Double interest collection under GST: simultaneous interest from supplier and receiver may unjustly enrich revenue and require adjustment.
The substituted section 41 requires reversal of availed input tax credit with applicable interest when a supplier fails to pay tax, permitting re-availment once the supplier pays; section 50(3) ties receiver interest liability to utilisation of that credit while section 50(1) obliges the supplier to pay interest for delayed tax. These rules can result in both supplier and receiver paying compensatory interest on the same tax amount, raising concerns of unjust enrichment and potential need for adjustment or refund of overlapping interest collections. (AI Summary)

Outward supply: employer recovery of employee canteen charges deemed taxable under GST, prompting legal challenges.
The AAR Kerala held that employer recovery of employee canteen charges is an outward supply taxable under GST, reasoning from the definition of business, composite supply treatment, and that cost recovery constitutes consideration. The article contrasts this with earlier case law applying the dominant object test and holdings that canteen sales were not exigible to VAT, argues Schedule III exclusions and the ejusdem generis construction of composite supply counsel against the AAR's approach, and notes likely litigation and the need for legislative clarification. (AI Summary)

Point of taxation principle challenged where a new cess is applied to services rendered before the levy, raising validity issues.
Examines the constitutional validity of applying an amended Point of Taxation Rule to impose Krishi Kalyan Cess on payments outstanding as of the levy's commencement, noting Section 67A fixed tax at the time services were provided; the 2016 rule amendments treating pending invoices or payments as subject to the new levy shift the taxable event from the date of rendering to invoice or payment and risk exceeding delegated legislative power by effectively imposing tax on services completed before the levy. (AI Summary)

Sales promotion definition clarified: commission-agent sales treated as input service, enabling retrospective cenvat credit eligibility.
The Government inserted an explanation into rule 2(l) of the Cenvat Credit Rules, 2004 stating that sales promotion includes services by way of sale of dutiable goods on a commission basis, thereby treating commission-agent sales as input service for the purpose of cenvat credit. The amendment is characterised as clarificatory and declaratory and is therefore to be construed as having retrospective effect to resolve divergent judicial interpretations. (AI Summary)