Newsletter – Vol. 1, Issue 7 – 05.09.2021

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Petition and Respondent (against whom primary relief is prayed), both in Delhi, open to pursue remedies under Article 226: Hon’ble Supreme Court
In Association of Diplomate of National Board Doctors v. National Medical Commission and Ors., Writ Petition (Civil) No. 904/2021, Hon’ble Supreme Court left it open for the petitioner to move to Hon’ble High Court. The Association of Diplomate of National Board Doctors challenged GST at the rate of 18% charged on the course fee payable by candidates for the DNB course. 

Main question not decided by AAR and AAAR, matter remanded: Hon’ble Bombay High Court, Nagpur Bench
In Kasturba Health Society v. Union of India and Ors., W.P. No. 1745 of 2020, Hon’ble HC set aside both the orders of Authority for Advance Ruling and Appellate Authority for Advance Ruling and remanded the matter to AAR for fresh consideration. The Hon’ble HC held that the main question was not decided by both the orders i.e., to the extent the petitioner-society imparts education through its Special Purpose Vehicle – MGIMS, the society (alone) would also be eligible to be termed as ‘educational institution’ and therefore, entitled for seeking exemption from the requirement of registration and GST liability.

There needs to be some guidelines or procedures for the purpose of invoking Rule 86A: Hon’ble Allahabad High Court
In M/s North End Food Marketing Pvt. Ltd. v. State of U.P., Writ Tax No. 309 of 2021, the petitioner-company challenged the stay order passed by the revisional authority under section 108. The stay was on the order of the Appellate Authority where Appellate Authority had issued directions for unblocking of credit. The stay order was issued based on the noting received by the JC. The Hon’ble HC set aside the stay order as the revisional authority has passed the stay order without adhering to the procedure and especially without calling for and examining the record and without affording reasonable opportunity of being heard. The Hon’ble HC has also made observations on the blocking of credits. 

For sheer verbosity, the orders must go: Hon’ble Tripura High Court
In OPC Assets Solutions Pvt. Ltd v. The State of Tripura and Ors., WP(C) No. 399/2021, show cause notice was issued under section 61 for FY 2018-19 and thereafter the department issued separate orders confirming the tax and penalty demands against the petitioner for the tax periods 2017-18 till 2020-21. Hon’ble HC set aside all the orders and directed the department to do afresh proper assessment on the following reasoning:
For FY 2018-19: Any use of material must precede sharing of it with the person likely to be adversely affected by his order. The basic requirement of the principle of natural justice for sharing adverse material before utilising the same against a person must be observed with greater rigour. And the order being unintelligible.
2017-18, 2019-20, 2020-21: Beyond SCN.

Hostel (below 1000/day) provided by coaching institutes will fall under S. No. 14 of NN. 12/2017 and will be exempted: Authority for Advance Ruling, Maharashtra
In Re: M/s Ghodawat Eduserve LLP., Order No. GST-ARA-72/2019-20/B-51 dated 27.08.2021, the applicant is providing commercial training and coaching services along with a hostel facility on-demand basis by charging the nominal sum of INR 95/day. AAR ruled that the services are covered under S. No. 14 of NN 12/2017- CT dtd. 28.06.2017, ‘services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having value of a unit of accommodation below one thousand rupees per day or equivalent’. The hostel will fall under ‘whatever name called’ and will be eligible for the exemption as the charges are below INR 1000/day. 

The Other Charges received by the company will not be treated as consideration for construction services of the Company and be leviable at 18%: Authority for Advance Ruling, Maharashtra
In M/s Puranik Builders Ltd., Order No. GST-ARA-68/2019-20/B-52 dated 27.08.2021, the applicant submitted that the Other Charges (water connection, municipal taxes, advance maintenance, clubhouse maintenance, legal fee etc.) and the main construction services of the applicant shall be treated as composite supply and the Other Charges will be added in the total value of construction services of the applicant-company to avail the benefit of 1/3rd deduction from the total value. The authority ruled against the applicant and held that Other Charges are for the independent supplies.
The Other Charges w.r.t. to electrical meter deposit and water connection authority ruled that as charges relating to the electrical meter deposit and the water connection (deposit), the claim of deduction of pure supply could have been raised, but the same has not been raised by the applicant and therefore is not considered.

CBIC issued three notifications all dated 29.08.2021
𝗡𝗡 𝟯𝟰/𝟮𝟬𝟮𝟭 – 𝗖𝗲𝗻𝘁𝗿𝗮𝗹 𝗧𝗮𝘅 𝗱𝗮𝘁𝗲𝗱 𝟮𝟵.𝟬𝟴.𝟮𝟬𝟮𝟭
Limitation Period extended till 30.09.2021: In case of a registration cancelled for non-filers of returns and for such cancellation time limit for making an application of revocation falls during 01.03.2020 to 31.08.2021, the limitation for such period is now extended up to 30.09.2021.
𝗡𝗡 𝟯𝟯/𝟮𝟬𝟮𝟭 – 𝗖𝗲𝗻𝘁𝗿𝗮𝗹 𝗧𝗮𝘅 𝗱𝗮𝘁𝗲𝗱 𝟮𝟵.𝟬𝟴.𝟮𝟬𝟮𝟭
The period extended regarding waiver of Late fee u/s. 47: Late fee in excess of INR 500/250 for non-filing of GSTR 3B for period July 2017 – April 2021 is waived, if the amount deposited is between June 2021 to November 2021.
𝗡𝗡 𝟯2/𝟮𝟬𝟮𝟭 – 𝗖𝗲𝗻𝘁𝗿𝗮𝗹 𝗧𝗮𝘅 𝗱𝗮𝘁𝗲𝗱 𝟮𝟵.𝟬𝟴.𝟮𝟬𝟮𝟭: 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁 𝘁𝗼 𝗖𝗚𝗦𝗧 𝗥𝘂𝗹𝗲𝘀
Rule 26(1) – Electronic Verification Code instead of DSC for returns extended till 31.10.2021 and will cease from 01.11.2021
Rule 138E – Restriction of generation of Eway Bill will not apply for the period from the 01.05.2021 till 18.08.2021 under Rule 138E; and
GST ASMT- 14 – Few changes in GST ASMT 14, Show Cause Notice for assessment under section 63.d rendered to the Applicant.


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