CGST Act 2017
2 articles
No GST on Assignment of Leasehold Rights: Gujarat High Court Extends a Settled Ratio After the Supreme Court Declines to Interfere
A show-cause notice against Hercules Pigments Pvt. Ltd. was quashed in three paragraphs — the Gujarat High Court simply noted that the Supreme Court had, weeks earlier, declined to interfere with its own ruling that assigning a long-term industrial lease is a transfer of immovable property, not a taxable supply of service. The order is thin, but the line of authority behind it is not: this article traces the reasoning back through Gujarat Chamber of Commerce and Industry v. Union of India and KP Green Engineering Ltd. v. Union of India to work out exactly how far the ratio extends, and where it stops.
14 min readBona Fide Buyer, Defaulting Seller: Calcutta High Court Curbs the Mechanical Use of Section 74 to Deny GST Input Tax Credit
A logistics company claimed input tax credit on invoices from a supplier who later stopped filing returns. The department invoked Section 74's fraud-based extended period to raise a Rs. 6.3 crore demand two years after ordinary limitation had run out. The Calcutta High Court quashed the order, applying binding precedent that a buyer's credit cannot be held hostage to a seller's default, and that dressing up an ordinary demand as fraud does not extend the clock.
13 min read