Category: Blog

The much-awaited advisory from the Goods and Services Tax Network (GSTN) has been released regarding the difference in values between Table 8A and Table 8C of GSTR-9 Annual Return for FY 2023-24.

For FY 2023-24, Table 8A is auto-populated based on GSTR-2B instead of GSTR-2A, which has created significant reconciliation challenges for taxpayers.

However, instead of offering a complete solution, the advisory appears to create further complexities in reporting. At best, it confirms that GSTN is aware of the challenges in this form, though the suggested approach may still result in differences that could trigger future disputes.

In the attached document, we have also highlighted additional issues and mismatches that may arise while strictly following the advisory instructions.

Practical View on the Advisory

In my view, although the advisory suggestions may lead to differences in the form and potential notices in the future, adopting any alternate approach may place taxpayers in an even more uncertain position.

Therefore, following the advisory may still be the safer approach, as it provides a reasonable explanation for why differences are reported in the return.

It often appears that this form, in a self-assessment tax regime, is structured more for future litigation triggers rather than simple annual reporting.

A complete solution may only be possible if the entire structure of GSTR-9 is redesigned to properly capture all ITC reporting scenarios.

Recommended Best Practice

Any difference between Table 6J and Table 8D of GSTR-9 may potentially result in future notices and tax disputes.

Hence, the following best practice is advisable:

• Differences between Table 6J and Table 8D should be properly explained in Table 13 of GSTR-9C.
• A detailed reconciliation statement with reasons should be prepared and uploaded as an attachment in GSTR-9C.
• Where GSTR-9C is not applicable, taxpayers should:

• Raise a grievance ticket on the GST portal, and
• Submit a formal letter to the jurisdictional officer with acknowledgement.

Important Note

This approach may not completely avoid litigation, but it helps create documentary evidence and justification to defend the differences during future assessments or audits.

Maintaining proper documentation today can significantly help in handling future GST litigation effectively.💬 Views expressed are personal. Comments and professional perspectives are welcome.

The Goods and Services Tax Network (GSTN) has issued an important advisory regarding the GST Amnesty Scheme for waiver of interest and penalty under Section 128A.

According to the advisory, Form GST SPL-01 and Form GST SPL-02, which are required to apply for the amnesty scheme, are currently under development on the GST portal and are expected to be made available tentatively from the first week of January 2025.

This update has drawn attention across the tax community because the legal provisions of the scheme are already in force, while the portal functionality required to apply for it is still pending.

Timeline of the GST Amnesty Scheme under Section 128A

The development of the scheme has progressed through several stages:

• 22 June 2024 – Recommendation made during the GST Council meeting (53rd GST Council Meeting)
• October 2024 – Official notifications issued
• 1 November 2024 – Provisions of the scheme came into effect
• January 2025 (tentative) – GST portal expected to enable Forms SPL-01 and SPL-02

This timeline highlights a practical challenge: while the scheme is legally effective, taxpayers currently cannot apply online until the required forms are activated on the portal.

Purpose of the GST Amnesty Scheme under Section 128A

The GST Amnesty Scheme aims to provide relief to taxpayers by allowing waiver of interest and penalties for certain tax demands issued under **Central Goods and Services Tax Act, 2017 Section 73.

The scheme primarily benefits taxpayers who:

• Have pending tax demands for earlier financial years
• Wish to settle the principal tax liability
• Want relief from accumulated interest and penalties

Once the scheme is fully operational on the portal, eligible taxpayers will be able to apply using Form GST SPL-01 and Form GST SPL-02.

Forms Required for the Amnesty Scheme

Form GST SPL-01

This form will be used by taxpayers to apply for the waiver of interest and penalty under the scheme.

Form GST SPL-02

This form will be used by the tax authorities to process and communicate decisions related to the application submitted under SPL-01.

These forms will become available on the GST common portal once development is completed.

Concerns Raised by Tax Professionals

While the scheme itself is welcomed, the delay in enabling the required forms on the portal has raised several concerns among taxpayers and professionals.

Many experts believe that when lawmakers themselves require time to operationalize the scheme, taxpayers should also be provided adequate protection during the interim period.

Two major concerns have been highlighted.

Suggestion 1: Temporary Suspension of Recovery Proceedings

Professionals have suggested that authorities should issue a clear direction that:

• No recovery proceedings should be initiated for orders issued under Section 73 for the relevant three financial years
• Such protection should remain in place until 31 March 2025, allowing taxpayers to utilize the amnesty scheme once the portal functionality becomes available.

This would prevent unnecessary recovery actions while the scheme is still being technically implemented.

Suggestion 2: Extension of Time Limit for Appeals and Rectifications

Another key suggestion is to provide a blanket extension of time limits for appeals and rectification applications related to these orders.

Experts propose that the period from 22 June 2024 to 31 March 2025 should be excluded when calculating the limitation period, similar to the extensions granted during the COVID-19 pandemic.

Such a step could help ensure that taxpayers do not lose their legal rights simply because the portal functionality was delayed.

What Taxpayers Should Do Now

Until the forms are officially enabled on the portal, taxpayers should take the following steps:

✔ Review pending GST demand orders issued under Section 73
✔ Identify potential cases eligible for interest and penalty waiver under Section 128A
✔ Ensure that principal tax liabilities are properly reconciled
✔ Monitor updates from the Goods and Services Tax Network and the Central Board of Indirect Taxes and Customs

Staying prepared will allow taxpayers to quickly apply for the scheme once Forms SPL-01 and SPL-02 become available.

Conclusion

The GST Amnesty Scheme under Section 128A represents a significant opportunity for taxpayers to settle past GST disputes with waiver of interest and penalties. However, the delay in activating Forms GST SPL-01 and SPL-02 on the GST portal has created practical challenges.

As the tax community awaits the portal rollout expected in January 2025, there is growing demand for clear administrative instructions to prevent recovery proceedings and extend appeal timelines.Until further clarifications are issued, taxpayers should stay updated, review their pending demands, and be ready to take action once the scheme becomes operational online.

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 246 dated 30.01.2025, clarifying the applicability of late fees in cases where GSTR-9 is filed without GSTR-9C.

🔎 Key Clarification

Where GSTR-9C is applicable (AATO exceeding ₹5 crores), the annual return compliance under Section 44 of the CGST Act is considered complete only when both GSTR-9 and GSTR-9C are filed.

Therefore:

• Filing only GSTR-9 without GSTR-9C is treated as failure to furnish the Annual Return under Section 44.
• Consequently, late fees will continue to accrue until GSTR-9C is filed.

⚖ Professional View

While this interpretation may be subject to legal challenge, the current position taken by the Revenue authorities was largely anticipated from the time these provisions were introduced.

📌 Practical Recommendation

In the best interest of taxpayers, it may be advisable to utilize the one-time opportunity and complete the filing on or before 31st March 2025, instead of entering into prolonged litigation.

Completing the filing within the specified time can help avoid further late fees exposure and compliance complications.

Stay compliant and act within the timeline. ✅

The Goods and Services Tax Network (GSTN) has released a detailed advisory and FAQs for Form DRC-03A, providing taxpayers with clarity on how to properly link voluntary tax payments made through DRC-03 with outstanding demands on the GST portal.

This update is particularly important for taxpayers who previously paid tax through Form DRC-03 but noticed that the payment did not automatically close the liability in the electronic liability register. The newly introduced **DRC-03A functionality resolves this issue by enabling proper adjustment of such payments against specific demand orders.

Understanding how DRC-03A works in GST compliance is crucial for avoiding recovery proceedings and ensuring eligibility for relief schemes such as the GST Amnesty Scheme.

Purpose of Form DRC-03A in GST

Form DRC-03A has been introduced to address a practical issue faced by many taxpayers.

In several cases, taxpayers paid GST demand amounts using Form DRC-03 instead of the system’s dedicated demand payment function. Because of this, the GST portal did not automatically map those payments to the corresponding demand order, leaving the liability technically open in the system.

Form DRC-03A solves this problem by linking the earlier DRC-03 payment directly with the demand order, thereby ensuring that the liability is properly settled in the electronic liability register.

Why Form DRC-03A is Important for Taxpayers

The introduction of DRC-03A on the GST portal serves multiple compliance purposes.

1. Settlement of Tax Liability

Taxpayers can now link voluntary payments made through DRC-03 with specific GST demand orders, allowing the liability to be properly closed in the system.

2. Avoid Recovery Proceedings

If liabilities remain unadjusted in the system, authorities may initiate recovery proceedings under GST law. Filing **DRC-03A ensures that the payment is recognized and the demand is marked as settled.

3. Requirement for Amnesty Scheme Benefits

For taxpayers planning to apply under the GST Amnesty Scheme, filing DRC-03A becomes an essential step if the tax amount was previously paid through DRC-03.

Without properly linking the payment to the demand, the system may not recognize the liability as settled, which could affect eligibility for the scheme.

Step-by-Step Process to File Form DRC-03A

The **Goods and Services Tax Network has provided a simplified filing process on the GST portal.

Step 1: Access the Form on the GST Portal

Log in to the GST portal and navigate to the section where Form DRC-03A is available.

Step 2: Enter DRC-03 ARN

Provide the Acknowledgement Reference Number (ARN) of the DRC-03 payment previously made.

Step 3: Enter Demand Order Details

Enter the relevant demand order number against which the payment needs to be adjusted.

Step 4: Auto-Population of Details

The system will automatically fetch details from the DRC-03 payment and the demand order, enabling quick verification.

Step 5: Submit for Adjustment

Once confirmed, submit the form. The system will link the payment to the demand order, and the electronic liability ledger will update accordingly.

Eligibility for Filing DRC-03A

Not all DRC-03 payments are eligible for adjustment using Form DRC-03A.

The form applies only if the original DRC-03 payment was made under the following categories:

• Voluntary payment
• Others

Taxpayers should review their DRC-03 filing details before proceeding with DRC-03A.

Support and Resources for Taxpayers

To help taxpayers understand and use the new feature effectively, the **Goods and Services Tax Network has released several resources.

These include:

• Official GSTN advisory explaining the feature
• Detailed guidance document
• Frequently Asked Questions (FAQs) for common queries

In case of technical issues while filing DRC-03A, taxpayers can raise a support ticket through the GST Grievance Redressal Portal under the category “DRC-03A-Filing.”

Conclusion

The introduction of Form DRC-03A on the GST portal is a crucial development in the GST demand and recovery management system. By enabling taxpayers to link DRC-03 payments with specific demand orders, the form ensures proper liability adjustment and prevents unnecessary recovery actions.

Taxpayers who have previously made voluntary payments through DRC-03 should review their records and file DRC-03A where applicable to ensure that their liabilities are correctly settled in the GST system.Taking timely action will help businesses maintain accurate compliance records and benefit from available GST relief schemes.

The Goods and Services Tax (GST) portal has introduced a new and important compliance feature – Form DRC-03A. This form plays a critical role in adjusting tax liabilities against payments already made through DRC-03.

For taxpayers who have voluntarily paid tax through DRC-03, the availability of DRC-03A on the GST portal is a major step toward ensuring proper liability adjustment and avoiding unnecessary recovery actions.

Understanding how DRC-03A works in GST compliance is essential for businesses, accountants, and tax professionals.

What is Form DRC-03 under GST?

Before understanding DRC-03A, it is important to know about DRC-03.

Form DRC-03 is used by taxpayers to make voluntary payment of GST, including:

• Tax liability
• Interest
• Penalty

Such payments may arise during:

• GST audit
• GST investigation
• Departmental notices
• Self-detected tax liability

Many taxpayers use DRC-03 to voluntarily settle tax dues before formal recovery proceedings begin.

What is Form DRC-03A?

Form DRC-03A is introduced to link or offset the payment made through DRC-03 against an existing tax liability on the GST portal.

In simple terms:

• DRC-03 = Payment of tax liability
• DRC-03A = Adjustment of that payment against the correct demand or liability

This ensures that the payment made through DRC-03 is properly reflected and adjusted in the taxpayer’s liability register.

Why DRC-03A is Important

The introduction of DRC-03A on the GST portal is crucial for several reasons.

1. Avoid Recovery Proceedings

If tax payments made through DRC-03 are not properly adjusted against liabilities, the system may still show pending tax dues.

Using DRC-03A ensures that the payment is correctly mapped, helping taxpayers avoid recovery proceedings and unnecessary notices from tax authorities.

2. Required for Amnesty Scheme Benefits

DRC-03A also plays an important role in GST Amnesty Schemes.

In many cases, taxpayers are required to:

1. Pay the tax using DRC-03, and
2. Offset that payment using DRC-03A

Only after completing this process can taxpayers claim benefits under the GST Amnesty scheme, such as waiver or reduction of penalties and interest.

3. Proper Liability Adjustment

DRC-03A ensures that the tax paid voluntarily is correctly reflected in the GST system, helping maintain accurate records in:

• Electronic Liability Register
• Demand and Recovery records
• GST compliance history

Who Should Use Form DRC-03A?

The form is particularly relevant for:

• Businesses that made voluntary GST payments through DRC-03
• Taxpayers who settled tax dues during GST audits or investigations
• Entities applying for GST Amnesty Scheme benefits
• Taxpayers looking to avoid recovery actions or outstanding demand notices

Action Required from Taxpayers

Now that DRC-03A is live on the GST portal, taxpayers should take immediate action if they have previously paid tax through DRC-03.

Recommended steps:

✔ Review past DRC-03 payments
✔ Check pending liabilities on the GST portal
✔ Use DRC-03A to offset payments against liabilities
✔ Ensure proper compliance before responding to notices or applying for amnesty benefits

Timely action can help businesses avoid future disputes, recovery proceedings, and compliance complications.

Conclusion

The launch of Form DRC-03A on the GST portal is a significant development in GST compliance and demand management. It allows taxpayers to properly adjust voluntary tax payments made through DRC-03, ensuring accurate reflection of liabilities and preventing unnecessary recovery actions.

Businesses and tax professionals should review their GST records immediately and utilize DRC-03A where applicable to maintain clean compliance and benefit from available schemes.Act now to ensure your GST liability records remain accurate and up to date.

The Goods and Services Tax Network (GSTN) has introduced Phase III changes in HSN reporting for GSTR-1 and GSTR-1A, applicable from the January 2025 return filing period.

🔎 Key Changes Introduced

• HSN codes must now be selected from a drop-down list – manual entry will no longer be allowed.
• Table 12 has been split into two sections:

• B2B supplies
• B2C supplies
  • This enables separate and more accurate reporting of HSN-wise summary.

⚙ Additional Validations

• New validation checks are introduced for taxable value and tax amounts.
• Initially, these validations will run in warning mode, allowing taxpayers to proceed with filing while highlighting possible mismatches.
• Over time, these validations are expected to improve accuracy and standardize HSN reporting in GST returns.

📄 Read the full advisory:
https://lnkd.in/g9SsN9V2

Stay updated. Stay compliant. ✅

In a significant development for exporters in India, the Kerala High Court has delivered a landmark judgment declaring Rule 96(10) of the CGST Rules as ultra vires and unenforceable. The ruling provides substantial relief to exporters who faced compliance challenges and refund restrictions under the Goods and Services Tax (GST) framework.

The court held that Rule 96(10), introduced via Notification No. 53/2018-CT dated 9 October 2018 (with retrospective effect from 23 October 2017), goes beyond the scope of the parent law and contradicts the provisions of Integrated Goods and Services Tax Act, 2017, specifically Section 16 dealing with zero-rated supplies for exports.

This judgment is expected to have a major impact on GST refunds for exporters, ongoing litigation, and future GST compliance.

Background: What Was Rule 96(10) under GST?

Rule 96(10) of the CGST Rules imposed restrictions on exporters who wanted to claim Integrated GST (IGST) refund on exports.

Under this rule, exporters who availed certain benefits such as:

• Advance Authorization
• Export Promotion Capital Goods (EPCG) scheme
• Duty drawback benefits
• Concessional import schemes

were restricted from exporting goods with payment of IGST and claiming refund.

Instead, they were required to:

• Export goods under Letter of Undertaking (LUT) without payment of tax, and
• Claim Input Tax Credit (ITC) refunds separately.

This rule created significant compliance challenges and confusion for exporters, especially when dealing with multiple export incentive schemes.

Why the Kerala High Court Declared Rule 96(10) Ultra Vires

The Kerala High Court observed that Rule 96(10) conflicts with Section 16 of the Integrated Goods and Services Tax Act, 2017.

Key Observations of the Court

1. Contradiction with Zero-Rated Supply Provisions
   Section 16 of the IGST Act allows exporters to choose between two options:
   • Export with payment of IGST and claim refund, or
   • Export without payment of tax under LUT and claim ITC refund.
2. Rule 96(10) effectively restricted this statutory choice, which the court held was beyond the powers of the rule-making authority.

2. Manifestly Arbitrary Provision
   The court also noted that the rule created unnecessary hardship for exporters and led to numerous disputes and litigations across the country.
   Because the rule imposed restrictions not contemplated in the parent legislation, it was declared manifestly arbitrary and legally invalid.

Impact of the Judgment on Exporters

The ruling brings major relief to exporters across multiple industries, including manufacturing, trading, and export-oriented businesses.

Key Benefits

✔ Removes restrictions on IGST refund claims on exports
✔ Reduces litigation related to GST export refund disputes
✔ Provides clarity on zero-rated supply provisions under GST
✔ Reinforces exporters’ rights under Section 16 of the IGST Act

The judgment also highlights the extent of hardship faced by exporters, as reflected in the large number of writ petitions filed from various states.

Government’s Move to Omit Rule 96(10)

Interestingly, the government has already acknowledged the practical difficulties caused by Rule 96(10) and has decided to remove the provision entirely.

Experts believe that the ideal solution would be to omit the rule with retrospective effect from 1 July 2017, the date when GST was originally implemented in India.

Such a step could:

• Resolve ongoing disputes
• Reduce litigation burden
• Provide clarity for exporters who faced refund restrictions in the past

What Exporters Should Do Now

Exporters should closely monitor developments following this judgment and take necessary compliance steps.

Recommended actions include:

• Reviewing past IGST refund claims affected by Rule 96(10)
• Evaluating pending litigation or refund disputes
• Consulting GST professionals regarding possible refund claims or appeals
• Tracking future notifications or clarifications from the GST Council and tax authorities

Conclusion

The decision by the Kerala High Court declaring Rule 96(10) ultra vires marks a major milestone in GST jurisprudence and offers significant relief to exporters who faced restrictions while claiming IGST refunds.

By reaffirming the provisions of Section 16 of the Integrated Goods and Services Tax Act, 2017, the court has strengthened the legal framework governing zero-rated supplies and export refunds under GST.If the government implements a retrospective removal of Rule 96(10), it could finally resolve years of confusion, litigation, and compliance challenges faced by exporters in India.

In a significant and symbolic shift, the Supreme Court of India has introduced a new statue of Lady Justice, redefining how justice is represented in the country. This modern interpretation of the centuries-old symbol moves away from traditional imagery and instead reflects the values of India’s Constitution, transparency in justice, and an evolving legal system.

The redesigned Lady Justice statue in India has drawn attention across the legal community, symbolizing a deeper message about how justice should function in a modern democracy.

The Traditional Symbol of Lady Justice

Historically, Lady Justice has been represented with three key symbols:

• Blindfold – signifying impartiality and fairness
• Scales – representing balance and evaluation of evidence
• Sword – symbolizing authority and enforcement of law

This classical imagery has been widely used in courts across the world to represent neutral and unbiased justice.

However, the newly introduced statue in India takes a different and more contextual approach.

The New Lady Justice Statue: A Symbol of Conscious Justice

The new Lady Justice statue at the Supreme Court of India departs from the traditional design in two powerful ways.

1. No Blindfold – Justice with Open Eyes

Unlike the traditional representation, Lady Justice is no longer blindfolded. Her eyes are open, symbolizing that justice in India is aware, observant, and conscious of societal realities.

This change reflects the idea that justice should not merely be blind but must also understand the complexities of each case, including social context, human impact, and constitutional principles.

2. The Indian Constitution Instead of a Sword

Another notable transformation is that Lady Justice now holds the Indian Constitution instead of a sword.

This symbolizes that in India:

• Justice is guided by the Constitution
• Rule of law prevails over force
• Legal principles and democratic values drive judicial decisions

By placing the Constitution at the center of the symbol, the statue reinforces the supremacy of constitutional governance in India.

Vision Behind the Transformation

The initiative to introduce the redesigned statue was led by D. Y. Chandrachud, who envisioned a representation of justice that aligns with the values of contemporary India.

According to this vision, justice should not only be impartial but also empathetic, aware, and deeply connected to constitutional morality.

The updated symbol reflects the idea that the Indian judiciary must remain conscious of social realities while upholding fairness and integrity.

Moving Beyond Colonial Symbolism

Another important message behind the new statue is the shift away from colonial-era symbolism.

Many legal traditions and symbols used in Indian courts were inherited from colonial institutions. The new Lady Justice statue represents an effort to redefine legal symbols through the lens of India’s constitutional identity and democratic principles.

It signals:

• A modern interpretation of justice
• Alignment with constitutional values
• Recognition of India’s independent legal philosophy

What the New Lady Justice Represents

The new statue conveys several important messages about the future of the Indian legal system:

• Justice should be aware, not blind
• Courts must be guided by the Constitution
• Judicial decisions should balance law, fairness, and humanity
• The legal system must evolve alongside societal changes

This updated symbolism reflects the aspiration that justice in India should be transparent, accountable, and responsive to the needs of its citizens.

Conclusion

The introduction of the new Lady Justice statue at the Supreme Court of India is more than a visual redesign—it is a powerful statement about the evolution of justice in India.

By removing the blindfold and placing the Indian Constitution in Lady Justice’s hands, the statue emphasizes that justice in India is rooted in constitutional values, democratic ideals, and an informed understanding of society.As India’s legal system continues to evolve, this new symbol stands as a reminder that true justice is not only impartial but also conscious, compassionate, and guided by the rule of law.

𝐒𝐚𝐟𝐚𝐫𝐢 𝐑𝐞𝐭𝐫𝐞𝐚𝐭𝐬 – 𝐌𝐨𝐬𝐭 𝐚𝐰𝐚𝐢𝐭𝐞𝐝 𝐒𝐮𝐩𝐫𝐞𝐦𝐞 𝐂𝐨𝐮𝐫𝐭 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧 𝐢𝐧 𝐭𝐡𝐞 𝐜𝐚𝐬𝐞 𝐨𝐟 𝐈𝐓𝐂 𝐞𝐥𝐢𝐠𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐨𝐧 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐨𝐧 𝐨𝐟 𝐬𝐡𝐨𝐩𝐩𝐢𝐧𝐠 𝐦𝐚𝐥𝐥 (𝐢𝐦𝐦𝐨𝐯𝐚𝐛𝐥𝐞 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲) for the purpose of letting out premises in the malls to different tenants on which GST output liability to be paid.

𝐒𝐮𝐩𝐫𝐞𝐦𝐞 𝐂𝐨𝐮𝐫𝐭𝐬 𝐬𝐞𝐭𝐬 𝐭𝐡𝐞 𝐢𝐧𝐭𝐞𝐫𝐩𝐫𝐞𝐭𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 17(5)(𝐝) 𝐭𝐨 𝐛𝐞 𝐟𝐨𝐥𝐥𝐨𝐰𝐞𝐝 𝐛𝐲 𝐚𝐩𝐩𝐥𝐲𝐢𝐧𝐠 𝐅𝐮𝐧𝐜𝐭𝐢𝐨𝐧𝐚𝐥𝐢𝐭𝐲 𝐭𝐞𝐬𝐭 𝐟𝐨𝐫 𝐝𝐞𝐜𝐢𝐝𝐢𝐧𝐠 𝐰𝐡𝐞𝐭𝐡𝐞𝐫 𝐛𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐢𝐬 ‘𝐏𝐥𝐚𝐧𝐭’ 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐢𝐬𝐬𝐮𝐞 𝐦𝐮𝐬𝐭 𝐛𝐞 𝐝𝐞𝐜𝐢𝐝𝐞𝐝 𝐢𝐧 𝐚𝐩𝐩𝐫𝐨𝐩𝐫𝐢𝐚𝐭𝐞 𝐩𝐫𝐨𝐜𝐞𝐞𝐝𝐢𝐧𝐠𝐬 𝐢𝐧 𝐰𝐡𝐢𝐜𝐡 𝐚𝐝𝐣𝐮𝐝𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐜𝐚𝐧 𝐛𝐞 𝐦𝐚𝐝𝐞 𝐨𝐧 𝐟𝐚𝐜𝐭𝐬.

Key summary of the verdict:

➡ Constitutional validity of clauses (c) and (d) of Section 17(5) is 𝐔𝐏𝐇𝐄𝐋𝐃

➡ “plant or machinery” used in Section 17(5)(d) cannot be given the same meaning as “plant and machinery” defined by explanation to Sec 17

➡ Whether a mall, warehouse, or building can be classified as a “plant”  is a 𝐟𝐚𝐜𝐭𝐮𝐚𝐥 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧 which has to be determined based on registered person’s business and role that building plays in the said business.

➡ Buildings constructed for services like renting or leasing may qualify as a ‘𝐩𝐥𝐚𝐧𝐭’, 𝐬𝐮𝐛𝐣𝐞𝐜𝐭 𝐭𝐨 𝐚 𝐟𝐮𝐧𝐜𝐭𝐢𝐨𝐧𝐚𝐥𝐢𝐭𝐲 𝐭𝐞𝐬𝐭

➡ Supreme Court 𝐫𝐞𝐦𝐚𝐧𝐝𝐞𝐝 𝐭𝐡𝐞 𝐜𝐚𝐬𝐞 𝐭𝐨 𝐭𝐡𝐞 𝐎𝐫𝐢𝐬𝐬𝐚 𝐇𝐢𝐠𝐡 𝐂𝐨𝐮𝐫𝐭 for limited purposes of deciding whether, in the facts of the case, the shopping mall is a “plant” as per Sec 17(5)(d)

Bottomline:

𝐄𝐚𝐜𝐡 𝐜𝐚𝐬𝐞 𝐰𝐢𝐥𝐥 𝐡𝐚𝐯𝐞 𝐭𝐨 𝐛𝐞 𝐝𝐞𝐜𝐢𝐝𝐞𝐝 𝐨𝐧 𝐢𝐭𝐬 𝐦𝐞𝐫𝐢𝐭 𝐛𝐲 𝐚𝐩𝐩𝐥𝐲𝐢𝐧𝐠 𝐭𝐡𝐞 𝐟𝐮𝐧𝐜𝐭𝐢𝐨𝐧𝐚𝐥𝐢𝐭𝐲 𝐭𝐞𝐬𝐭 𝐢𝐧 𝐭𝐞𝐫𝐦𝐬 𝐨𝐟 𝐭𝐡𝐢𝐬 𝐣𝐮𝐝𝐠𝐦𝐞𝐧𝐭. The issue must be decided in appropriate proceedings in which adjudication can be made on facts. The petitioners are free to adopt appropriate proceedings or raise the issue in appropriate proceedings.

The writ petitions are rejected, subject to the interpretation of 17(5)(d) made in the verdict by Supreme Court.

The Goods and Services Tax Network (GSTN) has announced that the hard-locking of auto-populated liability in GSTR-3B, which was expected to be implemented from January 2025, has been deferred.

📢 Key Update

• The restriction on editing auto-populated liability in GSTR-3B will not be implemented from January 2025.
• The change has been postponed and will be introduced at a later date.
• Taxpayers will be notified in advance before the feature becomes effective.

📌 What this means for taxpayers

For now, taxpayers can continue editing auto-populated liability values in GSTR-3B as per the existing process. However, businesses should begin preparing their systems and reconciliations for the upcoming change.

✅ Recommendation:
Start aligning GSTR-1 and GSTR-3B data accurately, as future implementation may restrict manual adjustments once the liability becomes hard-locked.

Stay updated and stay compliant. 🔔