The Hon’ble HC of Delhi admitted writ petition challenging Section 16(2)(c), second proviso to Section 16(2)(d) and proviso to Section 16(4) of Central Goods and Service Tax Act, 2017 (“CGST Act)” Validity of Section 43A (6) of CGST Act, which hasn’t been notified yet.
Facts:
M/s. Bharti Telemedia Ltd. (“the Petitioner”) is engaged in providing Direct-To-Home satellite television broadcast services.
Issues Involved:
- What is the legality and validity of Section 16(2)(c) of the CGST Act, second proviso to Section 16(2)(d) and proviso to Section 16(4) of the CGST Act?
- What is the validity of Section 43A (6) of the CGST Act, which has not been notified yet?
Petitioner’s Law interpretation:
Section 16(2)(c) of the CGST Act, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through the utilization of input tax credit (“ITC”) admissible in respect of the said supply
The second proviso to Section 16(2)(d) of the CGST Act, states that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of 180 days from the date of issue of invoice by the supplier, an amount equal to the ITC availed by the recipient shall be added to his output tax liability, along with interest thereon.
Proviso to Section 16(4) of the CGST Act, extends the benefit of availing of ITC till the due date of furnishing of return under Section 39 for the month of March, 2019 in respect of certain invoices, only if the supplier for such supplies has uploaded the details of such invoices in its return under Section 37(1) of the CGST Act, for the month of March 2019.
Section 43A(6) of the CGST Act provides that the supplier and recipient shall be jointly and severally liable to pay tax or pay ITC availed in relation to outwards supplies for which the details have been furnished under sub-section (3) and (4) but returns thereof has not been furnished.
Held:
The Hon’ble High Court of Delhi in W.P.(C) 6293/2019 dated May 29, 2019, has issued a notice to Union of India and postpone the matter on September 18, 2019.
Citation: TS-385-HC-2019(DEL)-NT