Goods and Services Tax

Entitlement to refund of unutilised ITC on amalgamation depends on transfer via FORM GST ITC-02 and registration compliance
Case-Laws
GST
Entitlement to refund of unutilised input tax credit on corporate amalgamation is governed by the transfer mechanism under Section 87 and statutory compliance with FORM GST ITC-02; the transferee may receive unutilised ITC only if transfer formalities, including valid registration of the transferor at time of transfer and settlement of liabilities, are observed, and registration cancellation takes effect from the date of the sanctioning order. Partial transfer of ITC without complete compliance and concurrent irregular registration actions by officers vitiate relief and invoke the doctrine of pari delicto, preventing either party from obtaining refund where both are at fault. Directions issued for strict procedural adherence in future amalgamations.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Input Tax Credit fraud and bail in custodial detention case: denial of bail due to scale, evidence and tampering risk
Case-Laws
GST
Custodial detention and bail in economic offences focusing on large-scale Input Tax Credit fraud: court emphasises that systematic tax evasion via creation of non-existent firms, issuance of fake invoices and fraudulent availment of ITC constitutes grave economic offence; reasoning rests on material from GSTN analytics, e-way bills, banking and electronic evidence showing a structured, premeditated scheme causing substantial public revenue loss, and allegations of effective control by the petitioner. The risk that release may enable tampering with digital and documentary evidence or influencing witnesses weighed against personal liberty, resulting in refusal of bail.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST on leasehold transfer: entitlement clarified; refund application to be processed and paid within two weeks.
Case-Laws
GST
The text addresses entitlement to refund of GST paid on assignment/transfer of leasehold rights, noting precedent that such assignment constitutes transfer of immovable property and does not attract GST as supply under the GST Act; consequence: tax paid on that leasehold transfer is capable of refund. It records issuance of a Deficiency Memo in Form RFD-03 citing illegible documents and absence of a GST Council notification, and the respondents acceptance to consider any fresh refund application. Operative effect: petitioner to reapply and the refund shall be paid within two weeks of receipt of the application.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Omission of Rule 96(10) of CGST Rules and effect on pending proceedings: proceedings lapse absent saving clause
Case-Laws
GST
Omission of Rule 96(10) of the CGST Rules raised whether proceedings pending under the deleted provision could continue. The court applied the saving clause doctrine, reasoning that continuance of proceedings after omission is permissible only if a saving clause exists; in the absence of any saving clause the pending proceedings lapse. This conclusion is stated subject to the General Clauses Act and specifically Section 6 of that Act. Writ petitions were allowed, resulting in setting aside of the impugned assessment orders.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Refund of input tax credit on imported edible oil: HC finds amendment clarificatory and directs reapplication of modified refund formula.
Case-Laws
GST
Clarificatory amendment to the refund formula for input tax credit applied retrospectively by the HC, reasoning that the modification was clarificatory in nature and therefore operative retrospectively; consequence: earlier rejection and appellate orders must be set aside and refund claims reconsidered applying the modified formula. Issue of refund entitlement for importer-refiner of edible oil under an inverted duty structure was governed by the amended calculation; consequence: petitioners refund applications to be reexamined afresh by the primary authority using the modified formula. References were made to GST Council and Law Committee recommendations as contextual basis for the amendment.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Cancellation of registration quashed for failure to consider taxpayer's reply; remand for fresh order after hearing
Case-Laws
GST
Cancellation of registration was set aside for failure to consider the taxpayer's uploaded reply to the show-cause notice, constituting breach of the principle of natural justice; consequence: the impugned order is quashed. The matter is remitted to the original adjudicating officer for de novo consideration after affording the taxpayer a meaningful opportunity of hearing and by taking into account the explanation and supporting documents already filed, with directions to pass a fresh reasoned order addressing the submitted representation.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Condonation of delay in filing GSTR-3B returns and entitlement to Section 62 benefit results in withdrawal of assessments and revocation of attachments
Case-Laws
GST
Condonation of delay for filing GSTR-3B returns was considered in relation to entitlement to benefit under Section 62 of the GST Act; the HC applied a prior High Court precedent and extended the Section 62(2) benefit to the petitioner, thereby treating assessment entries for JanuaryJuly 2023 as withdrawn and setting aside the impugned endorsement. Consequent enforcement actions, including garnishee proceedings and attachment of the petitioners bank account, were revoked. Appeals filed beyond the limitation under Section 107(1) were addressed through grant of the statutory benefit, resulting in vacation of the assessment consequences for the specified tax periods.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Validity of refund sanction order: failure of reasoned speaking order and natural justice found, matter directed for reconsideration.
Case-Laws
GST
Validity of refund sanction orders was examined with primary focus on procedural fairness and the requirement of a reasoned, speaking order. The court found the impugned administrative order failed to consider petitioner's submissions and lacked discussion showing the refund claim was legally incorrect; rejection rested on the department's inability to distinguish payment purpose without contrary material. Consequently the impugned order was held unsustainable for want of a reasoned decision and natural justice, and the matter was directed to be reconsidered or dealt with further to meet the ends of justice.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Debonding of capital goods and admissibility of input tax credit: challenge to duplicate state demand allowed appeal to appellate authority.
Case-Laws
GST
Challenge concerned legality of demand arising from debonding of capital goods and admissibility of input tax credit (ITC). Court noted customs NOC confirmed IGST liability on debonding of indigenous goods and that payment had been discharged; petitioner contended this precluded a second demand by state authorities, with consequence that the impugned demand for the same IGST was contested. Court recorded petitioners concession not to contest a specified portion relating to tax, interest and penalty, while permitting challenge to remaining demands alleging excess or ineligible ITC; consequence: petitioner directed to pursue remedy before the Joint Commissioner (Appeals) and writ disposed on those terms.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Profiteering in real estate sales and obligation to pass on input tax credit leads to ordered refund and compliance by developer
Case-Laws
GST
Profiteering in sale of residential units and obligation to pass on input tax credit under Section 171 is examined, with area-based computation adopted and rejection of an ITC-to-turnover ratio. The investigation under Rule 129 and DGAP report quantified a profiteered amount of Rs. 40,096, requiring refund and proportionate distribution to 1,865 eligible buyers; the respondent accepted the report and agreed to comply. Interest on the profiteered amount under Rule 133(3)(b) and filing of a compliance report to DGAP and the jurisdictional GST Commissioner are directed as operative consequences.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST officer caught for accepting Rs 3.5 lakh bribe
GST
Dated:- 26-1-2026
PTI
Palakkad (Kerala), Jan 26 (PTI) A GST enforcement officer was caught red-handed by the VACB for accepting a bribe of Rs 3.5 lakh to release two lorries seized with scrap load here, officials said on Monday.
The accused was identified as Suman P N, an enforcement officer with the Walayar GST Enforcement Squad and a native of Kurudikkad in Palakkad district.
The Vigilance and Anti-Corruption Bureau (VACB) officials said this was one of the highest bribe amounts detected in recent trap cases.
According to the VACB, the complainant and his friend jointly run a scrap business and had collected scrap from various dealers with valid bills.
While transporti

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

India moving towards becoming third-largest economy in near future: President Murmu
GST
Dated:- 25-1-2026
PTI
New Delhi, Jan 25 (PTI) President Droupadi Murmu on Sunday said India is the world's fastest-growing major economy and is moving towards achieving its goal of becoming the third-largest economy in the near future, despite global uncertainties.
In her address to the nation on the eve of the 77th Republic Day, she said the country is recording continuous economic growth, driven by large-scale investments in world-class infrastructure and guided by the principles of 'atmanirbharata' and 'swadeshi'.
“By investing in the creation of world-class infrastructure, we are rebuilding our economic strength at a much larger scale

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Rising cigarette prices fuel counterfeit boom in Bihar's Munger
GST
Dated:- 25-1-2026
PTI
Bhagalpur, Jan 25 (PTI) Munger, a nondescript town in Bihar that once etched its name in industrial history as the first place in Asia to roll out cigarette sticks, is now grappling with a very different distinction: emerging as a hub for counterfeit cigarettes amid steadily rising prices.
The town has long been associated with India's cigarette industry. A factory set up here in 1907 by the erstwhile Imperial Tobacco Company of India Ltd, now ITC Ltd, a diversified conglomerate and a Nifty 50 constituent, was the company's first manufacturing unit and remains its oldest. Interestingly, the Munger factory of ITC shares its birth year with

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

te sticks worth around Rs 50 lakh, along with Rs 85 lakh in cash, from a locality near the factory area. The haul underscored the growing threat posed by the trade, which not only deprives the exchequer of tax revenue but also raises serious public health concerns.
“It is a serious issue afflicting this area, and we are making concerted efforts to curb it,” Munger Superintendent of Police Syed Imran Masood told PTI.
“We have conducted several search and seizure operations in the past to rein in the counterfeit cigarette trade. Following the recent big seizure, it appears that many syndicates have either gone underground or fled the district, as no similar incidents have been reported since the Rs 50 lakh haul,” he said.
Masood, however,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

igarette vendor, said agents working for syndicates collect empty packets of popular brands from retailers at prices ranging from Rs 1 to Rs 1.5 per packet.
“These packets are reused to pack counterfeit cigarettes, which are then pushed into the market. The people involved keep changing frequently to maintain anonymity,” Chaurasia said.
With cigarette prices already having risen sharply, many consumers are turning to cheaper alternatives. “That's where counterfeit or smuggled cigarettes come to their rescue, because they cost much less than the original ones,” he added.
Besides this, Munger is also known for its craftsmanship in country-made firearms, and the rise of illegal arms manufacturing is another key reason behind the decline of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST official's death: Wife claims he was harassed at work; deceased's colleague booked
GST
Dated:- 24-1-2026
PTI
Beed, Jan 24 (PTI) A GST official found dead in a car in Maharashtra's Beed district last week was driven to suicide due to sustained mental harassment at work, his wife has claimed.
A case of abetment of suicide has been registered against a Goods and Services Tax department official from the district, police said on Saturday.
Sachin Jadhavar was found dead in a car on January 17 in Kapildharwadi stretch of the Dhule-Solapur highway, with police claiming at the time that a note recovered from the spot mentioned work-related issues.
The deceased's wife, Mayuri Jadhavar, who met Beed Superintendent of Police Navneet

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Misuse of GST credentials and confirmation of demand remitted for fresh adjudication, subject to 10% pre-deposit and conditions.
Case-Laws
GST
Remittance of a GST demand alleging misuse of GST credentials was ordered back for fresh adjudication on merits, conditioned on the taxpayer depositing 10% of the disputed tax in cash from the electronic cash ledger within thirty days; upon compliance the respondent must pass a final order on merits expeditiously and the bank attachment will be vacated. The taxpayer must also file a substantive reply to the show cause notice within the same period treating the impugned order as an addendum. Failure to comply permits the respondent to recover tax as if the petition were dismissed.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Event management and food services ITC entitlement: composite supply classification allows ITC if invoice and tax rate of principal supply comply.
Case-Laws
GST
Advance ruling addresses eligibility to claim input tax credit (ITC) on food and beverage services supplied as part of event management. The authority classifies event management as a composite supply with the principal supply being event management; food and beverages are ancillary elements. Because the outward supply is a taxable composite supply, ITC on inward food and beverage services is admissible provided the recipient holds a tax invoice complying with Section 16(2) and the supplier has charged the tax rate applicable to the principal supply. A single consolidated invoice suffices and re-invoicing with a margin does not defeat ITC entitlement.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Delay in filing GSTR-3B returns found to involve duplicate proceedings causing double taxation; impugned demand quashed.
Case-Laws
GST
Two distinct authorities issued separate demands and penalties for delayed filing of GSTR-3B returns for the same period, resulting in duplication of proceedings and double taxation; the impugned administrative action was held unsustainable and consequently quashed, with the writ petition allowed. The legal points focus on duplication of proceedings as a bar to multiple demands for the same tax period, the resultant double taxation, liability for interest and penalty arising from delayed GSTR-3B filings, and the availability of writ relief to challenge overlapping tax proceedings.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Wrong claim and rectification of Input Tax Credit in GSTR filings; rectification via GSTR-9C negates recovery notices.
Case-Laws
GST
Wrong entries in GSTR-3B concerning Input Tax Credit were rectified through filing of GSTR-9 and GSTR-9C, and the rectification mechanism negated any short payment or excess-claim consequence; therefore issuance of recovery notices was unjustified where GSTR-9C was filed. Misclassification of IGST as CGST/SGST did not cause revenue loss because the excess ITC remained available to government and was not actually availed to discharge CGST/SGST liabilities. The impugned recovery action based on alleged excess ITC claim is unsustainable in law and liable to be quashed.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Reversal of input tax credit in proportion to exempt supply: specificity of show-cause notice required; order set aside, fresh proceedings allowed with limitation exclusion
Case-Laws
GST
Reversal of input tax credit was predicated on classification of goods as non-exempt though the show-cause notice did not raise that ground; the notice failed the legally required specificity and the adjudication proceeded beyond the matters pleaded, breaching principles of audi alteram partem and statutory notice requirements, and therefore the adjudication order was set aside. The respondents remain free to initiate fresh proceedings in accordance with law, subject to exclusion of the period from February 24, 2025 until disposal of the writ petition or receipt of certified copy when computing limitation for any new proceedings.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Quashing of ex parte assessment order with remand and conditional pre-deposit; bank attachment vacated upon compliance
Case-Laws
GST
Quashing of ex parte assessment order and remand for fresh adjudication on merits subject to a pre-deposit regime is directed; HC requires the assessee to deposit between 25% and 100% of disputed tax depending on delay, with the present case requiring one-third as pre-deposit, and mandates vacation of bank attachment upon compliance. Prior payments or recoveries shall be set off against the pre-deposit. Failure to comply permits the revenue to resume recovery proceedings as if the petition were dismissed. Writ petition disposed accordingly.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Quashing of assessment order with conditional 50% pre-deposit, remand for fresh adjudication and bank attachment relief on compliance
Case-Laws
GST
Quashing of assessment order resulted in remittal for fresh adjudication subject to a conditional interlocutory pre-deposit requirement; if amounts already recovered satisfy or exceed the required 50% pre-deposit, no further deposit is necessary. The taxpayer must file a reply to the Show Cause Notice in Form GST DRC-01 with supporting documents, treating the impugned assessment order as an addendum to that notice. Bank attachment is to be lifted provided the taxpayer deposits 50% of the disputed tax (unless already satisfied by recoveries) and has no other arrears; failure to comply permits recovery proceedings as if the petition were dismissed.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Availment of Input Tax Credit on invoices from non-existent dealers rejected where no reply to show cause notices; relief denied.
Case-Laws
GST
Availment of input tax credit based on invoices issued by non-existing dealers is unsustainable where the taxpayer failed to respond to antecedent show cause notices, with resulting assessments under the relevant provisions remaining operative and rectification applications rejected. Statements of e-way bills alone are inadequate to prove physical receipt of goods; documentary proof such as delivery challans and receipts is required, and reliance solely on e-way bill summaries will not substantiate input tax credit claims. Writ remedies are not maintainable where statutory remedy and proceedings under the assessment scheme are available.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Levy of interest for delayed GST tax discharge affirmed after non-response to GST show cause notice; writ dismissed
Case-Laws
GST
Levy of interest for delayed discharge of tax liability was imposed after the taxpayer failed to reply to a show cause notice in Form GST DRC-01, and the demand was confirmed under the assessment procedure in Section 73. Interest was levied under Section 50(1) on the basis of delayed payment, and the challenge to that levy lacked merit. The writ petition challenging the demand and interest was held not maintainable and dismissed, with the consequence that the confirmed tax demand and interest remain enforceable.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST Input Tax Credit assessment requires production of e-way bills and transport documents; matter remitted for de novo adjudication
Case-Laws
GST
Assessment of input tax credit focused on alleged transcription errors in the annual return and failure to produce requisite e-way bills; the petitioner must produce all e-way bills and transport documents to substantiate movement of goods, failing which sample documents are inadmissible. The respondent is directed to undertake de novo adjudication on remand after affording personal hearing; the petitioner must file detailed submissions within thirty days. If the petitioner does not comply, the respondent may proceed to recover tax as if the writs were dismissed, and the writ petitions are disposed.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Advisory on RSP-Based Valuation of Notified Tobacco Goods under GST
GST
Dated:- 23-1-2026

An advisory on reporting of taxable value and tax liability under RSP-based valuation in e-Invoice, e-Way Bill and GSTR-1 / GSTR-1A / IFF has been issued for the information and guidance of taxpayers. The advisory may be accessed through the link provided below.
Advisory on RSP-Based Valuation of Notified Tobacco Goods under GST
1. Background:
Vide Notification Nos. 19/2025-Central Tax and 20/2025-Central Tax, both dated 31.12.2025, Retail Sale Price (RSP)-based valuation for specified tobacco and tobacco-related products, has been prescribed with effect from 01.02.2026.
The said notifications cover the following HSN codes and descriptions:
S. No.
Chapter / Heading / Sub-heading
Description of Goods
1
2106 90 20
Pan masala
2
2401
Unmanufactured tobacco; tobacco refuse (other than tobacco leaves)
3
2402
Cigars, cheroots, cigarillos and cigarettes, of tobacco or of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

licable taxes) / (100 + Sum of applicable tax rate)
* Deemed Taxable Value = RSP − Tax Amount
Thus, GST liability is determined with reference to RSP, irrespective of the actual sale price.
2.2. For ease of reference, an illustrative tax invoice is provided below.
A. The item particulars are as follows (RSP-based notified goods)
Field
Value
Relevant HSN (RSP-based notified goods)
2403
MRP / RSP per pack (Rs.)
100
Total packs
1,000
Total RSP (Rs.)
1,00,000
B. Statutory computation as per RSP formula (IGST @ 40%)
Under RSP-based valuation, the deemed taxable value and tax amount are required to be derived from the RSP (tax-inclusive).
Particulars
Computation
Amount (Rs.)
Total RSP (aggregate)
100 x 1,000
1,00,000.00
Tax amount (IGST @ 40%)
(1,00,000 x 40) / (100 + 40)
28,571.43
Deemed taxable value (as per RSP formula)
Total RSP − Tax amount
71,428.57
C. Commercial transaction values (actual consideration)
Particulars
Amo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ng that “the sum of taxable value and tax amount cannot be greater than the total invoice value.”
However, in the illustrated case of RSP-based valuation above, the taxable value works out to Rs.71,428.57 and the tax amount to Rs.28,571.43, while the commercial transaction value (net sale value) is Rs.60,000, the total invoice value, computed as net sale value plus tax, would be Rs.88,571.43. In such cases, reporting the deemed taxable value derived from RSP would result in the sum of taxable value and tax amount exceeding the total invoice value.
4.Reporting Guidance for RSP-based Valuation Goods
4.1. In view of the above, for supplies covered under RSP-based valuation, taxpayers are advised to report invoice details in the following manner in EWB and E-invoice systems:
a) The Net Sale Value (i.e., the actual transaction value / commercial consideration) shall be reported in the taxable value field. Accordingly, Rs.60,000.00 shall be reported as the taxable value, as illustrat

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ula, as prescribed under the law. Accordingly, as shown in the illustration above, a tax amount of Rs.28,571.43 shall be reported in the tax amount field, which is derived based on the deemed taxable value of Rs.71,428.57 computed as per the RSP-based formula. However, in case, the GSTR-1 reflects the system calculated tax amount that is different from the tax amount leviable, the same may be edited to report the correct tax amount leviable under RSP- based valuation in accordance with the notification i.e., as illustrated above, a tax amount of Rs.28,571.43 .
c) The total invoice value shall be reported as the sum of the Net Sale Value and the tax amount. Accordingly, the total invoice value shall be Rs.88,571.43 (Rs.60,000.00 + Rs.28,571.43).
5. Reporting Mechanism
In order to facilitate seamless generation of e-Invoice, e-Way Bill and GSTR-1/1A/IFF for RSP-based supplies, it has been decided that:
a) Taxpayers are required to report the Net Sale Value in the taxable value field

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =