Quarterly Insights — GST Judicial Decisions
Four decisions worth reading carefully, including the first clear word on whether GSTAT can grant interim stay, and the Karnataka High Court reading down section 16(2)© for genuine recipients.
Inside this briefing:
Bombay HC — HSBC v. State of Maharashtra: GSTAT has inherent power under section 113(1) to grant stay on recovery proceedings, not the High Court alone.
Madras HC — Reliance Jio: ISD must distribute ITC in the month it becomes ‘available’. Receipt of invoice alone is not enough.
Karnataka HC — Instakart Services: Section 16(2)© read down for bona fide recipients; ITC cannot be denied to a genuine buyer for the supplier’s failure to remit tax (absent fraud or collusion).
Bombay HC — Amit Manilal Haria: Penalty under section 122(1A) can be imposed only on a ‘taxable person’ and only for transactions on or after 1 January 2021.