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Introduction

Section 54 of the Central Goods and Services Tax Act, 2017 ("the CGST Act") requires a refund application to be filed within two years of the relevant date. A question that has now reached several High Courts, without a direct answer yet from the Supreme Court, is whether this two-year period is directory — capable of being relaxed in a deserving case — or mandatory, admitting of no exception save what the statute itself provides. Madras, Gujarat, Andhra Pradesh and...

Background:

It is being observed that the assesses are receiving notices requiring to reverse/pay back ITC availed pertaining to newly constructed building projects used for business operations[such as factory premise/warehouses], alleging such credit is restricted being of nature of “immovable property”. However in addition to civil works, such projects involve installation of electrical fittings, cabling, STP, security, fire fighting, machines for manufacture of finished goods etc.... Read more

GST Portal News and Updates

Background

Under GST law, Section 16 sets out the eligibility and conditions for taking of ITC. Section 16(1) of the CGST Act deals with the eligibility of a dealer to avail ITC and clauses (a), (b), (c) & (d) of Section 16(2) of the GST Act deal with the conditions for enabling such benefits. Therein 16(2)(c) sets out that that ITC will be available to the purchasing dealer only if the supplier has paid the tax to the Government.

 Various judicial precedents in erstwhile laws[under...

Introduction:

The right to a refund under the GST is a substantive right and not merely a procedural entitlement. If the refund is not sanctioned within the time prescribed by statute, it must compensate the taxpayer for the time value of that deprivation, and this is precisely what Section 56 of the CGST Act, 2017 (“Act”) sets out to do. Even after 9 years of GST, the interest on delayed refunds remains one of the most litigated and administratively resisted corners of the law....