Fortnightly Magazine--“J.K.JAIN’S GST & VR”

 

HIGHLIGHTS OF THE MAGAZINE―“J.K.JAIN’S GST & VR”

 

1. Non-constitution of the Tribunal─Stay granted on recovery proceedings─Read the following case laws;

Angel Engicon Pvt. Ltd. v. The State of Bihar (2023) 39 J.K.Jain’s GST & VR 305 (Patna),

Sandeep, Prop. Madhukar Sangam Jewellers v. State Tax officer (2023) 39 J.K.Jain’s GST & VR 316 (Ker),

KW and Jasim Traders v. State of Bihar (2023) 39 J.K.Jain’s GST & VR 314 (Patna).

Note.─The above Judgments pose a direct question on the functioning of CBIC, which could not constitute Tribunals even after nearly five years of implementation of GST, leading to taxing various citizens of India.

2. SC Clarificatory Order on Recovery of GST on Royalty : Myrayash Hotels Pvt. Ltd. v. Union of India & Ors. (SC). (2023) 39 J.K.Jain’s GST & VR 341

3. Read following Articles written by CA Om PraKash Jain s/o J.K.Jain, Jaipur Containing Legal Interpretation based on ratio decidendi of Supreme Court and Interpretation of CGST Act, 2017.

    i) Royalty─(a) Levy of GST on reverse charge basis, on Royalty payable on Minerals excavated from Mines─Analysis of Rajasthan HC decision─ Whether Legal (2022) 38 J.K.Jain’s GST & VR, Pages R31-34.

     (b) Constitutional Validity of levy of GST for grant of mining lease/royalty     under HSN code 9973 on Reverse charge basis (2023) 39 J.K.Jain’s GST & VR, Pages A1 to A4.  

Conclusion─(a) GST on Royalty is not leviable─Royalty is a Right of enjoyment of Immovable property based on Ratio decidendi of SC cases.

(b) In case of recovery proceedings, avail appellate remedies. 

ii) Reconciliation Statement in GSTR-9C─Late Submission─Whether Late Fee/Penalty leviable : (2022) 38 J.K.Jain’s GST & VR, Page R11-12.

Conclusion─Late Fee/Penalty not leviable as per interpretation of Law.

iii)  Late filing of GSTR-3B─Whether Interest u/s 50 is payable : (2022) 38 J.K.Jain’s GST & VR, Page R-27-R-28.

 Conclusion─Interest u/s 50 is not payable Based on Ratio decidendi of High Court & interpretation of Law.

iv) No Reversal of ITC on Goods Lost during Manufacturing Process [S.17(5)(h), GST Act, 2017]:  (2022) 37 J.K.Jain’s GST & VR, Page R-7.

Conclusion─No Reversal of ITC on Goods Lost/By Product Produced during Manufacturing Process Based on Ratio decidendi of Madras High Court & interpretation of CGST Act, 2017.

4. Rajasthan State notfns/circulars: Cross referenced actual notfns/ circulars of Rajasthan State are given.

5. Recent SC Judgment, on VAT, applicable in GST regime also;

a) ITC Claim─Burden of Proof─On purchasing dealer─Similar section in GST also─S.155─The State of Karnataka  v. Ecom Gill Coffee Trading Pvt. Ltd. (2023) 39 J.K.Jain’s GST & VR 247 (SC)

b)Taxability of Warranty on defective parts replaced─Tata Motors Ltd v. Deputy Commissioner of Commercial Taxes (SPL) (2023) 39 J.K.Jain’s GST & VR