Interplay between gst and

other laws
ADV. KS NAVEEN KUMAR, BENGALURU

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INTENT
• What are the allied laws?
• Importance of allied laws
• Past instances of litigation
• Issues in gst

Expert is a person who knows everything about

something and something about everything else

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MEANING

• Allied laws – definition

• Anything other than gst law
• +Legal principles/maxims
• +Judge-made law

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 Why allied laws?
• To interpret GST and to look at the implications under other laws while
construing GST provisions and taking a position

questions from past laws

• Under Hindu Law – is marriage a social function?

• What about Mohammedan Law?

• When does the right to appeal arise?

• Whether Engineering Firm includes a body corporate?

• Suppose VAT is wrongly paid – whether ST is applicable?

• Difference between transfer of right to use and supply of tangible goods?

• Whether shares before allotment are goods?

• What is ICU? 4
Past cases
• CCE Vs Krishnapur mutt, 2003 (157) ELT 182 (T)
• Muslim educational asscn. Of southern india – 2006 (2) STR 110 (T)
• T.A.Pai Management Institute case - 2013 (29) S.T.R. 577 (Tri. - Bang.)
• Tata consultancy services - 2016 (44) S.T.R. 33 (Kar.)
• Imagic creative - 2008 (9) S.T.R. 337 (S.C.)
• Idea mobile commn.ltd – 2011 (23) STR 433 (SC)
• Way2wealth - 2010 (19) S.T.R. 544 (Tri. - Bang.) & 2019 (5) TMI 1146 - CESTAT BANGALORE
• VAT paid status - supply of tangible goods cases – RINL – recent sc case
(11.1.2024) - 2024 (1) TMI 443 - SUPREME COURT
• CE cases – ICU – mrtp – CCE Vs TI Millers – 1988 (35) ELT 8 (SC)

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Allied laws – why important??
• GST law cannot operate in isolation
• Assessee ignoring the other laws would land himself in trouble.
• Practitioner’s knowledge would be incomplete.
• Cannot give effective solution/remedy
• Transactions will have to be looked at from the perspective of different
laws.
• Better compliance

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 Important allied laws
• Constitution

• Indian Contract Act, 1872

• Sale of Goods Act

• Transfer Property Act

• General Clauses Act, 1897

• Securities Contract Regulation Act, 1956

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 Important allied laws
• SEZ Act

• FTP

• Custom Act

• Customs Tariff Act

• RERA

• IBC

• Economic offenses (inapplicability of limitation) act, 1974

• Companies act, 2013

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Important allied laws
• limitation act, 1963
• Indian evidence act, 1872
• Indian penal code, 1860
• Central excise act, 1944
• Central sales tax (CST) act, 1956
• Value add tax (VAT) laws

Will cover interpretation principles and maxims

Past laws like VAT, CST, CE – still relevant

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Allied laws – relevant provisions
• Indian Contract Act – understanding nature of activity/supply - agreeing
to an obligation

• Sale of Goods Act, 1930 – Transfer of Property in Goods – works

contract – Art.366(29A) – 46th amendment

• Right to Information Act – Getting information/documents, third party

information (audit/investigation/scrutiny)/ date of service of order/scn

• General Clauses Act – Sec.6, Immovable property, last date of filing –

important provisions - Repeal of Rule – sec.6 does not apply – Kolhapur
Cane Sugar case

• Customs Act – Proper Officer, Taxable Events and relevance to GST

• Limitation Act – Time limit – beyond statutory period - 2023 (12) TMI 290 -
CALCUTTA HIGH COURT - S.K. CHAKRABORTY & SONS VERSUS UNION OF INDIA & ORS – sec 5
applied 10
Allied laws – relevant provisions
• IT Act, 1961

• IT Act, 2000

• Indian Evidence Act, 1872

• Suppression, fraud, willful intent etc. – sec.74 –

ce/st

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Allied laws – relevant provisions
• Indian Evidence Act – Fact, Fact in Issue, Relevant Fact,
Burden of Proof, Evidence
• SEZ Act – Export definition – overriding effect –
sec.26 – non-following of procedures
• Transfer of Property Act – Immovable property
(assignment/transfer of development rights etc.)
• IBC – Crown dues or Govt. dues including tax dues –
RUCHI SOYA - 2022 (380) E.L.T. 8 (S.C.) – MORATORIUM – KAR.HC
• Offence – Pre-Notice Consultation – GC ACT

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 Issues in gst
• Immovable property – not defined in GST

• Repeal of ST law/CE – sec.174 VS SEC.19 OF CONSTITUTIONAL 101ST

AMENDMENT ACT

• IGST levy by State - CST – sec.9(2) - Levy and collection - National Tobacco
case

• Mutuality principle - Clubs

• Supply to SEZ – not following procedures

• Goods/services excludes securities

• RCM – Copyright (performer’s rights) – Devanand case and other cases

• Compensation or solatium received – land acquisition for metro or public

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highways or railways
 Issues in gst
• Statutory filing period – beyond condonable period

• Importing definition from another statute - MSCO case - 1985 (19) E.L.T. 15 (S.C.)

• Proper Officer - Canon India

• Assessment includes self Assessment- ITC case

• Levy of GST on contract bottling charges

• Failure to pay – 180 days – ITC reversal

• New trend – conversion of sec.73 notice into sec.74 notice – Alcobex

case - 2003 (153) E.L.T. 241 (S.C.)

• CAG Powers to do audit of private parties – SKP Securities - 2013 (291) E.L.T. 33
(Cal.)
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Issues in gst
• Services provided, performed, rendered, received, consumed, used
outside India – extra territorial operation

• Mismatch of figures in notes of accounts w.r.t export earnings and

foreign exchange expenses

• RERA – project categorization – villa, villament, re-development –

project value – definitions borrowed – promoter etc

• Barter transaction with foreign entity – no foreign exchange

realization – RBI allows set off

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 Issues in gst
• FE realization – extension of time by RBI – no automatic extension in GST
– Commissioner says – delay can be condoned and when it is not at all
realized do not come for extension

• whole time directors or employees – TDS under IT Act adopted as a

criteria by the GST authorities (sec.192/195)

• Contract Labor Regulation and Abolition Act - manpower supply

• 26AS mismatch with return _ income different from supply

• TDS under Sec.192/194J/195 – Employment or consultant or

professional service

• Reimbursement of gst by govt.departments – contractual

clauses/principles
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Issues in gst
• Sec.8 IGST... Explanation ... distinct establishment not export... PE

• Duty free shops – beyond customs frontier – gst implication

• Company law - separate personality - given a go by in recovery context

• Mining rights - nature - royalty

• Fees paid to corporation for hoardings - BBMP law - it's tax - hence no
tax on tax

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• It may be allied for two reasons:
(a) Specific reference made by provisions of indirect taxes or
(b) Relevant for legal compliance in that transaction.

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Consequences of non-compliance

• Prosecution
• Penalties
• Tax levies
• Interest

• IGNORANTIA JURIS NON-EXCUSAT

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 Thank you for your
unconditional listening
KS Naveen Kumar, advocate, BENGALURU
ksnkadv@yahoo.com -

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