Practical client KYC checklist for GST professionals to reduce exposure under Section 122(3A) and document safeguards against fake registration and ITC fraud.
The provision extends penalties to “any person,” exposing tax professionals to liability for alleged facilitation of GST fraud. Courts indicate that penalties require proof of intent, not mere compliance engagement.
The Supreme Court has held that GST summons under Section 70 form part of an inquiry, not adjudicatory proceedings. However, courts have limited misuse by quashing repetitive or coercive summons.
Weak GST registration checks allow shell firms to obtain GSTINs and issue fake invoices, later leading to ITC denial for genuine buyers. Courts have stressed that compliant recipients should not suffer for failures in departmental verification.
Section 68 CGST – From E‑Way Bill Compliance to Road‑Side Detention: Law, Practice and Judicial Pushback Section 68 of the CGST Act forms the statutory bridge between movement of goods, e-way bill compliance, and detention proceedings under Sections 129 and 130. It mandates that the person in charge of a conveyance carry prescribed documents such […]
Section 76 allows recovery of GST collected but not remitted, with equal penalty and interest. Courts are urging authorities to act against defaulting suppliers instead of penalising recipients.
Section 75 strictly regulates GST adjudication, ensuring orders stay within SCN scope and follow natural justice. Courts have reinforced that excess demand or procedural shortcuts are invalid.
Section 74A introduces a single GST demand provision for fraud and non-fraud cases from FY 2024-25 onwards. Authorities can no longer issue notices under Sections 73 or 74 for these periods.
Courts clarify that ITC can be blocked only on recorded “reasons to believe” supported by concrete evidence. Mere suspicion or supplier default is insufficient to invoke Rule 86A.
Under GST, the burden of proof falls on the recipient mainly when they claim input tax credit (ITC); this is codified in section 155 and refined by recent court rulings that also protect bona fide buyers from impossible burdens. 1. Statutory basis – when does burden fall on the recipient? Section 155 – specific rule […]
