Fast food chain Subway drags taxman to court over GST on intellectual property rights

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American fast food chain Subway has dragged the indirect tax department to court over allegedly forcing it to pay differential Goods and Services Tax (GST) on services before issuing any notices.

In its writ petition filed in the High Court of Punjab and Haryana Subway Systems India said that the tax department had issued multiple summonses to top management over taxability of intellectual property rights.

The company also said that the tax department kept issuing summons without following the due process that could “traumatise” anyone. The Milford headquartered fast food company said that these summons were issued in spite of explaining to the tax authorities that an advance ruling application is pending.

Hearing Subway’s petition the High Court held that appropriate time must be given to Subway to present the case. Subway has been asked to submit all facts, subsequent to which the authorities will pass a speaking order to decide on the issue.

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