CONTROVERSIES UNDER GST V. Raghuraman Senior

Transcript:CONTROVERSIES UNDER GST V. Raghuraman Senior:
CONTROVERSIES UNDER GST V. Raghuraman Senior Advocate ISSUES UNDER INPUT TAX CREDIT 2 AVAILEMENT/ REVERSAL OF CREDIT 3 SUNCRAFT ENERGY (P) LTD vs ASST. COMMNR [2023 153 taxmann.com 81 (CAL)] ISSUE: Non-reflection of supplier’s invoice in GSTR 2A - require reversal of input tax credit by the buyer ? HELD: Press release dated 18.10.2018 clarifies that GSTR-2A is for taxpayer facilitation and does not impact the ability of the taxpayer to avail ITC on self-assessment basis. The department without resorting to any action against the supplier, who is the selling dealer, demand cannot be raised on the buyer. 4 SUNCRAFT ENERGY (P) LTD vs ASST. COMMNR [2023 153 taxmann.com 81 (CAL)] The tax invoices and the bank statement produced by the buyer to substantiate that price of goods and taxes have been paid to be considered. It was directed to first proceed against the seller and only in exceptional circumstances as clarified by Board, then and only then action can be initiated against seller. SLP has been dismissed by the Hon’ble Supreme Court [2023 (157) taxmann.com (352) SC] 5 Aastha Enterprises vs State of Bihar [2023 (153) TAXMANN.COM 491 (Patna)] ISSUE: Whether the purchasing dealer can be denied input tax credit when selling dealer, who defaulted payment of collected tax to the State? HELD: The benefit of claiming credit is one conferred by Statute - if conditions prescribed therein are not complied; no benefit flows to the claimant. The question of double taxation does not arise - since the claim is denied only when the supplier who collected tax from the purchaser fails to pay it to the Government. 6 Aastha Enterprises vs State of Bihar [2023 (153) TAXMANN.COM 491 (Patna)] HELD: Statue has a measure to recover collected tax from the seller – it does not absolve the liability of the taxpayer to satisfy the entire liability to the Government. The word 'Input Tax Credit’ postulates a situation where the purchasing dealer has a credit in the ledger account maintained by it with the Government. The said credit can only arise when the supplier pays up the tax collected from the purchaser. Accordingly, credit was denied to the purchasing dealer. 7 STATE OF KARNATAKA vs ECOM GILL COFFEE TRADING P LTD [2023 (4) CENTAX 223 (SC)] ISSUE: Burden of proof in respect of genuineness of purchases for availing credit. The respondents had claimed credit on alleged purchases made from