Updates by GST Panacea

Income Tax Update: Vivad Se Vishwas Scheme, 2024 The Ministry of Finance addressed issues in the Vivad Se Vishwas Scheme, 2024. Appeals filed after July 22, 2024, will be treated as pending, appellants recognized under the Scheme, and disputed taxes calculated accordingly, streamlining the process for taxpayers. #IncomeTax #VivadSeVishwas #TaxUpdates #TaxPlanning

Part-2: The Science Behind Drafting a Reply To Show Cause Notice in GST Thoughts, Insight and Research by: Abhishek Raja Ram, 9810638155 4. Bunching of Multiple Years 4.1 Many times, the Department issues SCN for multiple Financial Years. This is usually done to benefit from the extended time period. While doing so, the Department conveniently ignores the time limitation for individual years. 4.2 Where bunching of show cause notices for multiple assessment years under Section 73 of CGST Act had exceeded individual three-year limitation period for each year, High Court held such bunching invalid, directing separate adjudication for each year. Madras High Court in Tital Company Ltd. vs Joint Commissioner of GST and Central Excise (2024) 15 CENTAX 118 5. Right to Cross Examine 5.1 If the ITC is disallowed due to the supplier's retrospective registration cancellation, the buyer may request a cross-examination of the cancelled dealer. 5.2 The Officer should not deny the right to cross-examine in such cases. This is needed to establish the genuineness of the transaction. 5.3 Where State GST authorities were directed to provide legible copies of analysis report and permit petitioner to cross-examine certain respondents before passing assessment orders, in view of fact that personal hearing was fixed without giving opportunity of cross-examination, petitions were to be disposed of permitting cross-examination. Madras High Court in Shree Parshwanath Corporation (2024) 85 GSTL 207 5.4 Where in compliance to High Court's order, documents on basis of which tax fraud was alleged were supplied to assessee but neither opportunity of hearing nor opportunity to cross-examine persons making statement was provided, demand order was to be quashed. Allahabad High Court in Savita vs Union of India (2024) 24 CENTAX 409 5.5 Since proper officer did not summon witnesses on account of paucity of time, impugned order to limited extent of denial of input credit tax in respect of cancelled dealers, could not be sustained. Delhi High Court in Akshit Petrochem Pvt. Ltd. vs Government of NCT of Delhi (2024) 8 CENTAX 126 6. Parallel Proceedings on the same issue 6.1 Section 6 of CGST Act deals with the concurrent jurisdiction of Officers. 6.2 Sec. 6(2)(b): If the CGST Authority initiates proceedings, no parallel proceedings should be initiated by the SGST Authorities. 6.3 Where the central authorities had already initiated a proceeding in which the assessee had duly participated, proceedings and orders passed by State authorities subsequently in respect of the same tax period and subject matter were to be set aside. Calcutta High Court in Baazar Style Retail Ltd. vs Deputy Commissioner of State Tax (2024) 22 CENTAX 99 6.4 CGST authorities cannot proceed if the same subject matter is under SGST investigation; thus, the blocked credit ledger and summons by CGST must be set aside due to SGST's prior initiation. Himachal Pradesh High Court in Kundlas Loh Udyog vs State of HP (2024) 22 CENTAX 455 This was part-2 of this series. I hope you must have found this write-up useful. Thanks & Regards Abhishek Raja Ram 9810638155

Title : Dharmendra Kumar v. State of U.P. Court: Allahabad High Court Date : 09-Dec-2024 Citation No: WRITTAX No.-1493of2024 #Caselaw #Allahabadhighcourt #GST

The Science Behind Drafting a Reply To Show Cause Notice in GST: Part-1 Thoughts, Insight and Research by: Abhishek Raja Ram, 9810638155 Drafting a reply is a blend of Science and Art. Today, we delve into the science behind it, where 2 + 2 always equals 4. 1. Check whether DIN is mentioned on SCN or not. 1.1 Circular No. 122/41/2019-GST: Any specified communication that does not bear the DIN and is not covered by the exceptions shall be deemed to have never been issued. 1.2 Circular No. 128/47/2019-GST: Quoting of DIN on any communication is compulsory. 1.3 Implementing a system for the e-generation of DIN for all communications sent by State Tax Officers to taxpayers would enhance good governance; the UOI/GST Council should issue advisory and instructions to States, and States should implement the DIN system. Supreme Court in Pradeep Goyal vs Union of India (2022) 63 GSTL 286 2. Show Cause Notice should be specific and not vague. 2.1 Sec. 160: Assessment Proceedings cannot be held invalid if the communication is acted by the taxpayer. 2.2 instruction No. 02/2022-GST: While issuing the Notice, the Proper Officer, as far as possible, QUANTIFY THE AMOUNT of demand in relation to the discrepancies. Discrepancies so communicated be SPECIFIC in nature and not vague or general. 2.3 SCN is foundation on which the Department has to build up its case - If allegations in show cause notice are not specific and, on the contrary, vague, lack details and/or are unintelligible, sufficient to hold that noticee not given proper opportunity to meet allegations indicated in show cause notice. Supreme Court in Brindavan Beverages Pvt. Ltd. (2007) 213 ELT 487 2.4 Cryptic and improper notice issued without detailing allegations attracting ingredients of provisions of Acts was not sustainable. Jharkhand High Court in NKAS Services Pvt. Ltd. (2022) 63 GSTL 18 Author's view: Therefore, be careful while replying SCN, it if does not specify the charges or allegations behind the SCN, then one may avoid replying the SCN. Instead, the SCN should be challenged based on the fatal deficiency it suffers. While challenging the SCN, one should take the shelter of Section, Instructions, Case Laws etc. 3. Time period to file reply and Opportunity of Being Heard in SCN 3.1 Principles of Natural Justice demand that before passing of any adverse order, the Person should be heard. 3.2 Sec. 75(4): An opportunity of hearing shall be provided to any person where any adverse decision is contemplated against such person. 3.3 Registration cannot be cancelled based on a SCN that gives no details as to the date and time on which the petitioner’s authorized representative was to present himself for a personal hearing, before the adjudicating authority. Delhi High Court in Fada Trading Pvt. Ltd. (2022) 64 GSTL 95 3.4 Where the Adjudicating Authority passed an impugned order, creating demand even before the due date for filing a reply as stipulated in the SCN, the impugned order was not sustainable and was to be quashed. Delhi High Court in Mitchem Impex (2024) 88 GSTL 244 This was part-1 of this series. I hope you must have find this write up useful. Thanks & Regards Abhishek Raja Ram 9810638155

Title :Chitrasen Sahu v. Principal Commissioner, CGST and Central Excise Court: Orissa High Court Date : 13-Dec-2024 Citation No: W.P.(C) No.30949 of 2024 #Caselaw #orissahighcourt #GST

GST Update: Tax on Fortified Rice Kernel (FRK) Effective 16th January 2025, FRK is taxed at 2.5% (Schedule I) and 9% (Schedule III) for pre-packaged products up to 25 kg. This ensures uniform GST on fortified foods, supporting better nutrition. #GSTUpdate #FortifiedRice #FoodTax #NutritionMatters

🌟 Unlock the Power of AI for GST Compliance! 🌟 📢 Join our Exclusive Online Course: "How to Draft Replies to Notices & Create PPTs Using AI Tools" 🗓 Date: 21st January 2024 ⏰ Time: 7:00 PM – 8:00 PM 🌐 Language: Hindi 💰 Offer Price: ₹149/- (Original ₹799/-) 📲 Register Now: https://rzp.io/rzp/learnwitharr 🎯 What You’ll Gain: ✅ Learn to craft professional replies to GST notices effortlessly. ✅ Master AI tools to create impactful PPTs for presentations. ✅ Access to course recordings for 3 months (Unlimited views). ✅ Premium WhatsApp group for regular updates and networking. ✅ E-Background material to support your learning journey. 🎙 Speaker: Abhishek Raja "Ram" 📲 Register Now: https://rzp.io/rzp/learnwitharr 💬 Contact Us for More Info: 📞 7503031378 | 📧 gstpanacea@gmail.com Don’t miss this opportunity to boost your GST skills at an unbeatable price! 🖥

Title : Holy Land Marketing(P.)Ltd. v. Sales Tax Officer Class II/ Avato Court: Delhi High Court Date : 20-Dec-2024 Citation No: W.P.(C)17637of2024CM APPL.No.74952 0f 2024 #Caselaw #delhihighcourt #GST

Reminder for composition dealers! File your CMP-08 for Oct-Dec 2024 by 18th Jan 2025. Stay compliant and avoid penalties. #TeamGSTPanacea #GSTCompliance #CMP08Filing #TaxDeadlines

🌟 Unlock the Power of AI for GST Compliance! 🌟 📢 Join our Exclusive Online Course: "How to Draft Replies to Notices & Create PPTs Using AI Tools" 🗓 Date: 21st January 2025 ⏰ Time: 7:00 PM – 8:00 PM 🌐 Language: Hindi 💰 Offer Price: ₹149/- (Original ₹799/-) 📲 Register Now: https://rzp.io/rzp/learnwitharr 🎯 What You’ll Gain: ✅ Learn to craft professional replies to GST notices effortlessly. ✅ Master AI tools to create impactful PPTs for presentations. ✅ Access to course recordings for 3 months (Unlimited views). ✅ Premium WhatsApp group for regular updates and networking. ✅ E-Background material to support your learning journey. 🎙 Speaker: Abhishek Raja "Ram" 📲 Register Now: https://rzp.io/rzp/learnwitharr 💬 Contact Us for More Info: 📞 7503031378 | 📧 gstpanacea@gmail.com Don’t miss this opportunity to boost your GST skills at an unbeatable price! 🖥

Title :Curadev Pharma Pvt Ltd v. Deputy Commissioner of Income -tax Court: Delhi High Court Date : 09-Dec-2024 Citation No: W.P.(C) No. 16000 of 2024 #Caselaw #delhihighcourt #GST

Delhi HC quashes GST levy on licence fees collected by Electricity Regulatory Commissions #GST #DelhiHC #ElectricityRegulation #LegalUpdates

Assessee is eligible for VCES despite tax payment before scheme launch. - Calcutta High Court in M/s Shanti Servies vs Commissioner of Service Tax-I, Kolkatta (2025) 1 TMI 736 This is an important judgment and can be used in cases where Tax has been deposited before the issuance of Notification of GST's Interest and Penalty Waiver Scheme. Thoughts, Insight and Research by: Abhishek Raja Ram, 9810638155 Sharing a Few FAQ's as per Circular No. 238/32/2024-GST dated 15-Oct-2024 Q1. Whether the benefit provided under Section 128A will be applicable to taxpayers who have paid the tax component in full before the date on which the said section has come into effect? A1. In this regard, it is to be mentioned that all such amount paid towards the said demand upto the date notified under sub-section (1) of section 128A, irrespective of whether the said payment has been done before Section 128A comes into effect, or after that, and irrespective of whether such payment was made before the issuance of the demand notice or demand order, or after that, shall be considered as paid towards the amount payable in sub-section (1) of Section 128A, as long as the said amount has been paid upto the date notified under sub-section (1) of section 128A and was intended to be paid towards the said demand. Q2. Whether the benefit provided under Section 128A will be applicable in cases, where the tax due has already been paid and the notice or demand orders under Section 73 only pertains to interest and/or penalty involved? A2. Where the tax due has already been paid and the notice or demand orders under Section 73 only pertains to interest and/or penalty involved, the same shall be considered for availing the benefit of section 128A. However, the benefit of waiver of interest and penalty shall not be applicable in the cases where the interest has been demanded on account of delayed filing of returns, or delayed reporting of any supply in the return, as such interest is related to demand of interest on self-assessed liability and does not pertain to any demand of tax dues and is directly recoverable under sub-section (12) of section 75. I hope you will find this useful. Warm Regards, Abhishek Raja Ram 9810638155 Image Credit: Grok

Title :GUJARAT CHAMBER OF COMMERCE AND INDUSTRY & ORS. v/s UNION OF INDIA & ORS. Court: Gujarat High Court Date : 03-Jan-2025 Citation No: R/SPECIAL CIVIL APPLICATION NO. 11345 of 2023 #Caselaw #gujarathighcourt #GST

Strong case for GST reduction on two-wheelers up to 125 cc to 18 pc, says Hero MotoCorp CEO #GST #TwoWheeler #HeroMotoCorp #MotorcycleIndustry

📢GSTN Update Alert! 📢 ✅Forms GST SPL-01 and GST SPL-02 are now available on the GST portal: GSTN Update ➡️If you filed appeal applications (APL-01) before 21.03.2023, there's no withdrawal option on the portal. ➡️For withdrawal of these appeals, please submit your request directly to the concerned Appellate Authority. ➡️Remember, to be eligible, you must withdraw those specific appeal applications (Form APL-01) linked to the demand in question.

Title :Pr Commissioner of Income Tax v. Hespera Reality (P.) Ltd. Court: Delhi High Court Date : 24-Dec-2024 Citation No: IT Appeal 468 OF 2024 #Caselaw #delhihighcourt #GST