2020 (12) TMI 360 - HC - GST

Court orders Respondent to accept applications without GST for fairness

The Court directed the Respondent to accept applications from publishers/members without requiring GST registration if they provide an undertaking stating ... Direction to receive the applications from the publishers/members of the Petitioner society without insisting on production of GST - Section 23 of the Central Goods and Services Tax Act, 2017 read with Schedule I Entry 119 to the “Rates of GST on Goods” - HELD THAT:- Keeping in view the submissions made and subject to the members of the petitioner giving an undertaking/affidavit to the effect that they are not liable to pay GST on reverse charge basis as provided under Section 9(3) of the Act, the tender/application of the members of the petitioner in response to the advertisement published on 20.11.2020 shall not be rejected by the respondent no. 2 only on the ground of their inability to give the GST registration number. List on 17th February, 2021 alongwith the main petition. Issues Involved:1. Interpretation of GST Act provisions regarding GST registration requirements for publishers.2. Applicability of Section 9(3) and Section 24(iii) of the GST Act to members of a petitioner society.3. Relief sought by the petitioner regarding the acceptance of applications without GST registration.Analysis:1. The petitioner sought a direction to the Respondent to receive applications from publishers/members without requiring GST registration. The counsel argued that as per Section 23 of the GST Act, along with Schedule I Entry 119, since GST on books is 'Nil,' members of the petitioner do not need GST registration. Additionally, the counsel contended that Section 9(3) read with Section 24(iii) would not apply to the petitioner's members as they are not liable to pay any royalty on the books. Affidavits were submitted to support this claim.2. The Court considered the submissions and decided that if the members of the petitioner provide an undertaking or affidavit stating they are not liable to pay GST on a reverse charge basis as per Section 9(3) of the Act, their applications should not be rejected solely for lacking a GST registration number. This decision was made to ensure that the members of the petitioner are not disadvantaged due to the GST registration requirement when responding to the advertisement published on a specific date.3. The Court directed the respondents to file a reply to the application within four weeks, allowing for a rejoinder within three weeks thereafter. Furthermore, the respondents were instructed to file a counter affidavit to the Writ Petition within the specified time frame. The matter was listed for a future date for further proceedings. The order was to be shared with the counsels for both parties via email for their information and compliance.This judgment delves into the intricacies of GST registration requirements for publishers and the applicability of specific provisions of the GST Act to members of a petitioner society. The Court's decision aimed to ensure fairness and access to opportunities for the petitioner's members while upholding the legal framework of the GST Act.