Articles

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Is gst an over-regulated law? a constitutional examination of itc provisions

Challenging GST Input Tax Credit Rules: Balancing Regulatory Compliance with Constitutional Trade Freedoms Under Article 19(1)(g)
Legal Analysis Summary:The article critically examines the constitutional validity of GST's Input Tax Credit (ITC) provisions through the lens of Article 19(1)(g), which guarantees the right to trade. It analyzes Supreme Court precedents to assess whether GST regulations impose reasonable restrictions. The analysis suggests that while GST aims to prevent tax evasion, its complex compliance framework potentially oversteps constitutional boundaries by creating disproportionate procedural barriers for businesses. The key concern is whether the regulatory approach balances legitimate government interests with fundamental trade rights.

Written by Abhishek raja

17 Jun 2025

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Railway claims tribunal

Specialized Tribunal Streamlines Railway Compensation Claims with Efficient Dispute Resolution Mechanism Under RCT Act 1987
The Railway Claims Tribunal (RCT) is a specialized legal forum established under the Railway Claims Tribunal Act of 1987 to expedite compensation claims related to railway accidents, goods damage, fare refunds, and passenger injuries. With multiple benches across India, the tribunal provides a faster alternative to traditional court proceedings. It comprises judicial and technical members, offers territorial jurisdiction for filing claims, and has specific procedures for claim applications, document submission, hearings, and appeals to high courts within 90 days of an order.

Written by Dr.mariappan govindarajan

17 Jun 2025

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Refund of itc in gst permissible in case of discontinuation of business

Manufacturer Wins ITC Refund Claim After Business Closure, Challenging Tax Authority's Restrictive Interpretation of Credit Rules
A manufacturing company sought refund of unutilized Input Tax Credit (ITC) after discontinuing business operations in Sikkim. The tax authorities initially rejected the refund claim. The Sikkim High Court ruled that there is no express legal prohibition against refunding ITC upon business closure. The court emphasized that the statute does not authorize tax retention without legal backing and allowed the refund of accumulated ITC, setting aside the previous rejection order.

Written by Bimal jain

17 Jun 2025

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Madras high court on section 168a of cgst act

GST Council's Post Facto Time Limit Extension Invalidated, Challenging Pandemic-Era Regulatory Compliance Mechanisms Under Section 168A
A legal challenge was raised against Section 168A of the CGST Act regarding time limit extensions during force majeure situations. The Madras High Court ruled that post facto approval from the GST Council is invalid, striking down a notification extending time limits for financial years 2018/19 and 2019/2020. This decision could impact show cause notices and potentially invalidate certain time extensions previously implemented during the COVID-19 pandemic.

Written by K balasubramanian

17 Jun 2025

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Types of discrepancies in letter of credit (lc), their consequences, and how to avoid them.

International Trade Alert: Navigating Letter of Credit Discrepancies to Prevent Payment Rejection and Ensure Smooth Global Transactions
In international trade, Letters of Credit (LCs) involve three primary discrepancy types: fundamental, technical, and common. Fundamental discrepancies include major violations like late shipments or incorrect goods descriptions, potentially causing payment rejection. Technical discrepancies involve documentary errors such as missing signatures or formatting issues. Common discrepancies encompass spelling mistakes or incomplete documentation. Proper preparation, thorough document review, and understanding LC requirements can mitigate risks and ensure smooth transactions.

Written by Yagay andsun

17 Jun 2025

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Gst registration cannot be cancelled mechanically without taking into consideration the points in reply, statements and evidence recorded during verification

Business Entity Wins GST Registration Challenge, Highlighting Procedural Fairness and Need for Substantive Reasoning in Administrative Decisions
A business entity challenged the cancellation of its GST registration after a premises survey revealed discrepancies. The Allahabad High Court ruled that registration cannot be cancelled mechanically without considering the entity's reply, statements, and evidence. The court found the cancellation order lacked substantive reasoning, noting the business showed signs of activity and no proper notice was provided. The case was remanded for reconsideration with a reasoned order.

Written by Bimal jain

16 Jun 2025

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Facing a penalty for tax evasion? judicial relief for minor e-way bill discrepancies

Minor E-Way Bill Errors Don't Warrant Penalties: GST Taxpayers Protected from Punitive Actions Without Proven Tax Evasion Intent
A recent legal analysis highlights judicial relief for taxpayers facing penalties under GST for minor e-way bill discrepancies. The Allahabad High Court consistently ruled that penalties require evidence of tax evasion intent. Courts quashed penalty orders for unintentional errors like typographical mistakes, incorrect vehicle numbers, and invoice discrepancies, emphasizing that technical errors without deliberate tax evasion should not attract punitive measures.

Written by Abhishek raja

16 Jun 2025

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Hc directs timely conclusion of scn proceedings for gst registration cancellation as prolonged suspension of gst registration without conclusion of scn proceedings violates business rights

Timely Resolution of GST Registration Cancellation Proceedings Mandated to Protect Business Interests and Ensure Fair Hearing
The Delhi High Court directed timely conclusion of show cause notice (SCN) proceedings for GST registration cancellation. The court emphasized that prolonged suspension of GST registration without concluding SCN proceedings violates business rights. It mandated completing proceedings within 45 days, granting a personal hearing, and noted that registration cancellation can completely halt business operations.

Written by Bimal jain

16 Jun 2025

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Applicability of corporate governance provisions to a listed company

Corporate Governance Penalty Overturned: Company Wins Exemption Dispute Through Precise Regulatory Interpretation
A listed company challenged a penalty for non-compliance with corporate governance provisions. The Securities Appellate Tribunal analyzed Regulation 15(2) of LODR, which provides exemption for entities with paid-up equity share capital not exceeding Rs.10 crores and net worth not exceeding Rs.25 crores. Despite the company's net worth exceeding Rs.25 crores, the Tribunal ruled in favor of the company, finding the penalty unsustainable and directing its refund, based on a strict interpretation of the regulatory conditions.

Written by Dr.mariappan govindarajan

16 Jun 2025

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Country risk rating - oecd and ecgc.

Country Risk Ratings Decoded: How OECD and ECGC Assess Global Investment and Export Risks Across Nations
Concise Summary:The article discusses country risk ratings by OECD and ECGC, which evaluate investment and export risks for different countries. Both organizations classify countries based on political, economic, and payment factors using distinct rating scales. OECD uses a 0-7 scale focusing on global export credit risks, while ECGC provides India-specific ratings from A1 to D, helping exporters assess potential risks and determine insurance coverage and premium rates for international transactions.

Written by Yagay andsun

16 Jun 2025

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Legal analysis of notification no. 21/2025-customs (n.t.) dated 3rd april 2025 — export entry (post export conversion in relation to instrument based scheme) regulations, 2025

Exporters Gain Flexible Post-Export Entry Modification Rights Under New Customs Notification Guidelines
Legal analysis of customs notification regarding post-export conversion of export entries under instrument-based incentive schemes. The regulations establish a comprehensive framework for amending export declarations within one year of export, with potential extensions. Key conditions include scheme compliance, non-duplication of benefits, and absence of ongoing investigations. The framework aims to balance trade facilitation with regulatory oversight, providing clear procedural guidelines for exporters seeking to modify export entries under specific incentive schemes.

Written by Yagay andsun

16 Jun 2025

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Legal analysis and significance of notification no. 29/2025-customs dated 9th may 2025. (seeks to exempt works of art and antiques from basic customs duty).

Cultural Artifacts Gain Duty-Free Import Status Under New Rules Promoting Heritage Preservation and Public Exhibition
A government notification exempts customs duty on specific art and cultural artifacts intended for public exhibition in museums and galleries. The exemption applies to works of art, memorial artworks, and antiquities, subject to strict conditions. Importers must obtain certification, submit undertakings, and ensure public accessibility. The policy aims to promote cultural exchange, preserve heritage, and prevent commercial exploitation of imported cultural items.

Written by Yagay andsun

16 Jun 2025

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Rejection of application for approval under section 80g (5) of income tax act, 1961

Private University Wins Tax Exemption Battle, Proves Educational Charitable Purpose Under Section 80G(5) Income Tax Act
A private university sought approval under Section 80G(5) of the Income Tax Act, which was initially rejected by the tax authorities. The university argued it was established for charitable educational purposes, with substantial infrastructure, student enrollment, and research activities. The Income Tax Appellate Tribunal found the rejection order arbitrary and lacking substantive reasoning, setting aside the order and directing reconsideration. The High Court subsequently supported the tribunal's decision, instructing the department to comprehensively review the university's application with proper hearing.

Written by Dr.mariappan govindarajan

14 Jun 2025

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Writ petition is not maintainable when a rectification application is already pending before the authority

Tax Authority Must Grant Personal Hearing on Input Tax Credit Rectification Application Within Reasonable Time
A tax dispute arose involving an input tax credit claim by a company. The Delhi High Court directed the tax authority to provide a personal hearing regarding a pending rectification application. The court disposed of the writ petition without ruling on the demand's merits, instructing the authority to communicate the hearing date through official portal and counsel. All legal rights and remedies of the company were preserved.

Written by Bimal jain

14 Jun 2025

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Anti-dumping duty on titanium dioxide: decoding exemptions under circular no. 16/2025-customs.

Selective Duty Exemptions for Titanium Dioxide Imports Introduced, Mandating Precise Electronic End-Use Declarations and Compliance
Concise Legal Summary:The article analyzes a new customs circular addressing anti-dumping duties on titanium dioxide imports. The circular introduces selective duty exemptions for critical sectors including food, pharmaceuticals, skincare, textiles, and nano-applications. Importers must now electronically declare the specific end-use of titanium dioxide at customs clearance, with potential penalties for misdeclaration. The approach aims to balance trade protection with industrial and economic considerations, requiring precise documentation and compliance from importers across various industries.

Written by Yagay andsun

14 Jun 2025

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Article: clarification on classification and customs duty for interactive flat panel displays (ifpds) and monitors – circular no. 12/2025-customs dated 7th april 2025.

Interactive vs. Standard Display Panels: Customs Duty Clarified Under Revised Classification Rules for Technical Specifications
The Central Board of Indirect Taxes and Customs issued a circular clarifying customs duty classification for interactive flat panel displays and monitors. The circular distinguishes between interactive and standard monitors based on technical features like touch capability, screen size, and interactivity. It establishes a 20% duty rate for interactive displays and 10% for standard monitors, removing previous compliance conditions. The guidance aims to provide clarity for importers and customs authorities in classifying and taxing display devices.

Written by Yagay andsun

14 Jun 2025

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Refund of itc: statutory right or legislative concession?

Supreme Court Narrows Input Tax Credit Refund Scope, Emphasizing Legislative Discretion in GST Regime Under Section 54(3)
A legal analysis of Input Tax Credit (ITC) refund under GST reveals conflicting judicial interpretations. The Supreme Court strictly construes Section 54(3), limiting ITC refunds to specific scenarios involving zero-rated supplies and tax rate differentials. The court emphasizes that refunds are a legislative concession, not a constitutional right, and Parliament retains discretion in defining refund circumstances. This interpretation contrasts with a more permissive Sikkim High Court ruling, creating potential legal uncertainty regarding ITC refund eligibility.

Written by Karlegal

13 Jun 2025

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S.80jjaa- incentive for new and additional employment - must be further expanded, liberalized, and simplified to achieve its purpose.

Tax Breaks for Job Creation: 30% Deduction Offered to Businesses Expanding Workforce and Generating New Employment Opportunities
Section 80JJAA provides tax incentives for creating new employment. The provision allows a 30% deduction on additional employee costs for businesses that increase their workforce. Key recommendations include expanding the scope to professionals, increasing the monthly salary limit beyond Rs. 25,000, simplifying complex compliance requirements, and waiving certain conditions like provident fund participation. The goal is to promote employment generation and provide more flexible tax benefits for businesses creating new jobs.

Written by Devkumar kothari

13 Jun 2025

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The future role of accountants in indias gst regime - a technological shift over the next five years

Accountants in India Evolve: From Tax Compliance to Strategic Tech-Driven Advisory Roles Transforming Business Landscapes
The article examines the transformative role of accountants in India's GST regime over the next five years, highlighting the shift from traditional compliance to technology-driven strategic advisory. As AI, e-invoicing, and automated systems reshape tax administration, accountants must develop new skills in data analytics, technology integration, and business insights. The future accountant will be a tech-savvy advisor focused on strategic guidance, ethical data management, and value-added services rather than routine tax filing.

Written by Visahan kothandaraman

13 Jun 2025

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A landmark gesture in tax jurisprudence: kerala high court cites assistant commissioner hareendran’s order in gst case

Taxpayer Wins: Honest Tax Credit Mistake Doesn't Warrant Punitive Action Under GST Rules
A GST-registered dealer mistakenly classified Integrated GST (IGST) credit as Central and State GST in their tax filing. Tax authorities demanded credit reversal, but the Kerala High Court intervened. The court extensively quoted an Assistant Commissioner's order, recognizing that technical misclassification without revenue loss should not trigger punitive action. The judgment emphasizes substance over procedural form and highlights administrative competence in tax dispute resolution.

Written by Jayaprakash gopinathan

13 Jun 2025

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