The Hon’ble Karnataka High Court in the case of SreeKrishna Hot Dip Galvanizers held that the time spent in preferring appeal before the wrong authority should be excluded while computing limitation period.
Revenue Department is not authorized to block ITC for more than one year
The Hon’ble Karnataka High Court in the case of S.P. Metals v. Assistant Commissioner of Central Tax [Writ Petition No. 21015 of 2023 dated January 3, 2024] allowed the writ petition and held that as per sub-rule (3) of Rule 86A of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”), the Respondent is […]
Prime Location Charges/Floor Rise Charges would not be included in Taxable Service under VAT
The Hon’ble Karnataka High Court in the case M/s. Smart Value Homes Private Limited vs. Joint Commissioner, Commercial Taxes (Appeals) and Others allowed the revision petition and held that the Prime Location Charges (“PLC”)/ Floor Rise Charges (“FRC”) would not fall within the definition of works contract under the KVAT Act and such charges incurred by the buyer would fall within the purview of Service Tax.
Guidelines for determining discrepancies arising on tax calculation on pre-GST contracts
The Hon’ble Karnataka High Court in Sri Chandrashekaraiah v. State of Karnataka [WP no. 9721 of 2019(T-RES) dated April 11, 2023] issued guidelines for determining discrepancies arising on tax calculation for Pre-GST works Contracts. Facts: Sri Chandrashekaraiah (“the Petitioner”) a Class 1 contractor entered into works contract with various State Government agencies. The work contracts […]
Karnataka HC asks govt bodies to bear differential GST burden
The Karnataka High Court has ruled that contractors, whose projects fell between the VAT and GST regimes, need to pay the applicable tax rate prevalent during that regime, giving them a relief from having to pay a steep tax under the GST regime. The court also directed the government bodies that awarded the contract to […]
GST Registration cannot be cancelled on non-submission of GST Returns
The Hon’ble Karnataka High Court in the case of Sri Annadurai Muniswamy v. the Additional Commissioner Office of the Commissioner of Central tax [W.P. No. 3966 of 2023 dated April 6, 2023] ordered assessee to file an application for revocation of cancellation of registration in accordance of procedure outlined in the Notification No 03/2023-Central Tax […]
Karnataka HC quashes Rs 21,000 crore GST Notice to Gameskraft
The Karnataka High Court on May 11 revoked a goods and services tax notice against Bengaluru-based online gaming company Gameskraft Technology over an alleged invasion of Rs.21,000 crore. Earlier in September 2022, a GST intelligence unit, alleging the firm failed to pay Rs 21,000 crore in GST, issued a show-cause notice to Gameskraft Technology. This […]
Rule 89(4)(c) is ‘ultra-vires’ to the provisions of GST law and held ‘unconstitutional’
Hon;ble High Court has held that Rule 89 (4)(c) of the CGST Rules, 2017 which restricts the exports made without payment of tax to 1.5 times value of like goods supplied domestically is unconstitutional and ultra vires of the provisions of the GST law.
No ITC to purchasing dealer in the absence of proof of genuine transactions and physical movement of goods
The Hon’ble Supreme Court in the State of Karnataka v. M/s. Ecom Gill Coffee Trading Pvt. Ltd. [Civil Appeal No. 230 of 2023 dated March 13, 2023] has quashed and set aside the order passed by the Hon’ble Karnataka High Court on the grounds that until the purchasing dealer discharges the burden of proof under […]
Vouchers – Whether Goods or Services, leviable to GST and corresponding GST Credit on same
Background: The Hon’ble Karnataka High Court in M/s Premier Sales Promotion Pvt Limited v. Union of India [Writ Petition No. 5569 of 2022 (T-RES) dated January 16, 2023] has held that, the issuance of vouchers is similar to pre-deposit instruments, which have no inherent value of their own and therefore, it does not fall under the category […]