Professional Documents
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Goods and Services Tax
Goods and Services Tax
Tax
This presentation explores the impact of the Goods & Services Tax (GST). It
includes a detailed case study, analysis, and a Q&A section.
Goods & Services Tax
1 Ease of Doing Business
Whether GST has permitted "Ease of Doing Business"
Case Study: M/s. Suncraft Energy
Private Limited
1 Facts of the Case
- ITC was reversed by AC-SGST; - ITC was on supplies not reflected in GSTR-2A
(F.Y. 2017-18) - No investigation or recovery from suppliers was initiated -
Recipient denied allegations and submitted replies - Adjudication order: Demand
of Rs.6,50,511/- with interest and penalty - Writ petition disposed of by single
bench - Directed to file appeal with appellate authority - Appeal to be disposed of
without limitation grounds - Appellant appealed to Division Bench of Culcutta
High Court
2 Key Issues
- Whether suppliers default shall deny ITC in hands of recipient. - Whether ITC
availment for recipient is dependent on Form GSTR-2A.
Judgement – Hon'ble Calcutta High
Court
Court's Findings Court's Ruling
The court finds that the recipient has fulfilled the The court rules that the revenue cannot deny ITC to
same conditions of Sec 16(2) for availing ITC. the recipient who has fulfilled the required
conditions.
The recipient had a bona fide transaction with a
registered supplier, proof of payment to the The department must proceed against the
registered supplier, and receipt of goods. defaulting registered supplier to recover the tax.
Our Comments
Impotentia Excusat Legem Lack of Mechanism
As per the Latin maxim "Impotentia excusat In GST, yet there is no mechanism in place to
legem", where a duty is vested upon as a inform the recipient about the supplier's unpaid
mandatory one and the party is disabled from taxes.
performing it without any default on its part,
shall be excused in general.