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DGGI has jurisdiction to issue SCN under Section 74; HC directed to respond to SCN
In the instant case, the petitioner challenged the jurisdiction of the Directorate General of Goods and Services Tax Intelligence (DGGI) to issue demand-cum-show cause notices u/s 74 of the CGST Act. The petitioner contended that these officers were not "Proper Officers" under the GST Act and lacked the authority to issue such notices, as Section 74 requires a Proper Officer to initiate proceedings for tax not paid or short paid. The High Court observed that Notification No. 14/2017 - Central Tax dated 1st July 2017, authorized officers of the DGGI to exercise the powers of central tax officers, including the issuance of show cause notices u/s 74 of the CGST Act.
Therefore, the ground which has been taken by the petitioner to quash the show-cause notices due to want of jurisdiction was having no substance and accordingly, the DGGI has jurisdiction to issue show-cause notices. Thus, the instant writ petition was to be disposed of directing the petitioner to respond to the said show-cause notice for its consideration by the authority concerned.
Global IDT Insights: Germany Mandates E-Invoicing for B2B Transactions & Others
Global IDT Insights provides a weekly snippet of tax news specifically related to Indirect Taxes from around the globe.
1. Germany Mandates E-Invoicing for B2B Transactions
Germany has mandated electronic invoicing (e-invoicing) for domestic Business-to-Business (B2B) transactions, requiring businesses to issue invoices in standardized electronic formats. Businesses must utilise government-approved platforms for invoice submission and verification, aligning with Germany's digitalization objectives and fulfilling EU directives to harmonize tax systems and combat VAT fraud.
The e-invoicing mandate applies universally to businesses of all sizes operating within Germany, from small enterprises to multinational corporations. Companies engaging in B2B transactions are required to comply, irrespective of their industry or turnover. The regulation excludes transactions with end consumers (B2C) for now.
Source: Official Circular
2. France imposes VAT obligations on digital platforms to streamline tax compliance in E-Commerce
France has introduced Value Added Tax (VAT) obligations for digital platforms, mandating that these platforms collect and remit VAT on transactions they facilitate between sellers and consumers. The law applies to all transactions processed through these platforms, regardless of whether the sellers are located within or outside France. This measure is said to align with broader European regulations aimed at addressing tax compliance challenges in the e-commerce and digital services sectors.
The regulation is targeted at digital platforms such as Amazon, Airbnb, and Uber, which facilitate transactions between sellers and end-users. It applies to both domestic and foreign platforms operating in the French market. These platforms are now required to maintain detailed transaction records, calculate VAT for each transaction, and remit the collected taxes to French authorities. Sellers using these platforms are relieved of the responsibility of VAT compliance, shifting the administrative burden to the platform operators.
Source: Official Website
3. Canada grants temporary GST/HST exemption on essential goods during holiday season
In response to rising living costs and to provide financial relief during the holiday season, the Canadian government announced a temporary exemption from the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) on select essential goods and services. This measure, effective from December 14, 2024, to February 15, 2025, aims to reduce the financial burden on Canadians during a period of increased spending.
The temporary exemption applies to a comprehensive list of essential goods and services that the government deems critical for daily living or seasonal festivities. Below are 15 significant items qualifying for the exemption.
Source: Department of Finance Canada
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