@abhishekrajaram's Latest X Threads

𝗚𝗢𝗩𝗘𝗥𝗡𝗠𝗘𝗡𝗧 𝗢𝗙 𝗜𝗡𝗗𝗜𝗔 𝗔𝗺𝗲𝗻𝗱𝘀 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗻 𝗜𝗧𝗖 𝗥𝗲𝗳𝘂𝗻𝗱 𝗳𝗼𝗿 𝗜𝗺𝗶𝘁𝗮𝘁𝗶𝗼𝗻 𝗭𝗮𝗿𝗶 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝘀 📢 𝗡𝗲𝘄 𝗧𝗮𝘅 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁 𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝗲𝗱: "A new provision allows the refund of input tax credit (ITC) on metallized polyester/plastic film used in the production of imitation zari threads and yarn, effective from October 20, 2023.

𝗚𝗢𝗩𝗘𝗥𝗡𝗠𝗘𝗡𝗧 𝗢𝗙 𝗜𝗡𝗗𝗜𝗔 𝗔𝗺𝗲𝗻𝗱𝘀 𝗧𝗮𝘅 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗧𝗼 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗘𝗻𝘁𝗶𝘁𝗶𝗲𝘀 📢 𝗡𝗲𝘄 𝗚𝗦𝗧 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁 𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝗲𝗱: "Central Government services, excluding the Ministry of Railways, will now attract GST provisions starting October 20, 2023." 🔍 𝗞𝗲𝘆 𝗗𝗲𝘁𝗮𝗶𝗹𝘀: • 𝗜𝘀𝘀𝘂𝗲𝗱 𝗯𝘆: Ministry of Finance, Department of Revenue • 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: No. 19/2023-Central Tax (Amending Notification No. 4/2017) • 𝗦𝗰𝗼𝗽𝗲: This amendment updates the entities listed under the CGST framework, specifically removing Indian Railways from the tax obligations.

Madhya Pradesh High Court Protects Taxpayers from Flawed GST Cancellation Notices In a recent victory for taxpayers, the Madhya Pradesh High Court overturned the cancellation of a GST registration due to an inadequate Show Cause Notice (SCN). This case, Mahakali Foods Pvt. Ltd. vs. Ministry of Finance (30-09-2024), highlights the importance of proper procedure and fairness in tax administration. 𝗪𝗵𝗮𝘁 𝗛𝗮𝗽𝗽𝗲𝗻𝗲𝗱? The petitioner, Mahakali Foods Pvt. Ltd., had their GST registration revoked due to non-filing of GSTR-3B returns. However, the court found that the SCN issued to the company was deficient in several ways: 𝗟𝗮𝗰𝗸 𝗼𝗳 𝗦𝗽𝗲𝗰𝗶𝗳𝗶𝗰𝗶𝘁𝘆: The SCN failed to clearly detail the alleged violations, suggesting a lack of thorough investigation by the tax authorities. No Opportunity to Rectify: The cancellation order stated a zero payable amount, preventing the petitioner from rectifying the situation by paying any outstanding dues. 𝗧𝗵𝗲 𝗖𝗼𝘂𝗿𝘁'𝘀 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻 The Madhya Pradesh High Court ruled in favor of the assessee, annulling both the cancellation order and the dismissal of the appeal (which was dismissed due to limitation issues). This decision emphasizes the following: 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝗰𝗲 𝗼𝗳 𝗮 𝗩𝗮𝗹𝗶𝗱 𝗦𝗖𝗡: A Show Cause Notice must clearly state the reasons for the proposed action, giving the taxpayer a fair chance to understand and respond to the allegations. 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲 𝗼𝗳 𝗡𝗮𝘁𝘂𝗿𝗮𝗹 𝗝𝘂𝘀𝘁𝗶𝗰𝗲: Tax authorities must follow due process and provide taxpayers with a reasonable opportunity to be heard. Key Takeaways for Taxpayers 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝘆𝗼𝘂𝗿 𝗿𝗶𝗴𝗵𝘁𝘀: Familiarize yourself with GST regulations and your rights as a taxpayer. Respond promptly to notices: If you receive an SCN, respond within the stipulated time and address all the points raised. Seek professional help: If you're facing GST compliance issues, consult a tax professional for guidance. This case serves as a reminder that tax authorities must adhere to proper procedures and ensure fairness in their dealings with taxpayers. #GST #RegistrationCancellation #TaxpayerRights #DueProcess

𝗚𝗦𝗧 𝗖𝗼𝘂𝗻𝗰𝗶𝗹 𝘁𝗼 𝗠𝗲𝗲𝘁 𝗼𝗻 𝗧𝗮𝘅 𝗥𝗮𝘁𝗶𝗼𝗻𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗣𝗿𝗲𝗺𝗶𝘂𝗺𝘀 The GST Council is set to meet today on October 19th to discuss two key issues: GST rate rationalization and potentially lowering the 18% tax rate on health and life insurance premiums. This meeting marks the first gathering of the 13-member Group of Ministers (GoM) tasked with suggesting tax rates for these insurance premiums. The GoM, led by Bihar Deputy Chief Minister Samrat Choudhary, will submit its report by the end of October. Key Focus Areas: 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗣𝗿𝗲𝗺𝗶𝘂𝗺 𝗧𝗮𝘅: Currently, an 18% GST applies to health and life insurance premiums. The GoM will recommend specific tax rates for various categories, including individual, group, and family health insurance, as well as different life insurance plans and reinsurance. The aim is to potentially lower these rates to make insurance more affordable. 𝗚𝗦𝗧 𝗥𝗮𝘁𝗲 𝗥𝗮𝘁𝗶𝗼𝗻𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻: The GoM will also discuss streamlining the GST rate structure. This could involve reducing the number of tax slabs, potentially merging the 12% and 18% slabs, and shifting certain items to lower tax brackets. Medical and pharmaceutical items, bicycles, and bottled water are among the items being considered for lower tax rates. 𝗕𝗮𝗹𝗮𝗻𝗰𝗶𝗻𝗴 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗮𝗻𝗱 𝗔𝗳𝗳𝗼𝗿𝗱𝗮𝗯𝗶𝗹𝗶𝘁𝘆: The discussions will need to balance the need for lower tax rates on essential goods and services with the need to maintain adequate revenue for the government. To offset potential revenue losses, the GoM may consider raising tax rates on certain items, such as aerated drinks and beverages. 𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗚𝗦𝗧 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲: The current GST structure has four tiers: 5%, 12%, 18%, and 28%. Essential items are either exempt or taxed at the lowest rate, while luxury and demerit goods fall under the highest slab. The average GST rate has dipped below the revenue-neutral rate of 15.3%, prompting the need for these discussions. The outcome of these meetings could have a significant impact on consumers and businesses alike, potentially leading to changes in the prices of various goods and services.

⚖️📄 Bombay HC Allows Reply to Fresh SCN, Distinguishes from Previous Adjudication! 📄⚖️ [img:qye-RHjz] In Deccan Nutraceuticals Pvt. Ltd. vs. Union of India (2022) 5 TMI 570, the Bombay High Court ruled that the petitioner must respond to a new show cause notice (SCN) related to the 2014-2015 period, despite having an earlier SCN for 2012-2014 that was already adjudicated and dismissed. 📝🔄 ➡️ The Court noted that the two SCNs cover distinct periods and therefore do not overlap. It also emphasized that the petitioner had the right to contest the new SCN on its merits. Since there was no issue of jurisdiction or procedural violation, the writ petition was disposed of, granting the petitioner liberty to file a reply. 🖋️📄 💡 Key Takeaway: Distinct SCN periods mean separate legal challenges, even if previous proceedings were dropped. ⚖️✅ #GST #ShowCauseNotice #LegalUpdate #BombayHighCourt

⚖️🚨 Chhattisgarh HC Upholds Validity of Third Show Cause Notice Under GST! 🚨⚖️ In South Eastern Coalfields Limited vs. Principal Commissioner, CGST (2023) 11 TMI 399, the Chhattisgarh High Court upheld the validity of a third show cause notice issued under Section 73 of the GST Act. 📜🔄 ➡️ The petitioner challenged the third notice after the authorities dropped two previous notices (issued in 2021 and 2022). However, the Court found that the respondents acted within their legal authority under Section 73 of the GST Act. 📝✅ 💡 The Court emphasized that the principles of natural justice were not violated and that the petitioner had the opportunity to respond to the notice. Thus, the petition was dismissed. 🚫⚖️ #GST #ShowCauseNotice #ChhattisgarhHighCourt #LegalUpdate [img:_CBVdLViz_]

𝗚𝗢𝗩𝗘𝗥𝗡𝗠𝗘𝗡𝗧 𝗢𝗙 𝗜𝗡𝗗𝗜𝗔 𝗔𝗺𝗲𝗻𝗱𝘀 𝗧𝗮𝘅 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗧𝗼 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗘𝗻𝘁𝗶𝘁𝗶𝗲𝘀 📢 New GST Amendment Introduced: "Central Government services, excluding the Ministry of Railways, will now attract GST provisions starting October 20, 2023."

𝗚𝗢𝗩𝗘𝗥𝗡𝗠𝗘𝗡𝗧 𝗢𝗙 𝗜𝗡𝗗𝗜𝗔 𝗥𝗲𝗱𝘂𝗰𝗲𝘀 𝗨𝗻𝗶𝗼𝗻 𝗧𝗲𝗿𝗿𝗶𝘁𝗼𝗿𝘆 𝗧𝗮𝘅 𝗥𝗮𝘁𝗲 📢 𝗡𝗲𝘄 𝗧𝗮𝘅 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁 𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝗲𝗱: "The Union Territory GST rate has been reduced from 0.5% to 0.25%, effective from July 10, 2024."

⚖️🚫 Calcutta HC Pauses SGST Proceedings Pending CGST Adjudication! 🚫⚖️ In Mr. Mahabir Prasad Kedia vs. The Assistant Commissioner of State Tax (2024) 1 TMI 1098, the Calcutta High Court directed the State GST Authority to halt proceedings on discrepancy note no. 3, as the issue is already under adjudication by the CGST Authority. 📝🔄 ➡️ The petitioner contended that the SGST audit wing ignored submissions and proceeded despite the matter being addressed by the CGST Authority. The Court held that the SGST Authority must keep all proceedings, including the show cause notice, in abeyance until the CGST adjudication is completed. 🚫⚖️ ✅ Outcome: The writ petition was disposed of, and the SGST audit wing was instructed to wait for the CGST Authority's decision before taking further action. 🛑🗂️ #GST #CalcuttaHighCourt #LegalUpdate [img:tz8VVTxF]

⚖️📄 Jharkhand HC Upholds Second Show Cause Notice – Petitioner Must Address Discrepancies! 📄⚖️ In M/S. Jindal Stone Works vs. State of Jharkhand & (2024) 10 TMI 880., the Jharkhand High Court ruled on the validity of a second Show Cause Notice (SCN) issued under Section 61 of the JGST Act, 2017. 📝 ➡️ The petitioner argued against the second SCN after responding to the first. However, the Court found that the second notice addressed new discrepancies and didn’t cause any prejudice to the petitioner. ➡️ The Court directed the petitioner to provide explanations for the discrepancies mentioned in the second notice to proceed in accordance with the law. 🔄⚖️ ✅ Outcome: The writ petition was disposed of, and the petitioner was urged to respond to the second SCN for further consideration. 🖋️📄 #GST #ShowCauseNotice #LegalUpdate