Skip to main content

SC asks GST Council to look into anomalies related to refund assessment formula

Follow us on - 

Youtube - https://www.youtube.com/user/aseemaggarwal92
Twitter - https://twitter.com/aseem252
Blog - https://aseemconsult.blogspot.com/

The Supreme Court has asked the GST Council to look into anomalies related to the formula for assessment of GST claims and refunds.

The Supreme Court (SC) has asked the Goods and Services Tax (GST) Council to take note of anomalies in the present act and look into the assessment formula for claiming refunds.

While pronouncing its judgement, the SC said, “Provisions of Article 246a are available to both parliament and state. Article 246a embodies the constitutional principle of simultaneous levy.”

“Cannot expand the regime beyond what the legislature has provided. Anomalies in the law is a matter of legislative policy. GST council should take note of the anomalies,” the court added.

The case is primarily related to claims of GST refunds and unutilised input tax credit (ITC). Citing the law under the GST Act, the court said refund of the input tax credit will be in specific conditions.

The court said that the legislature has made the distinction for claims of refunds clear and added: “With reference to exports, the ITC on input goods and input services brought in the fold of the Act in contrast with domestic supplies.”

“While discharging function, the GST Council will be guided by the need for harmonised structure for GST,” the court said in its order.

The court also said the second stage cascading effects of GST must be kept in mind. “There cannot be any gainsaying of the fact that fiscal legislation makes complex balance between diversity,” SC said.

The SC further added that the dual system of GST law operates within the federal structure and has to be progressively realised.

“While adopting the constitutional framework of GST regime, the parliament had to balance GST of state, consumption of alcohol by humans, taxation in states,” said the judgement.

In conclusion, the Supreme Court said that fiscal policy cannot be dictated by the judiciary, and it cannot order the government to bring in stamp duty on alcohol and coal.

In case of any queries, suggestions, the author can be reached at following details - 

Regards 
Aseem Aggarwal
CA, CPA, CS, B.Com(H)
+91 7508000350
aseem@ksafirm.com

Youtube - https://www.youtube.com/user/aseemaggarwal92
Twitter - https://twitter.com/aseem252
Blog - https://aseemconsult.blogspot.com/

Source: https://www.indiatoday.in/business/story/supreme-court-directs-gst-council-anomalies-claims-refunds-input-tax-credit-1852174-2021-09-13


Comments

Post a Comment

Popular posts from this blog

Government is considering GST Relief package to reduce Covid Impact

For More related articles and updates, connect with us -  LinkedIn- https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube  -  https://www.youtube.com/user/aseemaggarwal92 Twitter  -  https://twitter.com/aseem252 India is considering a goods and services tax (GST) relief package to counter the impact of Covid-19 and help prop up the economy, said people with knowledge of the matter. The package being considered could include a six-month suspension of GST payments for the worst-hit sectors such as restaurants, aviation and hospitality as well as a lower rate for the real estate sector. Other proposals include a switch to a cash-based principle of levying tax from the current invoice-based system and providing GST relief on sales for which payment is not received due to the lockdown by treating those as bad debts. These measures are expected to ease the liquidity pressure on businesses that are strapped for cash, said the people cited abov...
1 comment
Read more

Investing in Gold: Bridging Tradition with Modern Strategies in India

Follow us on -  LinkedIn  - https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube  -  https://www.youtube.com/user/aseemaggarwal92 Twitter  -  https://twitter.com/aseem252 Blog  -  https://aseemconsult.blogspot.com/     Gold holds a special place in the hearts of Indians, deeply rooted in tradition and culture. For generations, it has been a symbol of prosperity, a hedge against economic uncertainties, and an integral part of auspicious occasions. As we step into the modern era, the allure of gold remains, but the ways we invest in it have evolved. Let's delve into the world where tradition meets contemporary investment strategies in the context of gold in India. The Timeless Appeal of Gold For centuries, Indians have revered gold not only for its aesthetic appeal but also for its intrinsic value. Traditionally, gold has been acquired in the form of jewelry, coins, or bars, often passed down through generations as a store of wealt...
Post a Comment
Read more

GST officers to be soon armed with real-time data on vehicles moving without e-way bills

  Follow us on -  LinkedIn  - https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube  -  https://www.youtube.com/user/aseemaggarwal92 Twitter  -  https://twitter.com/aseem252 Blog  -  https://aseemconsult.blogspot.com/ The government is working on a system to soon provide report to GST officers on a real-time basis for those vehicles which are moving without e-way bills, to help intercept stuck trucks at toll plazas and check GST evasion. The tax officers would also be provided analysis reports on identifying e-way bill EWB with no movement of goods as it would help officials identifying cases of circular trading.  It would also provide reports on recycling of e-way bills for tax evasion prone commodities to help officers in identifying tax evaders. Under the Goods and Services Tax (GST) regime, e-way bills have been made mandatory for inter-state transportation of goods valued over Rs 50,000 from April 2018. However, gold is exemp...
1 comment
Read more