GST NEWS BULLETIN

The power of detention and confiscation cannot be invoked together

The Hon’ble Karnataka High Court in M/S Rajeev Traders v. Union of India [Writ Petition No.100849 of 2022 (TRES) dated August 16, 2022] allowed the writ petition stating that the power to confiscate goods is a distinct and independent power conferred under the CGST Act which can be exercised only in cases where the power to detain and seize has not been invoked.

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ITC is ineligible on the vouchers and subscriptions procured from supplier and made available to customers against the loyalty points earned

The Hon’ble Karnataka Authority of Advance Ruling in M/S Myntra Designs Private Limited [Advance Ruling No. KAR ADRG 33/2022 dated 14.09.2022] stated that the applicant is not eligible to avail Input Tax Credit, in terms of Section 16 of CGST Act, 2017, on the vouchers and subscription packages procured by the applicant from third party vendors that are made available to the eligible customers participating in loyalty program against the loyalty points earned / accumulated by the said customers, as the input tax credit is not available in terms of Section 17(5)(h) of the CGST Act, 2017.

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