Goods and Services Tax

Input tax credit time limit under amended law: HC allowed ITC for FY 2018-19 and set aside the larger demand.
Case-Laws
GST
HC applied the amended Section 16(5) to hold that the Section 16(4) time restriction was overridden for invoices or debit notes relating to FY 2018-19, allowing input tax credit to be availed in a return filed up to 30 November 2021. As the challenge based on delay under Section 16(4) no longer survived, the petitioner was entitled to ITC for the relevant period. The matter was disposed of on the petitioner's acceptance of liability for the excess utilised amount and interest, and the order confirming the larger demand was set aside.
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Vague show cause notice under GST law set aside where audit basis was incorrect and supporting material was withheld.
Case-Laws
GST
A High Court held that a show cause notice under Section 73 was unsustainable where it rested on a factually incorrect audit premise, the supporting audit report was not supplied, and the notice failed to disclose the material particulars needed for an effective reply. The notice alleged excess input tax credit, ITC mismatch, reverse charge liability and undischarged tax liability, but did not set out the basis for those allegations. Reading Section 73(3) with natural justice, the Court ruled that the assessee must be informed of the precise tax, interest and ITC discrepancies. The notice was set aside, with liberty to proceed afresh in accordance with law.
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Retrospective GST registration cancellation requires specific notice and minimum response time; same-day cancellation was set aside.
Case-Laws
GST
Retrospective cancellation of GST registration is permissible only if the taxpayer is specifically put on notice that such retrospective action is proposed and is given the statutory minimum time to respond. Here, the original show cause notice did not propose retrospective cancellation, and the later communication introducing that proposal did not comply with Rule 22 of the CGST Rules because no seven working days were allowed from service of notice. The same-day retrospective cancellation was therefore contrary to Rule 22 and violative of fair procedure. The HC set aside the cancellation order, while leaving the authorities free to begin fresh proceedings in accordance with law.
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GST appeal delay condoned where the portal blocked late filing, preserving the right to merits adjudication.
Case-Laws
GST
Delay in filing a statutory GST appeal against cancellation of registration was condoned under writ jurisdiction where the online portal did not permit filing after limitation expired and the delay was not shown to be deliberate. The Court held that although the Appellate Authority remains bound by Section 107 limitation, denial of a hearing on merits in these circumstances would cause grave prejudice and effectively deny the statutory remedy. Relying on prior Division Bench decisions, the Court treated the delay as arising from reasons beyond the petitioner's control and directed the Appellate Authority to entertain the appeal and decide it on merits.
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Wilful disobedience in civil contempt requires clear breach; substantial compliance defeats contempt, while quantum disputes go elsewhere.
Case-Laws
GST
Wilful disobedience is the core test for civil contempt under Article 215 and Sections 11 and 12 of the Contempt of Courts Act. The High Court held that the earlier writ order only required the employer to recalculate the withheld amount and pay it with statutory interest, not to pay a fixed sum. Because the authority undertook that exercise, determined entitlement, and made payment, substantial compliance was shown and no wilful disobedience was made out. Any challenge to the correctness or adequacy of the quantified amount lay before the appropriate forum, not in contempt.
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Mechanical GST registration cancellation quashed for non-application of mind and mismatch between notice and order.
Case-Laws
GST
The HC quashed cancellation of GST registration where the show-cause notice was cyclostyled, the authority ignored the taxpayer's reply, and the cancellation order departed from the notice without particulars. The Court held that such a mechanical exercise showed patent non-application of mind and failure to act in accordance with the statute. It also ruled that the availability of a statutory revocation remedy did not bar interference under Article 226 in these circumstances. The cancellation order was set aside and the GST registration restored.
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Statutory limitation for GST appeals cannot be extended beyond the condonable cap through writ jurisdiction.
Case-Laws
GST
Section 107 of the GST law allows an appeal within three months, with only one further month condonable on sufficient cause; once that outer limit expires, neither the Appellate Authority nor the HC can extend time. Applying Supreme Court guidance, the Court held that writ jurisdiction cannot be used to override the statutory limitation scheme, and explanations such as accountant negligence did not justify condonation beyond the cap. Having already pursued the statutory appeal, the petitioner was also not permitted to reopen the show-cause notice or cancellation order in writ proceedings, especially where no appearance was made before the appellate authority despite opportunity. The writ petition was dismissed.
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GST officer, aide arrested for taking Rs 9,000 bribe in Navi Mumbai
GST
Dated:- 7-4-2026
PTI
Thane, Apr 7 (PTI) The Navi Mumbai Anti-Corruption Bureau (ACB) has arrested a Goods and Services Tax (GST) official and his aide for allegedly accepting a bribe of Rs 9,000 from a software developer, an official said on Tuesday.

Based on a complaint, Amit Bhanudas Giri (45), a Class 2 officer posted at Konkan Bhavan, and his aide Vaishali Vasant Kadam (39) were caught accepting the bribe

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Writ jurisdiction declined where statutory appeal was available but not filed within limitation, barring bypass of remedy.
Case-Laws
GST
A writ petition challenging an order-in-original and recovery proceedings was not entertained because the petitioner had an available statutory appellate remedy with a prescribed limitation period and limited condonation, but failed to use it in time. The High Court held that Article 226 cannot ordinarily be invoked to bypass the statutory machinery where the party has disabled itself from pursuing the appellate remedy by its own default. Relying on Supreme Court authority, the Court declined writ jurisdiction and dismissed the petition after finding that the permissible appellate period had already expired.
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Documentary evidence in GST assessment must be considered before liability is fixed; assessment remanded for fresh item-wise review.
Case-Laws
GST
An assessment under Section 73 of the Tamil Nadu GST Act was set aside because the assessing authority did not adequately consider the assessee's documentary evidence on mismatch, alleged hypothetical supplies and double taxation. The court noted that the dispute depended on verification and reconciliation of the supporting material already stated to have been filed, so the proper course was to allow the assessee to file an additional reply and documents item-wise before the original authority. The matter was remanded for fresh consideration and correct determination of liability after granting that opportunity.
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Meaningful hearing requirement overrides alternate remedy where truncated notice and rushed adjudication breach natural justice.
Case-Laws
GST
A meaningful opportunity of hearing is part of audi alteram partem, and a truncated notice period for producing voluminous documents can amount to breach of natural justice. The HC held that mere attendance at the hearing was not enough where the statute contemplates a real, reasonable and effective opportunity, and that short adjournment requests must be fairly considered. Since the order was passed the same day as the hearing concluded, the court found legitimate concern that the material was not properly considered. The writ was entertained despite an alternate remedy objection, the impugned order was quashed, and the matter was remanded for fresh adjudication.
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Delay and laches barred interim protection against recovery action after the petitioner waited beyond the initial notice stage.
Case-Laws
GST
Delay and laches can defeat a request for interim protection against recovery proceedings where the party waits to approach the Court after receiving an initial notice threatening coercive action. The Court noted that the petitioner had already replied with objections to the notice, so any challenge to the proposed recovery and alleged non-consideration of the representation should have been made promptly at that stage. Because the petition was filed only after later recovery notices were issued, the delay was treated as unjustified for interim relief. Interim protection was refused, while the petition remained pending and the respondents were asked to explain the non-consideration of the representation and the timing of the recovery action.
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Writ jurisdiction and improper communication of order justified condonation of delay and revival of the statutory appeal.
Case-Laws
GST
The appellate authority had no power to condone delay beyond the statutory limit under Section 107, so its refusal to entertain the belated appeal was upheld. The High Court, however, found that the original adjudication order had not been properly communicated and the petitioner should not be left without a remedy. Exercising writ jurisdiction under Article 226 and applying the principle recognised in Tecnimont Private Limited, the Court condoned the delay independently, permitted revival of the appeal, and directed that the matter be decided on merits in accordance with law.
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SEZ refund claims must follow binding High Court precedent until overruled, with authorised operations endorsement examined on remand.
Case-Laws
GST
Authorities under the GST regime cannot disregard a binding High Court declaration on SEZ refund claims merely because the issue has been taken to the Supreme Court; the law declared in Britannia continued to apply until displaced by a contrary High Court or Supreme Court ruling. On that basis, the refund rejection and appellate orders were unsustainable insofar as they refused to follow Britannia. The Court also noted that the question whether the services were for authorised operations, supported by the specified officer's endorsement, had not been adjudicated below and required fresh examination. The matter was remanded to the Assistant Commissioner for reconsideration in accordance with law.
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Bank rebate on corporate card payments is a transaction in money, not consideration for supply, and falls outside GST.
Case-Laws
GST
Rebate received from a bank for payment of excise duty through a corporate card was treated by the AAR as a post-transaction monetary adjustment, not consideration for an identifiable supply of goods or services. Because taxable supply under the GST law requires consideration and a quid pro quo, and the rebate merely reduced the applicant's monetary liability, it fell within a transaction in money and outside the scope of supply. The Authority also noted the arrangement operated as short-term financial accommodation, with the rebate functioning as a discount linked to that facility. The rebate was therefore not liable to GST.
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India has enough fiscal space to push capex, support sectors impacted by West Asia crisis: FM
GST
Dated:- 6-4-2026
PTI
New Delhi, Apr 6 (PTI) Finance Minister Nirmala Sitharaman on Monday said fiscal prudence has given the government enough room to push capex and support sectors impacted by the West Asia crisis.

Besides, she said the Reserve Bank can go in for further rate cut to deal with the emerging situation.

Highlighting the importance of a good public finance policy in challenging times, the Finance Minister said, it improves the counter-cyclical capacity , especially the ability to 'lean against the wind' in economic downturn.

Today, many countries with high debt and large deficits have no room to manoeuvre and they face a grim choice between austerity and instability, she said at an event organised by the National Institute of Public Finance and Policy (NIPFP) here.

On the contrary, she said, “India has fiscal space — room to maintain our capex pro

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3 a litre, while on diesel it is zero currently.

On April 2, India exempted import of critical petrochemical products from customs duty to ensure supply stability and provide relief to consumers of final products amid disruption in shipping routes due to the West Asia conflict.

Besides crude, India is major importer of fertiliser and natural gas.

Observing that the current year is even more challenging than the previous one, Sitharaman said, “the escalation of Middle East conflict has evolved from a regional security concern into a systemic tremor threatening the vital arteries of global energy, and hardening the lines of a new, multipolar world order.” Recalling various global events that shadowed 2025, she said the year was monumental in more ways than policymakers initially thought.

“Trade fragmentation has introduced severe uncertainty into global supply chains. This led to sharp downward revisions in global growth forecasts, but the year ended more optimisticall

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iberate, sustained, and sometimes politically difficult choices made over years of fiscal management.

It was made possible because of the agile policies and stable leadership of this government, with a singular focus on ensuring India achieves godspeed progress, she added.

Stressing that India has undergone a massive structural transformation of public finance over the past decade, she said, “we have credibly changed the course of the fiscal policy from consumption-led deficits (under UPA) to productive investment-led consolidation under the leadership of Prime Minister Narendra Modi.” Prudent fiscal policy is not just about ‘austerity’ or cutting back expenditure, she said, it is also about spending the resources in an efficient and transparent manner.

This prudent management has strengthened India’s macroeconomic stability, resulting in credit rating upgrades from agencies such as Morningstar DBRS, S&P, and R&I in 2025, she added.

Recalling India's 'Fragile Fi

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Customs jurisdiction governs IGST on imports; State tax officers lack cross-empowerment against centrally allotted taxpayers.
Case-Laws
GST
IGST on imported goods falls within the customs assessment framework, so tariff classification, valuation, exemption and tax recovery are to be handled by customs authorities; GST officers cannot assess or recover such IGST, and the impugned notice on that issue was set aside. Cross-empowerment under GST operates only where the taxpayer is administratively allotted to the State and the officer is the proper officer; as the taxpayer was allotted to Central jurisdiction, the State tax officer lacked jurisdiction. A circular already struck down by a High Court was treated as inoperative nationwide without fresh invalidation. The notice also failed because it sought to cover multiple years in one show cause notice, and was set aside on that ground as well.
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Post-GST property pricing and ITC benefit: Tribunal finds no profiteering where the entire transaction occurred under GST.
Case-Laws
GST
In a post-GST construction-linked property transaction, the Tribunal held that phrases such as construction in the post-GST period and upfront payment of the full price do not require the flat to be fully built at agreement stage or payment to be made in one lump sum. It found that where booking, allotment, contracting, construction and payment all occurred during the GST regime, the pricing already reflected the post-GST ITC position, so no separate input tax credit benefit was claimable by the buyers and no locus existed to challenge the DGAP report on that basis. On the merits, the DGAP comparison showed no incremental ITC gain and therefore no contravention of Section 171 read with Rule 129(6).
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Anti-profiteering claim failed as additional input tax credit benefit was found to have been passed on to home-buyers.
Case-Laws
GST
The Tribunal accepted the DGAP report in an anti-profiteering matter concerning construction services and additional input tax credit on the footing that the benefit had already been passed on to home-buyers by commensurate price reduction. After redetermination, the report found excess benefit had been passed to eligible buyers, and the differential amounts with interest due to the two complainants had been paid and acknowledged. As no other home-buyer objected to the report, no surviving basis remained to hold profiteering against the respondent, and no contravention of section 171 was made out.
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Anti-profiteering under GST: failure to pass on additional input tax credit led to refund, 18% interest, and penalty exposure.
Case-Laws
GST
Additional input tax credit under GST had accrued to the respondent and was not passed on to homebuyers by commensurate price reduction, as the Tribunal accepted the DGAP's finding that the input tax credit-to-purchase value ratio increased post-GST and the respondent accepted the computation; this amounted to contravention of Section 171. The Tribunal further held that the obligation to pass on the benefit arose at the time of supply, so the profiteered amount had to be refunded with 18% interest from the date of collection of the last instalment until return to the eligible homebuyers. It also held that penalty was leviable under Section 171(3A), subject to the statutory proviso on deposit within thirty days.
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Margin-based GST valuation for second-hand cars applies only on strict compliance, with Heading 8703 classification and limited advance ruling scope.
Case-Laws
GST
Dealings in second-hand cars are covered by the margin-based valuation mechanism in Rule 32(5) of the CGST Rules read with Notification No. 8/2018-Central Tax (Rate), but only where the prescribed conditions are strictly met, including no availed input tax credit and supply as such or after minor processing that does not change the goods' nature; negative margin is ignored. Motor vehicles principally designed for transport of persons were classified under Heading 8703, with assessable value determined on the margin basis, but the exact rate of tax was not ruled upon because essential factual particulars were not furnished. The Authority also refused to give general suggestions, treating that request as beyond advance ruling jurisdiction.
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GST classification of biodiesel blends turns on petroleum oil content, splitting B20/B30 from B40-B70 under different tariff items.
Case-Laws
GST
GST classification of biodiesel-HSD blends follows the Customs Tariff Act, 1975 and the HSN Explanatory Notes adopted for GST interpretation. Blends containing 70% or more petroleum oils fall under Heading 2710: B20, conforming to IS 16531, is classifiable under tariff item 27102020, while B30 falls under the residual tariff item 27102090 because no specific entry covers it. Blends containing less than 70% petroleum oils are excluded from Heading 2710 and fall under Chapter 38: B40, B50, B60 and B70 are classifiable under tariff item 38260000 as biodiesel and mixtures thereof.
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Pure labour construction services for stand-alone residential units qualify for GST exemption when no goods or materials are supplied.
Case-Laws
GST
Pure labour services for construction-related original works in a single stand-alone residential dwelling unit are exempt from GST under Entry No. 11 of Notification No. 12/2017-Central Tax (Rate) when no goods or materials are supplied by the service provider. The exemption applies where the work consists only of labour-oriented construction, erection, commissioning or installation for a single residential unit that is not part of a residential complex. On the stated facts, the applicant supplied labour alone to individual owners of stand-alone houses, without transfer of property in goods, and the statutory conditions were satisfied. The advance ruling therefore recognised exemption from GST subject to the activity remaining original works and the unit remaining outside any residential complex.
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Residential villa construction is a taxable composite supply, with outsourced execution and deemed one-third land valuation applying.
Case-Laws
GST
Construction of residential villas under direct buyer agreements remains a taxable supply of services even where the actual building work is fully outsourced, because the promoter retains contractual responsibility and the outsourced work is only a mode of performance. The transaction is treated as a naturally bundled composite supply, with construction of the villa as the principal supply; the specific residential construction entry under Heading 9954(ia) applies over the general works contract entry. For valuation, the notified GST mechanism for construction involving land requires deduction of one-third of the total amount charged as deemed land value, and actual land pricing does not displace that statutory formula.
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Emergency care and life-support training treated as taxable commercial coaching; exemption denied for course and renewal fees.
Case-Laws
GST
Emergency care and life-support courses were treated as structured skill-based training, not public awareness of preventive health or charitable activity under Notification No. 12/2017. The Authority held that training delivered to identifiable participants for consideration, with evaluation, certification and renewal of certificates, did not qualify for exemption under Entry 1, and the same reasoning applied to renewal fees. It also found that the provider was not an educational institution for Entry 66 purposes because the courses were not part of a recognised curriculum or approved vocational education. The services were classified as commercial training and coaching services under SAC 999293 and held taxable at 18%.
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