GST WEEKLY UPDATE : 40/2024-25 (05.01.2025) By CA Vipul Khandhar

-By CA Vipul Khandhar

1. Advisory to Taxpayers on Extension of E-Way Bills Expired on 31st December, 2024:

It is hereby informed that the technical challenges encountered in the e-way bill generation process have been resolved, and the portal is now functioning smoothly. In connection with the technical issues faced earlier, the following facilitation measures have been put in place:

1. Extension of Expired E-Way Bills:

(a) As per the existing procedure, e-way bills that expired at midnight on 31st December, 2024, could be extended either within 8 hours prior to the expiry or 8 hours after the expiry..

(b) Due to the technical glitch, this process was disrupted. To mitigate the impact, the window period for extending the e-way bills expiring on 31st December, 2024, has been extended up to 1st January, 2025, midnight. Taxpayers and transporters are advised to utilize the “Extend EWB” facility on the portal to extend these e-way bills, if required.

2. Generation of E-Way Bills for Goods Moved During the Glitch:

(a) payers and transporters who moved goods on 31st December 2024 without generating e-way bills due to the technical issues are hereby advised to generate the necessary e-way bills on 1st January 2025 using the existing facility on the portal.

2. Advisory for Entry of Receipt Numbers Pertaining to Leased Wagons in the E-Way Bill System

This advisory is issued to provide specific instructions for entering Receipt Numbers related to Leased Wagons in the E-Way Bill (EWB) system.

Advisories have already been issued regarding the correct format for entering Parcel Way Bill (PWB) numbers and Railway Receipt (RR) numbers for goods transported under the Parcel Management System (PMS) and the Freight Operations Information System (FOIS). This advisory focuses on the requirements specific to Leased Wagons.

1. Prefixing Receipt Numbers in the EWB System
2. a)  Taxpayers transporting goods via Leased Wagons must prefix Receipt Numbers with the identifier “L” when entering them into the EWB system.
3. b)  Similarly, the taxpayers transporting goods via PMS and FOIS have already been advised to enter PWB/RR numbers with Prefix P for PMS and F for FOIS systems (refer to the advisories issued for PMSand FOIS). Users will be mandated to input PWB/RR numbers with the appropriate prefixes to ensure proper validation in the EWB system. These changes would come into effect from Jan 1st, 2025.

Updating Part-B of the EWB for Rail Transport

While generating an EWB for goods transported by rail, taxpayers should:

1. a)  Select the transport mode as “Rail” in Part-B of the EWB using the “Multi-Transport Mode” option on the EWB portal.
2. b)  Enter the Receipt Number with the prefix “L” to indicate that the transport is via Leased Wagons.

Format for Number Entry in the EWB System

Taxpayers must use the following format when entering Receipt Numbers related to Leased Wagons:

L <Receipt Number>

Example:

For a Leased Wagon Receipt number: L123456789

Validation Process in the EWB System

Once the Receipt Number is entered:

1. a)  The system will validate the entry against the designated database for Leased Wagons.
2. b)  In case of discrepancies such as mismatched or missing numbers, taxpayers will receive an alert and must correct the entry promptly.

Assistance and Support

For further assistance or clarification regarding the entry of Receipt Numbers for Leased Wagons, taxpayers may:

•   Raise a ticket with the EWB support team through the support portal.
•   Provide the details of the entry, including the prefix used, for quick resolution.

3. AAR & Important Judgements:

(i) Hon’ble Gujarat High court Decision Regarding GST is not leviable on transfer of leasehold rights on land of GIDC. A big relief for industries.

(Applicant – Suyog Dye Chemie Pvt Ltd)

The Gujarat High Court while quashing the show cause notice and the order has held that no Goods and Service Tax is payable on the  transfer of leasehold rights since it would be transfer of immovable property and therefore question of Input Tax Credit (ITC) would not arise.

The bench of Justice Bhargav D. Karia and Justice Niral R. Mehta has observed that assignment by sell in transfer of leasehold rights of the plot of land allotted by Gujarat Industrial Development Corporation (GIDC) to the lease in favour of the assignee for a consideration shall be assignment sale transfer of immovable property by assignor on favour of third party assignee would become lessee of GIDC.

The bench noted that in such circumstances  provision of Section 7(1)(a) of GST Act providing for scope of supply read with clause 5E of Schedule II and clause 5 of Schedule III would not be applicable to the transaction of assignment of leasehold rights of land and building and the same would not be subjected to the levy of GST as provided under Section 9 of ST Act.

The petitioner submitted that, though in accordance with Schedule-II of the Central Goods and Service Tax Act, 2017, which deals in activities to be treated as supply of goods and supply of services, any lease, tenancy or easement, license to occupy land is a supply of services and would therefore come under the purview of CGST Act, what is actually being taxed in the hands of the petitioner is a sale of land which otherwise is an activity not falling within the supply of services in accordance with Schedule III of the Act.

The court allowed the petition in favour of the petitioner/assessees/

(ii) Hon’ble Gujarat HC recently ruled in favor of refunding a GST deposit made by mistake, even beyond the limitation period.

(Applicant – M/s Aalidhra Texcraft Engineers & ANR.)

Background

– A textile machinery manufacturer deposited ₹40,00,000 in Nov 2020.

– Due to a perceived mismatch in GSTR-2A and GSTR-2B.

– Later audit revealed no additional tax obligation for FY 2019-20.

Refund Request & Rejection

– The applicant applied for a refund on March 30, 2024, citing an error in deposit.

– Authorities rejected the claim, citing the two-year limitation period under Section 54(1) of the GST Act.

High Court Ruling

– The court relied on case of Salonah Tea Company Ltd. v. Superintendent of Taxes.

– Affirming that amounts collected without legal authority must be refunded.

– Observed that the voluntary deposit of ₹40,00,000 does not fall under Section 54.

Outcome

– The HC directed the department to refund the amount, acknowledging it as a mistake.

– No interest is payable on the refund

Disclaimer:

This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.