Goods and Services Tax

ITC Q1 profit declines 15.6 pc to Rs 4,508.79 cr; non-cigarette FMCG posts robust growth
GST
Dated:- 31-7-2026
PTI
Kolkata, Jul 31 (PTI) Diversified conglomerate ITC Ltd on Friday reported a 15.6 per cent decline in its consolidated profit for the June 2026 quarter to Rs 4,508.79 crore, as higher expenses and the impact of a sharp increase in excise duty on cigarettes weighed on profitability, even as its non-cigarette FMCG business delivered strong double-digit growth.

The Kolkata-headquartered company posted a consolidated profit of Rs 5,343.41 crore in the April-June quarter a year ago, according to a regulatory filing.

Revenue from operations rose 27.64 per cent to Rs 29,523.3 crore in the first quarter of FY27 from Rs

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rategy to protect market share and limit migration to illicit trade.

ITC said it implemented more than 30 interventions in a short span to re-architect and strengthen its cigarette portfolio across price points, including value-accretive offerings and leveraging key trademarks.

According to the company, staggered and agile pricing actions helped protect its consumer franchise while mitigating the risk of volume migration to illicit trade. However, the company did not clarify whether the entire burden of the higher excise duty had been passed on to consumers.

The higher excise incidence also impacted profitability during the quarter.

Meanwhile, the company's non-cigarette FMCG business continued to deliver strong growth.

Reven

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.

ITC said inflation in key raw materials such as fuel, edible oil, soap noodles and packaging materials, driven by the West Asia conflict, was mitigated through strategic inventory cover, commodity hedging and price-volume rebalancing initiatives.

On the broader business environment, the company said demand across both rural and urban markets remained resilient during the quarter, although imported inflation remains a key concern in the near term.

India is currently witnessing a significant monsoon deficit and lower kharif sowing levels compared with the corresponding period last year.

“Additionally, spatial and temporal variations in monsoon would remain a key monitorable. A protracted conflict in West Asia, alongside emerging

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Punjab extends deadline of one-time scheme for settling tax dues of pre-GST period till Sept 30
GST
Dated:- 31-7-2026
PTI
Chandigarh, Jul 31 (PTI) The Punjab government on Friday announced the extension of its one-time tax settlement scheme till September 30 for clearing pending dues for the period before the implementation of GST (goods and services tax).

The earlier deadline of the One-Time Settlement (OTS) Scheme 2025 was July 31.

GST, a unified taxation regime to replace multiple indirect taxes levied by central and state governments, was implemented nationwide on July 1, 2017.

The extension of the deadline will allow eligible taxpayers to settle pending tax disputes with substantial relief, said Finance, Excise

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ly policies aimed at resolving legacy tax disputes.

At the same time, Cheema said, the Excise and Taxation Department has intensified recovery proceedings against habitual defaulters of value added tax (VAT) through property attachment and auction.

More than Rs 12.39 crore has been recovered through enforcement action, with several defaulters opting for the OTS scheme after recovery proceedings were initiated, he said.

The department has scheduled 13 auction proceedings in August to recover around Rs 48.48 crore in outstanding dues, Cheema said and urged the taxpayers to settle their liabilities under the scheme before the auction dates.

Calling the extension a “strictly final” opportunity, Cheema warned that no further exte

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Statutory pre-deposit defects in GST appeals must be curable before dismissal, enabling merits-based appellate consideration after compliance.
Case-Laws
GST
Statutory pre-deposit compliance in GST appeals is described as a procedural requirement, requiring an opportunity to cure any deficiency before an appeal is rejected. The notes state that where the pre-deposit shortfall was rectified before the appellate authority issued its order, the appeal should proceed to determination on merits. Referring to similar High Court decisions, the text records that the appellate order was set aside and the GST appeal restored for fresh disposal after notice and adequate hearing.
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GST reimbursement under gas-sale contracts requires admissible proof, while prior invoice payments do not automatically establish waiver or estoppel.
Case-Laws
GST
Contractual reimbursement of GST on gas-transmission charges depends on a plausible reading of the Gas Sale Agreement, and an arbitral tribunal's construction is not displaced merely because another interpretation is possible. The notes state that reimbursement could not be sustained without admissible evidence linking GST-deposit receipts to the relevant gas transactions; reliance on unproved documents despite an unresolved objection offends natural justice. They also distinguish waiver from estoppel: waiver requires intentional relinquishment of a known right, while estoppel requires representation, reliance and alteration of position. Payment of prior invoices under a clause requiring payment before claims may preserve supply and does not, by itself, bar recurring invoice-based claims.
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Efficacious statutory appellate remedy bars writ review, while bona fide writ-pendency time may be excluded from appeal limitation.
Case-Laws
GST
An efficacious statutory appellate remedy under the Finance Act, 1994 may preclude writ review of a service-tax adjudication order where no jurisdictional error is shown. The note states that the petitioner had not timely replied to the show-cause notice and filed a reply only after adjudication; the writ petition was therefore not examined on merits and the petitioner was relegated to the statutory appeal. It further records that time spent bona fide pursuing a writ petition, instituted within the appeal limitation period, may be excluded when computing limitation for the appeal. The petitioner was permitted to file the appeal within 30 days, with interim protection temporarily continued.
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Natural justice in GST demand adjudication requires an effective hearing, permitting writ relief despite an alternative appellate remedy.
Case-Laws
GST
Failure to reply to a GST show-cause notice or participate in adjudication may warrant fresh consideration where non-participation resulted from inadequate information or instructions from an authorised representative and sufficient bona fide cause exists. The discussion stresses that principles of natural justice require a reasonable opportunity to file a reply, produce material and receive a personal hearing before the demand is determined. It also addresses writ jurisdiction despite an alternative GST appellate remedy, noting that judicial intervention may be available to secure an effective merits hearing. The deposited amount may be retained pending the outcome of fresh adjudication.
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Condonation of delay required where an unrepresented appellant had sufficient cause, restoring statutory appeal for merits review.
Case-Laws
GST
Condonation of delay should be considered through a justice-oriented approach where an appellant appearing without legal assistance could not file a condonation application or properly present grounds due to bona fide reasons, unavoidable circumstances and sufficient cause. The short delay was condoned because the appellant's lack of representation warranted an opportunity to pursue the statutory appeal with legal assistance. The appellate order was set aside, and the appeal was restored and remitted for fresh consideration on merits, with liberty to engage counsel and file additional grounds.
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Ex parte GST adjudication requires a fair opportunity to reply and be heard before fresh determination proceeds.
Case-Laws
GST
Ex parte GST adjudication orders passed after the taxpayer did not reply to show-cause notices or receive a hearing were set aside on the stated bona fide reasons, unavoidable circumstances and sufficient cause for the omission. A justice-oriented approach supported granting a further opportunity to file replies and participate in the proceedings. The matters for the relevant financial years were remitted for fresh adjudication from the reply stage, subject to the stipulated deposit and an opportunity of hearing; consequential recovery proceedings were also set aside.
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Commensurate price reduction is mandatory for input tax credit benefits; free construction work cannot satisfy anti-profiteering obligations.
Case-Laws
GST
Additional input tax credit benefits must be passed to each eligible homebuyer through a commensurate reduction in price. The Tribunal found that, although benefits were passed to four buyers, the balance remained unpaid to two and constituted contravention of the anti-profiteering requirement. Free additional construction work could not replace the mandated price reduction, regardless of its value or the buyers' acknowledgement. Interest was payable from collection of the higher amount until actual payment because recipients were deprived of their monetary entitlement. Penalty applied to the continuing contravention after the penal provision took effect, subject to the statutory exemption where the profiteered amount is deposited within the prescribed period.
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Advisory on Keeping on Hold the Proposed e-Way Bill Enhancements
GST
Dated:- 30-7-2026

GSTN had earlier issued advisories dated 9th June 2026 and 17th June 2026 regarding certain proposed enhancements to the e-Way Bill system, with the scheduled date of implementation as 1st August 2026. Detailed FAQs relating to these enhancements were also issued on 2nd July 2026.

It is hereby informed that the implementation of the above-mentioned enhancements has been kept on hold until furt

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Unsigned GST DRC forms challenge may be pursued through statutory appeal, subject to pre-deposit and delay condonation consideration.
Case-Laws
GST
Challenges were raised to GST adjudication proceedings on the ground that Form GST DRC-01, its attachment, and the order summary in Form GST DRC-07 lacked signatures. The High Court did not examine the merits of those objections. At the petitioner's request, it disposed of the writ petition with liberty to pursue the statutory appeal after making the required pre-deposit and filing an application for condonation of delay. The appellate authority may consider the delay application and, if satisfied, decide the appeal on merits in accordance with law.
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Extraordinary writ jurisdiction cannot revive a time-barred statutory GST appeal merely because appellate limitation has expired.
Case-Laws
GST
Extraordinary writ jurisdiction was declined where the taxpayer's statutory appeal against a GST demand had become time-barred. The notes state that the taxpayer submitted a physical reply to the show-cause notice because the portal had earlier been handled by a chartered accountant, but the final order recorded no reply and confirmed the demand. A rectification application under the GST Act remained pending but also appeared time-barred. The High Court dismissed the writ petition, stating that expiry of the statutory appellate limitation did not justify exercising jurisdiction under Article 226.
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Natural justice in GST appeals requires a hearing and reasoned order; cryptic rejection was quashed and remanded.
Case-Laws
GST
Rejection of a GST appeal without affording a hearing and through a cryptic, unreasoned order violated principles of natural justice. The appellate order merely stated a reason for rejection, without supporting reasons, and incorrectly recorded the order-issuing authority. The High Court quashed the appellate order and remanded the appeal for a de novo hearing and a reasoned decision on merits, leaving the parties' substantive contentions open.
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Consistency in export-service classification supports input tax credit refunds where identical services lack distinguishing features.
Case-Laws
GST
Consistent treatment of identical export services is central to refund eligibility for unutilised input tax credit on zero-rated supplies. The note states that services granted refunds in periods before and after the disputed period should not be classified as intermediary services for the intervening period without material distinguishing their nature. Such differential classification is described as arbitrary, discriminatory and contrary to the principle of consistency. It records that rejection of the refund claim was set aside and release of the refund with applicable interest was directed.
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Mandatory hearing before adverse GST determination protects natural justice; unconsidered replies invalidate resulting demand and appellate action.
Case-Laws
GST
Failure to consider a taxpayer's reply to a GST show-cause notice and to provide a hearing before an adverse determination breaches statutory requirements and principles of natural justice. Section 75(4) requires an opportunity of hearing where an adverse decision is contemplated, even without a written request. The GST determination, related demand proceedings and consequential appellate rejection were therefore set aside as unsustainable. The assessing authority may issue an appropriate notice and proceed in accordance with law.
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Deemed withdrawal of best-judgment assessment follows delayed return filing when the prescribed late fee is paid.
Case-Laws
GST
Section 62(2) of the GST law treats a best-judgment assessment as deemed withdrawn when the registered person files the required return within the stipulated period; delayed filing requires payment of the prescribed late fee. Where Form GSTR-3B for the relevant tax period was filed with the applicable late fee, the assessment was required to be treated as withdrawn. On that basis, the assessment for April 2023 was deemed withdrawn, and consequential bank attachments, if any, were set aside.
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Commensurate price reduction for input tax credit cannot be replaced by free upgrades, with GST and interest repayable.
Case-Laws
GST
Additional input tax credit available to a real-estate developer after GST must be passed to eligible homebuyers through a commensurate reduction in price. Free structural upgrades, fittings or other collateral benefits cannot replace the prescribed price reduction, irrespective of their asserted value. Where higher consideration was collected inclusive of GST, the unpassed benefit includes the corresponding GST component and must be returned to homebuyers. The anti-profiteering framework also requires interest at 18 per cent per annum from collection of the higher amount until repayment. Penalty is not warranted where the relevant contravening conduct substantially concluded before the penalty provision came into force.
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Statutory labelling and institutional-consumer packaging preserved GST exemption for frozen chicken cuts despite corporate names appearing on invoices.
Case-Laws
GST
Statutory labelling of a manufacturer's corporate name and address on unit containers does not amount to use of a brand name where the declarations are required for food-safety and legal-metrology compliance. After removal of brand logos, the frozen chicken cuts remained eligible for exemption; the corporate name on packages or invoices did not create a commercial brand connection. Packages supplied exclusively to institutional consumers were not treated as pre-packaged commodities intended for retail sale under the packaged-commodities rules. They therefore fell outside the amended taxable category for pre-packaged and labelled goods. The reported conclusion upheld exemption and deletion of the tax demand, interest and penalty.
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Statutory personal hearing in GST adjudication requires a specified date, time and venue before adverse orders are issued.
Case-Laws
GST
GST notices and orders uploaded only in the Additional Notices and Orders tab may not constitute sufficient communication for proceedings under Section 73. The notes state that, where adverse adjudication is contemplated, Section 75(4) requires a personal hearing and the hearing notice must specify its date, time and venue. Failure to provide these particulars results in non-compliance with the statutory hearing requirements and principles of natural justice. The discussed ex parte adjudication order was set aside, allowing a reply to the show-cause notice and requiring fresh reasoned adjudication after a personal hearing.
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Condonation of delay in GST appeals restored access to merits review where timely filing was beyond control.
Case-Laws
GST
Condonation of delay in GST appeals is discussed where circumstances beyond the taxpayer's control prevented timely filing. The notes state that, despite the statutory limitation governing appellate condonation, denying merits review in such circumstances may cause grave injury and prejudice. The delay was condoned and the appellate authority was directed to entertain and decide the appeal on merits if filed within the stipulated period, restoring access to the statutory appellate remedy. The challenge to the validity of the statutory condonation limit was not pressed and remained open.
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Temporary GST portal access must enable electronic statutory appeals; authority expected to decide the ID application within 30 days.
Case-Laws
GST
Withholding the password for a temporary GST ID prevented electronic filing of a statutory appeal and effectively frustrated the appellate remedy. The High Court noted that the department had not provided portal access despite repeated requests, including by email. It disposed of the writ petition expecting the Competent Authority to decide the application for a temporary GST ID in accordance with law within 30 days.
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Input tax credit conditions remain constitutionally valid, with eligible recipient claims considered under GST circulars and retrospective filing deadline.
Case-Laws
GST
Input tax credit remains a statutory benefit subject to the conditions in Sections 16(2)(c) and 16(4), including supplier tax-payment requirements and prescribed claim time limits. The Kerala High Court's earlier ruling, adopted for these writ petitions, found those conditions constitutionally sustainable and not violative of Articles 14 or 19 because they protect revenue and support workable GST administration. Recipients with bona fide inward supplies may seek consideration of eligible credit under the applicable GST circulars upon establishing that suppliers paid the tax. The retrospectively applicable 30 November deadline applies to relevant claims, and the constitutional challenge was rejected.
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Condonation of delay in GST appeals enabled restoration for merits adjudication despite objections over statutory authority to condone.
Case-Laws
GST
Condonation of delay in a GST appeal is discussed in the context of High Court decisions permitting consideration of a writ petition despite an objection that no statutory provision allowed condonation. The appellate order was set aside, the delayed appeal for the relevant tax period was restored, and the delay was condoned so that the appeal could be adjudicated on its merits. All substantive contentions were left open for determination in accordance with law.
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Additional input tax credit benefits passed beyond the required level prevented a profiteering finding for pre-GST homebuyers.
Case-Laws
GST
Additional input tax credit benefits in construction services must be passed to pre-GST homebuyers through commensurate price reductions under section 171(1) of the CGST Act. Applying the revised computation, including the pre-GST goods component, the determined benefit was quantified; however, documentary evidence accepted in the revised DGAP report showed that the supplier had passed on benefits exceeding that requirement to eligible homebuyers. The revised methodology therefore did not support a profiteering allegation because the full benefit had already been passed on in excess. The proceedings were disposed of with no contravention of section 171 established.
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Supplier tax payment remains a valid condition for Input Tax Credit, despite a purchasing dealer's asserted bona fides.
Case-Laws
GST
Input Tax Credit under Section 16(2)(c) of the CGST Act remains conditional on the supplier's payment of tax, even where the purchasing dealer asserts bona fides. The text distinguishes the CGST framework from the Delhi VAT regime because CGST provides for reversal and subsequent re-availment of credit after the supplier discharges the tax liability. A purchaser therefore cannot claim parity with a bona fide purchaser under Delhi VAT when its supplier defaults. The condition was upheld as constitutional and not liable to be read down, and the challenge to its validity was rejected.
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