Case Law for e-way bills, Registrations Input Tax Credit under GST

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10 Jan 2024
Blocking the generation of E-Way Bill without e-Invoice/IRN has been withdrawn.
05 Jan 2024
Reporting of 4/6 digit HSN in e-Waybill from 1st February 2024.

Goods and Services Tax or GST is one of the most significant tax reforms in India. GST has replaced multiple indirect taxes like VAT, service tax, excise duty, etc. The main objective of GST is to simplify the taxation system, reduce the cascading effect of taxes, and bring transparency and efficiency in tax compliance. However, with new tax laws come new challenges, and businesses must stay updated with the latest rules and regulations.

In this article, we’ll discuss the case laws related to e-way bills, registrations, and input tax credit under GST to help small and medium businesses and startup founders.

E-way Bill

An E-way bill is an electronically generated document required for the movement of goods worth more than Rs. 50,000 from one place to another in India. The objective of e-way bills is to keep track of the movement of goods and prevent tax evasion. Here are some important case laws related to e-way bills:

1. M/s. Gati Kintetsu Express Private Limited vs. Assistant State Tax Officer

In this case, the petitioner had challenged the imposition of a penalty for not generating the E-way bill. The petitioner argued that the transporter had generated the E-way bill and had made an inadvertent mistake while entering the vehicle number. The court held that since the petitioner had initiated the process of generating the E-way bill, it was liable to pay the penalty for non-compliance.

2. M/s. Steel Authority of India Limited vs. State of Jharkhand

In this case, the petitioner had challenged the detention of goods and the imposition of a penalty for non-generation of the E-way bill. The court held that the petitioner cannot be penalized for the lack of facilities for generating the E-way bill at the time of transportation. The court also held that the detention of goods was illegal, and the petitioner was entitled to compensation for the same.

Registrations

Under GST, businesses with an annual turnover of more than Rs. 20 lakhs are required to register for GST. Here are some important case laws related to GST registration:

1. M/s. Ferns Estates and Developers vs. Union of India

In this case, the petitioner had challenged the cancellation of GST registration for non-filing of returns. The court held that cancellation of GST registration is not justified if the petitioner has paid the tax and filed the returns. The court also held that the petitioner cannot be penalized for minor procedural lapses.

2. M/s. Sri Sai Krishna Agencies vs. State of Telangana

In this case, the petitioner had challenged the levy of interest and penalty for non-registration under GST. The court held that the petitioner cannot be penalized for non-registration if the turnover is less than the prescribed limit. The court also held that the interest and penalty levied on the petitioner were without a proper show-cause notice.

Input Tax Credit

The input tax credit is the tax paid on the purchase of goods or services that can be claimed as a credit against the output tax payable. Here are some important case laws related to input tax credit:

1. M/s. Meghalaya Cement Limited vs. Commissioner of Central Tax

In this case, the petitioner had challenged the denial of input tax credit on the ground of non-payment of tax by the supplier. The court held that the input tax credit cannot be denied if the supplier has paid the tax, even if the supplier has not filed the returns.

2. M/s. Rashmi Cement Limited vs. Union of India

In this case, the petitioner had challenged the levy of interest and penalty for availing input tax credit on the basis of invoices issued by a non-existent dealer. The court held that the petitioner cannot be penalized for the mistake of the supplier in issuing fake invoices. The court also held that interest and penalty can be levied only if there is a deliberate intention to evade tax.

Conclusion

These case laws provide important insights into the interpretation and implementation of GST laws related to e-way bills, registrations, and input tax credit. As a business owner or a startup founder, it is essential to stay updated with the latest case laws and regulations to avoid any penalties or legal issues. Consult a tax expert or a legal advisor if you have any doubts or queries related to GST compliance.