India – GST Update-November-2019.

1. In the Writ petition of Revenue Bar Association V. Union of India & others (WP Nos. 21147, 21148 &14919 of 2018), the Madras High Court has held as follows:

 

Section 110(1)(b)(iii) of the CGST Act, which states that a member of the Indian Legal Services who has held a post not less than Additional Secretary for three years, can be appointed as Judicial Member in GSTAT, has been struck down;

 

Section 109(3) and Section 109(9) of the CGST Act, 2017 which prescribes that the Tribunal shall consists of one Judicial Member, one Technical Member (Centre) and one Technical Member (State), has been struck down;

 

The argument that Section 109 & 110 of the CGST Act, 2017 & TNGST Act, 2017 are Ultra Vires, in so far as the exclusion of lawyers from the scope & view for consideration as members of the Tribunal, is rejected. However, we recommend that the Parliament must consider to amend section for including lawyers to be eligible to be appointed as Judicial Members to the Appellate Tribunal in view of the issues which are likely to arise for Adjudication under the CGST Act & in order to maintain uniformity in various statutes.

 

2. Kerala AAR- Santosh Distributors (2019-TIOL-433-AAR-GST):

 

GST – Prices of the products supplied by the applicant is determined by the supplier/principal company and the applicant has no control over the same – therefore, it is evident that the additional discount given by the supplier through the applicant which is reimbursed to the applicant is a special reduced price – such additional discount is liable to be added to the consideration payable by the customer to the distributor/applicant to arrive at the value of supply in terms of s.15 of the Act: AAR

 

GST – Supplier of goods/principal company issuing the commercial credit note is not eligible to reduce its original tax liability and hence recipient/applicant will not be liable to reverse the ITC attributable to the commercial credit notes received by him from the supplier: AAR GST – Applicant is liable to pay GST at the applicable rate on the amount received as reimbursement of discount/rebate from the principal company: AAR 

 

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