9 Important Case Law on GST 17.01.2025

By | January 18, 2025

9 Important Case Law on GST 17.01.2025

 

TitleSummaryCitationRelevant Act & Section
Section 7 of the Central Goods and Services Tax Act, 2017Scope of Supply: Electricity Regulatory Commissions Not Subject to GSTElectricity regulatory commissions are not engaged in the supply of goods or services under the GST Act. Their activities, such as regulating tariffs and issuing licenses, are considered as regulatory functions and not business activities.Central Electricity Regulatory Commission v. Additional Director Directorate General of GST Intelligence

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Section 7 of the Central Goods and Services Tax Act, 2017Scope of Supply: Assignment of Leasehold Rights of Plot of LandAssignment of leasehold rights of a plot of land and the building thereon by a lessee or their successor to a third party is not considered a supply of goods or services under the GST Act. It is treated as a transfer of immovable property benefits.Gujarat Chamber of Commerce and Industry v. Union of India

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Section 9 of the Central Goods and Services Tax Act, 2017Levy & Collection of Tax: Government Entity’s Liability to Pay GST at Correct RateWhere a government entity pays GST at a lower rate than the applicable rate, the contractor is entitled to the difference. The government entity is obligated to pay the additional amount.Satyabrata Jena v. State of Odisha

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Section 9 of the Central Goods and Services Tax Act, 2017Levy & Collection of Tax: Contractor’s Refund Claim for GST Paid at Pre-GST RatesContractors who paid GST at pre-GST rates are entitled to a refund of the excess amount. The authorities should promptly process such claims.A.K. Constructions v. State of Chhattisgarh

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Section 30 of the Central Goods and Services Tax Act, 2017Registration – Revocation of Cancellation of: Condonation of DelayIn cases where the registration was canceled and the assessee is ready to pay outstanding dues, the delay in filing a revocation application can be condoned if they demonstrate a genuine willingness to comply.Ajit Kumar Satapathy v. Superintendent, CGST and Central Excise

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Section 30 of the Central Goods and Services Tax Act, 2017Registration – Revocation of Cancellation of: Condonation of DelaySimilar to the previous case, the delay in filing a revocation application can be condoned if the assessee is willing to pay outstanding dues and comply with other formalities.Gouramohan Kunda v. Commissioner of (C.T. & G.S.T.)

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Section 73 of the Central Goods and Services Tax Act, 2017Demands and Recovery – Tax or Input Tax Credit Due Not Involving Fraud, Misstatement, or Suppression: Exclusion of Period During COVID-19 PandemicThe period between March 15, 2020, and February 28, 2022, should be excluded when computing the limitation period for recovery proceedings under Section 73 of the CGST Act. This is based on the Supreme Court’s directions issued during the COVID-19 pandemic.Brunda Infra (P.) Ltd. v. Additional Commissioner of Central Tax

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Section 73 of the Central Goods and Services Tax Act, 2017Demands and Recovery – Tax or Input Tax Credit Due Not Involving Fraud, Misstatement, or Suppression: Quashing of Order for Rejecting AdjournmentIf the rejection of adjournment requests during Section 73(9) proceedings is unjustified and without sufficient reasons, the order may be quashed and remanded for fresh consideration with an opportunity to be heard.Indian Spinal Injuries Centre v. Assistant Commissioner (DGST)

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Section 129 of the Central Goods and Services Tax Act, 2017Detention, Seizure and Release of Goods and Conveyances in Transit: Penalty Set Aside for Procedural IrregularityWhere a penalty is imposed under Section 129 of the CGST Act due to a procedural irregularity (such as failure to register an additional place of business) but there is no discrepancy in the quantity of goods or E-way bill, the penalty may be set aside.Creamline Dairy Products Ltd. v. State Tax Officer

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Category: GST

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com