In its judgement dated September 20, the court sent the case back to the assessing authority to examine the evidence provided by the petitioner irrespective of the difference in GSTR-2A and GSTR-3B forms. Following the assessment of the evidence provided by the petitioner, the court directed the assessing authority to pass orders in accordance with law.
The DGGI said the practice is a ‘service liable for taxation under GST as this is undertaken by the parent company to maximise the returns on investment on these subsidiaries. In the case of MNCs, tax authorities are seeking GST dues from the local unit under the reverse charge mechanism.
Indian tax authorities have raised demands for higher tax from at least 17 automotive component manufacturers over tax rates for parts used exclusively by the auto industry. The Directorate General of Goods and Services Tax Intelligence (DGGI) sent notices citing a Supreme Court judgment. The court ruled in favour of Westinghouse Saxby Farmer, leading to doubts over GST liabilities for the auto industry owing to disputes with the CBIC board.