GST High Court Jurisprudence in 2020 & Outlook for 2021 (HC Cases)

GST High Court Jurisprudence in 2020 & Outlook for 2021 (HC Cases)

Rule 96(10)

Relevant Provisions

NN 39/2018 Dated 04-09-2018

• Rule 96(10) substituted wherein Exporter denied a refund of IGST paid on exports if availed benefit under specified notifications.

• Retrospective effect from 23-10-2017

NN 53/2018 Dated 09-10-2018

• Sub-clause (a) and (b) of Rule 96(10) merged.

NN 54/2018 Dated 09-10-2018

• Rule 96(10) amended to exclude restriction where capital goods imported under EPCG scheme

Specified Notifications inserted by NN 39-2018

• Exemption of goods imported by EOU (NN 78/2017-Cus)

• Import of goods under AA/EPCG Scheme (NN 79/2017- Cus)

Circular No/ 70/44/2018-GST

The net effect of changes: Exporter who imported under specified notifications eligible to claim a refund of the IGST paid on exports till the date of the issuance of NN 54/2018-CT i.e., 09-10-2018.

Decisions under Rule 96(10)

Cosmos Films Ltd. – Gujarat HC

• Petitioner challenged Rule 96(10) restricting refund of IGST paid on export when supplier imported goods under Advance Authorisation Scheme.

• The court held that the contentions raised by the government that there is no discrimination qua the petitioner is tenable in law.

• Also, the court observed as “Notification No. 54/2018 is required to be made applicable w.e.f. 23rd October, 2017”

Zaveri and Co. Pvt. Ltd. – Gujarat HC

• Writ petition admitted against the earlier order of Gujarat HC that Notification No. 54/2018-CT has a prospective effect and not retrospective effect.

• Proceedings initiated against petitioner stayed.

Anti-profiteering

What is Anti-profiteering?

Section 171 of the CGST Act – Anti-profiteering measure

(1) Any reduction in the rate of tax on any supply of goods or services or the benefit of the input tax credit shall be passed on to the recipient by way of commensurate reduction in prices

Related Topic:
GST Latest Case laws-2020

Factors to be considered in Section 171

Reduction in the rate of tax

• Reduction in GST rate compared to the pre-GST rate

-Excise + VAT less than GST rate

-Service tax less than GST rate

• Reduction in rate under GST regime

-Reduction from 28% to 18%

The benefit of input tax credit

CST Benefit: Elimination of CST whose credit was not available in the earlier regime

Entry tax/ Octroi: Elimination of Entry tax / Octroi whose credit was not available in the earlier regime

Service Benefit: Non-reversal of service tax credit which was required earlier on account of trading of goods

VAT benefit: Availability of VAT credit on the purchase of goods which was not available to service providers

Capital asset benefit: Availability of VAT credit on capital assets which was not available to service providers

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