Tag Archives: BENGALURU BENCH

Interest Under Section 50 Accrues From Original Pre-GST Clearance Date for Price Escalations, But Penalty Is Inapplicable for Bona Fide Transitional Compliance

By | October 15, 2026
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Interest Under Section 50 Accrues From Original Pre-GST Clearance Date for Price Escalations, But Penalty Is Inapplicable for Bona Fide Transitional Compliance Issue Whether Section 50 interest on differential GST arising from post-implementation price escalation debit notes accrues from the date of original pre-GST goods clearance or from the month of debit note issuance. Whether… Read More »

Interest Under Section 50 Is Mandatory on Delayed Tax and Must Account for Prior Interest Discharged

By | October 15, 2026
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Interest Under Section 50 Is Mandatory on Delayed Tax and Must Account for Prior Interest Discharged Issue Whether interest under Section 50 applies to differential GST paid belatedly via Form DRC-03 due to a tax rate hike, even when delayed payment by the customer caused the tax deferral. Whether the Revenue must grant credit for… Read More »

Failure to Pay Supplier Within 180 Days Triggers Interest, But Financial Credit Note Waiving Payment Preserves ITC Eligibility

By | October 14, 2026
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Failure to Pay Supplier Within 180 Days Triggers Interest, But Financial Credit Note Waiving Payment Preserves ITC Eligibility Issue Failure to Pay Within 180 Days: Whether an assessee who fails to pay the supplier the value of supply plus tax within 180 days is liable to add proportionate Input Tax Credit (ITC) to output tax… Read More »

Section 129 penalty quashed for return transit paperwork omission without revenue loss, replaced with Section 125 nominal penalty.

By | October 13, 2026
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Section 129 penalty quashed for return transit paperwork omission without revenue loss, replaced with Section 125 nominal penalty. Issue Whether the invocation of Section 129 penalty is justified for return transit of goods to a bonded warehouse without a fresh e-way bill or delivery challan, where full duties/taxes were paid and entry was refused at… Read More »

Department allowed to withdraw GSTAT appeal under Rule 113A as tax demand was below CBIC threshold

By | October 13, 2026
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Department allowed to withdraw GSTAT appeal under Rule 113A as tax demand was below CBIC threshold Issue Whether the Revenue Department can be permitted to withdraw its appeal before the Goods and Services Tax Appellate Tribunal (GSTAT) when the monetary value of the dispute falls below the threshold limit prescribed by CBIC Circular No. 207/1/2024-GST.… Read More »

Mere E-Way Bill Expiry Due to Typographical Destination Error Without Tax Evasion Intention Cannot Attract Section 129 Penalty

By | October 6, 2026
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Mere E-Way Bill Expiry Due to Typographical Destination Error Without Tax Evasion Intention Cannot Attract Section 129 Penalty Issue Whether the detention of goods and imposition of penalty under Section 129 is sustainable solely due to the expiry of an e-way bill caused by a typographical error in the destination name, when the movement was… Read More »

Section 74 Invocation and 100% Penalty Unsustainable for Mere ITC Mismatch Paid Pre-SCN

By | September 22, 2026
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Section 74 Invocation and 100% Penalty Unsustainable for Mere ITC Mismatch Paid Pre-SCN GSTR-2A vs GSTR-3B ITC Mismatch. Source: Taxscan / Dealing with GSTR-2A vs GSTR-3B Mismatch and other ITC Hurdles … GST Penalty Structure under Sections 73 and 74. Source: Chartered Accountants / Guide on GST Penalties under Sections 73, 74 & 74A |… Read More »

Penalty and Tax Under Section 129 Sustained as E-Way Bill Generation Post-Interception Proves Intent to Evade

By | September 21, 2026
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Penalty and Tax Under Section 129 Sustained as E-Way Bill Generation Post-Interception Proves Intent to Evade Issue Whether tax and penalty under Section 129 can be sustained for non-production of an e-way bill during transit when a new e-way bill for a different delivery destination is generated post-interception, and whether post-detention regularization cures the statutory… Read More »

Penalty Under Section 74 Not Invokable Automatically via Audit Detection Without Intent or Suppression

By | September 19, 2026
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Penalty Under Section 74 Not Invokable Automatically via Audit Detection Without Intent or Suppression Issue Whether a penalty under Section 74 for fraud, willful misstatement, or suppression of facts can be invoked automatically based on audit observations when tax and interest are paid pre-SCN without deliberate intent to evade tax. Facts Audit Detection: During an… Read More »

GSTR-2A and GSTR-3B Mismatch Cannot Conclusively Prove Wrongful Input Tax Credit Availment Without Independent Inquiry

By | September 9, 2026
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GSTR-2A and GSTR-3B Mismatch Cannot Conclusively Prove Wrongful Input Tax Credit Availment Without Independent Inquiry Issue Whether a mismatch between GSTR-3B and GSTR-2A for FY 2019-20 can automatically be treated as conclusive proof of wrongful Input Tax Credit (ITC) availment to confirm tax demands under CGST/SGST heads without independent verification, books examination, or issuing a… Read More »