Recent Landmark Judgments Under GST Law: A Comprehensive Overview

Welcome to Gstwala.com, your reliable source for navigating the complexities of Goods and Services Tax (GST) law. In this article, we’ll delve into ten recent landmark judgments that have shaped the GST landscape, covering critical topics such as payment of tax in instalments, reverse charge mechanism, input tax credit, intermediary services, and more.

Let’s dive into the details:

1. Payment of Tax in Instalments (M/S K. I. International(India) Ltd( W. P. No. 10379 of 2020) – High Court of Madras): Section 80 of the CGST Act 2017 allows taxpayers to seek permission for paying taxes in monthly installments, not exceeding 24 months. A crucial judgment by the High Court of Madras clarified that this facility isn’t available for self-assessed taxes declared in returns like GSTR 1.
2. Mandatory Physical Copy of Invoice – Rule 138A of the CGST Rules 2017 (J. K. Jain Buildtech India Pvt. Ltd. Vs Assistant Commissioner(WPA 3415 of 2022 Calcutta High Court)): The Calcutta High Court ruled that invoices accompanying goods during transport must be in physical form, emphasizing the importance of adhering to Rule 138A despite the presence of e-way bills.
3. Claiming Time Barred ITC for the period of Cancellation – ALLYSUM INFRA vs UOI – Gujarat High Court -Special Civil Application No. 23556 of 2022: This case addressed the issue of claiming Input Tax Credit (ITC) for the period of registration cancellation. Despite the time limit for claiming ITC having lapsed, the Gujarat High Court allowed the petitioner to claim ITC for the period between cancellation and restoration of registration.
4. Applicability of Reverse Charge on Rent Paid by a Company to its Directors – M/S Cords Cable Industries Limited vs Commissioner, Central Excise, Jaipur(Rajasthan) – CESTAT New Delhi-Service Tax Appeal No. 52207 of 2018: The CESTAT New Delhi clarified that directors renting out property to their own company cannot be subjected to reverse charge mechanism, emphasizing the distinction between individual capacity and corporate capacity.
5. Burden of Proving Genuineness of Input Tax Credit is on the recipient – State of Karnataka Vs M/S Ecom Coffee Trading Private Limited -Supreme Court – Civil Appeal No. 230 of 2023: The Supreme Court’s ruling highlighted that purchasing dealers must substantiate the authenticity of claimed Input Tax Credit, especially in cases of non-payment by the selling dealer.
6. Uploading of Orders on common portal constitutes proper mode of service – Pandidorai Sethupathi Raja vs Superintendent of Central Tax – W. P. No. 25666 of 2022 -Madras High Court: The Madras High Court affirmed that uploading orders on the GST portal constitutes valid service, underscoring the importance of regularly checking the portal for communications from tax authorities.
7. Scope of Intermediary Services – M/S Ernst and Young Limited vs Additional Commissioner, CGST Appeals -II, Delhi AND ANR.: The High Court clarified that intermediary services involve only arranging or facilitating supply, not providing services directly, thereby distinguishing between intermediaries and service providers.
8. Intermediary Services – No CGST /SGST – Dharmendra M Jani – Writ Petition No 2031 of 2018- Bombay High Court: This judgment challenged the provision that the place of supply for intermediary services is in India, denying them export benefits. The Bombay High Court upheld this provision, ensuring uniform taxation.
9. Orders Appealable to the Appellate Tribunal not to be Enforced – W. P. NO 10883 of 2019 – BOMBAY HIGH COURT: The Bombay High Court directed that orders appealable to the GST Appellate Tribunal need not be enforced until the Tribunal’s constitution, offering relief to taxpayers awaiting tribunal hearings.
10. Rule 89(4C) is Ultra Vires the Constitution – M/S Tonbo Imaging India Private Limited -W. P. No 13185 of 2020: This case challenged Rule 89(4C), emphasizing that rules cannot override the statute. The Karnataka High Court ruled that the rule, restricting refunds on zero-rated supplies, violates constitutional principles.

These landmark judgments provide clarity and guidance on various aspects of GST law, ensuring fair treatment and compliance for taxpayers. Stay updated with Gstwala.com for more insights into recent legal developments in the GST regime.

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