Goods and Services Tax

Onerous bail conditions: additional bank guarantee cannot be required when personal bond and sureties have already been furnished.
Case-Laws
GST
A bank guarantee cannot be imposed as an additional bail condition where the accused has already furnished a personal bond and sureties. Applying Saravanan v. State represented by the Inspector of Police, the Court treated such an extra requirement as an onerous condition beyond the bail security already accepted. The added bank guarantee was therefore not legally sustainable in the circumstances, and the condition was set aside. The appeal was allowed.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

E-way bill and prescribed documents required for release of detained goods; detention upheld when documentation was absent.
Case-Laws
GST
Release of goods under section 129(1)(a) was unavailable where the supplier did not produce an e-way bill or any genuine prescribed documents. The High Court treated the absence of statutory transport documents as sufficient to justify detention and refused release of the goods, and the Supreme Court dismissed the SLP challenging that view. The text also notes issues concerning suspension of registration, prohibition on taxable supply, validity of a tax invoice during suspension, and the requirement to generate an e-way bill by the supplier, recipient or owner.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Retrospective GST on SEZ insurance supplies stayed as Court finds arguable jurisdictional challenge to amendment-based demand.
Case-Laws
GST
Retrospective GST demand on insurance supplies to SEZ units raised a prima facie jurisdictional issue, because the amendment inserting the words “for authorised operations” could not, at this stage, be used to tax past supplies that had been treated as zero-rated. The Court found the challenge arguable on the competence to levy tax retrospectively for the period before 1 October 2023 and noted the statutory definition of “recipient” under the CGST Act, observing that the SEZ units had subscribed to the policies and paid the consideration. Pending final hearing, the impugned orders were stayed.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Premature recovery from electronic credit ledger stayed where statutory appeal period and Section 78 recovery period had not expired
Case-Laws
GST
Premature recovery from an electronic credit ledger was restrained where the ledger was debited before expiry of the appeal period and before the statutory recovery period under Section 78 had run. The Court held that recovery could not commence until three months after service of the order, unless recorded reasons justified curtailment under the proviso to Section 78. Finding no such reasons, and noting that similar petitions had already received interim protection, the Court granted interim relief by staying the appellate order, directing re-credit of the debited amount, and restraining further recovery.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Electronic credit ledger blocking lapses after one year under Rule 86A(3); expired restriction must be lifted.
Case-Laws
GST
Rule 86A(3) of the CGST Rules, 2017 limits blocking of an electronic credit ledger to one year from the date of imposition, so the restriction ceased by operation of law once that period expired. The HC held that the petitioner was entitled to unblocking without a separate declaration, and rejected the Department's reliance on cancellation of registration or possible future proceedings to extend an expired restriction. The impugned blocking was set aside, while issues concerning ITC eligibility and any other proceedings were expressly left open.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Writ maintainability in State contracts upheld; equitable GST adjustment applied and discriminatory denial set aside.
Case-Laws
GST
Writ jurisdiction was held maintainable in a contractual dispute involving a State instrumentality because the challenge concerned the applicability and interpretation of a State order amending the Public Works Financial & Accounts Rules, not merely a private contract remedy. The respondent corporation, being under State control and bound by the governing rules and circulars, was subject to Clause 36E providing equitable adjustment when tax rates change during performance. Clause 45.1 could not override that later adjustment mechanism. Denial of the revised GST benefit, when extended to other State bodies, was arbitrary and discriminatory under Article 14. The rejection letter was quashed and refund of the differential GST with interest directed.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Article 22(2) challenge failed as arrest and magistrate production were found within the constitutional time limit.
Case-Laws
GST
Article 22(2) was not violated because the court found that arrest took place after completion of the search and statement recording, and production before the magistrate at 8.30 pm the same day remained within the 24-hour constitutional limit, even after accounting for medical examination time. The challenge to the arrest also failed because the grounds disclosed material from investigation showing involvement in an organised online gaming and shell-entity network alleged to have caused GST evasion under the CGST Act. The court accepted that the record showed prior summons, search action and non-cooperation, and held that the arrest was backed by sufficient material. Relief in writ jurisdiction was therefore declined.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Rule 86A cannot support negative blocking of input tax credit beyond credit actually available in the Electronic Credit Ledger.
Case-Laws
GST
Rule 86A permits blocking of input tax credit only to the extent credit is actually available in the Electronic Credit Ledger. Where the ledger shows no balance or a negative balance, the provision cannot be used to create or sustain further blocking. Applying that principle, the High Court upheld the blocking only up to the positive balance available in the ledger and quashed the excess negative blocking as without jurisdiction. The Department was left free to pursue the remaining disputed amount through adjudicatory proceedings after issuing a fresh show-cause notice.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Mandatory hearing in refund proceedings required before rejection under Rule 92(3); curtailed reply period invalidates the order.
Case-Laws
GST
Rule 92(3) of the CGST Rules requires notice in Form GST RFD-08, a full fifteen days to reply in Form GST RFD-09, consideration of that reply, and an opportunity of hearing before refund rejection. The High Court held that curtailing the reply period to seven days, rejecting the claim the next day, and ignoring the petitioner's e-mail response breached the mandatory procedure. The rejection order was therefore unlawful and set aside. The proper officer was directed to issue fresh notice in conformity with Rule 92(3), consider the reply, grant a hearing, and pass a fresh order in accordance with law.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Completed special audit cannot be reopened for a supplementary report; challenge to provisional attachment became infructuous.
Case-Laws
GST
Section 66 contemplates a special audit only where the case is complex and the competent officer records the requisite opinion in the interest of revenue; once that audit is completed and the report is filed, a supplementary or additional report cannot be directed because it would reopen a concluded exercise. The Court also noted that the audit had already served its purpose for the provisional attachment proceedings, so a further Chartered Accountant's report would serve no purpose. The writ challenge to provisional attachment also failed because the bank accounts had already been defreezed and the attachments lifted, rendering the petition infructuous.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Premature writ challenge to GST DRC-01A intimation rejected; department must first follow show cause adjudication and appeal process.
Case-Laws
GST
The HC held that a writ challenge to a GST DRC-01A intimation under Section 74(5) read with Rule 142(1A) was premature because the communication was only a pre-adjudication step. As no adjudication had yet occurred, and the proposed demand required factual examination including the special audit report, the dispute was not fit for writ interference. The department was directed to issue a show cause notice, grant a hearing, and pass a reasoned order. The petitioner may then pursue the statutory appellate remedy under Section 107 against the adjudicatory order, with all contentions left open.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Input tax credit cannot be denied to bona fide recipients merely because the supplier failed to remit tax.
Case-Laws
GST
Section 16(2)(c) of the CGST/KGST Act and Rule 36(4) of the CGST/KGST Rules were read down, not struck down, so that input tax credit is not denied to a bona fide recipient who has satisfied the other statutory conditions merely because the supplier failed to remit tax to the Government. The High Court accepted that a purchaser cannot be required to ensure the supplier's tax payment, as that would impose an impossible burden and penalise the recipient for another's default. The provisions were therefore confined to non-bona fide, collusive or fraudulent transactions, and ITC remains available to genuine recipients affected only by supplier default.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Contractual health-centre operations taxed as composite services, with exemptions for healthcare and pure services denied.
Case-Laws
GST
Operation and management of Government health centres and polyclinics under a contractual arrangement with a PSU executing agency was treated as a taxable supply of contractual operational and managerial services. Entry 74 exemption for healthcare services by a clinical establishment was denied because the applicant itself was not supplying healthcare as the clinical establishment, and the payments were linked to centre-wise operational obligations rather than diagnosis or treatment. Entry 3 exemption for pure services was also unavailable because the supply was made to the PSU, not directly to Government, and the arrangement was composite rather than pure services. Receipts were characterised as contractual consideration, not grant or subsidy.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Canteen recoveries taxed, ITC denied on contractor bills, while notice pay recovery was held outside GST.
Case-Laws
GST
Canteen recoveries from employees were treated as taxable consideration: the AAR held that the employer's provision of a canteen was ancillary to its business, and the salary deduction represented payment for a separate supply by the employer to employees, so GST was payable on the amount recovered. Input tax credit on GST charged by the canteen contractor was denied because the inward supply was restaurant service taxable at the notified concessional rate without input tax credit, which could not be overridden by the general ITC provision. Notice pay recovery was held not taxable, because it was a deterrent for premature exit rather than consideration for tolerating an act, and the employee received nothing in return.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tariff classification of inedible vegetable oil mixtures under Chapter 1518 determines 5% GST rate.
Case-Laws
GST
A proposed mixture of vegetable oils marketed as “Pooja Oil” and labelled “Not for Human Consumption” was classified under Chapter Heading 1518 because headings 15.07 to 15.15 cover single oils, heading 15.16 applies only to chemically transformed products, and heading 15.17 is limited to edible mixtures. The Authority treated the declared non-human use and marketing description as decisive, and rejected theoretical edibility as irrelevant. On that classification, the product fell within Entry No. 96 of Schedule I of Notification No. 9/2025-Central Tax (Rate) and was taxable at 5%, comprising 2.5% CGST and 2.5% SGST.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Service of show cause notice is essential before ex parte adjudication; absence of proof of service vitiated the order.
Case-Laws
GST
Service of a show cause notice must be proved before ex parte adjudication can stand; where the record did not establish service on the assessee, the SC held that the order violated natural justice and set it aside on that limited ground, granting liberty to file a reply and permitting fresh adjudication. The Court, however, rejected the challenge that the notice was vague or issued without application of mind, holding that objection to be without merit and closed for the fresh proceedings. Only the reply to the notice, and any jurisdictional plea open on the record, could be considered by the assessing officer on remand.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST offences below the statutory threshold are non-cognizable and bailable, defeating anticipatory bail on arrest apprehension.
Case-Laws
GST
GST offences involving liability below the statutory threshold are treated as non-cognizable and bailable under Section 132 of the CGST/CGGST Act, 2017. The High Court noted that the proceedings against the applicant related to a GST liability of less than Rs. 5 crore and held that, on that basis, the alleged offence did not justify an apprehension of arrest. The plea for anticipatory bail under Section 482 BNSS was therefore found to be without merit and was rejected.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Input tax credit dispute remanded after factual claim was confirmed and prior orders were set aside.
Case-Laws
GST
The HC quashed the original and appellate orders under the CGST regime because a material factual claim regarding reversal and reclassification of input tax credit before the show cause notice had not been properly considered. The petitioner had raised the point earlier, but it was rejected for want of documentary support; however, the respondent later confirmed the correctness of that submission before the Court. On that limited basis, the Court held that the foundation of the impugned orders required reconsideration and remanded the matter to the adjudicatory authority for fresh decision expeditiously, leaving all merits open.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST budgetary support turns on parity with similarly situated units; verification ordered before extending corresponding benefits.
Case-Laws
GST
GST budgetary support under Notification No. 20/2007 was examined in light of the 22-02-2023 clarification and the earlier coordinate Bench view on similarly situated units. The Court noted that the exemption applied to units commencing commercial production by 31-03-2017 and that the petitioner's eligibility certificate reflected commencement after modernization from 30-03-2017. As the respondents did not dispute the coordinate Bench position, the Court did not decide entitlement on merits and instead directed verification of whether the petitioner stood on the same footing as the units covered by M/s Sai Enterprises and analogous matters. If parity is confirmed, the corresponding benefits are to be extended.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Brand name exemption upheld where rights were foregone and extended limitation under Section 74 was unsustainable.
Case-Laws
GST
Goods bearing a common pictorial representation and packaging features were held to fall within the amended definition of brand name, but the exemption under Serial Nos. 73 and 74 of Notification No. 2/2017-Central Tax (Rate), as amended, remained available because the petitioner had filed the prescribed affidavit voluntarily foregoing any actionable claim or enforceable right over the brand name and the department had treated the goods as unbranded. The corporate name printed on the package, being required under food and legal metrology laws, could not by itself defeat the exemption. The invocation of the extended period under Section 74 also failed, as the relevant facts were already disclosed to the department; only the normal period under Section 73 could apply. The issue of bunching multiple tax periods in one notice was left open.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Sanctioned GST refund cannot be withheld for administrative delay; balance refund and applicable interest must be paid.
Case-Laws
GST
A sanctioned GST refund of unutilised input tax credit could not be withheld because the balance remained unpaid due to revalidation and internal processing delays. The High Court held that an amount lawfully due could not be kept pending on account of administrative red tape, and that the authorities should have coordinated to complete disbursement. It accordingly directed release of the outstanding State tax refund with applicable interest under the GST enactments within 30 days.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Civil aviation ministry looks at multiple options to minimise West Asia crisis impact on airlines
GST
Dated:- 29-3-2026
PTI
New Delhi, Mar 29 (PTI) The civil aviation ministry is exploring multiple options to minimise the impact of the West Asia conflict on airlines, including engaging with state governments to cut taxes on jet fuel.

Indian airlines' operational costs are spiralling due to surging oil prices and airspace curbs in the wake of West Asia turmoil, involving the US, Israel and Iran, which began on February 28.

A highly placed source said the ministry was considering multiple options as part of larger efforts to reduce the impact of the West Asia conflict on the carriers.

Civil Aviation Minister K Rammohan Na

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

cut the excise duty on petrol and diesel this week. The special additional excise duty on export of diesel and ATF has been hiked, a move aimed at prioritising their domestic availability.

According to the highly placed source, aviation watchdog DGCA is in touch with its counterparts in other countries on the evolving situation in West Asia.

On March 26, DGCA (Directorate General of Civil Aviation) chief Fiaz Ahmed Kidwai said airlines were facing big challenges and their operating costs were going up.

“… we hope we see better days,” he said and emphasised that the DGCA was trying to promote ease of doing business for airlines to help them grow and flourish, as well as taking steps for passenger rights. PTI RAM BAL BAL BAL

=

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

HSNS Cess portal procedure sets out online registration, ERN generation, challan payment and tracking requirements.
Circulars
GST
HSNS Cess registration and payment are to be carried out through the CBIC taxpayer portal from 01.02.2026. New applicants must complete login, new registration, PAN validation, OTP verification and ERN generation, then file Form HSNS REG-01 with prescribed business, premises, promoter, authorised signatory and bank details, together with listed supporting documents. On successful submission, a temporary registration number is generated and used for payment. Monthly HSNS cess is to be paid electronically in Form HSNS PMT-01 by the 7th day of the relevant month through challan generation, ICEGATE payment, and challan tracking facilities.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

CM urges Odisha people to avoid panic buying, hoarding amid West Asia crisis
GST
Dated:- 28-3-2026
PTI
Bhubaneswar, Mar 28 (PTI) Odisha Chief Minister Mohan Charan Majhi on Saturday urged the people of the state to refrain from panic buying to keep the supply chain functioning smoothly amid the West Asia conflict.

He also lauded the Central government's move to cut excise duty on petroleum, terming it a “timely” and a forward-looking step that prioritises citizens and upholds the 'nation first' principle.

The government has slashed excise duty on petrol and diesel by Rs 10 per litre each, a move aimed at shielding domestic consumers from a surge in global oil prices triggered by the West Asia conflict, at an estimated reve

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e said the meeting focused on the 'Team India' spirit to overcome the challenges ahead, emphasising economic stability, proactive agricultural planning, and focused attention on border and coastal states for shipping and essential supplies.

Chairing the meeting on Friday night, Prime Minister Modi on Friday said the global situation arising out of the West Asia conflict remains dynamic, and asserted that maintaining economic and trade stability, ensuring energy security, strengthening industry and supply chains, and safeguarding citizens' interests remain the government's top priorities.

This was the first time that the prime minister held a meeting with the chief ministers on the West Asia conflict that started on February 28 with at

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

CBIC organises outreach programme on Duty Deferment Scheme for Eligible Manufacturer Importers in New Delhi
GST
Dated:- 28-3-2026

CBIC Member (Customs), Delhi Chief Commissioner for Customs, Chief Commissioner, Delhi Customs (Preventive) Zone, and Chief Commissioner, DIC

 participate and deliberate on key benefits and modalities of scheme with trade bodies, industry and key stakeholders

In pursuance of the key trade facilitation initiative announced in the Union Budget 2026-27, the Central Board of Indirect Taxes & Customs (CBIC) organised a hybrid outreach programme in New Delhi on the Duty Deferment Scheme for Eligible Manufacturer Importers (EMI) in New Delhi, today.

Shri Yogendra Garg, Member (Customs), CBIC;

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

compliance environment. Shri Garg also encouraged stakeholders to avail the benefits of the scheme and provide feedback.

Shri Manish Kumar highlighted that the scheme enhances the commercial viability of manufacturer importers by enabling better import scheduling and more efficient working capital management.

ABOUT THE EMI SCHEME

The EMI Scheme enables deferred payment of import duties, allowing eligible manufacturer importers to clear goods without upfront duty payment. Duties are to be paid on a monthly basis.

The scheme is inclusive and extends to MSMEs. It aligns with the Government's Make in India initiative and aims to strengthen domestic manufacturing by improving liquidity and expediting cargo clearance.

Key Benefits

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =