Author: admin_gst

Andhra Pradesh posts highest-ever January GST collections, outpaces national growth
GST
Dated:- 1-2-2026
PTI
Vijayawada, Feb 1 (PTI) Andhra Pradesh recorded its highest-ever January GST collections since the rollout of the tax in 2017, with net GST revenue rising 6.72 per cent year-on-year to Rs 3,073 crore in January 2026, even as tax rates were cut on several key goods and services.
The growth comes despite GST rate reductions on consumer essentials, durables, pharmaceuticals, automobiles and cement, withdrawal of GST on life and medical insurance, and the removal of compensation cess on most products from September 2025.
The state's GST growth outpaced the national average of 5.8 per cent (excluding imports) and ranked se

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Budget 2026-27: CCUS outlay of Rs 20K cr, duty exemption for nuclear power, battery storage
GST
Dated:- 1-2-2026
PTI
New Delhi, Feb 1 (PTI) The government on Sunday announced Rs 20,000 crore outlay for Carbon Capture Utilisation and Storage technologies, and proposed customs duty exemptions to encourage investment in nuclear power and battery energy storage to boost non-fossil fuel-based energy generation.
Carbon Capture Utilization and Storage (CCUS) technologies aim to reduce carbon emission by either storing or reusing it so that captured carbon dioxide does not enter the atmosphere.
Finance Minister Nirmala Sitharaman, in her budget speech in the Lok Sabha, said, “Aligning with the roadmap launched in December 2025, CCUS

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rgy Storage System.
She also proposed to exempt basic customs duty on the import of sodium antimonate for use in the manufacture of solar glass.
Presently, 7.5 per cent basic customs duty is levied on sodium antimonate.
Boosting nuclear power is also needed in the country to replace coal-based electricity generation, which serves as a base load.
Sitharaman proposed to extend the existing basic customs duty exemption on imports of goods required for Nuclear Power Projects till 2035 and expand it for all nuclear plants irrespective of their capacity.
About the biogas blended CNG (compressed natural gas), she said, “I propose to exclude the entire value of biogas while calculating the Central Excise duty payable on biogas blended CNG.

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ng demand and improving project viability, he stated.
Varchasvi Gagal, MD and CEO of Datta Power Infra, said India's energy transition has moved from aspiration to infrastructure.
This Budget doesn't just fund renewables – it engineers the foundation of a resilient green superpower, Gagal added.
On CCUS outlay, Rajeev Juneja, President, PHDCCI, said these are incentives aimed at scaling deployment in heavy-emitting sectors like power, steel, cement, refineries, and chemicals.
The funds are intended to incentivise CCUS technology adoption and commercial readiness across multiple industrial sectors, he added.
This allocation is part of India's broader climate strategy aligned with its net-zero by 2070, he opined.
Investments in ca

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Duty exemption on atomic energy, BESS, sodium antimonate to boost energy transition
GST
Dated:- 1-2-2026
PTI
New Delhi, Feb 1 (PTI) The government on Sunday proposed customs duty exemptions to encourage investments in nuclear power, battery energy storage and sodium antimonate to boost non-fossil fuel-based energy generation.
This assumes significance in view of India's ambitious target of having 500 GW of renewable energy.
India is required to add at least 50 GW of renewable energy per annum capacity by 2030 to achieve this target.
Finance Minister Nirmala Sitharaman, in her budget speech in the Lok Sabha, said, “I propose to extend the basic customs duty exemption given to capital goods used for manufacturing Lithium-Ion

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uclear Power Projects till the year 2035 and expand it for all nuclear plants irrespective of their capacity.
About the biogas blended CNG (compressed natural gas), she said, “I propose to exclude the entire value of biogas while calculating the Central Excise duty payable on biogas blended CNG.” There has been an industry for this exemption to boost the bio-energy sector in the country.
Indian Biogas Association (IBA) Chairman Gaurav Kedia said this progressive measure shall open a wider market for bio-CNG/CBG, thus bolstering efforts towards reduced trade deficit.
It is a strong signal of the government's commitment to clean energy, circular economy principles, and the promotion of domestically produced renewable fuels, he said.

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Direct, indirect taxes to yield 64 paise of every rupee in govt coffers: Budget documents
GST
Dated:- 1-2-2026
PTI
New Delhi, Feb 1 (PTI) For every rupee in the government's coffers, the largest slice of 64 paise will come from direct and indirect taxes, according to the Union Budget 2026-27 documents.
Around 24 paise will come from borrowings and other liabilities, 10 paise from non-tax revenue like disinvestment, and 2 paise from non-debt capital receipts, the Budget documents showed.
Income tax will yield 21 paise, corporation tax 18 paise, and Goods and Services Tax (GST) 15 paise per rupee of revenue.
Besides, the government looks to earn 6 paise from excise duty and 4 paise from customs levy in every rupee of revenue

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FM extends tax exemption on capital goods used to make lithium-ion cells for battery storage
GST
Dated:- 1-2-2026
PTI
New Delhi, Feb 1 (PTI) Finance Minister Nirmala Sitharaman on Sunday announced an extension of basic customs duty exemption on capital goods used for manufacturing lithium-ion cells for battery storage in the annual budget for the next financial year.
In her budget speech, she also proposed to exclude the entire value of biogas while calculating excise duty levy on (biogas) blended CNG (compressed natural gas).
“I propose to extend the basic customs duty exemption given to capital goods used for manufacturing lithium-ion cells for batteries. Also, I propose to exempt basic customs duty on import of sodium ant

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Gross GST collections rise 6.2 pc to 3-month high of Rs 1.93 lakh cr in January
GST
Dated:- 1-2-2026
PTI
New Delhi, Feb 1 (PTI) Gross GST collections rose 6.2 per cent to a three-month high of over Rs 1.93 lakh crore in January, indicating increased consumption is making up for rate cuts late last year, sources said on Sunday.
However, refunds dipped 3.1 per cent to Rs 22,665 crore, leading to net Goods and Services Tax (GST) revenues growing 7.6 per cent to about Rs 1.71 lakh crore in January.
Gross tax collections from domestic transactions grew 4.8 per cent to Rs 1.41 lakh crore, while import revenues were up 10.1 per cent to Rs 52,253 crore in January.
GST rates on about 375 items were slashed, making goods cheaper, eff

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anticipated by the policy makers”.
While many large states continue to show only single-digit growth in GST collections, there appears to be an improvement from the past three months, where some large states depicted below 5 per cent increases, Mani added.
Cess collection (from tobacco products) in January stood at Rs 5,768 crore. This compares to Rs 13,009 crore in collections in January last year, when a cess was levied on luxury, sin and demerit goods such as cars, and tobacco products.
Gross GST collections during April 2025 –January 2026 amounted to Rs 18.43 lakh crore, reflecting year-on-year growth of 8.3 per cent and broadly tracking nominal GDP growth.
EY India, Tax Partner, Saurabh Agarwal, said the consistent revenue tra

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Gross GST collections rise 6.2 pc to over Rs 1.93 lakh cr in January
GST
Dated:- 1-2-2026
PTI
New Delhi, Feb 1 (PTI) Gross GST collections rose 6.2 per cent to over Rs 1.93 lakh crore in January, mainly on higher revenues from imports, sources said on Sunday.
Total refunds declined 3.1 per cent to Rs 22,665 crore.
Net Goods and Services Tax (GST) revenues, however, grew 7.6 per cent to about Rs 1.71 lakh crore in January.
Cess collection (from tobacco products) in January stood

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Health Security se National Security Cess amendments clarify machine speed formula, abatement computation, fund utilisation and form changes.
Notifications
GST
Amendments define maximum rated speed for packing machines by a formula linking motor RPM, gear ratio and number of cups/funnels, and substitute illustrative abatement computation showing prorated cess relief for continuous non-operation with specified filing/adjustment dates. Rules create a designated Health Security se National Security Cess Fund: cess proceeds are first credited to the Consolidated Fund, transferred quarterly to the Fund after parliamentary appropriation, allocated by Budget Division in consultation with Department of Expenditure, with accounting procedures approved by PCAO and subject to CAG audit. Multiple HSNS forms and column headings are amended to reflect cups/funnels and capacity calculations.
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Advisory on Interest Collection and Related Enhancements in GSTR-3B
GST
Dated:- 31-1-2026

It is hereby informed that from January-2026 period onwards, few enhancements have been made in filing of GSTR-3B. For detailed advisory: 
Advisory on Interest Collection and Related Enhancements in GSTR-3B
It is hereby informed that from January-2026 period onwards, the following enhancement have been made in filing of GSTR-3B:
Update in Interest Computation for GSTR-3B
From January-2026 tax period onwards, the interest calculation in table 5.1 of GSTR-3B on portal has been enhanced, providing the benefit of the minimum cash balance available in the Electronic Cash Ledger of the taxpayer from the due date of return filing until t

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taxpayers would not be allowed to amend the auto-populated values downward. It may be noted that the interest auto-populated in GSTR-3B is only the minimum interest that is required to be paid by the taxpayer. However, the taxpayers needed to self-assess their correct interest liability, and amend the auto populated values upward, if required.
2. Auto-Population of Tax Liability Breakup Table in GSTR-3B
The 'tax liability breakup table' in GSTR-3B capture the supplies of previous tax periods, reported in current period. The tax is being paid for such supplies in current tax period. Hence, for the filing of GSTR-3B from January-2026 tax period onwards, the GST Portal shall auto-populate the “Tax Liability Breakup Table” in GSTR-3B on the b

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of ITC
From January-2026 period onwards, once the available IGST ITC has been fully exhausted, the GST Portal will allow to pay IGST liability in Table 6.1 of GSTR-3B using available CGST and SGST ITC in any sequence,
4. Collection of Interest in GSTR-10 for Delayed Filing of Last Applicable GSTR-3B
In case of cancelled taxpayers, if the last applicable GSTR-3B return has been filed after the due date, then the interest applicable on such delayed filing shall be levied and collected through the Final Return i.e., GSTR-10.
Disclaimer – This advisory has been prepared solely for educational purposes. It is not a legal advice hence, taxpayer must rely on statutory provisions for compliance requirements. For any official or legal purpose, p

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GST on pre-packaged and labelled seafood exports: pre-packed shrimps up to 25kg treated as taxable at 5% despite export options
Case-Laws
GST
GST applicability on export of pre-packaged and labelled commodities is addressed by reference to the Legal Metrology Act and recent notifications: exports remain treated as inter-state and zero-rated under IGST, with exporters able to export under bond/LUT or pay IGST and seek refund. Separately, pre-packaged and labelled shrimps packed in pouches/boxes up to 25 kg fall within the Legal Metrology regime and, per the cited notification, attract GST treatment as taxable supplies. The operative effect is that such pre-packaged shrimps are taxable at 5% even when exported, subject to the exporters option under IGST rules.
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GST registration cancellation and revocation: procedural fairness required; registration restored where no outstanding tax liability.
Case-Laws
GST
Cancellation of GST registration carries civil consequences and cannot be validly ordered without affording the registrant an opportunity of being heard; failure to comply with the proviso to the cancellation provision renders the cancellation void ab initio, and the authority must follow prescribed procedure. Revocation powers under the law exist and must be exercised in accordance with Section 30 and Rule 23; where there are no outstanding tax liabilities and the authority declined revocation contrary to those provisions, the registrant is entitled to restoration of GST registration. The writ petition was allowed and registration was ordered restored.
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Withholding of electronic credit ledger and use of input tax credit: order to initiate adjudication or unblock ledger.
Case-Laws
GST
Rule 86A permits revenue authorities to withhold use of amounts in an electronic credit ledger where there are recorded reasons to believe input tax credit was fraudulently availed or is ineligible; the withholding is an interim protective measure pending adjudication. The Proper Officer cannot refuse to adjudicate the alleged ineligibility or fraud; failure to initiate adjudication while maintaining a ledger block is impermissible. The court directed the Proper Officer to issue show cause notices and commence adjudication within one week, and ordered that the ledger must be unblocked if adjudication is not concluded within the period fixed by the court.
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Consolidation of tax periods and validity of show cause notice under Section 74 CGST notice quashed but reissue permitted if strictly compliant
Case-Laws
GST
The validity of a show cause notice issued under Section 74 CGST was considered alongside whether prior inter-court judgments merge or bind lower authorities. The court held that a Supreme Court dismissal in limine does not effect a merger of a prior judgment, so the merger concept did not apply; consequence: earlier Delhi High Court reasoning could not be treated as merged. The court also held that subsequent High Court decisions taking a different view bind authorities in that jurisdiction; consequence: the impugned show cause notice dated 30/5/2025 was quashed, but authorities retain liberty to reissue a notice strictly complying with Section 74 CGST if legally permissible.
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Liability to pay GST by supplier confirmed; refund of wrongly recovered interest ordered to petitioners.
Case-Laws
GST
Liability to pay GST rests on the supplier under the Act of 2017 and Rules of 2017, and the supplier must issue a tax invoice within thirty days, failure of which attracts penalty and does not shift payment obligation to the recipient; consequence: supplier liable for penalty for non-issuance. Interest on unpaid tax accrues against the person liable to pay and cannot be validly transferred to the recipient; consequence: interest liability remains with the supplier and amounts wrongly recovered from recipients must be refunded, leading to directed refund of the recovered interest.
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Deposit requirement for release of confiscated vehicle modified to require Rs.2,00,000 deposit and release within one week; contempt dismissed
Case-Laws
GST
Sub-section (8) of Section 112 requires payment of an additional 20% of the disputed tax alongside the deposit required under sub-section (6) of Section 107, and no such appellate deposit was made in the matter arising from the confiscation order. The interim direction was modified to require deposit of Rs.2,00,000 before the Adjudicating Authority, upon which the vehicle must be released within one week; other conditions of the Single Judge shall remain operative until disposal of the writ petition. The contempt petition alleging disobedience was held misconceived due to non-execution of the indemnity bond and is disposed.
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GST levy on educational activities order-in-original set aside during interim order and matter remanded for fresh reply.
Case-Laws
GST
Validity of show cause notice challenging GST levy on educational activities was contested; the adjudicatory order issued during pendency of an interim order was set aside, and the matter remitted to the stage of reply to the show cause notice, permitting the petitioner to file a reply. The adjudicating authority is directed to consider the legal position advanced by the petitioner when proceeding further. All substantive contentions on merits have been left open for fresh consideration upon re-adjudication.
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Profiteering and input tax credit pass-through in real estate: post-GST ITC considered and no profiteering relief granted to buyer
Case-Laws
GST
The article addresses profiteering and computation of profiteering focusing on pass-through of input tax credit (ITC) where the flat was booked post-GST. Applying judicial guidance, the DGAP examined ITC availed and pre- and post-GST purchase values and concluded no contravention of section 171 of the Central Goods and Services Act, 2017, because the price was set after ITC availability and no enforceable right arose for the purchaser merely from a seller's confirmation to pass on ITC; the applicant's objections were examined and rejected as without merit.
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Passing on benefit of Input Tax Credit in construction services found complied with after DGAP verification; proceedings closed
Case-Laws
GST
Investigation under anti-profiteering examined whether the supplier passed on Input Tax Credit (ITC) benefits to eligible recipients; DGAP verified buyer-wise disbursements and compliance submissions, finding the supplier passed on a greater total benefit than the initially determined profiteering amount and remitted outstanding amounts to individual recipients. The DGAP report was accepted and the supplier was held to have discharged the statutory obligation to pass on ITC benefits in respect of construction services, resulting in closure of proceedings and no further action required.
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Consolidation of tax periods under Section 74 CGST disputed; Bombay High Court rulings prevail and notices may be reissued.
Case-Laws
GST
Consolidation of multiple financial years/tax periods into a single show cause notice under Section 74 of the CGST Act was contested; the court preferred subsequent Bombay High Court decisions finding such consolidation impermissible, holding that authorities within the State are bound by those later judgments and that the Delhi High Court decision does not operate as a merger where the Supreme Court dismissed review in limine. The court permitted respondents to revive the petition if Bombay High Court decisions are set aside and expressly allowed reissuance of notice strictly in terms of Section 74 if no other legal impediment exists.
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Wrongful input tax credit adjustment between tax heads leads to quashing of recovery notice where no revenue loss
Case-Laws
GST
Wrongful availment or misapplication of input tax credit by adjustment between tax heads does not, by itself, attract recovery proceedings if no tax remains unpaid or there is no revenue loss; the tribunal reasoned that proceedings for recovery require tax to be unpaid, short paid, erroneously refunded, or input tax to be wrongfully availed or utilized causing revenue loss, and that mere head-to-head adjustment without loss will not support initiation of recovery notices. The impugned recovery notice was quashed applying these principles.
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Coaching body urges Sitharaman to slash GST on coaching services to 5 pc or nil
GST
Dated:- 29-1-2026
PTI
New Delhi, Jan 29 (PTI) The Coaching Federation of India has urged Finance Minister Nirmala Sitharaman to rationalise Goods and Services Tax on coaching and supplementary education services in the Union Budget, claiming the current tax structure is pushing up costs for parents and squeezing small education businesses.
In a representation submitted on January 28, the Coaching Federation of India (CFI), a New Delhi-based body that claims to represent a large number of coaching centres across the country, sought a reduction in GST on coaching services to 5 per cent or a complete exemption, stating that unlike manufacturing or

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osts.
It proposed raising the limit to Rs 1 crore for coaching and supplementary education services, saying the existing cap forces even small centres with thin margins into the tax net, while larger chains benefit from scale and compliance capacity.
According to the Federation, the current tax regime is also “distorting” the sector by encouraging informality, with some small centres opting to remain unregistered or parents preferring “no-GST” options.
The Federation suggested that a more balanced tax structure would improve voluntary compliance, make education more affordable and align with national goals under the National Education Policy-2020.
It also sought a stakeholder consultation with the finance ministry to present ground-leve

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Invalid tax assessment under TNGST Act set aside for invoking an omitted provision; order remanded for fresh show-cause and hearing
Case-Laws
GST
Challenge concerned validity of an assessment issued under an omitted statutory provision; the court found the authority had applied a repealed provision instead of the substituted provision introduced by amendment, rendering the impugned order invalid and therefore set aside. The order must be treated as a show cause notice; the affected party is directed to file a reply with documents within six weeks, after which the authority shall issue a clear 14-day notice fixing personal hearing and thereafter decide on merits in accordance with law. Writ petition disposed accordingly.
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Three month gap between CGST show cause notice and adjudication required; shorter interval led to quashing of adjudication order
Case-Laws
GST
High Court held that a mandatory three-month gap between issuance of a CGST show cause notice and passing of the adjudication order is required to secure principles of natural justice and the right to personal hearing; shortening that interval undermines service of the statement of demand, the assessee's self-assessment option and ability to obtain adjournments, and therefore renders orders passed within a shorter period unsustainable. Applying that principle, the court quashed and set aside the show cause notice issued on 15-5-2024 and the adjudication order dated 9-7-2024 as the gap was under three months.
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Rectification under UP GST Act and exclusion of limitation where a bona fide rectification application suspends appeal time.
Case-Laws
GST
Interplay between the Limitation Act and the UP GST Act concerns exclusion of limitation where a special statutory power to condone delay exists and where a bona fide rectification application is prosecuted with due diligence. The court reasons that a specific condonation power in the special Act operates to displace the general Section 5 principle, and that filing a timely application for rectification of an order puts the limitation to file an appeal in abeyance during its pendency; because the rectification application was filed within time and pursued in good faith, the pendency period is excluded and the subsequent appeal was held within limitation.
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Supply of CKD e-rickshaw components: classified as finished vehicle if motor plus three key components, attracting lower GST.
Case-Laws
GST
Classification of a CKD supply of electric three-wheeler components turns on essential character and sufficiency for assembly: if the CKD set includes the motor and any three of the four major components (transmission, axles, chassis, controller) in proportionate numbers, it is treated as the finished vehicle and taxed at 2.5% CGST + 2.5% SGST under HSN 87038040. If the supply lacks the motor or lacks two of the other major components, it is treated as parts/components and taxed at 9% CGST + 9% SGST under the applicable tariff entries.
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