Goods and Services Tax

Export of services confirmed for university consultancy work; incidental student support did not make the supplier an intermediary.
Case-Laws
GST
Indian entity's education consultancy, marketing and recruitment support for foreign universities was held to be export of services, not intermediary service under the IGST Act. The decisive test was whether the contractual recipient and payer were the foreign universities and whether the supplier acted on its own account. Because the entity contracted with the universities, invoiced them, received consideration from them, did not charge students, had no authority to bind the universities, and could not guarantee admissions, incidental assistance to students in India did not convert it into an intermediary. The refund rejection was set aside and the refund was directed to be processed with statutory interest.
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Proceedings against a non-existent amalgamated company are void; section 87 cannot validate post-merger GST action.
Case-Laws
GST
Once an amalgamation scheme is approved, the amalgamating company ceases to exist in law, so proceedings continued in its name are without jurisdiction. The Court held that, after intimation of amalgamation and cancellation of registration, a show cause notice and adjudication order issued against the erstwhile entity are void. Section 87 of the CGST Act applies only to the limited intervening period it contemplates and does not authorise proceedings against a non-existent entity after amalgamation. Participation by the taxpayer and the availability of other lawful remedies did not cure the jurisdictional defect, and the GST order was quashed while other contentions were left open.
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Natural justice in revocation of registration proceedings requires a fair chance to reply before a fresh order is made.
Case-Laws
GST
The High Court set aside the order rejecting revocation of cancellation of registration after finding that the petitioner should be given an adequate opportunity to respond to the show-cause notice in the revocation proceedings. It did not decide whether the original time granted by the authority was sufficient on merits; instead, it applied natural justice and directed that the petitioner be allowed to file objections within the time fixed by the Court. The authority was then required to consider those objections and pass a fresh order.
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Unsigned assessment orders are invalid; writ delay may be excused for patent defects, with remand after hearing.
Case-Laws
GST
An assessment order must bear a signature, and an unsigned order is invalid. The High Court also recognised practical difficulties in accessing orders uploaded on the portal and held that delay in invoking writ jurisdiction can be overlooked where the assessment suffers from a patent irregularity, while balancing taxpayer hardship against revenue protection. The unsigned assessment orders were set aside and the matter was remanded for fresh assessment after hearing, subject to deposit of 20% of the disputed tax, adjustment of amounts already paid or recovered, and exclusion of the writ period for limitation.
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Parallel GST proceedings on the same subject matter must be coordinated to avoid multiple adjudicatory processes.
Case-Laws
GST
Parallel State and Central GST proceedings on the same subject matter are to be avoided in line with the Supreme Court guidance in Armour Security. The assessee must place its objection before the authorities by responding to the show cause notice and related communications, asserting that the proceedings overlap. The State and Central authorities are to verify the claim inter se and coordinate so that the assessee is not subjected to multiple adjudicatory processes on the same matter. The High Court declined to examine the validity of the notice or summons on merits and kept all rights and contentions open.
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Jurisdictional defect in assessment where the same officers issued audit observations and later passed the ex parte orders.
Case-Laws
GST
The High Court held that an officer who had earlier issued audit observations could not thereafter pass the ex parte assessment order on the same matter. As the impugned adjudication orders were made by those very officers, the Court found the assessment to be without proper jurisdiction and quashed both the adjudication orders and the consequential recovery proceedings, including bank attachment. The matter was remitted to a proper officer for fresh consideration from the stage of reply to the show-cause notices.
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Ex parte tax adjudication quashed for lack of hearing and non-speaking order; matter remitted for fresh adjudication.
Case-Laws
GST
Ex parte tax adjudication was set aside where the assessee had not been given a reasonable opportunity of hearing and the order was not reasoned. The HC followed earlier coordinate Bench rulings, quashed the impugned orders, and remitted the matter for fresh adjudication by a proper officer other than the original officer from the stage of reply to the show-cause notice. Liberty was granted to file additional material, and the authority was directed to afford a reasonable hearing and pass a speaking order.
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Strict construction of penalty provisions bars penalty for lower-rate sales tax payment without any turnover mismatch.
Case-Laws
GST
Penalty for short-payment of additional sales tax was held not to be attracted where the dispute concerned only the applicable rate and there was no suppression or variation in turnover. Because the turnover returned and the turnover assessed were identical, the case did not amount to an incorrect or incomplete return within the meaning of the penalty provision. The Court also applied strict construction to penalty statutes and held that Section 12(3)(b) did not authorise penalty merely because tax was paid at a lower percentage. The appellate authority's deletion of penalty, affirmed by the Tribunal, was upheld and the State's revision was dismissed.
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Parallel GST proceedings barred only for the same distinct infraction; assessment quashed for failure to examine overlap.
Case-Laws
GST
The statutory bar on parallel proceedings under the GST law applies when the later action concerns the same subject matter, meaning the same distinct infraction, tax liability or obligation, not the year or return in general. Applying this principle, the High Court found that the assessment and rectification orders were unsustainable because the authority did not clearly determine whether the transactions covered by the earlier Central proceedings were being omitted from the State action or whether the State case involved separate infractions. The orders were quashed and the matter remanded for fresh consideration with a transaction-wise examination of overlap and exclusion of matters already covered by the Central authorities.
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Rs 1,600-1,700 cr a day, Rs 1 lakh cr in 10 weeks: Cost of insulating India from global energy shock
GST
Dated:- 10-5-2026
PTI
New Delhi, May 10 (PTI) About Rs 1,600-1,700 crore per day, over Rs 1 lakh crore in 10 weeks. That's the cost that state-owned oil firms incur for insulating Indian consumers from the global energy shock but ever-widening losses are now raising questions on how long they can continue bearing the cost without financially capitulating.

Since the war broke out in the Middle East 10 weeks ago, state-owned oil marketing companies (OMCs) have ensured uninterrupted supplies of petrol, diesel and cooking gas LPG at rates that are way below cost, unlike many global energy systems that imposed rationing or pass

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es were raised in March by Rs 60 per cylinder, but they are still way lower than the actual cost.

The revenues that OMCs earn from selling fuel are the only source that is used by them to buy crude oil (raw material), build infrastructure to process it into fuel and lay a network to take the product to consumers.

For 10 weeks, the OMCs have managed to insulate the Indian market but now the cost is visible, sources said adding they may have to borrow more to meet the working capital requirement (buying of crude oil).

“If elevated crude prices persist for an extended period, OMCs may require higher working capital borrowings and calibrated reprioritisation of some capex timelines,” a source said. “However, strategic investments in re

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come inevitable, but the timing and quantum of increase have to be decided by the government..

While countries from Japan to the United Kingdom have raised petrol and diesel prices by up to 30 per cent since the start of the West Asia conflict, fuel prices in India continue at two-year-old levels.

This despite the war disrupting India's import of 40 per cent of crude oil (raw material for making petrol and diesel), 90 per cent cooking gas LPG and 65 per cent natural gas (used to generate electricity, make fertiliser, turned into CNG and piped to household kitchens for cooking).

While the three OMCs have worked overtime to keep the supply lines running even when demand spiked due to panic buying, the government intervention inclu

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Punjab minister Sanjeev Arora sent to 7-day ED custody
GST
Dated:- 10-5-2026
PTI
New Delhi/Gurugram, May 10 (PTI) A court in Gurugram has sent Punjab's Industries Minister Sanjeev Arora to seven days of ED custody in a money laundering case, officials said on Sunday.

Arora, 62, was arrested on Saturday evening from his official residence in Chandigarh by the Enforcement Directorate (ED) in a GST fraud case following raids against him.

The central agency had also searched the premises of a company linked to Arora, Hampton Sky Realty Ltd, in Gurugram. The company said it had faith in the legal process and was fully cooperating with all the statutory authorities.

Arora was brought by the ED sleuths to Gurugram, Haryana, fr

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After ED raid, Hampton Sky Realty says company cooperating with statutory authorities
GST
Dated:- 9-5-2026
PTI
Chandigarh, May 9 (PTI) Hampton Sky Realty Limited, in which Punjab minister Sanjeev Arora served as a director, on Saturday said the company has faith in the legal process and is fully cooperating with all the statutory authorities and will continue to do so.

“All relevant facts, documents and verifiable records will be placed before the appropriate fora in due course of law. The company has complete faith in the facts of the case, in the integrity of its statutory records, and in the wisdom of the judiciary. It is confident that the truth will prevail,” said a statement issued by Hampton Sky Realty on Saturday evening.

The statement came after the Enforcement Directorate (ED) on Saturday arrested Punjab industries minister Sanjeev Arora following a series of raids in connection with a Rs 100 crore money laundering probe linked to alleged fraudulent GST

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s of mobile phones worth more than Rs 100 crore and subsequent exports to “round trip” alleged illegitimate funds from Dubai to India, according to the ED.

The ED has alleged that multiple fake GST purchase invoices were acquired from “non-existing” firms in Delhi to falsely claim input tax credit.

In the statement, Hampton Sky Realty said, “With reference to the recent developments concerning the proceedings of the Enforcement Directorate, the company places on record the following factual position. The company reposes complete faith in its established facts, and in the legal and constitutional framework of the country…” The statement said that recognising mobile phone exports as a thrust sector by the government of India, the company entered the cellphone export business in May 2023.

During the export period, the company exported 44,471 units of branded handsets and accessories, the statement said.

“Every export was verified at multiple statutory stages by in

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ing to a small number of the company's domestic suppliers. These transactions constitute only a small percentage of the company's total mobile phone procurement and are entirely on the supplier side.

“The company made all payments to suppliers through banking channels with GST duly charged, filed its GST returns regularly, and reflected all transactions on its books,” the statement said.

It also claimed that on its own initiative, when the supplier-side fraud came to the company's knowledge, it approached the police as the complainant by lodging an FIR on May 17, 2025, in Ludhiana against the said suppliers.

“The company is the victim of the alleged supplier-side fraud, and it proactively reported the matter to law-enforcement authorities approximately one year ago, well before any investigative pressure,” the statement said.

It added that where the GST authorities raised concerns regarding input tax credit, the corresponding GST amount was already deposited by the co

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ED arrests Punjab minister Sanjeev Arora in fresh PMLA case: AAP hits out at Centre
GST
Dated:- 9-5-2026
PTI
New Delhi/Chandigarh, May 9 (PTI) The Enforcement Directorate on Saturday arrested Punjab industries minister Sanjeev Arora following raids in connection with an alleged Rs 100 crore GST fraud-related money laundering case involving certain entities linked to him, officials said.

AAP chief Arvind Kejriwal and Punjab Chief Minister Bhagwant Mann condemned the ED action, accusing the Centre of using agencies like the ED and the CBI as “weapons” to scare opposition leaders into joining the BJP. But the BJP hit back, saying AAP supremo and his party are rattled as they know that “their days are numbered in Punjab”.

According to officials, Arora (62) was taken into custody under the Prevention of Money Laundering Act (PMLA) following early morning raids at his official residence in Chandigarh. They claimed that the minister was “non-cooperative” during the investi

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he civil provisions of the Foreign Exchange Management Act (FEMA), and on April 19 it provisionally attached movable and immovable assets of Hampton Sky Realty Ltd, its director Arora, and entities linked to him for alleged FEMA violation through bogus sales and exports to the tune of Rs 157.12 crore.

Arora was in June 2025 elected as Aam Aadmi Party (AAP) MLA from the Ludhiana West assembly seat. He was serving as a Rajya Sabha MP when the party leadership selected him to contest the assembly by-election following the death of the sitting MLA.

The latest probe (under the PMLA) pertains to “fake” GST purchases of mobile phones worth more than Rs 100 crore and subsequent exports to “round trip” alleged illegitimate funds from Dubai to India, according to the ED.

The ED alleged that multiple fake GST purchase invoices were acquired from “non-existing” firms in Delhi to falsely claim Input Tax Credit (ITC).

Arora was already under investigation in a money laundering case,

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olls early next year.

In recent weeks, the ED has taken significant actions against politically connected individuals in Punjab, which is due to go to the polls in early 2027.

In a Hindi post on X, Kejriwal alleged, “Modi ji has got daily ED raids started in Punjab soon after the Bengal polls concluded. Modi ji has coerced Punjab in the last few years and ill-treated Punjabis by different means.” Kejriwal said AAP Rajya Sabha MP Ashok Mittal joined the BJP after raids by the ED at his premises. Arora was also raided, but did not join the BJP; so another raid has been conducted, he alleged.

The agency had raided the premises of Lovely Group promoter and Rajya Sabha MP Ashok Mittal, who defected to the BJP along with six other AAP MPs.

Earlier this week, the agency conducted raids against various Punjab builders and real estate companies, as well as an alleged associate of an AAP functionary.

It also levelled allegations against Punjab AAP President and Cabinet Mini

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Input tax credit time-limit amendment required fresh adjudication; garnishee proceedings could not survive the quashed order.
Case-Laws
GST
The High Court quashed the order denying input tax credit and the consequential garnishee proceedings because the authority had not considered the later amendment to section 16, which extended the time-limit for availing input tax credit for specified years, or the CBIC clarification on its implementation. Following the approach adopted in earlier matters, the Court held that these subsequent legal developments had to be examined before a fresh decision could be made. The matter was remanded to the Assessing Authority for reconsideration in accordance with law, while the refund claim and all other contentions were left open.
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Statutory regulatory functions are not taxable business activity, and fees for such quasi-judicial work fall outside service tax and GST.
Case-Laws
GST
A statutory electricity regulatory commission's tariff, licensing and allied regulatory functions were held to be adjudicatory and regulatory in nature, not trade, commerce or business. Fees collected for discharging those functions were therefore not consideration for a taxable supply, and the Schedule III exclusion for services by courts and tribunals applied. The Court further held that no artificial bifurcation between regulatory and quasi-judicial functions was permissible. As the commission stood on the same footing as the regulatory commission considered in the earlier Delhi High Court ruling, the notices and orders seeking to levy service tax and GST were ex facie unsustainable and were set aside.
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E-commerce tax notice quashed for misapplying tax collection, input tax credit reversal, and fraud-based demand provisions.
Case-Laws
GST
A High Court quashed a show cause notice for misapplying the CGST/KGST Act. It held that Section 52 could not be invoked where the e-commerce operator did not collect consideration and was not shown to be collecting tax on behalf of suppliers; the notice also wrongly treated a separate affiliated entity's services as the petitioner's own. Section 17(2) was held inapplicable because the notice did not establish any mixed use for taxable and exempt supplies or any exempt supply attracting reversal of input tax credit. Section 74 could not be invoked without specific allegations of fraud, wilful misstatement or suppression with intent to evade tax. The writ was therefore maintainable and the notice was quashed.
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GST circular relief for invoice errors extended to financial year 2019-20; adjudication order quashed and remand ordered.
Case-Laws
GST
Where identical invoice-related errors were involved, the Court held that benefit under GST Circular No. 183/15/2022-GST could not be denied merely because the circular referred to earlier years, and it could be extended to financial year 2019-20. It further noted that Circular No. 193/05/2023-GST expressly covered the petitioner's relevant period. On that basis, the adjudication order was quashed and the matter was remanded for fresh consideration in accordance with law and the circulars.
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Anti-profiteering under GST requires passing on ITC benefit to buyers through price reduction, with interest and penalty exposure.
Case-Laws
GST
With the introduction of GST, a construction service provider received additional input tax credit on goods and input services and was required to pass on the commensurate benefit to homebuyers under anti-profiteering principles. The Tribunal upheld the revised computation comparing pre-GST and post-GST ITC to construction cost, rejected exclusion of input-service credit, and accepted price adjustment as a valid mode of passing on benefit. It also held that the balance profiteered amount had to be returned with the corresponding GST component, since collections from buyers were inclusive of GST, and interest at 18% per annum applied from the dates of collection until refund. Penalty under Section 171(3A) was found attracted for the post-commencement period.
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Rebuttable anti-profiteering presumption requires consideration of market forces and input costs; report remanded for fresh investigation.
Case-Laws
GST
In an anti-profiteering inquiry under section 171, tax reduction and input tax credit issues must still be tested against evidence that prices may also be affected by market forces and higher input costs. The Tribunal accepted that any presumption of profiteering is rebuttable and must yield to clear evidence. Because the DGAP acknowledged the respondent's documents but did not meaningfully reconsider them, the report was found unsustainable. The matter was remanded for a fresh investigation from the beginning under Rule 133(4), with liberty to both sides to place further material.
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Bakery goods and restaurant service can be taxed differently from the same premises if supplies and records are kept separate.
Case-Laws
GST
Pre-manufactured bakery items sold without cooking, preparation or processing are supplies of goods, with GST determined by the applicable HSN classification. Items such as pizzas, pastas, salads and shakes prepared or blended at the outlet on customer order are restaurant service, and that character is unchanged whether consumed on the premises or taken away. A registered person may carry on both activities from the same premises, but must keep separate turnover records and a separate series of tax invoices for each category to ensure correct GST treatment and input tax credit compliance.
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Delhi court rejects anticipatory bail plea of govt official accused of corruption
GST
Dated:- 8-5-2026
PTI
New Delhi, May 8 (PTI) A Delhi court on Friday dismissed the anticipatory bail plea of a government official accused by the anti corruption bureau of causing a loss of over Rs 5.5 crore to the government exchequer through illegal GST refunds.

Special Judge (PC Act) Ruchi Aggarwal Asrani was hearing the anticipatory bail of Himanshu Malik.

According to the prosecution, Malik, a lower division clerk (LDC) in the Department of Trade & Taxes at Vyapar Bhawan here, was complicit in a well-hatched conspiracy with others to facilitate the processing and approval of 61 GST refund orders to firm M/s Regional Trading, and tha

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/s Regional Trading transferred a particular amount of money (Rs 25 lakh) to M/s Arki, which further transferred an amount to M/s Uflix, which transferred it to the account of the parents of the applicant (Malik) just a couple of months after M/s Regional Trading received the alleged illegal GST refunds.” Regarding the argument that it was a “friendly loan”, the judge said that it had been given from a company account and not a personal account, and besides, there was no loan agreement.

“Since the factum of transfer of Rs 25 lakh has been admitted on behalf of the applicant, this court finds sufficient reasons to believe that the applicant needs to be interrogated to unearth the truth about the funds received through illegal

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Rs 30,000 cr loss a month: Oil companies bleed as fuel prices on hold amid global energy spike
GST
Dated:- 8-5-2026
PTI
New Delhi, May 8 (PTI) About Rs 700-1,000 crore loss per day. Rs 30,000 crore every month. India's state oil companies are quietly absorbing a massive financial hit to keep petrol, diesel and LPG prices unchanged even as global energy markets face a turmoil that is bigger than all previous crises combined.

While countries from Japan to United Kingdom have raised petrol and diesel prices by up to 30 per cent since the start of the West Asia conflict, fuel prices in India continue at two-year-old levels.

The war disrupted India's import of 40 per cent of crude oil (raw material for making petrol and diesel), 90 per cent cooking gas LPG and 65 per cent natural gas (used to generate electricity, make fertilizer, turned into CNG and piped to household kitchens for cooking), but state-owned oil companies have maintained uninterrupted fuel supplies with n

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d USD 70 per barrel two months ago, are now at USD 120, she said. “It has been government's endeavour to keep prices stable so far and that there is no price increase for consumers,” she said. “This has hit finances of OMCs… monthly under-recoveries are of the order of Rs 30,000 crore.” She, however, refused to say if retail petrol and diesel prices will continue to hold.

“As I said, the endeavour so far has been to see that there is no price increase,” she said.

The three oil marketing companies (OMCs) have worked overtime to keep the supply lines running even when demand spiked due to panic buying.

The government intervention included excise duty reductions and absorption of part of the fuel cost burden. The special additional excise duty on petrol was cut to Rs 3 per litre from Rs 13, while excise duty on diesel was reduced to zero from Rs 10 per litre.

The under-recoveries would have swelled to nearly Rs 62,500 crore had the government not cut excise duty on pet

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d consumers from higher retail prices placed significant strain on OMC balance sheets and refining margins, sources said.

They added that the measures reflected a policy decision to prioritise consumer stability and economic continuity during a global energy shock.

Sources warned that a prolonged period of elevated crude prices could lead to higher working capital borrowings and force some recalibration of capital expenditure plans. However, investments linked to refining expansion, energy security infrastructure, ethanol blending, biofuels and transition fuels would continue with government backing, they said.

India's approach contrasted with measures adopted by several other economies, where fuel prices rose sharply after the conflict-driven energy shock.

Petrol prices increased by about 34 per cent in Spain, 30 per cent in Japan, Italy and Israel, 27 per cent in Germany and 22 per cent in the United Kingdom, according to estimates. Several countries also introduced r

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Oil companies bleed Rs 30,000 cr as fuel prices held steady despite global energy shock
GST
Dated:- 8-5-2026
PTI
New Delhi, May 8 (PTI) India's state-run oil marketing companies have bled an estimated Rs 30,000 crore in losses since mid-March as they kept fuel and LPG supplies flowing without raising retail prices despite facing an energy disruption that is bigger than all previous crises combined.

Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have maintained uninterrupted supplies of petrol, diesel, LPG, aviation turbine fuel and other petroleum products since the start of the West Asia conflict, without raising retail prices despite a more than 50 pe

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g around USD 72 per barrel before the United States and Israel launched strikes on Iran on February 28, triggering a sharp escalation in West Asia tensions. Prices then surged as the conflict widened and shipping risks intensified in the Strait of Hormuz, with reports of disrupted tanker movement and heightened supply fears.

At the peak of the escalation, Brent briefly jumped to levels near USD 144 per barrel as Iran retaliated and closed the Strait, effectively freezing parts of global oil transit and amplifying volatility across energy markets.

Sources said the government intervention included excise duty reductions and absorption of part of the fuel cost burden. The Centre's effective absorption at peak crude prices was estimated a

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Despite these pressures, fuel and LPG supplies remained uninterrupted across the country.

The surge in crude prices and the decision to shield consumers from higher retail prices placed significant strain on OMC balance sheets and refining margins, sources said.

They added that the measures reflected a policy decision to prioritise consumer stability and economic continuity during a global energy shock.

Sources warned that a prolonged period of elevated crude prices could lead to higher working capital borrowings and force some recalibration of capital expenditure plans. However, investments linked to refining expansion, energy security infrastructure, ethanol blending, biofuels and transition fuels would continue with government

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Corporate guarantee without consideration is not taxable as a supply of service, though the GST valuation challenge failed.
Case-Laws
GST
Corporate guarantees issued by a company to secure loans for its subsidiaries were held not to constitute a taxable supply of service where no fee, commission, security or other consideration was received or payable. The Court treated the guarantees as in-house financial support, not a regular business of providing guarantees, and quashed the summons and show cause notice founded on GST demand. By contrast, the constitutional challenge to Rule 28(2) of the GST valuation rules failed because fiscal legislation and delegated tax measures are entitled to wide legislative deference, and no clear constitutional transgression was shown. The petition was therefore partly allowed.
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GST appeal limitation and writ condonation fail where no exceptional circumstances justify delay
Case-Laws
GST
The Appellate Authority cannot entertain a GST appeal filed beyond four months from communication of the adjudicating order, and Article 226 interference to bypass that statutory bar is confined to exceptional and extraordinary cases. Here, the order was served through the GST Portal and was within the taxpayer's knowledge, while the medical evidence did not show any disabling circumstance sufficient to explain the delay. The Court therefore found no exceptional ground to condone the delay or invoke writ jurisdiction, and the rejection of the appeal as time-barred was sustained.
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