GST Demand for Pre-Sale Dues Invalid Against Company Sold as Going Concern Under IBC. Issue Whether a GST demand under Section 73 for tax periods prior to the sale of a corporate debtor as a “going concern” during liquidation can be enforced against the successful purchaser, or if such dues are extinguished under the “clean… Read More »
Subsequent non-existence of supplier cannot invalidate past ITC; HC remands case for evidence consideration. Issue Whether Input Tax Credit (ITC) can be denied to a purchaser solely on the ground that the supplier was found non-existent during a physical verification conducted years after the transaction, especially when the adjudicating authority disregards the documentary evidence of… Read More »
Liquidated Damages for Breach of Concession Contract Are Not Taxable Consideration; GST Not Applicable Issue Whether liquidated damages imposed for material default, breach, or non-performance under a Concession Agreement constitute consideration for a taxable “supply” (such as “agreeing to tolerate an act” under Schedule II of the CGST Act), or are merely non-taxable compensation for… Read More »
ITC Denied on Land Lease Rentals for Factory Construction; Section 17(5)(d) Block Applies. Issue Whether a manufacturing company (Agratas Energy) is eligible to claim Input Tax Credit (ITC) on GST paid under Reverse Charge Mechanism (RCM) for long-term annual lease rentals of industrial land used to set up a factory, or if such credit is… Read More »