Goods and Services Tax

Communication of arrest authorisation safeguards access to anticipatory bail, while post-dismissal interim arrest protection cannot continue.
Case-Laws
GST
Interim protection from arrest is ancillary to anticipatory bail proceedings and cannot continue after a pre-arrest bail application is dismissed as not maintainable. Protection granted after such dismissal was therefore set aside. Communication of the Commissioner's arrest authorisation under the CGST Act is necessary to enable the affected person to seek anticipatory bail or challenge the recorded reasons through judicial review. The authorisation must be communicated electronically, in addition to other legally permissible modes; without prior communication, arrest cannot proceed. The affected person may pursue available legal remedies after communication, while the investigation continues independently of these observations.
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Transitional appellate pre-deposit rules preserve the provision existing when show-cause notices commenced adjudicatory proceedings before substitution.
Case-Laws
GST
Transitional applicability of the appellate pre-deposit requirement depends on the law in force when adjudicatory proceedings commenced through issuance of the show-cause notice. Appeals against penalty orders arising from notices issued before substitution of the proviso to Section 107(6) of the CGST Act remain governed by the earlier pre-deposit provision. Petitioners must pursue the statutory appellate remedy, with physical filing accepted where electronic filing is unavailable because no individual registration or temporary identification exists. The merits, including whether penalty provisions apply to a person who is not taxable, remain open for determination in accordance with the Supreme Court's ultimate decision.
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Effective GST notice service and personal hearing are mandatory before adverse adjudication following registration cancellation.
Case-Laws
GST
Service of GST notices after cancellation of registration must be effective, and an adverse adjudication requires a meaningful opportunity to reply and a personal hearing. Where registration had been cancelled and the taxpayer was not effectively served or heard, the adjudication order was quashed. The taxpayer was permitted to file a reply to the show-cause notice, and the Department could undertake fresh adjudication in accordance with law after granting a personal hearing.
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Alternative GST remedy permitted protective writ intervention for ex parte adjudication, preserving independent appellate review of input tax credit disputes.
Case-Laws
GST
Alternative statutory remedy under GST did not prevent protective writ intervention where an ex parte adjudication was linked to partners' medical exigencies and substantial tax, interest and penalty exposure. The input tax credit dispute remained undecided on merits. Recourse to the statutory appeal was permitted subject to payment of the prescribed pre-deposit and imposed costs, with the appellate authority required to entertain the appeal and determine it independently in accordance with law. The writ proceedings therefore preserved access to the appellate remedy without deciding the underlying input tax credit demand.
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Portal-issued show-cause notices require fresh assessment where the assessee complies with deposit and reply-filing conditions.
Case-Laws
GST
Assessment orders passed after non-response to portal-issued show-cause notices were quashed after the assessee agreed to make the stipulated deposit in instalments and appear before the assessing authority. The assessee may file replies and supporting documents, with the impugned assessment orders treated as addenda to the respective show-cause notices. Fresh adjudication on merits is conditional on compliance with the deposit and reply-filing requirements. If those conditions are not met, recovery proceedings may continue as though the writ petitions had been dismissed in limine.
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Verification of disputed tax recovery conditions fresh adjudication, while default permits statutory recovery after due notice.
Case-Laws
GST
Fresh adjudication of a confirmed tax demand may proceed only after verification that the entire disputed tax has been recovered or after deposit of any unrecovered balance. The demand was remitted for a final decision on merits, conditional on verification or payment of the disputed tax and submission of a reply to the show-cause notice with supporting documents. If those conditions were not met, recovery could continue in accordance with law after due notice.
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Written grounds of arrest and judicial scrutiny sustained GST arrest despite timing discrepancies and non-supply of recorded reasons.
Case-Laws
GST
Article 22(1) requires written communication of arrest grounds within a reasonable time and at least two hours before production for remand. Written grounds identifying the accused's alleged role, wrongful input tax credit, entities involved and particulars of fraud were treated as sufficiently specific; refusal to receive them did not render them vague. Conflicting arrest times did not invalidate the arrest where same-day production before the Magistrate caused no prejudice, and recorded reasons to believe were not required to be supplied. Judicial remand was supported by counsel representation, consideration of both sides' submissions, verification of statutory safeguards and recorded satisfaction on the arrest's justification. The criminal writ petition challenging the GST arrest and remand was dismissed without addressing the underlying merits.
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GST assessment against a deceased proprietor is invalid; fresh proceedings require notice and hearing for the legal representative.
Case-Laws
GST
GST assessment against a deceased proprietor has no legal efficacy, particularly where it is completed without the statutory personal-hearing opportunity under Section 75(4). The assessment order and consequential appellate rejection were declared invalid because the assessment followed the proprietor's death and did not address the hearing requirement. Fresh assessment proceedings may be initiated by issuing notice and providing a hearing to the legal representative or person carrying on the business. Recovery is limited to the deceased person's available estate, and the intervening period may be excluded when computing limitation for fresh proceedings.
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Deemed withdrawal of best-judgment assessment follows timely filing of a valid GSTR-3B return with applicable interest and late fees.
Case-Laws
GST
Section 62(2) of the GST law provides that a best-judgment assessment for non-filing of returns is deemed withdrawn when the registered person furnishes a valid return within the prescribed period. Furnishing the relevant GSTR-3B return, together with applicable late fee, additional late fee and interest, removes the assessment while preserving liability for interest and late fees. The provision therefore operates to withdraw the assessment automatically upon compliant post-assessment return filing.
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Assessment against deceased sole proprietor requires proceedings against the legal representative, rendering prior assessment and appellate orders invalid.
Case-Laws
GST
Assessment proceedings and an appellate order against a sole proprietorship were invalid because the proprietor had died before the assessment order was issued and the objection was raised in appeal. Where GST liability is pursued after a sole proprietor's death, the assessing authority must follow the procedure under Section 93(1)(b) of the CGST Act against the legal representative. The common appellate order was set aside, and the matter was remanded for fresh action against the legal representative after an opportunity of hearing.
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Composite supply requirement bars municipal-function exemption for burial-ground cleaning where cleaning equipment is not supplied to the Corporation.
Case-Laws
GST
Burial-ground upkeep and maintenance involving sweeping, cleaning and daily garbage collection is classified under SAC 999424 as general waste collection services, rather than a residuary service category. The municipal-function exemption under Entry 3A requires a composite supply of goods and services. Welfare kits, bins, tools, consumables and equipment used by the service provider to perform cleaning, without transfer of ownership or possession to the Corporation, do not constitute a supply of goods to the recipient. As the arrangement lacked the required composite supply, the Entry 3A exemption does not apply.
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Residential waste collection classification under SAC 999423 defeats composite-supply exemption where facilitating goods are not transferred to the local authority.
Case-Laws
GST
Residential housing-unit sweeping, cleaning, collection, segregation and storage of garbage are classified as general waste collection services under SAC 999423, which is more specific than the residuary category for other services not elsewhere specified. The arrangement is not eligible for the exemption available for composite supplies of goods and services to a local authority in relation to municipal functions. Cleaning and garbage removal formed the predominant supply, while welfare kits, bins, tools and consumables merely facilitated service performance and were procured at the service provider's cost. As ownership or possession of those items was not transferred to the local authority, no supply of goods occurred and the composite-supply condition was not met.
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GST registration and TDS compliance require government bodies to deduct tax, report payments, and obtain supplier tax clearance.
Circulars
GST – States
Government departments, governmental societies and agencies engaging contractors or suppliers must obtain GST registration as tax deductors if unregistered. They must deduct GST TDS at 2% on contracts and government supplies exceeding the prescribed threshold and file Form GSTR-7 online by the 10th of the following month. For contracts below the TDS threshold, departments must submit prescribed details to the Commissioner of Taxes. Future contracts may be awarded to contractors or suppliers only upon submission of a Tax Clearance Certificate confirming payment of prior tax dues. Officers may be held personally liable for omissions or commissions causing revenue loss.
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50 tonnes of copper without e-way bills seized by Delhi GST, Railways joint team
GST
Dated:- 13-8-2026
PTI
New Delhi, Aug 13 (PTI) Delhi Goods and Services Tax (GST) department in a joint operation with railway officials seized around 50 tonnes of illegal copper and two tonnes of aluminium ingots being transported in a freight train without valid e-way bills and invoices, an official statement said on Thursday.

The estimated value of the seized copper is around Rs 6 crore while t

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CBI ARRESTS CGST SUPERINTENDENT IN BRIBERY CASE
GST
Dated:- 13-8-2026

The Central Bureau of Investigation (CBI) has arrested the Superintendent, CGST, Ibrahimpatnam, Vijayawada, Andhra Pradesh, in a bribery case.

The CBI registered the instant case on 10.08.2026 against the said accused based on a complaint alleging that the accused public servant demanded a bribe of Rs. 1,50,000 from the Complainant, who is running a private company, for not issuing a demand notice towards tax l

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GST search powers: Sealing cannot retain seized material after search, and prohibition orders cover confiscable goods only.
Case-Laws
GST
GST search powers require seized documents, books and things to remain with the proper or authorised officer only while necessary for examination, inquiry or proceedings; returning custody while retaining seizure is inconsistent with that scheme. Material still required may be taken into fresh custody through a fresh seizure order linked to the original seizure. A prohibition order may apply only to goods liable to confiscation where physical seizure is impracticable, not to office equipment, files, documents, books or things that are not confiscable goods; the prohibition order was quashed. Sealing premises is permissible only during an ongoing search when access is denied, not after search completion to store seized material; de-sealing and restoration of possession were directed.
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GST registration revocation requires fresh consideration after returns, taxes and late fees are fully complied with.
Case-Laws
GST
GST registration cancelled for non-compliance may be considered for revocation where pending returns are filed, tax liabilities are paid and late fees are deposited. Filing returns shortly after cancellation supports fresh consideration because permanent cancellation can restrict the taxpayer's ability to conduct business. Revocation applications should be assessed by the competent authority after compliance with return-filing, tax-payment and late-fee requirements. The appellate and revocation-rejection orders were set aside, and the revocation application was remitted for fresh consideration within two months.
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Natural justice in GST adjudication requires consideration of the assessee's reply before an ex parte demand order is made.
Case-Laws
GST
Non-consideration of an assessee's detailed reply to a GST show cause cum demand notice violates principles of natural justice. An ex parte adjudication order passed without addressing that reply is infirm and perverse. The High Court therefore quashed the order and remitted the matter for fresh, independent and reasoned adjudication after an effective opportunity of hearing. No merits of the underlying GST demand were decided.
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Alternative statutory remedy under GST prevails where factual and evidentiary objections require appellate review of adjudication orders.
Case-Laws
GST
Writ jurisdiction against CGST Orders-in-Original is unavailable where the statutory appeal provides an efficacious and comprehensive remedy for reviewing facts, law, evidence and adjudicatory correctness. Objections concerning hearing, notice service, technical difficulties, evidentiary authentication, corroboration, cross-examination and voluntary payment require record-based factual assessment by the appellate authority. Neither patent lack of jurisdiction nor a manifest, common breach of natural justice was established to justify bypassing that remedy. Petitioners who had already invoked the statutory appeal could not simultaneously pursue writ relief over the same order without exceptional circumstances. The writ petitions were dismissed, with merits left open for appellate consideration, including any request to exclude time spent in writ proceedings according to law.
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Input tax credit entitlement survives delayed rectification where returns meet the retrospective statutory filing cut-off for credit eligibility.
Case-Laws
GST
Input tax credit under section 16(5) of the CGST Act is a retrospective statutory entitlement where relevant returns were filed within the prescribed cut-off. Failure to submit a rectification application within the period set by a departmental circular does not by itself defeat that entitlement. The denial of credit was quashed because the show-cause notice acknowledged timely filing under section 16(5), and the claim was remitted for reconsideration, subject to satisfaction of other eligibility conditions.
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Conditional refund release pending departmental appeal protects revenue recovery while preventing unjustified withholding of an allowed refund.
Case-Laws
GST
Refund allowed in an assessee's appeal may be released despite a pending departmental appeal before the Tribunal where no hearing has been fixed. Withholding was considered unwarranted given the petitioner's status as a manufacturing company and its undertaking to deposit any liability ultimately arising if the departmental appeal succeeds. Release was made conditional on furnishing that undertaking and a certified copy of the order, with the Revenue directed to issue the refund within six weeks. The departmental appeal remained subject to adjudication by the Tribunal.
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Electronic GST service requires acknowledgment or response; portal-only upload cannot replace formal service of notices or adjudication orders.
Case-Laws
GST
Electronic service of GST show-cause notices and adjudication orders requires more than uploading them to the 'View Additional Notices and Orders' tab of the GST Common Portal. Portal-only uploading does not constitute proper service under the CGST Act unless the recipient acknowledges receipt or responds. A retrospective amendment permitting functions under the GST Rules to be performed through the portal does not expand the portal's specified functions or replace formal statutory service. The writ petition was disposed of consistently with the established position on deficient portal-only service.
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Additional input tax credit benefit was not established where post-GST credit ratio declined and transitional VAT credit was inapplicable.
Case-Laws
GST
Section 171(1) requires suppliers to pass any additional input tax credit arising from GST implementation to recipients through a commensurate price reduction. Project-specific CA-certified data was accepted because statutory records consolidated figures across projects and could not provide a project-wise split. The post-GST ratio of credit availed to purchase value had declined, showing that no additional input tax credit accrued. Transitional VAT credit passed to eligible purchasers did not concern the applicant, whose agreement was executed after GST implementation and for whom no corresponding VAT credit arose. The DGAP report was accepted and profiteering was not established.
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Appealability of advance ruling rejections is limited: only rulings pronounced on merits may be appealed.
Case-Laws
GST
Appeals under the advance ruling mechanism lie before the Appellate Authority only against an advance ruling pronounced under section 98(4) of the CGST Act. An order rejecting an advance ruling application under the first proviso to section 98(2) does not constitute such a ruling. Consequently, an appeal against rejection of the application is not maintainable under section 100(1), and was held inadmissible.
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End-use exemption for uncoated paper requires actual qualifying use; purchaser declarations alone cannot establish entitlement.
Case-Laws
GST
Entry No. 128 exempts uncoated paper and paperboard under Heading 4802 only when actually used to manufacture exercise books, graph books, laboratory notebooks or notebooks. Tariff classification alone does not establish eligibility: the use-based condition requires a factual end-use relationship, and purchaser declarations, purchase orders or contractual terms evidencing intended use are not conclusive. Exemption notifications require strict construction and cannot be expanded through unstated certification or verification requirements. As no statutory framework prescribes end-use certificates, bonds, monitoring, diversion consequences or records, the Advance Ruling Authority cannot recognise purchaser documents as a legally sufficient compliance mechanism. The manner of availing the exemption falls outside advance-ruling jurisdiction.
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