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    5 views6 pages

    Goods and Services Tax

    Uploaded by

    babugenu

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 6

    Goods & Services

    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.

    Recent Amendments Legal Proceedings


    As per the amendments in GST law w.e.f. 01 Oct The combined reading of Section 73, 74, and 76
    2022, the genuine taxpayers has to reverse ITC of CGST Act, 2017 provides authorities power to
    even if their supplier defaults. (Refer Section 41 initiate legal proceedings against the non-
    of CGST Act, 2017) compliant parties.
    Thank You
    This presentation has provided a comprehensive analysis of the impact of GST on the "Ease of Doing
    Business" in India, including a detailed case study and the Calcutta High Court's ruling. The key takeaway is
    that the genuine taxpayer should not face denial of ITC, and the authorities should focus on initiating legal
    proceedings against the non-compliant suppliers.

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