NOTIFICATIONS
Companies allowed to file GSTR-3B and GSTR-1 through electronic verification code (EVC)
Companies registered under the provisions of Companies Act, 2013 may, during the period April 21, 2020 to September 30, 2020, file their GSTR-3B through EVC. Return in Form GSTR-1 may be filed through EVC for period commencing from May 27, 2020 to September 30, 2020.
Notification No. 48/2020-Central Tax dated June 19, 2020 to be effective from May 27, 2020
COURT RULINGS
Supreme Court stays Delhi HC judgement in the case of Brand Equity Treaties
Hon’ble Supreme Court vide its order dated June 19, 2020 has stayed the operation of judgment of Hon’ble Delhi HC in the case of M/s Brand Equity Treaties Limited
Supreme Court order dated June 19, 2020
Show cause notice (‘SCN’) for cancellation of registration in Form GST REG-17 is not valid where the same is not in prescribed format and where date, month, year as well as time for appearance is absent
The SCN, which does not contain the required contents and is not in the format as prescribed, cannot be treated as in order. The notice has been held to lack compliance of the principles of audi alteram partem. Accordingly, notice and order of cancellation are quashed.
Pazhayidom Food Ventures Private Limited v. Superintendent, Commercial Taxes, Kerala (Kerala HC)
Direction to Government to open portal for uploading TRAN-1 on or before June 30, 2020
Government cannot adopt different yardsticks while evaluating the conduct of the taxpayers or its own conduct. Denial of credit to taxpayers who are unable to furnish the evidence of attempt to upload TRAN-1 would amount to violation of Article 14 and 300A of the Constitution of India. Accordingly, Department is directed to permit the taxpayer to upload TRAN-1 on or before June 30, 2020 and in case of department’s failure, taxpayer shall be at a liberty to avail the ITC in GSTR 3B for the month of July 2020.
C.P. Marble v. Union of India & Ors. (P&H HC)
Direction to Government to open portal for uploading TRAN-1 in absence of any stay on judgment in the case of M/s Brand Equity Treaties
Delhi HC held that since there has not been any stay on the judgment of this court in the case of Brand Equity Treaties, Government is under an obligation to abide by the said judgment and hence, is directed to open the portal for uploading the said TRAN-1 by the petitioners and similarly placed parties.
Mangla Hoist Private Limited v. Union of India & Ors. (Delhi HC)
ADVANCE AUTHORITY RULINGS
Supply of goods procured from a vendor located outside India and directly shipped to a customer located outside India, without such goods being brought to India, shall be chargeable to GST
The supplier of goods is located in India and place of supply is outside India, such supply shall be treated as inter-state supply in terms of Section 7(5) of the IGST Act. As the goods have not been brought and are not physically available in India, the question of exporting such goods from India does not arise. Hence, supply of goods directly from vendor premises located outside India to a customer located outside India shall be inter-state transaction and chargeable to IGST.
M/s Sterlite Technologies Limited (Gujarat AAR)
Interest received on PPF, saving bank account and personal loans and advances would be treated as part of turnover for registration threshold purposes
GST is not leviable on interest received on PPF, saving bank account and personal loans and advance to friends/relatives and hence, it is exempt from GST. However, in terms of definition of “aggregate” turnover, such exempt income shall be considered as a part of turnover for the purposes of threshold for registration.
Shree Sawai Manohar Lal Rathi (Gujarat AAR)
Sale of developed plot is not equivalent to sale of land, but is covered under the clause “construction of a complex intended for sale to a buyer” and chargeable to GST.
Sale of developed plot of land tantamount to rendering of services and would be covered under the clause “construction of complex intended for sale to buyer”. Hence, GST shall be applicable on sale of land for which, as per the requirement of approved authority, primary amenities such a drainage lines, water lines, electricity lines, land levelling etc., are to be provided.
Shree Dipesh Anil Kumar Naik (Gujarat AAR)
Medical store, run by a charitable trust, supplying medicines at a lower rate shall be required to obtain registration under GST subject to threshold prescribed
Providing medicine from the store at a lower price would amount to business, even if for a less pecuniary benefit, as per CGST Act. Medicine is a taxable supply and registration requirements shall be attracted subject to threshold limit as provided under Section 22 of the CGST Act.
M/s Nagri Eye Research Foundation (Gujarat AAR)
Input tax credit, on project development services like programme management consultancy, marketing consultancy, land levelling etc., shall not be eligible in terms of clause (c) and (d) of Section 17(5)
Project development is nothing but construction of an immoveable property and any project development services or goods or works contract services used for construction of an immoveable property shall attract provisions of clause (c) and (d) of section 17(5) of CGST Act. Hence, ITC shall be not available under the CGST Act on the project development services like programme management consultancy, marketing consultancy, land levelling and other related works, roads, water, electricity, & drainage infrastructure.
M/s Deendayal Port Trust (Gujarat AAR)
CESTAT RULINGS
Refund of unutilized CENVAT/MODVAT credit is not allowed, where such credit is accumulated and has not been utilized on account of closure of factory
Rule 5 of CENVAT Credit Rules (CCR) is the only provision under which a refund of CENVAT can be allowed. There is no provision in CCR for refund of credit where the assessee is not able to utilize it on account of reasons like closure of factory.
Commissioner of Central Excise, Customs and Service Tax, Tirupati v. Rani Plastic Pipe Industries (CESTAT Hyderabad)
Disclaimer
Information contained herein are only for reference purposes and are based on the information publicly available as on the date of this publication. The author takes no responsibility for its reliability and accuracy. It is advised to take appropriate legal/professional advice before undertaking any business activity or otherwise based on the above. Neither Author nor Yes GST assume no responsibility thereof.
Nicely elaberated….