Latest GST Notifications and Judgements – November 2023: Key Updates and Amendments

This article presents the most recent updates and detailed insights into the GST notifications, circulars, and legal judgments that emerged in November 2023.

Relevant GST Notifications updates :

  1. Notification No. 53/2023- Central Tax dated 2 November 2023

CBIC vide captioned notification has notified the scheme with respect to filing of Appeal against demand orders (issued under section 73 or 74 of CGST Act) in cases where appeal could not be filed on or before 31 March 2023. In light of the said notification, an appeal can be filed in all such cases by 31st January 2024. Further, in order to file an appeal under the said scheme, appellant is required to pay a sum equal to 12.5% of tax amount in dispute. Out of this atleast 20% is required to be paid through electronic cash ledger.

Relevant Judgements:

  1. In Re. M/s. Kirby Building Systems & Structures India Private Limited [2023 (11) TMI 658 – Authority for Advance Ruling, Telangana]

Question before Advance Ruling Authority: Whether GST is applicable on recovery made from employees towards canteen and transportation facilities. Also, whether ITC is eligible of GST paid on inward supplies used for providing canteen and transportation facilities.

Decision: With respect to applicability of GST on recovery of amount from employees towards canteen facility, advance ruling authority held that if the said facility is provided as a perquisite to employees in terms of its contractual agreement, the same shall be treated as service provided in lieu of the employment. Therefore, it shall not be subject to GST. In case where the said amount is charged as a consideration for the purpose of business instead of perquisite, the same shall be subject to GST. Similar position was taken by the authority with respect to recovery of transportation charges.

With respect to ITC, in case of canteen facility, the same shall be available if it is obligatory for an employer to provide the said facility to its employees under Factories Act, 1948. In case of transportation facility provided to employees from home to office premises, authority held that the said facility is for personal consumption and not part of business. Hence, ITC with respect to supplies procured for providing transportation facility shall not be available.

  1. V. Mahendhiran Versus The Principal Secretary To Government, The Commissioner of Commercial Taxes, The Joint Commissioner of Commercial Taxes [2023 (11) TMI 823 – Madras High Court]

Madras High Court in this case has laid down the powers exercised by a quasi-judicial authority. HC held that quasi-judicial authority while exercising its power should have independence to take a decision pertaining to an issue put up before him. Even if he has made a wrong interpretation of law or wrong appreciation of facts, a charge memo cannot be issued against the authority exercising quasi-judicial powers. The impugned proceedings can be challenged only by way of preferring an appeal. Further, HC also stated that if the order passed by the quasi-judicial authority is taken as a foundation for bringing the quasi-judicial authority under disciplinary proceedings, no quasi-judicial authority can discharge his functions without fear.

Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement