?
Introduction to Legacy Issue Allegations of overreach by Investigating authorities during Investigation/Search are very common. Many times, the taxpayer/assessee post completion of the search contest such voluntary payments and allege that payments were made owing to extreme/ duress pressure or to safeguard the personal liberty of Directors/Senior executives of...
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Whether violation of E-way Bill provisions renders interstate movement of demo cars (not for sale) exigible to GST?
Background The occasion for writing this article arises from the judgment of the Hon’ble High Court of Madhya Pradesh in M/s KIA MOTORS INDIA PVT LTD Vs THE STATE OF MADHYA PRADESH reported in 2023-TIOL-667-HC-MP-GST. This judgment is likely to generate a good amount of debate amongst professional fraternities and...
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Retrospective GST Registration Cancellation and ITC Woes of the Recipients
Introduction Past few months have seen various overreach of the GST Department. One such overreach relates to retrospective/ab initio cancellation of GST Registration. Such cancellation may adversely affect the ITC (Input Tax Credit) claim of Bonafide Recipients. In this article, our main objective is to thoroughly examine the issue...
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