Input Tax Credit Is A Form Of Concession Not A Right; Bombay HC upholds Vires Of Time Limit U/Rule 117 of GST Rules [Read Judgment]
4 years, 9 months ago

Input Tax Credit Is A Form Of Concession Not A Right; Bombay HC upholds Vires Of Time Limit U/Rule 117 of GST Rules [Read Judgment]

Live Law  

The Bombay High Court recently held that the time limit prescribed under Rule 117 of the Goods and Services Rules for filing TRAN-1 form in order to claim input tax credit from the previous regime is not ultra vires to the Central Goods and Services Tax Act. Division bench of Justice Nitin Jamdar and Justice MS Karnik dismissed the writ petition filed by Nelco Limited after concluding that input tax credit is a form of concession not a right. The Goods and Services Tax Rules framed under the Act provide for filing of a form known as GST TRAN-1 for availing of such input tax credit. As a matter of judicial discipline, we will have to follow the dicta laid down by the Division Bench of this Court in JCB India Ltd." Furthermore, Court concluded that the time limit stipulated under Rule 117 of the Rules is not ultra vires of the Act- "With the advent of an entirely new tax regime, the earlier credit could have lapsed, but as and by way of concession it is permitted to be carried forward for a limited time.

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History of this topic

Time Limit To Avail ITC Is Till 30th November In Each Financial Year From Beginning Of GST Regime: Kerala High Court
7 months, 1 week ago

Time Limit To Avail ITC Is Till 30th November In Each Financial Year From Beginning Of GST Regime: Kerala High Court

Live Law  

The Kerala High Court has held that the time limit to avail ITC is November 30th in each financial year from the beginning of the GST regime.The bench of Justice Dinesh Kumar Singh has observed that prior to the amendment in Section 39 by the Finance Act 2022, the date for furnishing the return under Section 39 was September 30th. …

‘Flexibility to change GST liability to go’
11 months, 1 week ago

‘Flexibility to change GST liability to go’

New Indian Express  

NEW DELHI: In a bid to curb the practice of claiming bogus or higher input tax credit, finance ministry will bring a major reform to the GSTN system. In an interaction with this paper, Revenue Secretary Sanjay Malhotra revealed that the flexibility to change the GST liability without changing the input tax will be removed to prevent tax evasion. “The …

UPGST | For Claiming ITC, Burden On Assesee To Prove Genuineness Of Transaction Beyond Doubt: Allahabad High Court
1 year, 2 months ago

UPGST | For Claiming ITC, Burden On Assesee To Prove Genuineness Of Transaction Beyond Doubt: Allahabad High Court

Live Law  

The Allahabad High Court has held that input tax credit cannot be claimed by an assesee if he has failed to discharge the burden to prove the actual transaction and physical movement of goods beyond doubt. Referring to Section 16 and 74 of the UP Goods and Service Tax Act, 2017, Justice Piyush Agrawal held “it is evident that in …

GST | Circular Does Not Override Statutory Provisions: Allahabad High Court Quashes Demand Of Rs. 235 Crores Against Vivo Mobile
1 year, 2 months ago

GST | Circular Does Not Override Statutory Provisions: Allahabad High Court Quashes Demand Of Rs. 235 Crores Against Vivo Mobile

Live Law  

The Allahabad High Court has quashed demand of Rs. If the law were to be read otherwise, i.e., that the ITC claim may never arise unless the tax is first paid then, the second proviso to section 16 itself would be rendered otiose.” Further, placing reliance on Union of India v. Bharti Airtel Ltd. and Others, wherein the Supreme Court …

Difficulties Faced On Initial Phase Of GST Implementation, Kerala High Court Sets Aside Disallowance Of ITC
1 year, 3 months ago

Difficulties Faced On Initial Phase Of GST Implementation, Kerala High Court Sets Aside Disallowance Of ITC

Live Law  

The Kerala High Court recently addressed the difficulties faced by small scale dealers during the initial phases of GST implementation in understanding the provisions of GST Act. Justice Dinesh Kumar Singh set aside the orders of the assessing authority disallowing the input tax credit claims of the petitioners and observed thus, “The period involved is 2017-18 when the GST regime …

Output Tax Was Paid Using ITC, Railway Can’t Deny GST Reimbursement On Price Variation: Gauhati High Court
1 year, 5 months ago

Output Tax Was Paid Using ITC, Railway Can’t Deny GST Reimbursement On Price Variation: Gauhati High Court

Live Law  

The Gauhati High Court had held that railways cannot deny GST reimbursement on account of price variation merely on the grounds that the output tax was paid through an electronic credit ledger using the Input Tax Credit.The bench of Justice Devashis Baruah has observed that the petitioner would be entitled to his PVC claim in terms of the contract, and …

If Assessee Disputes Interest Liability Then Dept. Has To Follow Procedure Laid Down u/s 73 or 74 of the CGST Act: Jharkhand High Court
2 years, 4 months ago

If Assessee Disputes Interest Liability Then Dept. Has To Follow Procedure Laid Down u/s 73 or 74 of the CGST Act: Jharkhand High Court

Live Law  

The Jharkhand High Court has held that if any assessee disputes the liability of interest under Section 50 of the CGST Act, then the department has to follow the specific procedure as stipulated under Section 73 or 74 of the CGST Act. The division bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has observed that the department failed …

GSTN Portal To Remain Open During September-October for Pre-GST Credit Forms, Directs SC
2 years, 5 months ago

GSTN Portal To Remain Open During September-October for Pre-GST Credit Forms, Directs SC

News 18  

Goods and Services Tax : In a major decision, the Supreme Court has directed the GSTN portal to be kept open between September 1 and October 31 for the registered assessees to upload TRAN-1 and TRAN-2 forms. Abhishek Jain, tax partner at KPMG in India, said, “This decision comes in light of the on-going dispute wherein various tax payers had …

Critics are wrong, GST has strengthened federalism
2 years, 6 months ago

Critics are wrong, GST has strengthened federalism

Live Mint  

Today, 1 July 2022, marks five years since India’s introduction of the goods and services tax. The second good feature is that, contrary to media hype, the GST has strengthened the Indian federation by enabling seamless input tax credit even when supply chains cross state borders. The narrative that it has weakened the federation by imposing an authoritarian Centre on …

No Reason To Believe That Input Tax Credit Is Fraudulently Availed: Punjab & Haryana High Court
2 years, 7 months ago

No Reason To Believe That Input Tax Credit Is Fraudulently Availed: Punjab & Haryana High Court

Live Law  

The Punjab and Haryana High Court bench of Justices Tejinder Singh Dhindsa and Pankaj Jain has held that there should be reason to believe that the input tax credit available in the Electronic Credit Ledger was obtained fraudulently or that the assesses are ineligible. As per the petitioner, the department/respondents blocked Input Tax Credit amounting to Rs.1.9 Crore lying in …

Amendments in GST regime to be implemented from 1 January: All you need to know
3 years ago

Amendments in GST regime to be implemented from 1 January: All you need to know

Firstpost  

From 1 January, it will also be mandatory for all businesses to get an Aadhaar authentication for claiming their GST funds In order to prevent fraudulent activities pertaining to billing and recovery, the Union government has made changes to the current Goods and Services Tax regime. New GST Rules -Currently, a company has to file two monthly returns which are …

Four Years On, India's GST Has Not Met Its Fundamental Purpose
3 years, 6 months ago

Four Years On, India's GST Has Not Met Its Fundamental Purpose

The Quint  

One reason for this lies in the overall complicatedness of the system. But that’s not the point, given that one of the aims of any new tax should be to expand the tax base and for that to happen, the tax system needs to be simple, which GST is not. It can take the GST that has been paid on …

Traders urge Finance minister, GST council to modify new GST notification
4 years ago

Traders urge Finance minister, GST council to modify new GST notification

India TV News  

Trading community on Sunday urged Union Finance Minister Nirmala Sitharaman and Goods and Goods and Services Tax Council to withdraw certain provisions of the new GST notification issued a few days back. In a memorandum, Federation of All India Vyapar Mandal- a national body of small traders - advocating for a single-point GST collection, urged for certain changes in the …

Digitization Is For The Convenience Of Tax Payers Not To Harass Them; Bombay High Court On Transition Of Credit Denial Due To Technical Glitch In GST Network
4 years, 2 months ago

Digitization Is For The Convenience Of Tax Payers Not To Harass Them; Bombay High Court On Transition Of Credit Denial Due To Technical Glitch In GST Network

Live Law  

The Bombay High Court on Thursday while granting relief to BMW India Financial Services limited in a matter relating to denial of transition of credit of over Rs.17 lakhs despite successful submission of TRAN-1 form, observed that the whole objective of digitization is to convenience the taxpayers not to harass them. Court directed the GST Maharashtra Commissionerate, GSTN and the …

Time Limit For Availing Transitional Input Tax Credit Under GST Mandatory : Madras HC [Read Judgment]
4 years, 5 months ago

Time Limit For Availing Transitional Input Tax Credit Under GST Mandatory : Madras HC [Read Judgment]

Live Law  

The Madras High Court has ruled that the time limit for availing Transitional Input Tax Credit is mandatory in nature, not directory. Section 140 of the CGST Act prescribes that, the registered person is required to submit a return, within such time, and in such manner as may be prescribed for purposes of availing Transitional ITC. ", the Apex Court …

'This Case Shows How Tax Dept. Miserably Falls Short of Expectation': Delhi HC Makes Serious Observations on "the Procedural Fallibility and Shortcomings" Of GST System[Read Judgment]
4 years, 6 months ago

'This Case Shows How Tax Dept. Miserably Falls Short of Expectation': Delhi HC Makes Serious Observations on "the Procedural Fallibility and Shortcomings" Of GST System[Read Judgment]

Live Law  

In a case of unlawful expropriation of Input Tax Credit, the Delhi High Court last week made serious observations on "the procedural fallibility and shortcomings" of the GST system, even stating that the case demonstrates "how the tax department has miserably fallen short of the expectation". Only if Respondents were to engage with the taxpayers with a genuine intention to …

Parliament panel asks govt to prevent misuse of input tax credit under GST as revenue collection slows in recent months
5 years, 1 month ago

Parliament panel asks govt to prevent misuse of input tax credit under GST as revenue collection slows in recent months

Firstpost  

GST revenue collection crossed the Rs 1 lakh crore mark after a gap of three months in November, with the revenue growing by 6 percent to Rs 1.03 lakh crore in the month. New Delhi: A Parliamentary panel on finance on Tuesday observed that the Goods and Services Tax collection has slowed down in recent months and asked the government …

Bombay HC Sets Aside AARA Order Denying Input Tax Credit On 'Cash Carry' Vehicles [Read Order]
5 years, 5 months ago

Bombay HC Sets Aside AARA Order Denying Input Tax Credit On 'Cash Carry' Vehicles [Read Order]

Live Law  

The Bombay High Court recently set aside an order of the Maharashtra Appellate Advance Ruling Authority under Section 101 of the Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax act, 2017. As per the AARA order dated August 6, 2018, input tax credit is not available on purchase of 'cash carrying' motor vehicles. If answer …

Tax officials may examine high usage of input tax credit to set off GST liability
5 years, 11 months ago

Tax officials may examine high usage of input tax credit to set off GST liability

Live Mint  

New Delhi: Concerned over a decline in GST revenues, tax officials are likely to examine the high usage of input tax credit to set off tax liability by businesses, sources said. According to sources, availing ITC ideally should not result in loss of revenue but there could be possibility of misuse of the provision by unscrupulous businesses by generating fake …

Not just lower taxes, evasion too a factor in the GST shortfall
6 years ago

Not just lower taxes, evasion too a factor in the GST shortfall

Live Mint  

Mumbai: It’s fairly clear by now that goods and services tax collections are falling way short of the government’s initial expectations. The data presented by Shukla showed that until December, 499 cases of fake invoices, which were used for claiming input tax credit worth ₹ 3,895 crore, were detected. “Reconciliation of GSTR-1 and e-way bills generated by taxpayers need to …

Allow Rectification Of Typographical Errors In Filing Form Tran-1 Under GST Act; Bombay HC Suggests Centre [Read Order]
6 years, 3 months ago

Allow Rectification Of Typographical Errors In Filing Form Tran-1 Under GST Act; Bombay HC Suggests Centre [Read Order]

Live Law  

The Bombay High Court has advised the Union Government to allow rectification of typographical or human errors in filing Form Tran-1 under the Central Goods and Services Tax Act.This Form Tran-1 is used to claim a tax credit under the previous regime. The Bombay High Court has advised the Union Government to allow rectification of typographical or human errors in …

GST: Short-term pain but long-term gain for the Indian economy
6 years, 5 months ago

GST: Short-term pain but long-term gain for the Indian economy

Live Mint  

Once fully implemented and linked with direct taxes, goods and services tax would benefit the economy, help bring in transparency, make small businesses strong, create more employment and ultimately reduce tax burden for the common man. Historic implementation of e-way bill from 1 April 2018, has aided GST in meeting its idea of “one nation, one market, one tax”. The …

Gujarat HC Issues Notice To Centre, GST Council On Challenge Against CGST Rule On Filing, Revising TRAN-1 [Read Petition]
6 years, 5 months ago

Gujarat HC Issues Notice To Centre, GST Council On Challenge Against CGST Rule On Filing, Revising TRAN-1 [Read Petition]

Live Law  

The Gujarat High Court has issued notices to the Centre and the GST council on a petition challenging the constitutional validity and vires of Rule 117 of the Central Goods and Services Tax Rules-2017 on the ground that it restricts the time limit for filing and revising of GST TRAN-1 to the extent of only 180 days from the appointed …

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