Goods and Services Tax

Opposition leaders press for simplification, reduction of GST
GST
Dated:- 24-3-2025
PTI
New Delhi, Mar 24 (PTI) Opposition members on Monday demanded the government to simplify and reduce the Goods and Services Tax (GST) as it is putting the burden on the poor.
Participating in the debate on the Finance Bill 2025, Supriya Sule (NCP-SP) said GST needs lots of reform, and there is a need to bring down rates.
The Finance Minister should answer when India will become 'one nation one tax' as the present GST regime has many slabs, she said in the Lok Sabha.
On the zero tariff policy proposed by the US, Sule said the government should clarify its stand on agricultural produce.
The US has proposed to levy reciprocal tariffs from Apr

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Congress MP Hibi Eden flags north-south divide in GST on food
GST
Dated:- 24-3-2025
PTI
New Delhi, Mar 24 (PTI) Ernakulam MP Hibi Eden on Monday flagged a north-south divide in GST on food, citing the example of Kerala to claim banana fritters and dal vada were taxed at 18 per cent in the state while north Indian sweets attracted only 5 per cent GST.
Raising the issue during a debate on the Finance Bill, 2025, in the Lok Sabha, the Congress MP accused the Centre of regional discrimination in tax policies and called for a more equitable approach.
“We have seen the government divide the country on the basis of religion, food and even the clothes we wear. But this is the first time we are witnessing a north-south divide even in t

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CBI arrests accused Superintendent of GST, Medak, Hyderabad, Telangana for demanding and accepting bribe of Rs 8,000/- from the complainant
GST
Dated:- 24-3-2025

Central Bureau of Investigation (CBI) has arrested accused Superintendent of GST, Medak, Hyderabad, Telangana for demanding and accepting bribe of Rs 8,000/- from the complainant.
A case was registered  by CBI  on 21-03-2025 against said accused on allegations that accused demanded a bribe of Rs 10,000/- from the

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CGST Delhi East Commissionerate encourages greater compliance and awareness among unregistered manufacturers and traders during GST Registration Campaign 2025
GST
Dated:- 24-3-2025

In the two-days of campaign, more than 2,000 queries from potential and unregistered traders addressed by GST officers; More than 100 fresh GST registration applications generated; 7,500 pamphlets highlighting provisions of GST Registration in Hindi and Urdu distributed
200 students as GST Ambassadors from reputed Universities create awareness during the two-day campaign
The Central Goods and Services Tax (CGST) Delhi East Commissionerate successfully launched its GST Registration Campaign on 21st-22nd March, 2025, with the aim of e

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nducting their transactions primarily in cash, which has a negative impact on the Indian economy.
Over the course of the campaign, more than 2,000 queries from traders were addressed by GST officers, who provided valuable assistance with the registration process. The drive proved to be a success, with a significant number of unregistered traders coming forward to voluntarily register their businesses under GST, with more than 100 registration applications being generated on spot after following due process.
As part of the outreach efforts, 200 students from reputed Universities were invited to be GST Ambassadors to create awareness for the two-day campaign. These volunteers/GST Ambassdors were closely monitored and guided by a large team

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locations were also organised by National School of Drama (NSD) team so that the people are made aware of the importance of payment of tax to the government as well as consequences of non-payment of tax.
The successful execution of this campaign marks a crucial step in increasing GST registration among the unorganised sectors, thereby improving compliance and contributing to the overall growth and stability of the Indian economy.
The CGST Delhi East Commissionerate remains committed to continuing such initiatives and ensuring that all sectors of trade are brought into the formal economy, fostering greater transparency, accountability, and economic growth.
The GST registration campaign was carried out under the overall guidance of S

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11-Year Delay in Show Cause Notice Adjudication Violates Due Process Rights and Warrants Quashing of Proceedings
Case-Laws
GST
The HC quashed Orders-In-Original issued after an 11-year delay in adjudicating a Show Cause Notice, holding that inordinate delay constituted sufficient ground for quashing proceedings. The court rejected respondents' justifications based on CGST implementation, COVID-19, and alleged delays by petitioners. Relying on Vos Technologies India precedent, the court emphasized that authorities are obligated to conclude adjudication expeditiously, and that matters with financial or penal consequences cannot remain unresolved for years. The statutory flexibility cannot be construed as sanctioning indolence or used routinely without justification. The HC ordered release of bank guarantees furnished by petitioners.
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GST Claim Rejection Overturned: Petitioner Granted Fresh Opportunity to Submit Documentation Under Section 128A
Case-Laws
GST
The HC set aside the impugned order and remitted the matter for fresh consideration by respondent No.4, who had rejected petitioner's claim under various GST circulars solely on grounds of insufficient documentation. The court determined that petitioner should be given another opportunity to file additional pleadings and documents for reconsideration. Following reassessment, petitioner would be entitled to apply for benefits under the Amnesty scheme under Section 128A of the CGST Act, which the concerned respondent must consider in accordance with law. The court refrained from expressing any opinion on the substantive merits of the rival contentions.
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IRS Assessment Order Quashed for Ignoring Taxpayer's Multiple Replies and Denying Personal Hearing Opportunity
Case-Laws
GST
The HC held that the impugned assessment order violated principles of natural justice and suffered from non-application of mind. Despite the petitioner filing multiple replies on 28.10.2023, 21.11.2023, 29.11.2023, and 18.12.2023 to the Show Cause Notice, the authority failed to consider these submissions or even reference them in the final order. Additionally, no opportunity for personal hearing was provided to the petitioner before passing the order. The Court determined that this constituted a gross violation of natural justice principles and demonstrated failure to properly consider material evidence on record. The petition was accordingly disposed of in favor of the petitioner.
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Service Tax Recovery Order Quashed After Authority “Forgot” to Consider Exemption Claim Under Notification 25/2012
Case-Laws
GST
The HC quashed the impugned order for violating principles of natural justice, as the authority failed to consider the petitioner's defense reply to the show cause notice regarding recovery of service tax with interest and penalty. The petitioner had claimed exemption under Mega exemption Notification 25/2012, but this defense was apparently “forgotten” by the adjudicating authority. The matter was remanded to the competent authority with directions to consider the petitioner's reply, provide an opportunity for hearing, and pass a fresh order in accordance with law. The application was allowed.
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Bank Property Attachment Under GST Act Set Aside, Petitioner Given Fresh Chance Despite Prior Non-Response
Case-Laws
GST
The HC set aside the order dated 08.11.2023 regarding attachment of petitioner's bank property under CGST/KGST Act, 2017, remitting the matter back to the first respondent for fresh consideration. Despite petitioner's failure to respond to pre-intimation notice and show cause notice, the Court adopted a justice-oriented approach, accepting petitioner's claim that non-compliance stemmed from bona fide reasons and unavoidable circumstances. The petitioner was granted one more opportunity to submit a reply to the show cause notice, with the Court imposing costs of Rs.10,000/- payable to the High Court Advocate Welfare Fund. The petition was allowed by way of remand.
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ITC Denial for Construction Services Must Follow Safari Retreats Precedent Under GST Section 17(5)(d)
Case-Laws
GST
The HC remitted the matter back to the respondent for reconsideration after finding that the respondent had not properly considered the Supreme Court's judgment in Safari Retreats (P.) Ltd. The case involved questions about the scope of “plant and machinery” in Section 17 of the CGST Act, specifically whether the explanation to Section 17 applies to the expression “plant or machinery” in Section 17(5)(d), and the constitutional validity of Sections 17(5)(c), 17(5)(d), and 16(4) of the CGST Act. The petition was allowed by way of remand for fresh consideration in accordance with law.
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GST Refund Claim Must Be Processed Immediately After Verification of Facts and Entitlement as per Government Orders
Case-Laws
GST
The HC disposed of the petition directing State Authorities to immediately process the petitioner's GST refund claim after verification of facts and entitlement. The authorities must consider the State Government's order dated 10.10.2018 and all subsequent relevant orders. The court noted the petitioner's contention that despite repeated approaches, respondents had failed to act on the GST refund that was collected during contract execution, and that similar refunds had been granted in comparable cases. The decision requires authorities to properly evaluate the petitioner's entitlement to GST refund in accordance with existing government directives.
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NC-led govt tables bill to amend J&K GST Act, 2017
GST
Dated:- 22-3-2025
PTI
Jammu, Mar 22 (PTI) Jammu & Kashmir Deputy Chief Minister Surinder Choudhary on Saturday tabled a bill in the Legislative Assembly to amend the Jammu and Kashmir Goods and Services Tax (GST) Act, 2017.
The bill stands already published in an extraordinary issue of the Official Gazette.
The first bill of the Budget session by the National Conference-led government was introduced by Choudhary on behalf of

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Issue in filing applications (SPL 01/SPL 02) under waiver scheme
GST
Dated:- 22-3-2025

1. Grievances are raised by taxpayers regarding difficulties faced while filing the waiver applications. Following grievances faced by taxpayers have come to the notice of GSTN and team is working to resolve the issues at the earliest.
i.    Order number is not available in dropdown for selection in SPL 02.
ii.   Order details are not getting auto populated after selection of a particular order in SPL 02.
iii.   Payment details are not getting auto populated in Table 4 of SPL 02.
iv.   After filing the SPL 02 for a demand order, the taxpayer is not able to make payment using “Payment towards De

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Notification 21/2024-CT dated 8.10.2024, the due date for payment of tax payable for availing wavier scheme is 31.03.2025. Therefore, the taxpayers are advised to pay the requisite amount within due date using “Payment Towards Demand” functionality in GST portal.
4. In case any difficulty is faced in using the said functionality, then the taxpayers are advised to make a Voluntary Payment using Form DRC-03 under category 'Others'. After completing the payment, they can submit the Form DRC-03A to link the payment made in DRC-03 with the relevant demand order.
5. If Payment details are not auto populated in Table 4 of SPL 02, it is advised to verify the same in electronic liability ledger on

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GST Appeals: Filing Order Copy Before Rule 108 Amendment Sufficient, Certified Copy Not Mandatory
Case-Laws
GST
The HC held that the requirement to file a certified copy of an appealed order under GST Rules is procedural rather than mandatory. The petitioner had filed their appeal on 15.11.2022 with a copy of the order, before Rule 108 was amended on 16.12.2022. Following the Delhi HC decision in Chegg India Private Limited, the Court determined that when an appeal is filed with all necessary documents including a copy of the appealed order, a certified copy is not required. The Court ruled that the amendment to Rule 108 applies retrospectively as it is procedural in nature. The petition was allowed and the matter remanded to the Additional Commissioner (Appeal) for consideration on merits.
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GST Clarifications: Pepper at 5%, Agriculturists Exempt for Dried Pepper and Raisins, Popcorn Rates Vary
Circulars
GST – States
The West Bengal Directorate of Commercial Taxes has issued clarifications on GST rates and classifications based on the 55th GST Council meeting. Key determinations include: pepper of genus Piper attracts 5% GST, with exemption for agriculturists supplying dried pepper; agriculturists supplying raisins are exempt from GST registration; ready-to-eat popcorn with salt/spices attracts 5% GST (unpackaged) or 12% GST (packaged), while caramel popcorn attracts 18% GST; AAC blocks with over 50% fly ash content attract 12% GST; and the amended compensation cess on utility vehicles with specific dimensions applies from July 26, 2023 onward.
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Late Fee for Annual GST Returns Applies Until Both GSTR-9 and GSTR-9C Are Filed Under Section 47(2)
Circulars
GST – States
The WB Directorate of Commercial Taxes has clarified that late fee under s.47(2) of WBGST Act applies to delayed filing of complete annual returns, which includes both GSTR-9 and GSTR-9C (where required for taxpayers exceeding specified turnover thresholds). Late fee is calculated from the due date until the complete return is furnished. For taxpayers required to file GSTR-9C, the annual return is considered incomplete until both forms are submitted. Through Notification No. 312-F.T., late fee for financial years up to FY 2022-23 has been waived beyond what was payable up to the GSTR-9 filing date, provided GSTR-9C is submitted by March 31, 2025. No refunds will be processed for late fees already paid.
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West Bengal Clarifies GST Exemptions for Penal Charges, Payment Aggregators, and R&D Services Funded by Government Grants
Circulars
GST – States
The West Bengal Directorate of Commercial Taxes has issued clarifications on GST applicability for several services. Key determinations include: no GST on penal charges levied by Regulated Entities for loan contract non-compliance; GST exemption for Payment Aggregators handling transactions up to 2,000; regularization of GST payments for R&D services by Government Entities against grants (July 2017-October 2024); regularization for Training Partners approved by National Skill Development Corporation (October 2024-January 2025); GST applicability on facility management services to MCD; confirmation that Delhi Development Authority is not a local authority under GST law; and regularization of GST payments for various other specified services during transition periods.
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Insurance Co-Premium Apportionment and Reinsurance Commission Now Included in Schedule III of WBGST Act from November 2024
Circulars
GST – States
The West Bengal Directorate of Commercial Taxes has regularized GST payment for two insurance-related transactions on an “as is where is” basis for the period from 01.07.2017 to 31.10.2024. Effective 01.11.2024, these transactions have been included in Schedule III of the WBGST Act as neither supply of goods nor services: (1) co-insurance premium apportionment by lead insurers to co-insurers, provided the lead insurer pays GST on the entire premium; and (2) ceding/reinsurance commission deducted from reinsurance premiums, provided the reinsurer pays GST on the gross reinsurance premium inclusive of commission. This implementation follows recommendations from the 53rd GST Council meeting.
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Accused in Rs. 31.18 Crore Input Tax Credit Fraud Granted Bail After Six Months in Custody
Case-Laws
GST
The HC granted regular bail to the applicant accused of availing ineligible Input Tax Credit of Rs. 31.18 crores based on fake invoices from non-operational firms. The Court noted that the prosecution's case relied on documentary evidence already filed in tax returns, and the applicant's business account had been released after initial attachment. Considering that the alleged offenses carry maximum punishment of five years, are triable by Magistrate, and the applicant had already spent six months in judicial custody, the Court concluded that further detention would serve no useful purpose. The prosecution witnesses were official witnesses with minimal risk of tampering. Bail was granted subject to conditions.
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Advertisement Tax Demands After GST Implementation Declared Illegal Under Section 173 of U.P. GST Act
Case-Laws
GST
HC held that Kanpur Nagar Nigam lacks authority to levy advertisement tax after the implementation of the U.P. GST Act, 2017 and Constitution (101st Amendment) Act, 2016. The court clarified that its previous order unambiguously quashed tax demands falling within Section 173 of U.P. GST Act read with the 101st Constitutional Amendment. Advertisement tax collected beyond April 1, 2017, must be refunded to petitioners. The municipal corporation's demands for advertisement tax after July 1, 2017, were declared illegal. The application seeking further clarification was dismissed as the original order was sufficiently clear and required no additional interpretation.
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GST Fraud Accused Granted Bail After 54 Days in Custody Under CGST Act for Input Tax Credit Evasion
Case-Laws
GST
The HC granted bail to the proprietor of M/s P.S. Enterprise who was accused of fraudulently availing Input Tax Credit and evading GST payments amounting to crores of rupees. After 54 days in judicial custody (against the mandatory period of 60 days), the Court determined that the primary purpose of the CGST Act is not penal but to recover amounts due to the Government Exchequer. Following precedent in Sanjay Kumar Bhuwalka v. Union of India, which established that monetary payment is the Government's right while arrest is only for statutory violations, the Court granted bail subject to specified conditions, noting that GST officials had sufficient opportunity to interrogate the petitioner.
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Time Extension for GST Show Cause Notices Challenged: Court Questions Validity of Notifications Under Section 168A
Case-Laws
GST
The HC granted ad-interim relief against notifications extending time limits for issuing Show Cause Notices under the CGST Act. The court found a strong prima facie case on two grounds: first, similar challenges to these notifications had already received interim relief in other petitions before the same court; second, the SCN in question should have been issued before May 31, 2024, as Section 73(2) requires issuance at least three months prior to the time limit specified in Section 73(10). The court questioned whether the notifications issued under Section 168A had proper GST Council recommendation. The matter was scheduled for further hearing on April 22, 2025.
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Bail Granted in GST Case: Arrest Deemed Invalid for Non-Compliance with Section 35(3) of BNSS, 2023
Case-Laws
GST
The HC found the petitioner's arrest vitiated due to non-compliance with Section 35(3) of BNSS, 2023, which requires issuance of a notice of appearance prior to arrest. The court determined that despite the petitioner's cooperation with summons under Section 70 of CGST Act, proper arrest procedures were not followed for an offense punishable with less than five years imprisonment. Applying the “test of proportionality” between individual liberty and public interest, and following precedents from Arnesh Kumar and Satender Kumar Antil cases that favor discretion toward accused in cases with imprisonment under seven years, the HC granted bail to the petitioner who had been incarcerated since January 30, 2025, for alleged wrongful ITC availment of 5.10 crores.
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Refund of Excess GST Collected by Promoter Denied as Petitioners Failed to Pursue Legal Action Against Promoter First
Case-Laws
GST
The HC dismissed the petition regarding refund of excess GST collected by a promoter and deposited with the respondents. The Court determined that petitioners had prematurely approached judicial remedy without first pursuing legal actions against the promoter to obtain necessary documentation for processing their refund claim. The Court noted that such documentation was required to properly sanction any refund under applicable GST Act provisions and Rules. The petition was dismissed without costs, with the Court declining to intervene at this procedural stage where administrative remedies had not been exhausted.
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Retrospective GST Registration Cancellation Requires Proper Justification and Notice Under Section 29 of CGST Act
Case-Laws
GST
The HC ruled that retrospective cancellation of GST registration requires proper justification and adherence to natural justice principles. Following Riddhi Siddhi Enterprises precedent, the Court held that Section 29 of CGST Act allows retrospective cancellation only when deemed fit based on objective criteria, not mechanically. The authority's failure to provide reasons in the Show Cause Notice supporting retrospective cancellation and failure to give prior notice of such intent invalidated the action. The Court modified the impugned order, directing that cancellation would take effect from the SCN date (25 October 2021) rather than the retrospective date (23 October 2020) originally imposed.
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