Goods and Services Tax

Alternative remedy of appeal must be exhausted; appellate authority has wider inquiry powers, writ dismissed in absence of prejudice.
Case-Laws
GST
High Court reiterates that extraordinary writ jurisdiction should not bypass the alternative remedy of appeal except in exceptional circumstances; the appellate authority has wider powers to make further inquiry and may confirm, modify or annul impugned orders, so contested questions of fact should be addressed on appeal. Failure to plead or produce best evidence permits an adverse inference and the petitioner bears the burden to supply documents showing active business and absence of false invoices. Because the petitioner withheld documentary evidence and has not shown prejudice from any non supply, the petition is dismissed and the statutory appeal remedy under section 107(11) must be pursued.
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Cancellation of GST registration: furnishing pending returns and full tax payment enables restoration if the officer finds compliance.
Case-Laws
GST
Cancellation of GST registration for non-filing of returns was addressed: if the registrant furnishes all pending returns and makes full payment of tax, interest and late fee as required by the proviso to the relevant CGST Rule, the empowered officer has authority to drop proceedings and pass an order in the prescribed form and restore registration. The petitioner was directed to apply for restoration within two months; the authority must consider compliance and complete the restoration process expeditiously, preferably within 60 days of receipt of the certified order.
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Cancellation of GST Registration: restoration permitted on filing pending returns and full payment; limitation computed from this order.
Case-Laws
GST
Proviso to sub rule (4) of Rule 22 of the CGST Rules permits an empowered officer to drop cancellation proceedings under Section 29(2)(c) if the person furnishes all pending returns and makes full payment of tax, interest and late fee, and to pass Form GST REG 20; restoration follows on compliance. The petitioner may apply for restoration within two months and the authority must consider and, if requirements are met, restore registration expeditiously. Computation of limitation under Section 73(10) runs from the date of this order, with the financial year 2024 25 treated as per Section 44; arrears including tax, penalty, interest and fees remain payable.
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Provisional release is statutory: release on payment in lieu of confiscation applies only after a final confiscation order.
Case-Laws
GST
Provisional release under seizure provisions is available only where the statute expressly permits it; section 130's release on payment of fine operates after a final confiscation order, so initiation of confiscation does not authorize retention. Detention requires compliance with the transit-detention procedure; inspection under the MOV forms is time-bound and ends on completion of physical verification, after which possession cannot be lawfully continued without a statutory detention order. Property deprivation must be by law under Article 300A and officers must show source of power. Resultantly, goods were ordered released on bond and confiscation proceedings to be concluded with opportunity to be heard.
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Right to be heard: deficient portal service of show-cause notices warrants remand and fresh personal hearings with replies considered.
Case-Laws
GST
Failure of electronic portal upload to effectuate show-cause notices denied the petitioner effective opportunity to be heard; the HC treated effective service and audi alteram partem as determinative and set aside the impugned ex-parte orders. The court remanded both matters, granted the petitioner four weeks to file replies, and directed the Adjudicating Authority to issue personal-hearing notices communicated via registered mobile number and email. The authority must consider the filed replies and oral submissions and pass fresh orders on the SCNs after personal hearings.
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Profiteering and Input Tax Credit: balance refund and interest to remaining buyers required within 30 days.
Case-Laws
GST
Profiteering analysis found a residual input-tax-credit benefit of Rs.5,80,280 due to 13 eligible home buyers in a residential project; respondent already passed greater ITC benefit to 240 buyers. Tribunal directs the respondent to pay the balance Rs.5,80,280 to the 13 buyers with interest as per Rule 133(3)(b) within 30 days and to file a compliance report with the CGST/SGST Commissioner and DGAP within two months. Penalty under Section 171(3A) is held leviable because the contravention period extends into the provision's operative date (01.01.2020).
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Pre-deposit obligation: taxpayer may seek refund of excess recovery after representing payment to GST authorities.
Case-Laws
GST
Petitioner alleges compliance with pre-deposit obligations at two appellate stages and seeks relief from recovery; court directed petitioner to make representation to GST authorities proving payment and allowed authorities to verify and call for clarifications. Any sum recovered in excess of the cumulative deposits required at the two appellate stages must be refunded. Court did not determine merits and left substantive decision to the GST authorities, who may examine evidence and take an informed decision on refund and stay-related consequences.
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Quashing of Administrative Order subject to deposit and hearing; matter remitted for fresh adjudication with refund or adjustment.
Case-Laws
GST
Quashing of the administrative order was ordered subject to the petitioner depositing the full contested liability within two weeks as an undertaking; the authority must thereafter provide an opportunity of hearing, consider the petitioner's reply and written submissions, and undertake fresh adjudication. The court set aside the impugned Order-in-Original and permitted the petition partly, with the deposited amount to be refunded or adjusted as appropriate after the re-adjudication. The relief granted was conditional on the undertaking to deposit and did not preclude remand for fresh decision-making.
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Constitutional prohibition on taxation without authority prevents retention of tax paid twice; refund cannot be denied solely by statutory limitation.
Case-Laws
GST
Retention by the State of tax paid in excess or twice is inconsistent with the constitutional prohibition on taxation without legal authority; where a tax liability has been discharged, amounts deposited mistakenly or by double payment must be restituted. The administrative refusal to refund based solely on the statutory time limit for refund applications is inapplicable when retention would violate Article 265. Accordingly, a refund claim for tax paid under mistake cannot be denied exclusively by invoking the limitation provision, and the writ seeking restitution was allowed.
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Condonation of delay in export remittance requires a reasoned order and an opportunity to be heard; matter remitted for fresh decision.
Case-Laws
GST
Condonation of delay in receipt of export remittance under the CGST framework requires a reasoned order and opportunity for hearing; a mere communication or intimation cannot substitute for an order. The impugned communication purportedly rejecting the petitioner's representation was not a reasoned order and no hearing was afforded. The matter is remitted to the competent commissioner to reconsider the condonation request afresh, afford the petitioner an opportunity to be heard, and pass a reasoned decision addressing the grounds raised by the petitioner.
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Anti profiteering: directory limitation, benefit not passed where prices rose; interest from notification date, penalty non retroactive.
Case-Laws
GST
Anti profiteering provisions are treated as consumer protective and the six month period in Rule 133 is directory, so proceedings are not time barred. Where a supplier increased base prices coincident with a GST rate reduction, the presumption that tax benefit was not passed applies and the supplier is required to disgorge the profiteered amount. Interest on the disgorged amount can be imposed only from the date the interest clause became effective (28.06.2019). Penalty under the provision that came into force later cannot be applied retrospectively. Half the recovered amount is directed to the central consumer welfare fund and half to the state fund.
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Location of Supplier determines registration state; movement across States triggers IGST while intra state supplies attract CGST and SGST.
Case-Laws
GST
Section 22(1) and the definition of “location of supplier of services” frame the registration rule: a supplier must register in the State from which taxable supplies are made, being the place of business or fixed establishment for which registration is obtained. On the facts the applicant has no office or fixed establishment in Rajasthan; its location of supplier is Uttar Pradesh, so it is not obliged to register in Rajasthan merely because the construction site (place of supply) is located there. Concerning inward supplies the Authority could not conclusively determine taxability for want of invoices; as a principle, movement of goods across States attracts IGST, whereas supplies and delivery wholly within the State attract CGST and SGST.
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Vikas Coal and Minerals wins bid to operate Jalna dry port
GST
Dated:- 21-2-2026
PTI
Jalna, Feb 21 (PTI) Nagpur-based Vikas Coal and Minerals Pvt. Ltd has secured the mandate to operate the Jalna Dry Port for 15 years, following the National Highway Authority accepting its bid, a senior NHAI official said.

Inaugurated in March 2024, the facility spreads across nearly 400 acres of land on the outskirts of Jalna city and is being developed to function as a Multi-Modal Logistics Park (MMLP).

The dry port is strategically located near the Delhi-Mumbai Industrial Corridor as well as along major national transportation routes.

“Out of the six bids received by the NHAI, the tender of Vikas Coal and Minerals Pvt. Ltd has been a

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freight consolidation and slash logistical cost from 14 per cent to less than 10 per cent of GDP on par with International Standards.

The project was approved in 2014. However, actual cargo movement had not commenced due to operational delays and repeated tender processes. The project was later transferred to the NHAI from JNPA, which floated fresh tenders.

“Initially, 400 acres of land were acquired and secured with a compound wall. Although the project faced delays, renewed follow-ups helped accelerate progress. Key infrastructure, including customs clearance for imports and exports, has already been approved,” said the official.

He said essential facilities have been developed on 64 acres, and a dedicated railway line has been

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Facility for Withdrawal from Rule 14A
GST
Dated:- 21-2-2026

GSTN has enabled a new online facility for eligible taxpayers to apply for withdrawal from the option availed under Rule 14A of the CGST Rules by filing Form GST REG-32 on the GST Portal.

1. Who can apply

• Active Taxpayers who are registered under Rule 14A, may apply for OPT OUT in accordance with the provisions of the law.

2. How to apply on the GST Portal

• After login, navigate to:

Services -> Registration -> Application for Withdrawal from Rule 14A

The link will be visible only if the taxpayer is registered under Rule 14A and is active.

• The field “Option for registration under Rule 14A” will be selected as “No” by default

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will have to undergo either OTP based Aadhaar authentication or Biometric based Aadhaar Authentication.

• Authentication is required for:

• Primary Authorised Signatory (mandatory), and

• At least one Promoter/Partner (where applicable).

• ARN will be generated only after successful Aadhaar authentication.

5. Important timelines

• Draft application must be submitted within 15 days of creation.

• Aadhaar/Biometric authentication must be completed within 15 days from submission.

• If authentication is not completed within the prescribed time, ARN will not be generated.

6. Restrictions during processing

• While Form GST REG-32 is pending after submission, Taxpayer ca

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Natural justice: Cancellation of GST registration requires objective reasons and specific particulars; vague show-cause notices are invalidated.
Case-Laws
GST
Vagueness in a show-cause notice and failure to disclose material particulars violated natural justice: cancellation of GST registration must rest on objective satisfaction of jurisdictional facts and independent quasi-judicial reasoning, not on investigative dictation. A non-speaking order repeating investigative allegations without identifying tax periods, invoices, suppliers or quantification is invalid. Consequently the impugned notices and cancellation orders were set aside and the petitioner's registration restored; the authority may, if advised, issue a fresh detailed show-cause notice specifying precise allegations, periods, invoices, suppliers and quantification and afford a reasonable hearing.
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Videography of statements during GST summons allowed as limited humanitarian accommodation where cooperation and serious illness are shown.
Case-Laws
GST
Petitioners sought accommodation for videography of statement recordings and presence of counsel during summons in a GST summons inquiry, asserting genuine transactions, banked payments, and pending appeals by suppliers. The petitioner with serious illness sought humanitarian consideration; petitioners offered cooperation. The court accepted a limited, non precedential accommodation-permitting videography and humane treatment consistent with cooperation-and directed disposal on terms similar to a prior coordinate bench order, while noting the relief is exceptional and fact specific.
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Profiteering under GST: respondent ordered to refund profiteered sums to homebuyers with applicable interest and penalty.
Case-Laws
GST
Profiteering under the GST regime was found where the Respondent accepted the DGAP-calculated excess and complainants withdrew complaints; the Tribunal directs the Respondent to pass on the profiteered amount of Rs.98,72,474 to homebuyers and to pay applicable interest under Rule 133(3)(b) of the CGST Rules, 2017, with compliance reporting to the jurisdictional CGST/SGST Commissioner and DGAP within prescribed timelines. The Tribunal also holds that penalty under the post 2020 penalty provision applies because the contravention period spans 01.07.2017 to 31.03.2024, making penalty leviable under the applicable statutory provision for profiteering.
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Condonation of delay barred beyond the statutory 30 day extension; appeals filed late are time barred and not adjudicated on merits.
Case-Laws
GST
Condonation of delay in filing appeals against AAR orders is limited to a maximum extension of 30 days beyond the normal 30 day appeal period; the Appellate Authority (AAAR) lacks power to extend beyond that statutory window, so appeals filed beyond that limit must be rejected as time barred without consideration of merits. Rule permitting manual filing where electronic filing is prescribed does not excuse delay caused by non uploading of an order on the portal. The note also records the classificatory issue that transactions in immovable property may be outside Schedule III but treated as a service under Schedule II clause 5(e), though merits were not reached due to time bar.
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Classification of paper bags rests on tariff heading and biodegradability; lacking proof, bags attract the standard 18% GST rate.
Case-Laws
GST
Paper bags composed of paper/paperboard are classifiable under Chapter 48's packing containers heading and, absent evidence of biodegradability, do not qualify for the concessional 5% rate for “Paper Sacks/Bags and bio-degradable bags.” Carton-specific entry for corrugated/non-corrugated cartons is inapplicable to bags. The product falls in the residual category of the packing-containers heading, bringing it under the cited Schedule II entry and attracting an 18% GST rate (9% CGST + 9% SGST).
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Classification of polymer bags: concessional GST applies only if biodegradable; authority cannot determine biodegradability; certification insufficient alone.
Case-Laws
GST
Classification turns on the material and HSN heading: the bags are classified under Chapter 39 (plastics, heading 3923) regardless of claimed compostability. The Authority finds a compostability certificate was produced but holds it lacks competence to verify scientific biodegradability or the sufficiency of testing procedures; that determination lies with environmental authorities and falls outside its jurisdiction under the CGST framework. The concessional GST rate for 'Paper Sacks/Bags and bio-degradable bags' is conditional on actual biodegradability; if the goods are biodegradable the concessional 5% rate applies, otherwise general Chapter 39 rates apply.
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Input Tax Credit: foundation and structural supports can be plant and machinery, but no ruling where work was already completed.
Case-Laws
GST
Advance ruling maintainability and ITC eligibility are considered for construction of foundations and structural supports for heavy machinery. The Explanation to section 17 treats foundation and structural supports as part of ''plant and machinery'' (excluding land, buildings and similar civil structures), making them potentially eligible for ITC when used for outward supplies. The application lacked documentary proof on ITC eligibility, payment, availing and filings, and the works were completed before the AAR application; because advance rulings apply only to supplies being undertaken or proposed, the authority declined to rule on the merits.
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Extension of Time for Appeal: grant of time with protection from dismissal on limitation and merits adjudication.
Case-Laws
GST
Extension of time for filing the appeal granted until 16-3-2026 with express protection that if filed by that date the appeal shall not be dismissed on limitation and shall be adjudicated on merits; pre-deposit requirement for the statutory appeal does not preclude this relief as the petition is disposed of on that basis. The court declined to interfere with the impugned High Court order and disposed of the Special Leave Petition subject to the time-extension and non-dismissal on limitation safeguard.
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Interest computation now uses minimum cash balance; portal auto populates non editable minimum interest while taxpayers may increase it.
News
GST
From January 2026 the portal's GSTR 3B filing is enhanced: interest is computed using the net tax liability minus the minimum cash balance in the Electronic Cash Ledger from the return due date to payment date (per proviso to Rule 88B(1)), and that system computed interest in table 5.1 will be auto populated as a non editable minimum while taxpayers may self assess and increase it. The portal will auto populate the tax liability breakup in GSTR 3B from document dates in GSTR 1/GSTR 1A/IFF for earlier periods; values are suggestive and may be raised by taxpayers. From January 2026 IGST exhaustion permits cross utilisation of CGST/SGST ITC in any sequence. Delayed final returns (GSTR 10) will collect interest for late last GSTR 3B filings.
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Medical grounds for bail: release ordered where investigation is complete, subject to sureties and passport surrender.
Case-Laws
GST
Bail was granted on medical grounds where investigation was reported complete and custodial interrogation was not required; the petition cited completed probe despite recovery of incriminating physical and digital evidence indicating tax evasion under the GST Act. The court accepted petitioner's documented MRI diagnosis and advised neurosurgery and directed release on bail subject to furnishing a bail bond with two sureties who must be income taxpayers and to surrender the petitioner's passport to the trial court while furnishing bonds.
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Validity of service after registration cancellation requires alternative service; fresh notice and entitlement to personal hearing follow.
Case-Laws
GST
Validity of service by uploading a show-cause notice on the common GST portal after cancellation of registration was treated as deficient; the prevailing principle requires alternative modes of service where registration is cancelled, following prior authority. The impugned adjudication order issued after portal-only service was quashed, with liberty to the revenue to issue a fresh notice and re-adjudicate. The petitioner must be afforded an opportunity for personal hearing in accordance with the statutory right to be heard (audi alteram partem) during re-adjudication.
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