Legal Updates from the Judiciary – Nov 2020

  • Category: assessment and litigation
  • Date: 02-12-2020
  • Writer: CA Ravi Kumar Somani

1) Input tax credit of CGST & SGST is availed instead of IGST – A judicial view on how to Rectify:

To err is human and to make human err are the tax laws. CGST & SGST credit wrongly availed as IGST or vice-versa has been a common error by many taxpayers (Thanks to GST Common portal). Now, the law when read literally puts taxpayer in a fix in so much so that the incorrectly availed ITC is required to be reversed with no recourse of availing back the correct ITC due to time restriction...

Read more

Difference – ST vs. IT returns (AS26)

  • Category: assessment and litigation
  • Date: 21-11-2020
  • Writers: Adv Surabhi Parihar, CA Madhukar N Hiregange

Analyzed of Causes of Differences

The sharing of the income tax returns with the service tax, central excise and VAT authorities has been a long drawn exercise with last arrangement agreed in 2015, however lately CBIC and CBDT have entered into a MOU in 2o14 and again in 2020 to facilitate exchange of data on a regular and automatic basis.

This arrangement should have enabled the respective tax departments to look at the differences between taxable turnover reflected in service tax...

Read more

The Indirect tax judgments that need amends

  • Category: assessment and litigation
  • Date: 26-08-2020
  • Writer: Manish Sachdeva

Some judgments are timeless. For their infinite intellect, the decisions serves as bible for the Courts to come and legislator to penetrate. Some others however need to go with the lapse of time, for that they are not needed anymore or for their inherent flaws.

The present piece examines some of the rulings by the Hon’ble Supreme Court rendered in the context of earlier indirect tax laws, which are in dire need of correction in as much as their extrapolation on the GST code is imminent...

Read more

GST - Precautions to be taken while responding to department

  • Category: assessment and litigation
  • Date: 12-05-2020
  • Writers: CA Rasika Kasat, CA Venkata Prasad


It has been nearly 34 months since the implementation of GST in the country. It is undeniable fact that GST law has proven to be the most dynamic law in the country with umpteen number of Notifications, Circulars, Removal of difficulty order, etc. Some did serve the purpose and had aided in ease of business, while some, though never intended to, but ended up creating chaos in the trade and businesses. Many instances can be given to easily arrive at the conclusion that the...

Read more

Binding value of Circulars issued under GST Law

  • Category: assessment and litigation
  • Date: 02-05-2020
  • Writers: CA Dhruv Dedhia, Vinay Kumar J

Once a law is implemented, it is a known fact that Notifications, Circulars and Orders issued subsequently forms part of the Act to amend or to clarify procedures or ambiguity. Notifications are considered as delegated legislature and are generally issued to give effect to a legal provision or rule, whereas Circulars are normally explanatory or clarificatory in nature. In this article, we will have an in-depth analysis on purpose of circular issued under GST law and their binding value on...

Read more

Reply to 16(4) Notice

  • Category: assessment and litigation
  • Date: 16-03-2020
  • Writer: CA Lakshman K

Date: ________


The Jurisdictional Officer,

______ Division,

______ Commissionerate


Dear Sir,

Sub: Reply to the notice received for reversal of Input Tax Credit

Ref: Your letter dated __________ bearing DIN ___________________


1. We are in receipt of the above-referred letter dated _______ directing us to reverse the input tax credit availed for the month of March 2019 stating that such input tax credit is irregular under Section 16(4) of CGST Act, 2017...

Read more

Genesis of GST Frauds & Their Mitigation

  • Category: assessment and litigation
  • Date: 20-02-2020
  • Writer: CA Madhukar N Hiregange

In India, most of us the educated and lucky are inclined to pay just taxes. However, the uneducated or the poor are unable to meet ends and would like to avoid taxes. Let us list out some of the common factors why GST is evaded by the industry/ trade:

  1. Change management of the unorganised SME, revenue officers and IT literacy in a big way can make the advantages of being in the mainstream, ease of complying a reality. This has failed miserably. Maybe an outsourced service provider to...
Read more

Advance ruling- Is it serving its purpose?

  • Category: assessment and litigation
  • Date: 29-01-2020
  • Writer: CA Madhukar N Hiregange

“Advance ruling” means a decision/ ruling given to the applicant by the constituted authority on the matters relating to GST provisions

GST being a new law, amended frequently, focusing on revenue leakages has led to a lot of confusion as to the applicability of various provisions of the Act for the transaction undertaken or to be undertaken by the taxpayer. In case the taxpayer takes a wrong decision and remits lesser tax, then he would have to pay the tax along with the interest...

Read more

Validity of the direct recovery of Interest under GST?

  • Category: assessment and litigation
  • Date: 11-01-2020
  • Writers: CA Lakshman K, CA Venkata Prasad

In the recent past, the matter of interest on Gross (before adjusting GST ITC) or Net liability (after adjusting GST ITC) is knocking the doors of every belated GST return filers. The Hon’ble HC of Telangana in case of Megha Engineering & Infrastructures Ltd. v. Commissioner — 2019 (26) G.S.T.L. 183 (Telangana) held that interest is liable on the Gross GST liability but the Hon’ble has admitted the review petition and granted an interim stay and the other HC’s are yet to deliver the...

Read more