Author: admin_gst

Retail liquor prices set to rise in Uttar Pradesh
GST
Dated:- 13-2-2026
PTI
Lucknow, Feb 13 (PTI) Retail liquor prices are set to increase in Uttar Pradesh from April, as the state has approved the excise policy for 2026-27, which focuses on an export-focused framework and revised MRP norms to boost revenue.

According to a press statement, the state cabinet cleared the policy, introducing higher licence fees for retail vendors and revisions in pricing norms that are expected to push up liquor prices across categories in the new financial year.

Meanwhile, the state has also notified a dedicated excise export policy for 2026-29, making it the first in the country to introduce a standalone framework to promote overseas shipme

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retail price (MRP) of country liquor and Uttar Pradesh Made Liquor (UPML), except for 25 per cent v/v strength, will be rounded up to the next multiple of Rs 10. A new 100 ml pack has also been introduced for 42.8 per cent v/v UPML. Officials estimate these measures could yield an additional Rs 1,500 crore in revenue.

As per the statement, retail outlets, including composite shops, model shops, premium model shops, country liquor and bhang stores, will primarily be allotted through a renewal process upon receipt of applications. Shops will continue to operate between 10 am and 10 pm.

The annual minimum guaranteed quantity (MGQ) for country liquor shops will be revised with area-specific increases, and its monthly distribution will be

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GST refund distribution to consumers via regulatory tariff adjustment ruled impermissible; High Court devised procedure set aside
Case-Laws
GST
Section 54(8)(e) of the CGST Act excludes from fund credit any refundable amount that was not passed on by the taxpayer; because the respondent admitted passing the tax burden to consumers, that exception did not apply and the refund could not be paid to consumers under the provision. The High Court nevertheless accepted a taxpayer proposal to deposit the refunded sum into a designated account and seek tariff reductions to benefit consumers-a procedure not provided by Section 54 or its Rules, impracticable to implement and legally impermissible. The High Court order creating this judicially fashioned refund mechanism was set aside.
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Composite supply of drilling services and site specific chemicals characterised as composite supply; prior advance rulings set aside, tax rate left open
Case-Laws
GST
Contractual supply of mud engineering services together with site-specific chemicals constitutes a composite supply because the goods and services are naturally bundled, necessary for execution, and form an essential, intertwined part of the contractual obligation; separate billing does not alter its nature. The chemicals were custom-prepared and supplied in conjunction with monitoring and injection services to ensure safe, efficient drilling, making services the principal component of a composite transaction. The High Court set aside the orders of the advance ruling authority and its appellate body, leaving fixation of the applicable tax rate to the appropriate authority.
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Admission in pleadings and bill verification procedures: failure to deny treated as admission and ex parte bill report quashed.
Case-Laws
GST
Failure to specifically deny allegations in the written statement constitutes an admission under Order VIII Rules 3 and 5, permitting the court under Order XII Rule 6 to act on such admissions and treating admitted facts as substantive evidence without proof under Section 58 of the Evidence Act; consequence: petitioner entitled to relief on undisputed claim. The Bill Verification Committee must afford audi alteram partem when proposing to reduce or reject bills, especially on allegations of fraud or inflated claims; consequence: an ex parte bill verification report quashed. Remedy ordered: respondents directed to liquidate the undisputed dues within eight weeks, failing which interest at 6% per annum applies.
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Entitlement to input tax credit despite limitation: quashed limitation-based disallowances; refunds, adjustments allowed; recovery restrained, fraud cases preserved
Case-Laws
GST
Entitlement to input tax credit under the law survives despite a limitation clause: the retrospective amendment and extension of the deadline to claim ITC enable claims within the extended window, and assessment orders denying ITC solely on limitation grounds are quashed accordingly, with relief directed to refund or permit adjustment of amounts taken from taxpayers' ledgers. The revenue is restrained from recovery or account freezing based on limitation-only disallowances. The department retains the right to investigate and act where alleged fraud, wrongful or excess ITC claims, or discrepancies are shown, and may proceed against taxpayers on those substantive grounds.
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Omission of Sections 73 and 74 in GST: Section 74A applies from 2024-25, assessment set aside and remitted.
Case-Laws
GST
Sections 73 and 74 of the GST statute were omitted effective 01.04.2024, so Section 74A governs assessments from financial year 2024-2025; therefore actions premised on the omitted provisions lack jurisdiction. A show cause notice and assessment issued purporting to act under the old provision but referencing the new provision reflected non-application of mind and procedural confusion, causing prejudice to the taxpayer; consequently the High Court set aside the impugned assessment as passed without jurisdiction and remitted the matter for fresh adjudication, directing treatment of the assessment as a notice under the correct provision.
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Denial of Input Tax Credit to bona fide purchaser overturned; ITC of Rs.22.09 lakh restored after finding no fraud
Case-Laws
GST
Denial of input tax credit (ITC) was considered where no finding of collusion, fraud, or mala fide conduct existed; the authority invoked non fraud procedure, indicating the transaction was bona fide, so depriving the purchaser of ITC would be arbitrary under Article 14. The court distinguished assessment under non fraud and fraud processes and applied the ratio in Sahil Enterprises to hold the purchaser not liable for the seller's failure to remit collected tax. The impugned order was set aside and ITC of Rs. 22,09,964/- was directed to be allowed forthwith.
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Blocking of Electronic Credit Ledger and duty to disclose material facts led to dismissal; court refused writ interference.
Case-Laws
GST
Blocking of the electronic credit ledger was challenged while parallel proceedings imposing tax, interest, fee and penalty under statutory tax provisions were pending; the petitioner's failure to disclose those proceedings in the writ was held material and counselling non-interference by the writ forum. Because the re-blocking related to an assessment and penalty demand of substantial amount and the statutory one year period since initial blocking had not expired, the court declined to interfere and dismissed the writ, leaving the statutory adjudication and credit availability/utilisation to proceed.
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GST tax demand appeal permitted subject to 50% provisional deposit and 30 day filing extension; OD account protected
Case-Laws
GST
High Court granted liberty to prefer a statutory GST appeal subject to a conditional extension and provisional deposit: the petitioner may file the appeal within 30 days on payment of 50% of the disputed tax, failing which the appeal must be dismissed and recovery may proceed as if the writ were dismissed. The court held that a bank overdraft account cannot be attached, but the revenue may pursue movable and immovable assets offered as security, subject to the bank's rights and the outcome of the appeal. The order disposes of the writ with these operative conditions.
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Show cause notice for GST registration cancellation over alleged ITC from non existent suppliers; officer may decide after replies
Case-Laws
GST
Show cause notice sought cancellation of GST registration for alleged breach of Rule 21(e) by claiming input tax credit from non existent or non operating suppliers; the notice relied on a DGGI communication as supporting material. Petitioner filed specific replies (including Form GST REG 18) addressing the allegation, indicating understanding of charges; the court found no prejudice from the mode of communication and held the proper officer may decide the cancellation matter on the basis of those replies in accordance with law within two weeks. The writ petition was disposed with that direction and the petitioner's cited decisions were found inapplicable.
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Cross country pipeline classification and ITC entitlement: pipelines outside factory treated as immovable, ITC disallowed under Section 17 restrictions
Case-Laws
GST
Cross country pipeline qualifies as immovable property under the doctrine of fixtures: items attached to or embedded in the earth intended for permanent beneficial enjoyment become part of the land, so works contract services for construction of such pipeline do not attract input tax credit. The pipeline, being laid outside factory premises and serving transport of gas from processing terminals, does not form part of plant and machinery because it lacks the requisite machinery element and is not fixed by foundation or structural support; consequence: goods and services for construction and laying of the pipeline are excluded from ITC under the statutory restrictions.
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Battery energy storage systems as storage service, not generation; GST applies at 18% and registration required.
Case-Laws
GST
Battery energy storage systems (BESS) are characterised as storage facilities that convert electrical energy to chemical energy and back, and therefore are not generation, transmission or distribution utilities; accordingly, exemption notifications for generation/transmission/distribution do not apply, whether BESS is standalone or co located. The activity of developing and operating BESS does not amount to supply/generation of electricity for the notified exemptions, so those nil rate/exemption entries are inapplicable. The service is classifiable as support services to electricity transmission and distribution (HSN 998631), liable to GST at 18%, and the operator must register for GST in Tamil Nadu if the BESS is established there.
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Valuation and GST on residential real estate construction: concessional rates allowed for affordable and other units subject to conditions.
Case-Laws
GST
Construction activity was held to involve both supply of goods and supply of services, and a project meeting the residential real estate project definition with under 15% commercial carpet area qualifies for concessional entries 3(i) and 3(ia); outcome – applicant may apply concessional GST rates subject to prescribed conditions. Valuation for taxable value must follow the valuation mechanism in paragraph 2 of the notification to exclude land value, and consequence – taxable value is computed after allowing deduction of one-third of the total amount charged for the supply.
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Central Board of Indirect Taxes & Customs organises post-Budget interactive session with stakeholders in Mumbai
GST
Dated:- 13-2-2026

The Central Board of Indirect Taxes and Customs (CBIC) organised an interactive session with representatives of Trade Associations, Chambers of Commerce, Exporters, Importers, Custodians, Customs Brokers, Logistics Service Providers, at New Custom House, Mumbai.

The event was presided over by Shri Vivek Chaturvedi, Chairman, CBIC; and Shri Yogendra Garg, Member (IT, Taxpayer Services & Technology), CBIC. Pr. Chief Commissioners of Mumbai Customs and GST, Joint Secretary (Customs), Commissioner (Customs & Export Promotion) and Commissioner, GST Policy Wing were also present along with other sen

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Suspension of GST registration and validity of tax invoice during transit ruled insufficient without e way bill; petitions dismissed.
Case-Laws
GST
Registration suspended at the time of supply prevents a post suspension tax invoice from substituting for prescribed transit documentation; because the supplier's registration remained suspended and no e way bill or other specified documents accompanied the goods, the tax invoice could not be treated as the required document under the statutory scheme. The administrative circular relied upon is inapplicable where prescribed documents are absent. Consequence: petitions challenging seizure and related orders were dismissed for lack of compliance with the e way bill and specified document requirements.
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Enlargement on bail for foreign national in tax evasion case granted with conditions despite expired visa and limited tampering risk
Case-Laws
GST
High Court considered enlargement on bail for a foreign national accused of tax evasion; offence is triable by a Magistrate with a maximum sentence of five years. The court found documentary and electronic evidence present but no convincing material of a real risk of tampering, and noted immigration status (expired visa with pending extension) and family circumstances. Having balanced these factors and the nature of the offence, the court granted bail subject to verification of identity, status and residential proof of sureties by the trial court and warned that breach of conditions would permit bail cancellation and remand.
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Provisional CGST attachment expires after one year; bank must unfreeze accounts and attachment cannot continue.
Case-Laws
GST
Provisional attachment under the CGST regime ceases by efflux of time after one year, so orders issued beyond that statutory period are no longer enforceable; consequence-such attachments cannot be continued. Because the provisional order has ceased, neither the tax authority nor the taxpayer's banker may lawfully maintain freezes on the taxpayer's property or bank accounts; consequence-the bank must defreeze accounts held under that expired order. The writ challenge was partly allowed to give effect to the cessation of the provisional attachment and to lift the continued restraints that post dated the one year period.
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Cancellation of GST registration: writ court directs appellate authority to re-hear revocation appeal on merits, condoning delay
Case-Laws
GST
Under GST rules a revocation application requires prior filing of returns and payment of dues; limitation exists to ensure statutory compliance and protect third party rights, but cancellation of GST registration typically prejudices only the assessee and not third parties. The writ court may condone delay in statutory or quasi judicial proceedings, and on that basis the High Court set aside the dismissal of the appeal for limitation and directed the Appellate Authority to re hear and decide the revocation of cancellation on merits, permitting reconsideration rather than rejection on time bar grounds.
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CGST tax evasion classification and bail: deposit and undertaking not enough to alter cognizability or compoundability, bail cancellation dismissed
Case-Laws
GST
High Court applied section 132 CGST classifications: offences with tax evasion up to five crores are non cognizable and compoundable under section 138, while evasion exceeding five crores is cognizable and non bailable and not compoundable; a five crore deposit against an alleged evasion of Rs. 9,39,79,589/- does not convert the offence into a bailable or compoundable one, so the trial court's analogy is incorrect. The respondent offered to deposit 50% of the alleged evasion and has already deposited five crores; minimal risk of witness tampering and absence of prior misuse of bail led the High Court to dismiss the bail cancellation application.
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Cancellation of GST registration challenged for procedural lapses; notices quashed and fresh proceedings allowed only after rule compliance
Case-Laws
GST
Show-cause notices for cancellation of GST registration were found to breach the principles of natural justice by denying respondents an opportunity to reply and to present documents, and by omitting required physical verification procedures under the CGST Rules; those procedural defects vitiated the final orders and warranted quashing. The availability of an efficacious statutory appeal did not cure the denial of a hearing, and appellate remit powers were not treated as substituting for the Assessing Authority's mandatory compliance. The impugned notices and orders are set aside; fresh proceedings may be initiated only after strict compliance with the prescribed registration cancellation procedure.
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Show Cause Notice under GST found invalid when not issued by Proper Officer; order quashed with liberty to reinitiate.
Case-Laws
GST
Show cause proceedings under Section 73 were invalidated because the Statement of determination attached to the summary FORM GST DRC-01 cannot substitute a Show Cause Notice issued by the Proper Officer; consequently initiation and the impugned order were quashed. The court held that Show Cause Notice, Statement and Order under Section 73 must be issued by the Proper Officer and authenticated per Rule 26(3), and failure to afford opportunity of hearing violated Section 75(4). The court granted liberty to reinitiate proceedings de novo and excluded the period from summary issuance to service of certified judgment for computation under Section 73(10).
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Procurement and logistics of medicines as pure services to government qualify for nil rate GST under local government health functions.
Case-Laws
GST
Services consisting of procurement, logistics and assured supply of quality medicines to government health facilities qualify as “pure services” intrinsically linked to health and sanitation functions entrusted to local government bodies. Rule 33 CGST (valuation of pure agent) cannot be read to define “pure services,” and is irrelevant to that classification. Because the activities fall within functions of Panchayats and Municipalities concerning public health, such pure services supplied to the State attract nil-rate GST under Sl. No. 3 of Notification No. 12/2017 CT (Rate); the appellant is therefore entitled to the exemption.
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Classification of spent bleaching earth as activated natural mineral product under HSN 3802, attracting 18% GST.
Case-Laws
GST
Classification of spent bleaching earth must follow the General Rules for Interpretation by reference to the goods' nature and condition at supply; because the material is a mineral-based, chemically or thermally activated exhausted adsorbent, it lacks the properties and utility of fresh bleaching earth and is not properly treated as a raw or processed clay. Consequently the material aligns with activated natural mineral products and is classifiable under HSN 3802 90 19, with the operative effect that GST applies at the notified rate of 18% (9% CGST + 9% SGST).
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Goods Transport Agency services via e commerce portals: consignment note creates custody and liability and enables exemption for unregistered recipients.
Case-Laws
GST
A consignment note is essential to classify an activity as Goods Transport Agency (GTA) services because it evidences receipt of goods for road transport and transfers custody and liability to the transporter; accordingly, issuing a single consignment note from source hub to delivery address creates a lien and transporter liability until delivery, whether transport is performed directly or via subcontracted carriers. GTA services include ancillary acts (loading, unloading, packing, transshipment, temporary warehousing) as part of a composite supply. Services by a GTA rendered to a person not registered under GST (including customers ordering via e commerce portals) are eligible for exemption under entry 21A of Notification No. 12/2017.
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Paddle wheel aerator classification: remain under HSN 8479 for mechanical water agitation; concessional GST applies via rate notification
Case-Laws
GST
Paddle wheel aerators used exclusively in aquaculture are correctly classified under HSN 84798999 because their primary function is mechanical water agitation and oxygen transfer rather than terrestrial agricultural operations; therefore HSN 8479, as a residual heading for machines with specific functions not elsewhere specified, applies and the unit remains in 84798999. Recent GST rate rationalisation granting a concessional 5% rate to aerators operates by rate notification and does not reclassify goods into HSN 8436; consequently the aerators retain their 8479 classification and associated tariff treatment. Parts exclusively used with these aerators follow the principal machine classification and are not reallocated to 8436.
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