Movement of demo vehicle without Form-A GST and EWB-01 under Rule 138(1)(ii) attracts GST liability

The HC held that the movement of a demo vehicle into Madhya Pradesh without furnishing mandatory information under Rule 138(1)(ii) of the GST Rules attracts GST liability, regardless of whether a financial consideration is involved. The petitioner failed to provide the required Form-A GST and EWB-01 electronically, rendering the entry of the vehicle taxable. The court found no jurisdictional error in the appellate authority's order and dismissed the petition.

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Issues involved:
Challenge to order reducing tax and penalty, applicability of GST on demo vehicle transported in Madhya Pradesh.

Summary:
The petition filed under Article 226 challenges the order reducing tax and penalty on a demo vehicle transported in Madhya Pradesh. The petitioner argues that the vehicle was not for sale, thus not liable to GST. The petitioner relies on the definition of "supply" under Section 7 of the GST Act and CBDT circulars. The respondent argues that under Section 129 of the GST Act, goods exceeding Rs.50,000 in value are liable to GST even if not a supply.

Section 129 of GST Act allows detention and seizure of goods in transit for contravention of rules, with penalties specified. Rule 138 mandates information prior to movement of goods exceeding Rs.50,000. The petitioner did not provide this information, making the demo vehicle liable to GST in Madhya Pradesh.

The Court upholds the appellate authority's order, finding no fault or jurisdictional error. The writ petition is dismissed.

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