Gujarat High Court quashes Rs 43.43 crore GST demand against Amul

The Gujarat High Court has quashed an IGST demand of Rs 43.43 crore, along with interest and penalty, raised against the Gujarat Co-operative Milk Marketing Federation (Amul) for the period July 2017 to March 2019. The GST department had alleged that Amul's Anand head office failed to cross-charge common corporate expenses — advertising, IT infrastructure, audit, legal fees and employee salaries — to its separately registered branches and depots, and invoked Section 74 of the CGST Act alleging fraud and wilful misstatement with an extended limitation period. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati held that unbilled services were valued at nil under the CBIC clarifications where the recipient branches could claim full input tax credit, that the arrangement was revenue-neutral, and that the failure to cross-charge alone cannot establish fraud or suppression of facts. LiveLaw Biz The Indian Express (Livelawbiz, Indian Express)

• The Gujarat High Court has quashed an IGST demand of Rs 43.43 crore, along with interest and penalty, raised against the Gujarat Co-operative Milk Marketing Federation (Amul) for the period July 2017 to March 2019.
• The GST department had alleged that Amul's Anand head office failed to cross-charge common corporate expenses — advertising, IT infrastructure, audit, legal fees and employee salaries — to its separately registered branc
• A Division Bench of Justices A.S.