Goods and Services Tax

Pre-trial detention in GST prosecutions requires demonstrated necessity; completed investigation and documentary evidence supported conditional bail.
Case-Laws
GST
Pre-trial detention is not punitive and must serve to secure the accused's attendance at trial. In a GST prosecution alleging wrongful availment and passing on of input tax credit through non-existent firms, the High Court noted that investigation was complete, the complaint was filed, and the evidence was documentary. With no criminal antecedents, exceptional circumstances, or material indicating flight risk, evidence tampering, witness intimidation or obstruction of justice, continued custody was unwarranted. The limited maximum punishment, Magistrate-triable nature of the offence and unlikely early completion of trial further supported release. Bail was granted subject to conditions protecting the trial and prosecution evidence.
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Condonation of delay restored the statutory GST appellate remedy after limitation-based dismissal was quashed and remanded for merits review.
Case-Laws
GST
Condonation of delay in a statutory GST appeal was granted in view of the peculiar facts, the absence of any merits adjudication by the Appellate Authority, and the respondents' no-objection to remand. The High Court restored the appellate remedy without examining the underlying controversy, quashed the limitation-based dismissal, and remanded the appeal to the Appellate Authority for fresh adjudication in accordance with law.
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Service of GST cancellation notices requires portal upload plus a prescribed personal mode to ensure fair hearing.
Case-Laws
GST
Portal-only service of a show-cause notice for GST registration cancellation does not satisfy the statutory service requirement where cancellation carries civil consequences. The notice should, in addition to being uploaded on the common portal, be communicated through another prescribed mode to provide the registered person a real and fair opportunity to respond. The discussed High Court ruling set aside the cancellation order, directed fresh notice, response and personal-hearing proceedings, and required a reasoned order. The pre-cancellation status quo was to continue pending fresh proceedings.
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GST record-maintenance penalties remain independently valid despite late fees for delayed return filing, sustaining penalties for missing prescribed records.
Case-Laws
GST
Late fee for belated filing of specified GST returns operates separately from the penalty for failure to keep, maintain or retain prescribed books of account and documents. Levy of late fee therefore does not bar an independent penalty for non-maintenance of records relating to production, manufacture, supplies, stock, input tax credit and output tax details. The High Court found no infirmity in the penalty order, dismissed the writ petition, and sustained the penalty for failure to maintain prescribed records.
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GSTAT appeals in common adjudication cases require separate review and filing by each noticee's jurisdictional CGST Commissionerate.
Circulars
GST
Departmental GSTAT appeals arising from appellate orders in DGGI matters adjudicated by a Common Adjudicating Authority must be reviewed separately for each taxable person or noticee by that person's jurisdictional CGST Principal Commissioner or Commissioner. The Commissionerate having jurisdiction over the Common Adjudicating Authority must receive the appellate order, obtain DGGI inputs where required, and circulate recommendations to the relevant jurisdictional Commissionerates. Where an appeal is warranted, the reviewing authority may authorise a subordinate officer to file and pursue it. Separate appeals must be filed by each noticee's jurisdictional Commissionerate before the GSTAT Bench with territorial jurisdiction over that noticee, with subsequent intimation to the Commissionerate of the Common Adjudicating Authority.
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Valid GST service requires prescribed statutory modes; portal uploads alone cannot trigger limitation, subject to waiver by participation.
Case-Laws
GST
Uploading GST notices or orders solely in the Common Portal's “View Additional Notices and Orders” tab was not authorised service because the notified portal functions and Rules did not prescribe that tab as a statutory mode of service. Such uploading could not commence the appeal limitation period, particularly where the interface did not prominently disclose communications. E-mail service required transmission of the notice or order itself to the registered e-mail address; an intimation alone was insufficient. Ex parte proceedings based solely on invalid portal service were restored for reply and hearing, while affected appeals could be considered on merits. However, an assessee that replied to and contested a show-cause notice could not later challenge the resulting order solely for defective portal service.
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Personal hearing and valid DIN requirements safeguard GST registration cancellation and prevent retrospective validation of defective notices.
Case-Laws
GST
GST registration cancellation requires the personal hearing mandated by Section 75(4), including fixation of at least three hearing dates. Revocation proceedings must consider returns and late fees uploaded before issuance of the notice; failure to do so indicates non-application of mind. A notice rejecting revocation should disclose the issuing officer's name and designation. Where a DIN was mandatory, a subsequent circular exempting portal-generated communications from DIN requirements cannot retrospectively validate a DIN-less notice. These requirements protect procedural fairness and the validity of registration cancellation and revocation actions.
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Personal hearing requirements in GST adjudication were satisfied by prior opportunities and written submissions; appellate limitation received writ-pendency exclusion.
Case-Laws
GST
A personal hearing is required before adverse GST adjudication where the assessing authority contemplates an adverse decision after considering the taxpayer's representation. The notes state that three hearing opportunities, followed by written final submissions from the authorised representative, satisfied that requirement; no further hearing was necessary merely because the order was issued later. The challenge on that ground remained closed. Statutory appellate recourse was permitted, with the writ-pendency period excluded for computing limitation and the condonable period, while other issues remained open. Refund of tax recovered was declined because the writ was filed after the statutory appeal period had expired.
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Separate tax-period assessment is mandatory under Section 74; composite GST adjudication was quashed and fresh proceedings directed.
Case-Laws
GST
Section 74 requires assessment by reference to a particular tax period; therefore, a composite notice and adjudication covering multiple assessment years as a block assessment is legally unsustainable. The composite adjudication was quashed, with fresh separate proceedings directed for each year. Where witness statements support GST liability or confiscation findings, cross-examination of non-co-noticee witnesses cannot be denied merely because statements were unretracted, corroborated, or presumed immune from challenge; the request must be reconsidered on proper reasons. Co-noticees facing penalties for aiding or abetting need not be cross-examined. Privately maintained documents, including pocket diaries, require proof through their author or responsible custodian; this issue remains open in fresh adjudication.
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Centralised GST taxpayer administration is under review for entities sharing a PAN across multiple Central Tax GST registrations.
Circulars
GST
CBIC has constituted a Working Group to examine centralised administration for taxpayers sharing a PAN and holding multiple GSTINs under Central Tax jurisdictions. The Group will assess difficulties caused by multiple administrations, compare earlier centralised registration and Large Taxpayer Unit models with international practices, and evaluate whether administration by a single Central Tax authority is needed. It will recommend whether the model should be optional or mandatory, define eligible GSTIN coverage, propose jurisdiction-allocation criteria, and identify necessary legal, administrative, system, organisational and manpower changes. The Group must submit an implementation roadmap and draft proposals to the Board within 30 days.
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GST registration restoration after return defaults requires revocation application, pending return filing, statutory-dues compliance and authority verification.
Case-Laws
GST
GST registration suspended for non-filing of returns may be restored where the registered person applies for revocation, furnishes pending returns and discharges statutory dues, subject to verification and consideration by the competent authorities in accordance with law. The text records that an applicant was permitted to seek revocation of suspension and restoration of registration within the prescribed period, with the authorities required to process the application after receipt of the certified copy. Restoration remains conditional on compliance with applicable GST requirements.
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Valid GST adjudication requires notice to an existing person; proceedings against a deceased proprietor are non est.
Case-Laws
GST
A GST adjudication notice must be issued to a correct and existing person as a condition precedent to valid proceedings. Section 93 permits recovery of tax, interest or penalty from a legal representative or a person continuing the business of a deceased proprietor, but does not authorise determination of liability against the deceased. Where authorities knew of the proprietor's death and that a legal heir continued the business, the heir's participation could not cure proceedings initiated against the deceased. The notice and consequential order were treated as non est and quashed, while fresh proceedings against the legal representative remain available in accordance with law.
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Pre-trial detention in GST prosecutions requires exceptional justification where investigation is complete and trial is delayed.
Case-Laws
GST
Pre-conviction detention must not be punitive: bail in GST prosecution serves to secure the accused's attendance at trial while preserving the presumption of innocence and personal liberty under Article 21. Where investigation is complete, the prosecution relies mainly on documentary, electronic and statement evidence, and trial is unlikely to conclude within a reasonable time, continued custody requires exceptional justification. The notes state that absence of criminal antecedents, absconding risk, witness intimidation or evidence tampering supported bail. Assessment proceedings do not bar criminal prosecution, although their outcome may affect it. Bail was granted subject to conditions protecting trial proceedings and prosecution evidence.
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Effective GST notice communication requires proper portal upload and a meaningful hearing before ex parte adjudication can stand.
Case-Laws
GST
Uploading GST notices and orders only in the 'Additional notices and orders' tab does not constitute effective communication under Section 73 of the WBGST Act and the applicable rules, unlike proper uploading in the normal tab. A show-cause notice and reminder that omit the date, time and venue of personal hearing also deny the taxable person an effective opportunity to reply and be heard. As determination under Section 73(9) requires consideration of the taxpayer's representation, an ex parte adjudication in these circumstances violates natural justice. The adjudication order was set aside, with fresh reply, hearing and reasoned adjudication directed; merits remain open.
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Advance-ruling mechanism governs pending GST classification, exemption and taxability disputes, limiting writ review once the specialised forum functions.
Case-Laws
GST
GST taxability, classification and exemption disputes should ordinarily be determined through the specialised advance-ruling mechanism where the taxpayer has already invoked it. The Authority for Advance Ruling is entrusted to examine the factual and legal issues, with an appellate remedy available against its ruling. Once the vacancy preventing the Authority from functioning was filled, the High Court declined to decide the same issues under Article 226. The challenge to the impugned communication was left open because its merits could affect the pending advance-ruling proceedings. The petitions were disposed of without merits adjudication, and the Authority was to determine the applications independently and expeditiously in accordance with law.
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Proceedings against an amalgamated company are invalid when initiated after its dissolution; successor companies retain standing to challenge them.
Case-Laws
GST
Proceedings initiated, continued and concluded against an amalgamating company after it ceased to exist are unsustainable. Although liabilities, existing claims and pending proceedings devolve on the transferee under an amalgamation scheme, post-amalgamation proceedings concerning earlier liabilities must be instituted against the successor company. Reference to, knowledge of, or participation by the successor does not cure proceedings conducted in the name of the non-existent entity, particularly where the order does not address the disclosed amalgamation. The successor has locus to challenge such proceedings because any resulting liability may be fastened upon it. The HC quashed the show cause notice and adjudication order, while leaving merits open and permitting fresh lawful proceedings against the successor.
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Effective hearing in GST adjudication requires a merits reply and consideration of procedural requests before final determination.
Case-Laws
GST
Effective opportunity to file a merits reply and seek procedural safeguards in GST adjudication was required where the taxpayer claimed belated awareness of a common show-cause notice and needed records for reconciliation. In the absence of established repeated adjournments, deliberate avoidance, or clear prior service, the High Court doubted the validity of an order passed without a merits reply. It set aside the adjudication order insofar as it concerned the taxpayer and restored the matter for fresh adjudication. The taxpayer must file its final reply within the stipulated period and request cross-examination or relied-upon documents with that reply; such requests must be decided before the final hearing.
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Reasoned tax notices and access to defence documents are essential; defective input tax credit proceedings require fresh adjudication.
Case-Laws
GST
Show-cause notices for alleged wrongful input tax credit under section 74 must state the specific reasons for the proposed tax action; merely reproducing the statutory provision is insufficient. Relevant documents requested for defence must also be supplied so that the noticee can participate effectively in the proceedings. A foundationally defective notice cannot be cured at appellate or revisional stages. On these principles, the defective notice, consequential recovery order and bank-account attachment were quashed, with liberty to issue a fresh reasoned notice and decide the matter afresh in accordance with law.
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Works contract transition to GST: prior tax components deducted from contract value did not establish double taxation.
Case-Laws
GST
GST applied to works completed after commencement of the GST regime. The notes state that contract bills deducted tendered KVAT and Service Tax components from the contract amount before adding GST, so simultaneous levy of KVAT and GST and resulting double taxation were not established. The tax adjustment explanation was described as consistent with the statutory scheme. They further distinguish disputes over bill calculations as factual matters for consideration by the appropriate forum rather than writ proceedings, while preserving the contractor's ability to seek resolution before jurisdictional authorities.
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Assignment of leasehold rights treated as transfer arising from land, with GST held not leviable on the transaction.
Case-Laws
GST
Assignment of leasehold rights by a lessee to a third-party assignee was treated by the Gujarat High Court as a transfer of benefits arising from land, not a taxable supply of services under section 7(1)(a) of the GST Act read with Schedules II and III. The Court applied strict construction of taxing provisions and concluded that GST was not leviable on the transaction. The Supreme Court dismissed the special leave petitions, referring to dismissal of a similar special leave petition.
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Interest on delayed GST payments cannot be charged after timely Electronic Cash Ledger credit; excess interest refund follows.
Case-Laws
GST
Interest on delayed GST payments is refundable where the tax was credited to the Electronic Cash Ledger before the return-filing due date, despite belated filing of the GST return. The note explains that a refund rejection based solely on the prospective operation of the proviso to Rule 88B was inconsistent with the applicable High Court precedent on interest computation. It states that the refund rejection and recovery notice were quashed, and the taxpayer was directed to receive the excess interest refund with statutory interest.
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Instalment payment of outstanding GST interest continues until December 2026, subject to automatic withdrawal upon any payment default.
Case-Laws
GST
Payment of outstanding CGST and SGST interest was permitted in equal monthly instalments until the end of December 2026. The instalment facility automatically ceases upon any default, requiring compliance with the prescribed payment schedule.
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E-way bill expiry alone cannot justify goods detention when breakdown delays delivery without evidence of tax evasion.
Case-Laws
GST
Expiry of an e-way bill alone did not justify detention where the vehicle reached the relevant city within the permitted period but could not complete the short remaining journey because of a breakdown. In the absence of any indication of tax evasion, treating the lapse as sufficient for detention was characterised as improper and hyper-technical. The High Court allowed the writ petition and directed that all proceedings arising from the detention be dropped.
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Financial incapacity may support a waiver request for mandatory pre-deposit before the appellate authority in exceptional circumstances.
Case-Laws
GST
Financial incapacity to make a mandatory statutory pre-deposit may be placed before the Appellate Authority through an application seeking waiver. The HC disposed of the petition with liberty to file such an application, directing that it be considered in accordance with law. The direction was expressly limited to the petitioner's peculiar facts and was not intended to operate as a precedent.
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Natural justice requires a further opportunity to substantiate disputed input tax credit transactions before final demand determination.
Case-Laws
GST
Opportunity to substantiate the genuineness of disputed input tax credit transactions was required under principles of natural justice where the taxpayer did not respond to portal-uploaded intimation and show-cause notice but asserted lack of other service and sought to produce supporting documents. The High Court quashed the demand order and restored the proceedings for fresh consideration, conditional on timely filing of documents and deposit of 10% of the demand, subject to the final outcome.
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