The article examines how Section 64 of the CGST Act is increasingly used against genuine recipients in ITC disputes. It argues that summary assessment powers meant for emergencies are being misapplied to fast-track tax demands.
Courts have repeatedly held that bona fide buyers cannot lose ITC merely because suppliers default or registrations are cancelled retrospectively.
Courts have clarified that once one GST authority initiates proceedings by issuing a show cause notice, the other authority cannot start separate proceedings on the same issue and tax period.
The guide explains that construction involving goods and labour is treated as works contract service under GST. Taxability depends on the nature of work, recipient, and applicable rate or exemption.
High Courts held that undervaluation disputes must be examined through assessment proceedings under Sections 73 or 74. Detention during transit is not justified if proper documents accompany the goods.
Courts have increasingly held that Input Tax Credit cannot be denied to bona fide taxpayers merely because suppliers failed to pay GST. Authorities must prove fraud or collusion before disallowing ITC.
Courts clarify that input tax credit cannot be denied merely because a supplier’s GST registration was cancelled retrospectively. Authorities must examine the genuineness of the buyer’s transactions and supporting documents.
Explains how GST scrutiny under ASMT-10 can escalate into demand notices under Sections 73, 74 or 74A when discrepancies in returns remain unresolved.
The article examines the issue of whether uploading notices or orders on the GST portal constitutes valid “communication” under Section 169 of the CGST Act, particularly in cases where taxpayers claim they were unaware of such uploads. Section 169 prescribes multiple modes for serving notices and orders, including personal delivery, post, email, publication, or making […]
Section 64 of the CGST Act empowers the proper officer to undertake summary assessment in special cases where any delay is likely to adversely affect revenue. This provision is intended only for urgent situations — for example, unaccounted goods in transit, perishable goods, or fly‑by‑night dealers where immediate crystallisation of liability is essential. It is an exception […]
