In a major relief to Ola operators, M/s Ani Technologies Private Limited, the Telangana High Court has quashed an erroneous notice issued by the GST department wherein in the instance of an unregistered receiver, the place of supply should be the recipient’s location.
The petitioner, providing an electronic platform to the driver partners and to the customers, approached the High Court submitting that for transportation services rendered by the drivers outside the State of Telangana, it has been charged Integrated Goods and Services Tax (IGST) which it has paid. Insofar this case is concerned, petitioner has paid IGST amounting to Rs.2,21,38,236.00 for the period under consideration. However, the GST department issued a notice on ground of short payment of GST.
As per the said notice, the supplier of service and place of supply were found to be located in the State of Telangana. Therefore, a view was taken by the 3rd respondent that State Goods and Services Tax (SGST) and Central Goods and Services Tax (CGST) had to be paid by the petitioner and not IGST.
Justice Ujjal Bhuyan and Justice Surepalli Nanda observed that “We are afraid the contentions raised by the petitioner, more particularly the requirement to pay IGST under Section 12(9) of IGST Act and correspondingly the nonliability to pay CGST and SGST insofar the transportation services rendered by the drivers were not considered in the right perspective. That apart though the impugned order is a lengthy one, the substantive portion appears to be without due application of mind to the legal provision.”
Setting aside the notice, the Court observed that “Accordingly, we set aside the order dated 04.02.2022 and remand the matter back to the 3rd respondent for a fresh decision in accordance with law after giving notice of hearing as well as opportunity of hearing to the petitioner. Since the petitioner is before the Court, let him appear before the 3rd respondent within a period of three (03) weeks from today and file additional submissions, if considered necessary. Third respondent to consider the submissions of the petitioner and thereafter pass fresh orders in accordance with law within a period of four (04) weeks from the date of filing of additional submissions by the petitioner. Needless to say since we have set aside the impugned order dated 04.02.2022, the consequential notice dated 08.06.2022 would also stand quashed.”
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