Goods and Services Tax

Taxpayers Moved to Large Taxpayer Unit for GST and Coal Cess Compliance from June 1, 2025
Circulars
GST – States
Certain taxpayers registered under the West Bengal Goods and Services Tax Act, 2017, have been transferred from various local charges to the Large Taxpayer Unit to enhance revenue administration. This jurisdictional change includes compliance responsibilities related to the Cess on coal under the West Bengal Primary Education Act, 1973, and the West Bengal Rural Employment and Production Act, 1976. The transfer applies to taxpayers listed in the attached annexure and takes effect from June 1, 2025. Any difficulties in implementing this order may be reported to the Commissioner of Commercial Taxes.
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Tax Authority Deselects Eight Registered Persons from Audit Under Section 65 of West Bengal GST Act 2017
Circulars
GST – States
The tax authority deselected eight registered persons from audit under section 65 of the West Bengal Goods and Services Act, 2017, for the periods between April 1, 2021, and March 31, 2023. The deselection was based on reasons including cancellation of registration ab initio and referral to the National Company Law Tribunal. This decision applies immediately and removes these entities from the list of those subject to audit for the specified periods.
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Net FDI has fallen steeply, domestic investors gripped by 'fear': Congress slams govt
GST
Dated:- 28-7-2025
PTI
New Delhi, Jul 28 (PTI) The Congress on Monday claimed that the net foreign direct investment has fallen steeply while domestic investors are gripped by “fear and uncertainty”, as it asked the government to support incomes, end its “crony capitalist and tax terrorism” policies, fix the GST, and protect Indian industries from Chinese dumping.
The opposition party's assertion came after Finance Minister Nirmala Sitharaman's reported remarks that IndiaÂ’s private sector investment has not kept pace with the growing public expenditure.
In a post on X, Congress general secretary in-charge communications Jairam Ramesh said,

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awaits fundamental reform, Ramesh argued.
Finally, the “dumping” of cheap imports from China which is taking place despite the loss of Indian territory in Ladakh has also led to the closure of domestic manufacturing units, foreclosing the possibility of new investments, he said.
“Acknowledgment is the first step. Now comes the hard part the government needs to take action to support incomes, put an end to its crony capitalist and tax terrorism policies, fix the GST, and protect our industries from Chinese dumping,” Ramesh said.
The Congress has been attacking the government over its handling of the economy, claiming the issues of rising prices, decreasing private investment and stagnating wages were hitting the common people hard. PTI

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Adjudicating and appellate orders set aside for violating natural justice under GST Act and EPCG Scheme, case remanded for fresh decision
Case-Laws
GST
The HC set aside both the adjudicating authority's order dated 27.07.2023 and the appellate authority's order dated 21.05.2024, finding a violation of natural justice due to failure to consider the petitioner's reply and supporting circulars. The adjudicating authority did not provide reasoned or speaking orders, neglecting to analyze the applicability of the petitioner's submissions and statutory provisions under the Central/Bihar GST Act, 2017, and the EPCG Scheme. The appellate authority's partial favorable observations were insufficient to cure the procedural lapses. Consequently, the matter was remanded to the adjudicating authority for a fresh decision, mandating thorough consideration of all contentions and documents in accordance with statutory requirements and the Government of India's export promotion policy. The petition was allowed by way of remand.
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Recovery of CGST before appeal period expiry was wrongful; refund with interest ordered under relevant statute
Case-Laws
GST
The HC held that the recovery of CGST from the petitioners' account prior to the expiration of the appeal filing period was erroneous. The Assistant Commissioner acknowledged the recovery was made by mistake. Consequently, the respondent is directed to rectify the error by refunding or reversing the erroneously recovered amount to the petitioners' account, along with applicable interest under the statute. This remedial action must be completed by 26.07.2025. The petition is accordingly disposed of.
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Electronic Credit Ledger Payment Discharges GST Liability; Sec. 74 Not Applicable Without Wilful Misstatement or Suppression
Case-Laws
GST
The HC held that since the entire tax liability was discharged through the electronic credit ledger before any intimation or show-cause notice, and there was no wilful mis-statement or suppression by the petitioner, the provisions of Sec. 74 of the GST Act are inapplicable. The petitioner's failure to offset the tax liability from the credit ledger was inadvertent and not indicative of fraud. Consequently, the HC directed the respondent AO to pass a fresh de novo order under Sec. 73 of the GST Act, after affording the petitioner an opportunity of hearing, within three months from receipt of the order. The petition was disposed of accordingly.
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Denial of Input Tax Credit on Motor Vehicle Expenses Upheld Under Sections 16(1), 16(2), and 17(5) of CGST Act
Case-Laws
GST
The HC upheld the denial of input tax credit (ITC) claimed on invoices related to motor vehicle purchase, repair, and maintenance, finding violations of Sections 16(1), 16(2), and 17(5) of the CGST Act, 2017, and Section 20 of the IGST Act, 2017. The petitioner failed to demonstrate payment to sundry creditors within the mandatory 180-day period as required under Section 16(2), relying solely on a chart without furnishing corroborative bank statements or documentary evidence. The Court affirmed the proper officer's conclusion that the petitioner did not substantiate timely payment, thereby justifying disallowance of excess ITC availed in GSTR-3B vis-à-vis GSTR-2A. Jurisdictional validity of the authority's action was not disputed, and partial compliance with the order was acknowledged. The petition challenging the officer's evaluation of evidence was dismissed, and the matter was disposed of accordingly.
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Order under Sec. 129(3) GST quashed for violating natural justice by denying proper hearing opportunity
Case-Laws
GST
The HC quashed and set aside the impugned order of tax and penalty levy under Sec. 129(3) of the GST Act due to a flagrant violation of principles of natural justice. The respondent authorities passed the order on the same day as the interception of goods without granting the petitioner adequate opportunity to respond to the show-cause notice, despite the statutory seven-day period for such orders. The court declined to examine the merits of the levy, focusing solely on procedural impropriety. The matter was remanded to the respondent authorities for reconsideration and to afford the petitioner a proper hearing. The petition was allowed accordingly.
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Ex-Parte Assessment Order Quashed for Violating Natural Justice Under Section 75(4) of BGST Act 2017
Case-Laws
GST
The HC held that the impugned ex-parte assessment order and subsequent demand under Form DRC 07 were invalid due to violation of natural justice principles, specifically non-service of proper notices and failure to grant an opportunity of hearing as mandated by Section 75(4) of the BGST Act, 2017. The Court clarified that uploading notices under incorrect headings did not satisfy statutory requirements. Furthermore, the issuance of a show cause notice without scheduling a personal hearing did not constitute an opportunity for hearing since the authority was still seeking a response. As no personal hearing was provided before passing an adverse order, the statutory procedure was not followed. Consequently, the HC set aside the impugned order and allowed the petition, emphasizing strict adherence to procedural safeguards under the Act.
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Software developer booked for GST evasion, house raided in Nashik
GST
Dated:- 27-7-2025
PTI
Nashik, Jul 27 (PTI) The Goods and Services Tax (GST) department conducted a raid at the house of a software developer accused of tax evasion and creating fake invoices in Maharashtra's Nashik, an official said on Sunday.
A team from the Pune Goods & Services Tax (GST) intelligence department raided the house of Shrikant Prasad Parhe in the Nashik Road area on Saturday, the official said.
A

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Tax Authority Extends GST Audit Completion Period for 2021-2022 Audits Under Relevant State GST Act
Circulars
GST – States
The tax authority extended the audit completion period under the relevant state GST Act for audits commencing between April 1, 2021, and March 31, 2022, due to delays caused by requests from audited parties for additional time to produce accounting records. The original three-month completion requirement from the audit start date was deemed insufficient. The extension allows audits to be completed by August 22, 2025, or three months from the actual audit commencement date, whichever is later. This extension is effective immediately.
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Penalty under Section 129(3) GST Act quashed due to technical glitch, no intent to evade tax found
Case-Laws
GST
The HC set aside the penalty imposed under section 129(3) of the GST Act for non-filing of Part-B of the e-way bill, finding no intent to evade tax. The petitioner demonstrated that the omission was due to a technical glitch, a fact undisputed in the record. The Court relied on precedents affirming that mere non-filing of the e-way bill does not attract penalty absent a tax evasion intent. As no authority below recorded any finding of willful tax evasion, the penalty was unwarranted. Consequently, the petition was allowed, and the impugned order imposing the penalty was quashed.
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HC refuses extraordinary relief in ITC blocking under Rule 86A, emphasizing factual inquiry and evidence-based decisions
Case-Laws
GST
The HC declined to exercise extraordinary jurisdiction under Articles 226 and 227 in a petition challenging the blocking of input tax credit under Rule 86A of the CGST Rules, 2017, relating to alleged non-existent suppliers. The Court emphasized that Rule 36 requires documentary evidence for claiming input tax credit, and fact-finding on the genuineness of invoices and related records falls within the competence of the adjudicating authority. It held that Rule 86A mandates a reasoned, objective determination based on material evidence before disallowing credit, not mere suspicion. Given the factual nature of the dispute, the HC remanded the matter to the competent authority to consider the petitioner's explanation with an opportunity of hearing within four weeks. The writ petition was disposed of accordingly, leaving factual adjudication and verification to the statutory authorities.
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PVC Raincoats Classified Under HSN 3926 as Plastic Articles, Attracting 18% GST Under Schedule III Entry 111
Case-Laws
GST
The AAAR held that PVC raincoats are correctly classified under HSN Code 3926 as plastic articles, not under HSN Code 6201 for textile apparel, since PVC is a synthetic polymer and not a woven textile. The mutually exclusive nature of Chapters 39 and 62 precludes classification of PVC raincoats as textile garments. Consequently, the GST rate applicable to PVC raincoats is 18% under Schedule III, entry no. 111, rather than 5% under entry no. 223, which applies solely to textile clothing items valued at Rs. 1000 or less. The appellant's supply of PVC raincoats falls within the plastic articles category, attracting the higher GST rate irrespective of the price threshold applicable to textile garments.
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Section 93 CGST Act: Recovery Proceedings Against Deceased's Property Set Aside, Legal Representatives Allowed to Proceed
Case-Laws
GST
The HC set aside the impugned order dated 22 December 2023 concerning recovery proceedings against the immovable properties of the petitioner's deceased wife under Section 93 of the CGST Act, 2017. The court granted liberty to proceed against the legal representatives of the deceased in accordance with the law. Consequently, the Form GST DRC-16 order dated 30 July 2024 was also quashed. The petition was disposed of accordingly.
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Ex-Parte Order Set Aside for Violating Rule 142 CGST Rules, Ensuring Fair Hearing Under Section 73 CGST Act
Case-Laws
GST
The HC set aside the impugned ex-parte order due to non-compliance with Rule 142 of the CGST Rules, 2017, and violation of natural justice principles. Although electronic service of notice under the GST regime is generally upheld, the Court found the procedural irregularity and lack of a reasonable opportunity to be heard prejudicial in the present case. Considering the nature of the business and substantive rights involved, the matter was remitted to the Assessing Authority for issuance of a fresh notice under Section 73 of the CGST/SGST Act. The petitioner is directed to appear and effectively participate in the proceedings on the specified date. The petition was allowed by way of remand to ensure fairness and adherence to due process.
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Writ Petition on Alleged Rs. 63.83 Crore ITC Fraud Dismissed; Appeal Allowed Under Section 107 CGST Act
Case-Laws
GST
The HC declined to exercise writ jurisdiction in a case involving allegations of fraudulent availment of ITC amounting to approximately Rs. 63.83 crores by 23 fake firms. Citing precedent, the Court held that writ petitions challenging such allegations are ordinarily not maintainable due to the significant impact on the GST regime and the exchequer. Although the petitioner raised procedural grievances regarding notice and consideration of submissions, the Court noted appearances by some parties and found no infirmity warranting interference. The petitioner was granted an opportunity to file an appeal under Section 107 of the CGST Act, 2017, by 31 August 2025, with the requisite pre-deposit, which shall be admitted and heard on merits without dismissal on limitation grounds. The petition was accordingly disposed of.
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Retrospective Extension Allows Rectification of Orders on Wrongful Input Tax Credit Claims Under CGST Section 16(4)
Case-Laws
GST
The HC held that the retrospective extension of the time limit to avail input tax credit under sub-section (4) of Section 16 of the CGST Act, as per the Ministry of Finance circular dated 15-10-2024, permits taxpayers to seek rectification of orders passed under Sections 73, 74, 107, or 108 of the CGST Act regarding wrongful input tax credit claims. Pursuant to the special procedure under Section 148, notified on 8-10-2024, rectification applications may be filed within six months from 15-10-2024, i.e., until 15-4-2025. The petitioner was granted leave to file such an application, and the petition was accordingly disposed of.
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Separate SCNs under Sections 73 and 74 valid; petitioner must use appeal, not writ, for GST demands
Case-Laws
GST
The HC held that issuance of separate SCNs under Sections 73 and 74 of the WBGST/CGST Act for the same period is valid, as Section 73 pertains to tax short paid without fraud, while Section 74 addresses fraud or wilful suppression. The petitioner's challenge to the SCN's vagueness was rejected, noting adequate particulars were provided per statutory requirements and the petitioner failed to appear or adequately contest. Regarding ITC claimed on B2B supplies in GSTR-3B, the Court ruled the petitioner cannot bypass the appellate remedy and invoke writ jurisdiction, as the demand in Form GST APL04 dated 27 December 2023 is final. Consequently, demands under points 1(I) and 3(M) of the SCN dated 13 May 2024 were quashed. The demand in DRC-07 dated 19 July 2024 was set aside, and the matter remanded for fresh demand issuance consistent with the Court's directions.
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Retiring Partner Remains Liable Under Section 90 CGST Act Without Timely Retirement Notice
Case-Laws
GST
The HC dismissed the writ petition seeking to set aside the summoning order and restrain respondents from attaching the petitioner's property. The Court held that a retiring partner's liability under the CGST Act continues until a written intimation of retirement is duly served on the Commissioner within one month of retirement. The petitioner failed to provide timely notice of retirement, as evidenced by delayed communication submitted in 2025 despite retirement occurring in 2021. Consequently, the petitioner remains liable for tax obligations incurred during the partnership. The Court refused to absolve the petitioner of liability under Section 90 of the CGST Act, 2017, emphasizing strict compliance with statutory notification requirements. The petitioner was granted liberty to pursue alternative legal remedies as available under law.
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HC upholds Sections 69 and 132 of CGST Act on arrest and punishment powers under Article 246A
Case-Laws
GST
The HC dismissed the challenge to the vires of Sections 69 and 132 of the CGST Act, 2017, which confer power to arrest and prescribe punishment, holding that the contention lacked merit in light of the recent Supreme Court decision in Radhika Agarwal v. Union of India. The SC upheld the constitutional validity of these provisions, affirming that Article 246A grants Parliament exclusive legislative competence over GST, including anti-evasion measures. Consequently, the HC found no violation of Articles 14, 20, or 21 of the Constitution and rejected the petitions contesting the legality of Sections 69 and 132. All related writ petitions were disposed of accordingly, with the application being dismissed.
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Writ Petition Allowed Against Duplicate Assessment Order Under DRC 01; Earlier Assessment Prevents Repetition
Case-Laws
GST
The HC allowed the writ petition challenging the impugned assessment order issued following notice in DRC 01, noting that the petitioner had already undergone an assessment for the same period by the State Tax Officer. The court held that the statutory scheme precludes duplication of assessment proceedings for the identical period. Consequently, the impugned order was set aside. However, the respondents were granted liberty to initiate appropriate proceedings to recover any differential amount within the framework of the earlier assessment, provided the statutory provisions permit such action.
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Stay on GST recovery upheld under Section 112(9) after petitioner meets pre-deposit conditions in tax dispute
Case-Laws
GST
The HC disposed of the writ petition concerning the non-constitution of the GST Tribunal and the petitioner's request for a stay on recovery proceedings pending appeal. The petitioner had already deposited 10% of the tax demand and agreed to deposit an additional 10% of the remaining amount. In light of the Government of India's circular and the petitioner's undertaking, the court held that the requirements under Section 112(8) of the CGST Act were met. Consequently, recovery of the remaining confirmed demand is stayed pursuant to Section 112(9) of the CGST Act upon the petitioner's compliance with the prescribed pre-deposit conditions. No further directions were deemed necessary, and the writ petition was disposed of accordingly.
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CGST Ludhiana unearths Rs 260 cr fake billing scam in iron, steel sector; 2 arrested
GST
Dated:- 25-7-2025
PTI
Chandigarh, Jul 25 (PTI) Based on specific intelligence, the officers of Central Goods & Services Tax Commissionerate, Ludhiana, conducted multiple search operations at Mandi Gobindgarh unearthing a syndicate involved in availing and passing on fake Input Tax Credit (ITC) in the iron and steel sector using five firms.
CGST Ludhiana conducted multiple search operations at M

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Petition dismissed for maintainability; appeal allowed under Section 107 of GST Act with no natural justice violation
Case-Laws
GST
The HC dismissed the petition on maintainability grounds, holding that the petitioner has an alternative efficacious remedy by way of appeal under Section 107 of the GST Act. The court found no violation of natural justice, as the petitioner was not entitled to cross-examine departmental officers who issued summons or arrest memos. Further, the petitioner retained the opportunity to make submissions during the appeal proceedings, which are a continuation of the original proceedings. The HC refrained from expressing any opinion on the merits and granted liberty to the petitioner to file the statutory appeal in accordance with law.
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