GST Services

11/02/2025

Here are a few strong grounds to contest orders passed under Section 74 of the GST Act, based on the cited judgments:

1. Absence of Mens Rea (Intent to Evade Tax)

Case: Bhagya Kalita - Gauhati High Court (2025) 170 taxmann.com 54

If the show cause notice does not explicitly establish wilful suppression, misstatement, or fraud, the entire proceedings become unsustainable.

Courts have held that mere procedural lapses or unintentional errors do not justify invoking Section 74, which requires fraudulent intent.

2. Violation of Natural Justice – No Proper Opportunity of Hearing

Case: Agmotex Fabrics (P.) Ltd. - Allahabad High Court (2024) 169 taxmann.com 2

Orders passed without granting the assessee a fair hearing or disregarding their explanation are deemed illegal.

Courts have emphasized that tax authorities must pass reasoned orders after considering the assessee’s submissions.

3. Violation of Natural Justice – No Personal Hearing

Case: Prakash Iron Store - Allahabad High Court (2024) 169 taxmann.com 698

If an assessee requests a personal hearing and it is denied, the order can be set aside for procedural irregularity.

Even in cases of ITC claim errors, a genuine mistake should not be equated with fraud under Section 74.

4. Defective Show Cause Notice – Consolidated Notice for Multiple Periods

Case : Albatross Builders and Developers LLP - Karnataka High Court (2024) 169 taxmann.com 598

A single consolidated show cause notice covering multiple years is legally unsustainable.

Authorities must issue separate notices for each financial period, ensuring clarity and compliance with GST law.

5. Improper Service of Show Cause Notice – Only Uploaded on GST Portal

Case: SRT Fuels - Madras High Court (2025) 170 taxmann.com 446

If a show cause notice is only uploaded on the GST portal without proper physical or electronic service, the demand order is invalid.

The law mandates proper service of noticeunder GST rules, and mere portal uploads do not fulfill this requirement.

These grounds can be effectively used to challenge Section 74 orders before appellate authorities or High Courts. Let me know if you need further details or case references.

Taxmann is the most reliable online source for research on income tax, indirect tax & GST, Company Law, IFRS, Ind AS & International Taxation

10/07/2023

Enhancing Quality of Life, Standard of Living, and Sustainability: A Holistic Perspective

In today's fast-paced world, the generation of the information age is driven by a desire for more than mere survival. We yearn for fulfilling lives, characterized by comfort, happiness, and a sustainable environment. The concepts of quality of life, standard of living, and sustainability resonate deeply with us. In this blog, we will delve into these aspects, exploring their meaning, interconnections, and how we can enhance them for a more holistic existence that aligns with our aspirations.

Read full text...

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10/11/2021

RECAP on e-Invoicing under GST

What is ‘e-invoicing’?
‘e-invoicing’ doesn’t mean generation of invoice by a Government portal.

Notified class of registered persons have to prepare invoice by uploading specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN).
e-Invoicing was introduced aiming at machine-readability and uniform interpretation. To ensure this complete ‘inter-operability’ of e-invoices across the entire GST eco-system, an invoice standard is a must. By this, e-invoices generated by one software can be read by any other software, thereby eliminating the need of fresh/manual data entry.

Applicability

1st Oct 2020 - Aggregate T/o > INR 500 Crores in any preceding financial year from 2017-18 onwards

1st Jan 2021 - Aggregate T/o > INR 100 Crores in any preceding financial year from 2017-18 onwards

1st Apr 2021 - Aggregate T/o > INR 50 Crores in any preceding financial year from 2017-18 onwards

e-invoicing doesn’t apply in B2C transactions (i.e. supply of goods or services or both to an unregistered person)

Non-Applicability
e-invoice doesn’t apply to the following category of persons irrespective of their turnover-

1. Special Economic Zone units (not SEZ Developers),

2. An insurer,

3. An NBFC,

4. A Goods Transport Agency,

5. A banking company,

6. A financial institution,

7. A person supplying passenger transportation services,

8. A person supplying services of admission to the exhibition of the cinematographic films in multiplex services.

e-invoicing is also not applicable on Import of goods/ services, ISD invoices, Nil-rated/ wholly exempt supplies.

Note:- e-invoicing apply to RCM transactions as well

What documents are presently covered under e -invoicing?

i. Invoices
ii. Credit Notes
iii. Debit Notes

What supplies are presently covered under e -invoice?
• B2Bsupplies (includes supplies under same PAN),
• Supplies to SEZs (with/without payment)
• Exports (with/without payment)
• Deemed Exports
by notified class of taxpayers are currently covered under e-invoicing.

What are the benefits of e-invoicing?

1. One-time reporting of B2B invoices while generation, which reduces reporting in multiple formats.
2. Most of the data in form GSTR-1 can be kept ready for filing while using e-invoicing system.
3. E-way bills can also be generated easily using e-Invoice data.
4. There is minimal need for data reconciliation between the books and GST returns filed.
5. Real-time tracking of invoices prepared by a supplier can be enabled, along with the faster availability of input tax credit. It will also reduce input tax credit verification issues.
6. Better management and automation of the tax-filing process.
7. Reduction in the number of frauds as the tax authorities will also have access to data in real-time.
8. Elimination of fake GST invoices getting generated.

Contact for professional queries at
✉️ [email protected]
📍 CR Park, New Delhi 110019

19/10/2021

GSTN: Advisory w.r.t. availability of Input Tax Credit for FY 2020-21

✅ The Goods and Services Tax Network (“GSTN”) has issued an Advisory dated October 17, 2021 for taxpayers regarding the availability of Input Tax Credit (“ITC”) for Financial Year 2020-21.

24/06/2021

New functionality for compliance U/S 206AB and 206CCA (Cir 11/2021):-

1. The above 2 sections are applicable from 1st July 2021 requiring deduction of TDS (other than salary, horse racing, etc) or TCS at twice the normal rates or 5% whichever is higher, in case, deductee or collectee are specified persons ie not filed ITRs for 2 years, total of TDS and TCS is Rs 50,000 or more.

2. Considering the fact that it is practically impossible for the deduction or collector to identify the specified persons, the new functionality has been issued by CBDT ‘Compliance check for 206AB and 206CCA’.

3. As per the functionality, Single or multiple search of PAN can be made to identify the specified persons and bulk data can in fact be downloaded in pdf format.

4. A list of specified persons would be prepared at the start of the FY and no new specified person would be added during the FY. If a specified person fulfils the conditions specified above, he would be removed from the list during the FY.

5. So as a rule, new specified persons list on the portal would be drawn at the start of the FY and no new person would be added during the year even if he becomes a specified person. So we just have to check at the start of the FY for specified persons. Only while adding a new vendor during the year, we might have to look if he is a specified person. Also, if the status of specified person gets converted into a non specified person, we might have to update in our records.

28/05/2021

Today GST Council Meeting Key decisions as follows:
1) GST Exemption to some COVID-19 supplies till 31st August 2021.
2) A Particular Medicine for Black Fungus also exempted.
3) GoM to be formed to check if further reductions to be given to new items, GoM to submit reports before 8th June.
4) Amnesty Scheme with reduced late fee to be launched for GST Small Taxpayers.
GST Amnesty Scheme for all Small Taxpayers (MSME) The GST Council is likely to announce an amnesty scheme on late fee in GST return filing to provide a huge relief to small taxpayers-
Due to Covid-19 pandemic:-
Pending GSTR-3B returns from July-2017 to till April 2021.
Amnesty scheme could be from 1st June 2021 till 31st August 2021
5) Rationalization of Late fee for Small Taxpayers to be applicable to future liabilities.
6) Annual Return form to be rationalized, Govt to amend CGST Rules.
7) Annual Return filing to continue to be optional for Small Taxpayers.
😎 A Special Session on GST Compensation Cess before 22nd July 2021

Team GST Services
For GST Registration and Returns, contact us at [email protected]

28/03/2021

E-Invoicing in GST by CKC LLP

E-Invoicing is applicable from 1st April 2021 to all taxpayers having turnover 50 crores or above.

is an effort of CKC LLP, a firm of Cost & Management Accountants' to provide 'e-invoicing information to its cli...

19/02/2021

Complete Understanding of Budgetary Control, its organisation and the elements of a successful Budget Plan

https://www.youtube.com/watch?v=MXSFaki3mCY&feature=youtu.be

​Budget

. What is and Its Organisation2. / Budget:3. Budget:4. ...

08/12/2020

It is time to pay the 3rd instalment of advance income tax.

Due to lockdown TDS rates have been reduced by 25%. However the income tax rates remain the same.

02/12/2020

Auto-population of E-Invoice details into GSTR-1

The auto-population of e-invoice details pertaining to the period December, 2020 into GSTR-1 (in incremental manner on T+2 day basis) will start in the first week of December.

The details of e-invoices pertaining to periods of October and November, 2020, would be processed and made available in incremental manner from 13th December 2020 onwards, which may take up to 2 week

01/12/2020

UPDATE | 01.12.2020

1. Relaxation wrt Form CRA-4
Relaxation of additional fees and extension of last date of filing of CRA-4 (form for filing of cost audit report) for FY 2019-20 under the Companies Act, 2013.

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.38_01122020.pdf

2. Discontinuance of Class 2 DSC from 01/01/2021

👉 Class 2 DSC will get Discontinued from 1st January, 2021. Thus, after 01/01/2021 Class 2 DSC cannot be purchased or renewed.

👉 Class 3 DSC shall be valid and utilized for all purposes such as ROC, GST, Income tax, PF, Tenders, etc. after 01/01/2021. However, existing Class 2 DSC shall be valid for usage till its expiry.

3. MCA portal may experience intermittent unavailability from 01/12/2020 10:00 PM to 02/12/2020 07:00 AM due to planned maintenance activity.

27/11/2020

Deferment of provisions for new registration procedure of Charitable Trusts and Institutions u/s 12AB/10(23C)/80G:

~The Finance Act, 2020 prescribed a new electronic registration procedure for Charitable Trusts and Institutions under section 12AA/ 12AB / 10(23C)/ 80G.

~Originally was made applicable from 1st June 2020 : Subsequently extended to 1st October 2020 :Finally withdrawn from Finance Act, 2020 and made applicable from 1st April 2021.

~ So, New Scheme of electronic Registration deferred and made applicable w.e.f. 1st April 2021. Old Scheme would continue uptill 31st March 2021.

Amendments applicable from A.Y. 2020-21:

~Audit Report in Form No. 10BB shall be uploaded one month prior to the due
date of submission of return of income. For A.Y. 2020-21 – uptill 31-12-2020.

~Income by way of Corpus Donation: By insertion of an Explanation, it has been clarified that w.e.f. A.Y. 2020-21, income of an entity covered by section 10(23C)(iv)/(v)/(vi)/(via) shall not include income in the form of voluntary contributions which are received with a specific direction that they shall form part of the corpus of the recipient.

~Corpus Donation given to other entities: Shall not be taken as application of income of the entity giving donation from the A.Y. 2020-21, if the following conditions are satisfied-

a) is given by an entity covered by section 10(23C)(iv)/(v)/(vi)/(via);

b) is given voluntarily with a specific direction that it shall form part of the
corpus of recipient; and

c) is given to an entity covered by section 10(23C)(iv)/(v)/(vi)/(via) or to a trust registered u/s. 12AA.