Anti-Profiteering: No Liability for Post-GST Flat Bookings Issue Whether a real estate developer is liable for “profiteering” under Section 171 of the CGST Act if they do not reduce the price of a flat booked after the introduction of GST (post-July 1, 2017), even if they previously stated that Input Tax Credit (ITC) benefits would… Read More »
False Claims of “Denial of Natural Justice” Lead to Penal Costs in GST Refund Case The Legal Issue Whether a taxpayer can successfully challenge a GST refund rejection on the grounds of “breach of natural justice” (denial of a personal hearing) when the judicial record demonstrates that multiple opportunities were provided, and whether the Court… Read More »
Restoration of GST Registration: Medical Hardship as a Valid Ground for Revocation Issue Whether a GST registration cancelled for non-filing of returns (under Section 29) can be restored if the default was caused by the taxpayer’s mental stress and physical illness, provided the taxpayer is willing to clear all dues. Facts The Default: The petitioner’s… Read More »
Retrospective GST Cancellation Requires Specific Notice and Reasoned Orders Issue Whether a GST registration can be validly cancelled with retrospective effect if the Show Cause Notice (SCN) did not explicitly propose such a retroactive date and the final order failed to provide specific reasons for choosing that date. Facts The Notice: The GST department issued… Read More »
Bona Fide Timing Mismatch in ITC Claims: Receipt of Goods Governs Credit Eligibility Issue Whether Input Tax Credit (ITC) can be denied under Section 73(1) due to a mismatch where the supplier reported the sale in March 2018 (FY 2017-18) but the recipient claimed the credit in April 2018 (FY 2018-19) upon physical receipt of… Read More »
Bona Fide Purchasers Protected: Section 16(2)(c) Read Down to Prevent ITC Denial for Supplier Defaults Issue Whether Input Tax Credit (ITC) can be denied to a genuine purchaser under Section 16(2)(c) of the CGST Act solely because the supplier failed to deposit the tax with the Government, particularly when no fraud or collusion is alleged.… Read More »
No Double Jeopardy: General Penalty Dropped Where Specific Late Fee for Same Period Exists The Legal Issue Whether the GST Department can impose a General Penalty (Section 125) in addition to a Late Fee (Section 47) for the same tax period, and whether multiple assessment orders can impose redundant penalties for the same underlying default.… Read More »
Adjustment of Pre-Deposit for GSTAT: No Fresh Payment Required if 10% Already Paid The Legal Issue Whether a taxpayer is required to pay a fresh pre-deposit when filing an appeal before the GST Appellate Tribunal (GSTAT) if the amount already deposited during the first appeal (Section 107) exceeds the statutory requirement for the second appeal… Read More »
Natural Justice and GST Search: Demand Quashed for Non-Supply of Seized Records The Legal Issue Can a tax demand be legally sustained if the Department refuses to return seized documents or a CPU, thereby preventing the taxpayer from preparing an effective defense? Facts of the Case The Search: Following a search under Section 67, the… Read More »
Composite Show Cause Notices: Clubbing Multiple Financial Years Ruled Invalid The Legal Issue Can the GST Department issue a single, consolidated Show Cause Notice (SCN) for multiple financial years (e.g., FY 2017-18 to 2021-22), or does the statutory scheme of the CGST Act mandate year-wise notices? Facts of the Case The Notice: The CGST authorities… Read More »