Input Tax credit (GST) cannot be denied to recipient for default on part of the supplier- Delhi High Court issued notice to UNION OF INDIA


Delhi HC issues notice in writ petition challenging Section 16(2)(c), second proviso to Section 16(2)(d) and proviso to Section 16(4) of Central Goods and Service Tax Act, 2017 (CGST Act); Validity of Section 43A(6) of CGST Act, which hasn’t been notified yet, is also being challenged; Petitioner’s contention is that the Department has been vested with all the powers to recover any revenue lost owing to non-payment of taxes by erring suppliers and credit cannot be denied to recipient for default on part of the supplier; Lists the matter on September 18 : Delhi HC

The matter is being heard by Division Bench comprising of Justice Dr. S. Muralidhar and Justice Asha Menon.

The Petitioner i.e. Bharti Telemedia Ltd. is engaged in providing Direct-To-Home satellite television broadcast services. Writ Petition has been filed challenging the legality and validity of Section 16(2)(c), second proviso to Section 16(2)(d) and proviso to Section 16(4) of the Central Goods and Service Tax Act, 2017. The Writ Petition also challenged the validity of Section 43A(6) of the Central Goods and Service Tax Act, 2017, which has not been notified until.

Section 16(2)(c) of CGST Act, 2017 provides for a condition wherein the recipient would only be entitled to Input Tax Credit if the tax charged in respect of such supply has been actually paid by the Supplier. The second proviso to Section 16(2)(d) provides that the recipient shall add an amount of Input Tax Credit availed, along with interest to the output tax liability if the recipient fails to pay the invoice amount to the supplier within 180 days.

Proviso to Section 16(4) extends the benefit of availment of ITC till the due date of furnishing of return under Section 39 for the month of March, 2019 in respect of certain invoices, only if the supplier for such supplies has uploaded the details of such invoices in its return under Section 37(1) for the month of March, 2019. Section 43A(6) of the CGST Act provides that the supplier and recipient shall be jointly and severally liable to pay tax or pay ITC availed in relation to outwards supplies for which the details have been furnished under sub-section (3) and (4) but returns thereof has not been furnished.

The provisions have been challenged on the following grounds:

Section 16(2)(c), proviso to Section 16(4) is violative to Article 14 of the Constitution of India;
The Department has been vested with all the powers to recover any revenue lost owing to non-payment of taxes by erring suppliers;
The credit cannot be denied to the recipient for the default on the part of supplier.

Delhi HC has issued a notice to Union of India today and posted the matter on September 18, 2019.


May question is now can we take itc on the basis of purchase invoice even if supplier has not filed gstr return (i.e. credit is not showing in GSTR 2A).??

Dear All
We have submitted our GSTR 1 for the 4QE 2019 on 11.04.19. 2 Nos Invoices of 2 different customers are not entered in said GSTR 1the M/o Feb 2019. In the matter how we show the said invoices so the ITC can claims our 2 valued customers.

Please help us.

Thanks
Chandan Mukherjee

My company registered office in Delhi and also registered in GST in Delhi State. From registered office make Taxable supply. This company Corporate office in Haryana State, and from corporate office no any taxable supply only staff sitting here. Now i want to ask in Haryana state require GST registration or not?

Respected, experts

We have one Purchase bill of Rs.19800/- for the month of July,2018. I have filed the GSTR-3B in April month. Please advise to me how i adjust for above purchase bill. Can i pass the entry in busy in current month ( May 2019) or anything more please reply

Read more at: https://www.caclubindia.com/experts/purchase-bill-of-july-2018-2740019.asp

A residential vacant site was purchased by Mr. Raghu and sale deed was registered in his name on June 2017 (property value is Rs. 30,00,000/) and constructed residential single house taking housing loan of Rs. 20,00,000/- in the same site and now he is willing to sell the same property in July 2019 for 60Lakhs due to some personal reasons.
Clarification required:
1. Will this be considered at STCG or LTCG for Mr. Raghu ?
2. Can he invest that amount for purchasing a residential flat in apartment ?
3. Can he close the housing loan which was taken to construct the same house after selling the property?
4. He is having another a Site purchase loan in which a site was purchased in the year nov 2016. Can he close this loan also?

Pls suggest how he can invest to avoid property tax on capital gain?

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Sec 269st applicable.

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A trader who did not withdraw money from his firm but credited 100,000 rupees in his Personal Savings Account throughout the year, as per IT Rule would it be treated as income from other source (Extra Income)?

Hi Everyone
We are Regsitered Chit Fund Co and we are aCCepting the Monthly Chit Subscriptions in Cash(In Excess of Rs.20000) and Paying the Prize Money to the Subscribers Compulsary through Cheque only My Q is as follows

1 As we are aCCepting Chit Subscription through Cash wheather Covered by SeC 269SS is applicable

As per SeC 269T "loan or deposit" means:
▪ any loan or deposit of money which is
▪ repayable after notice or
▪ repayable after a period and,
▪ in the case of a person other than a company, includes loan or deposit of any nature;

As Per my My Knwoldege the Monthly SubsCription paid by the subscribers is not Loan or Deposit to Company just we are Collecting the money from the specified group members and paying the Prize money to One member among the Specified group only. So at the end of the day Co Doesnt have any Deposit or Loan in his hands.

Please Guide