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The issue in the first place
<\/strong>
In the period from July 2017 to September 2017, Airtel had made errors while filing monthly GST Returns. Any company can discharge their liabilities by paying it from their available Input Tax Credit<\/a> and pay balance in cash. In the given case as the government systems as well as company systems were not fully functional the telco had not recorded proper Input Tax Credit. Due to it they had filed the returns by paying the liability in cash.
On subsequently noticing the error, Airtel realized that it had sufficient Input Tax Credit and hence filed a petition to rectify the return and claim refund of Rs 923 crores paid in cash. Delhi High Court struck down the point in the circular which stated that GST returns cannot be rectified and directed authorities to accept revised returns and permit Airtel to claim refund of excess tax paid.
Supreme Court ruling
<\/strong>
The Supreme Court has struck down the said order and stated that the company cannot be entitled to claim refund just because its books of accounts are not maintained properly. Non operationality of GST modules is not a reason as data for filing returns is generated from the books of accounts and basic records like invoice, bills and challans.
“The Honorable Supreme Court is of the firm view that there is no provision under law that if the company has filed its returns by paying cash, it cannot claim a refund of balance Input tax credit available with it. They have further clarified that payment for discharge of GST by cash is a matter of option, which cannot be reversed unless the Act and the Rules permit such reversal or swapping of the entries,” Parag Mehta, Partner, NA Shah & Associates, told ETCFO..<\/cite><\/div><\/blockquote>
Implications for businesses
<\/strong>
Experts said the Supreme Court has interpreted GST law very strictly and is very firm in its belief that they will not interfere or reduce the impact of law even though it may cause undue hardship to the assessee.
Left to Right: Pritam Mahure, Independent CA; Parag Mehta, Partner, NA Shah & Associates, and Rajat Mohan, Senior Partner, AMRG & Associates <\/span><\/figcaption><\/figure>
“They have distanced themselves from stepping in the shoes of the judiciary to amend the law. This judgement will have an impact on many cases where there have been genuine mistakes during inception of GST and if literal interpretation is taken in all the cases there will be huge financial impact for such unintentional errors,” Mehta said.
Another expert Rajat Mohan, Senior Partner at AMRG & Associates, agreed. He said the SC’s ruling is a huge blow to businesses because implementation challenges faced by them in complying with the GST law seem to have been discounted and underplayed, he said.
This SC ruling sends a very negative message for the business community as a whole. Thousands of business taxpayers were facing issues similar to that of Airtel, and they had filed writ applications at various High Courts across the country. Now their applications will get automatically rejected.Rajat Mohan, Senior Partner, AMRG & Associates<\/cite><\/div><\/blockquote>
“If a billion dollar giant like Airtel operating in an oligopolistic market segment, backed by full power of learned tax professionals faced issues in respect of filing returns and claiming input tax credit, then imagine the sort of challenges faced by MSME enterprises?,” this expert asked.
He felt that the Supreme Court perhaps could have taken a more lenient view towards businesses and could have allowed them rectification in summarised GST returns at least for the initial first two years of the GST regime. “Having said so, the apex court might have felt that in case the rectification was allowed, the whole GST system could have then collapsed because many miscreants and wrongdoers would have also got the chance to redeem themselves,” he said.
Pune-based independent chartered accountant Pritam Mahure gave a slightly contrarian view. He hailed the SC verdict, stressing it gives a clear message to businesses that they need to be extra cautious with filing of GST returns..
“I agree with the submission of the appellant (government) that any indulgence shown contrary to the statutory mandate (GST Law) would not only be an illegality but in reality, would simply lead to chaotic situation and collapse of tax administration of Union, States and Union Territories,” Mahure signed off.
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最高法院的销售税裁决反对Airtel:印度公司意味着什么?
法律专家表示,最高法院解释销售税非常严格,公司相信他们不会干涉或减少法律的影响,尽管它可能assessee造成不必要的困难。
最高法院周四否决了德里高等法院去年10月的订单给予Bharti Airtel救济限制整改的撤销销售税收益。它只是不允许Airtel寻求923卢比销售税退款。ETCFO SC的裁决的影响讨论与主题专家为企业。 
这个问题放在第一位
从2017年7月到2017年9月,Airtel犯了错误而申请每月销售税的回报。任何公司可以放电负债支付的进项税信贷和平衡现金支付。在给定的情况下,政府系统以及系统不全功能的电信公司没有适当的进项税信贷记录。因为它提出了返回通过支付现金的责任。
在随后注意到错误,Airtel意识到,它有足够的进项税信贷,因此提交了一份请愿书,纠正Rs 923卢比的返回并要求退还支付现金。德里高等法院推翻了这一点的圆表示,销售税收益不能纠正和指导部门接受修订后的回报和允许Airtel要求退还多余的税收支付。
最高法院的裁决
最高法院驳回了秩序和声明说,该公司不能有权要求退款仅仅因为账户维护不当的书。非可操作性销售税模块不是一个原因作为数据备案书返回生成的账户和基本记录发票,账单和challans。
“光荣公司的最高法院认为,根据法律并没有规定,如果公司已经申请了支付现金的回报,不能要求退款平衡进项税信贷可用。他们进一步澄清,用现金支付销售税的放电是一种选择,无法逆转,除非采取行动的规则允许逆转或交换等条目,”帕尔梅塔,伙伴,娜沙& Associates告诉ETCFO。。
影响企业
法律专家表示,最高法院解释销售税非常严格,公司相信他们不会干涉或减少法律的影响,尽管它可能assessee造成不必要的困难。
左至右:Pritam Mahure,独立;帕尔梅塔,伙伴,NA沙& Associates,顾磊杰(Rajat Mohan高级合伙人,AMRG & Associates
“他们已经划清界限介入司法的鞋修改法律。这个判断会影响许多情况下,有真正的错误在《盗梦空间》的销售税和如果字面解释在所有的情况下将会有巨大的金融影响这种无意的错误,”梅塔说。
另一个专家顾磊杰(Rajat汉,高级合伙人AMRG & Associates同意了。他说,SC的裁决对企业是一个巨大的打击,因为实施所面临的挑战在遵守消费税法律似乎被忽略和低估,他说。
这SC裁决发送非常消极的消息业务社区作为一个整体。成千上万的企业纳税人面临的问题类似于附近的旅馆,他们提交了全国各高等法院令状申请。现在他们的应用程序会自动拒绝。顾磊杰(Rajat Mohan、高级合伙人AMRG & Associates
“如果十亿美元的巨型喜欢Airtel操作在一个寡头垄断市场,支持全功率的税务专业人士面临问题的申报和声称进项税信贷,然后想象的那种MSME企业所面临的挑战吗?,“这专家问道。
他觉得最高法院可能会采取一种更宽容的观点对企业和可能让他们整改总结销售税收益至少在最初的前两年的消费税制度。“有这么说,法院可能会觉得纠正被允许的,然后整个销售税系统可能会崩溃,因为许多歹徒,违法者将也得到了救赎自己的机会,”他说。
浦独立注册会计师Pritam Mahure给稍微反向观点。他称赞SC判决,强调它给一个明确的信息给企业,他们需要额外的谨慎与申报销售税的回报. .
“我同意上诉人提交的(政府),任何放纵显示与法定授权(销售税法案)不仅是一种违法行为,在现实中,只会导致混乱的形势和税收管理联盟崩溃,州和联邦属地,“Mahure签署。
<\/span><\/figcaption><\/figure>The Supreme Court on Thursday struck down the Delhi High Court order of October last year granting relief to Bharti Airtel by quashing the restriction on rectification of GST returns<\/a>. It simply disallowed Airtel from seeking Rs 923 crore GST<\/a> refund. ETCFO discussed the implications of the SC’s ruling for businesses with subject matter experts.
The issue in the first place
<\/strong>
In the period from July 2017 to September 2017, Airtel had made errors while filing monthly GST Returns. Any company can discharge their liabilities by paying it from their available Input Tax Credit<\/a> and pay balance in cash. In the given case as the government systems as well as company systems were not fully functional the telco had not recorded proper Input Tax Credit. Due to it they had filed the returns by paying the liability in cash.
On subsequently noticing the error, Airtel realized that it had sufficient Input Tax Credit and hence filed a petition to rectify the return and claim refund of Rs 923 crores paid in cash. Delhi High Court struck down the point in the circular which stated that GST returns cannot be rectified and directed authorities to accept revised returns and permit Airtel to claim refund of excess tax paid.
Supreme Court ruling
<\/strong>
The Supreme Court has struck down the said order and stated that the company cannot be entitled to claim refund just because its books of accounts are not maintained properly. Non operationality of GST modules is not a reason as data for filing returns is generated from the books of accounts and basic records like invoice, bills and challans.
“The Honorable Supreme Court is of the firm view that there is no provision under law that if the company has filed its returns by paying cash, it cannot claim a refund of balance Input tax credit available with it. They have further clarified that payment for discharge of GST by cash is a matter of option, which cannot be reversed unless the Act and the Rules permit such reversal or swapping of the entries,” Parag Mehta, Partner, NA Shah & Associates, told ETCFO..<\/cite><\/div><\/blockquote>
Implications for businesses
<\/strong>
Experts said the Supreme Court has interpreted GST law very strictly and is very firm in its belief that they will not interfere or reduce the impact of law even though it may cause undue hardship to the assessee.
Left to Right: Pritam Mahure, Independent CA; Parag Mehta, Partner, NA Shah & Associates, and Rajat Mohan, Senior Partner, AMRG & Associates <\/span><\/figcaption><\/figure>
“They have distanced themselves from stepping in the shoes of the judiciary to amend the law. This judgement will have an impact on many cases where there have been genuine mistakes during inception of GST and if literal interpretation is taken in all the cases there will be huge financial impact for such unintentional errors,” Mehta said.
Another expert Rajat Mohan, Senior Partner at AMRG & Associates, agreed. He said the SC’s ruling is a huge blow to businesses because implementation challenges faced by them in complying with the GST law seem to have been discounted and underplayed, he said.
This SC ruling sends a very negative message for the business community as a whole. Thousands of business taxpayers were facing issues similar to that of Airtel, and they had filed writ applications at various High Courts across the country. Now their applications will get automatically rejected.Rajat Mohan, Senior Partner, AMRG & Associates<\/cite><\/div><\/blockquote>
“If a billion dollar giant like Airtel operating in an oligopolistic market segment, backed by full power of learned tax professionals faced issues in respect of filing returns and claiming input tax credit, then imagine the sort of challenges faced by MSME enterprises?,” this expert asked.
He felt that the Supreme Court perhaps could have taken a more lenient view towards businesses and could have allowed them rectification in summarised GST returns at least for the initial first two years of the GST regime. “Having said so, the apex court might have felt that in case the rectification was allowed, the whole GST system could have then collapsed because many miscreants and wrongdoers would have also got the chance to redeem themselves,” he said.
Pune-based independent chartered accountant Pritam Mahure gave a slightly contrarian view. He hailed the SC verdict, stressing it gives a clear message to businesses that they need to be extra cautious with filing of GST returns..
“I agree with the submission of the appellant (government) that any indulgence shown contrary to the statutory mandate (GST Law) would not only be an illegality but in reality, would simply lead to chaotic situation and collapse of tax administration of Union, States and Union Territories,” Mahure signed off.
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