Author: admin_gst

Input tax credit time-limit amendment required fresh adjudication; garnishee proceedings could not survive the quashed order.
Case-Laws
GST
The High Court quashed the order denying input tax credit and the consequential garnishee proceedings because the authority had not considered the later amendment to section 16, which extended the time-limit for availing input tax credit for specified years, or the CBIC clarification on its implementation. Following the approach adopted in earlier matters, the Court held that these subsequent legal developments had to be examined before a fresh decision could be made. The matter was remanded to the Assessing Authority for reconsideration in accordance with law, while the refund claim and all other contentions were left open.
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Statutory regulatory functions are not taxable business activity, and fees for such quasi-judicial work fall outside service tax and GST.
Case-Laws
GST
A statutory electricity regulatory commission's tariff, licensing and allied regulatory functions were held to be adjudicatory and regulatory in nature, not trade, commerce or business. Fees collected for discharging those functions were therefore not consideration for a taxable supply, and the Schedule III exclusion for services by courts and tribunals applied. The Court further held that no artificial bifurcation between regulatory and quasi-judicial functions was permissible. As the commission stood on the same footing as the regulatory commission considered in the earlier Delhi High Court ruling, the notices and orders seeking to levy service tax and GST were ex facie unsustainable and were set aside.
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E-commerce tax notice quashed for misapplying tax collection, input tax credit reversal, and fraud-based demand provisions.
Case-Laws
GST
A High Court quashed a show cause notice for misapplying the CGST/KGST Act. It held that Section 52 could not be invoked where the e-commerce operator did not collect consideration and was not shown to be collecting tax on behalf of suppliers; the notice also wrongly treated a separate affiliated entity's services as the petitioner's own. Section 17(2) was held inapplicable because the notice did not establish any mixed use for taxable and exempt supplies or any exempt supply attracting reversal of input tax credit. Section 74 could not be invoked without specific allegations of fraud, wilful misstatement or suppression with intent to evade tax. The writ was therefore maintainable and the notice was quashed.
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GST circular relief for invoice errors extended to financial year 2019-20; adjudication order quashed and remand ordered.
Case-Laws
GST
Where identical invoice-related errors were involved, the Court held that benefit under GST Circular No. 183/15/2022-GST could not be denied merely because the circular referred to earlier years, and it could be extended to financial year 2019-20. It further noted that Circular No. 193/05/2023-GST expressly covered the petitioner's relevant period. On that basis, the adjudication order was quashed and the matter was remanded for fresh consideration in accordance with law and the circulars.
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Anti-profiteering under GST requires passing on ITC benefit to buyers through price reduction, with interest and penalty exposure.
Case-Laws
GST
With the introduction of GST, a construction service provider received additional input tax credit on goods and input services and was required to pass on the commensurate benefit to homebuyers under anti-profiteering principles. The Tribunal upheld the revised computation comparing pre-GST and post-GST ITC to construction cost, rejected exclusion of input-service credit, and accepted price adjustment as a valid mode of passing on benefit. It also held that the balance profiteered amount had to be returned with the corresponding GST component, since collections from buyers were inclusive of GST, and interest at 18% per annum applied from the dates of collection until refund. Penalty under Section 171(3A) was found attracted for the post-commencement period.
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Rebuttable anti-profiteering presumption requires consideration of market forces and input costs; report remanded for fresh investigation.
Case-Laws
GST
In an anti-profiteering inquiry under section 171, tax reduction and input tax credit issues must still be tested against evidence that prices may also be affected by market forces and higher input costs. The Tribunal accepted that any presumption of profiteering is rebuttable and must yield to clear evidence. Because the DGAP acknowledged the respondent's documents but did not meaningfully reconsider them, the report was found unsustainable. The matter was remanded for a fresh investigation from the beginning under Rule 133(4), with liberty to both sides to place further material.
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Bakery goods and restaurant service can be taxed differently from the same premises if supplies and records are kept separate.
Case-Laws
GST
Pre-manufactured bakery items sold without cooking, preparation or processing are supplies of goods, with GST determined by the applicable HSN classification. Items such as pizzas, pastas, salads and shakes prepared or blended at the outlet on customer order are restaurant service, and that character is unchanged whether consumed on the premises or taken away. A registered person may carry on both activities from the same premises, but must keep separate turnover records and a separate series of tax invoices for each category to ensure correct GST treatment and input tax credit compliance.
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Delhi court rejects anticipatory bail plea of govt official accused of corruption
GST
Dated:- 8-5-2026
PTI
New Delhi, May 8 (PTI) A Delhi court on Friday dismissed the anticipatory bail plea of a government official accused by the anti corruption bureau of causing a loss of over Rs 5.5 crore to the government exchequer through illegal GST refunds.

Special Judge (PC Act) Ruchi Aggarwal Asrani was hearing the anticipatory bail of Himanshu Malik.

According to the prosecution, Malik, a lower division clerk (LDC) in the Department of Trade & Taxes at Vyapar Bhawan here, was complicit in a well-hatched conspiracy with others to facilitate the processing and approval of 61 GST refund orders to firm M/s Regional Trading, and tha

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/s Regional Trading transferred a particular amount of money (Rs 25 lakh) to M/s Arki, which further transferred an amount to M/s Uflix, which transferred it to the account of the parents of the applicant (Malik) just a couple of months after M/s Regional Trading received the alleged illegal GST refunds.” Regarding the argument that it was a “friendly loan”, the judge said that it had been given from a company account and not a personal account, and besides, there was no loan agreement.

“Since the factum of transfer of Rs 25 lakh has been admitted on behalf of the applicant, this court finds sufficient reasons to believe that the applicant needs to be interrogated to unearth the truth about the funds received through illegal

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Rs 30,000 cr loss a month: Oil companies bleed as fuel prices on hold amid global energy spike
GST
Dated:- 8-5-2026
PTI
New Delhi, May 8 (PTI) About Rs 700-1,000 crore loss per day. Rs 30,000 crore every month. India's state oil companies are quietly absorbing a massive financial hit to keep petrol, diesel and LPG prices unchanged even as global energy markets face a turmoil that is bigger than all previous crises combined.

While countries from Japan to United Kingdom have raised petrol and diesel prices by up to 30 per cent since the start of the West Asia conflict, fuel prices in India continue at two-year-old levels.

The war disrupted India's import of 40 per cent of crude oil (raw material for making petrol and diesel), 90 per cent cooking gas LPG and 65 per cent natural gas (used to generate electricity, make fertilizer, turned into CNG and piped to household kitchens for cooking), but state-owned oil companies have maintained uninterrupted fuel supplies with n

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d USD 70 per barrel two months ago, are now at USD 120, she said. “It has been government's endeavour to keep prices stable so far and that there is no price increase for consumers,” she said. “This has hit finances of OMCs… monthly under-recoveries are of the order of Rs 30,000 crore.” She, however, refused to say if retail petrol and diesel prices will continue to hold.

“As I said, the endeavour so far has been to see that there is no price increase,” she said.

The three oil marketing companies (OMCs) have worked overtime to keep the supply lines running even when demand spiked due to panic buying.

The government intervention included excise duty reductions and absorption of part of the fuel cost burden. The special additional excise duty on petrol was cut to Rs 3 per litre from Rs 13, while excise duty on diesel was reduced to zero from Rs 10 per litre.

The under-recoveries would have swelled to nearly Rs 62,500 crore had the government not cut excise duty on pet

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d consumers from higher retail prices placed significant strain on OMC balance sheets and refining margins, sources said.

They added that the measures reflected a policy decision to prioritise consumer stability and economic continuity during a global energy shock.

Sources warned that a prolonged period of elevated crude prices could lead to higher working capital borrowings and force some recalibration of capital expenditure plans. However, investments linked to refining expansion, energy security infrastructure, ethanol blending, biofuels and transition fuels would continue with government backing, they said.

India's approach contrasted with measures adopted by several other economies, where fuel prices rose sharply after the conflict-driven energy shock.

Petrol prices increased by about 34 per cent in Spain, 30 per cent in Japan, Italy and Israel, 27 per cent in Germany and 22 per cent in the United Kingdom, according to estimates. Several countries also introduced r

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Oil companies bleed Rs 30,000 cr as fuel prices held steady despite global energy shock
GST
Dated:- 8-5-2026
PTI
New Delhi, May 8 (PTI) India's state-run oil marketing companies have bled an estimated Rs 30,000 crore in losses since mid-March as they kept fuel and LPG supplies flowing without raising retail prices despite facing an energy disruption that is bigger than all previous crises combined.

Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have maintained uninterrupted supplies of petrol, diesel, LPG, aviation turbine fuel and other petroleum products since the start of the West Asia conflict, without raising retail prices despite a more than 50 pe

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g around USD 72 per barrel before the United States and Israel launched strikes on Iran on February 28, triggering a sharp escalation in West Asia tensions. Prices then surged as the conflict widened and shipping risks intensified in the Strait of Hormuz, with reports of disrupted tanker movement and heightened supply fears.

At the peak of the escalation, Brent briefly jumped to levels near USD 144 per barrel as Iran retaliated and closed the Strait, effectively freezing parts of global oil transit and amplifying volatility across energy markets.

Sources said the government intervention included excise duty reductions and absorption of part of the fuel cost burden. The Centre's effective absorption at peak crude prices was estimated a

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Despite these pressures, fuel and LPG supplies remained uninterrupted across the country.

The surge in crude prices and the decision to shield consumers from higher retail prices placed significant strain on OMC balance sheets and refining margins, sources said.

They added that the measures reflected a policy decision to prioritise consumer stability and economic continuity during a global energy shock.

Sources warned that a prolonged period of elevated crude prices could lead to higher working capital borrowings and force some recalibration of capital expenditure plans. However, investments linked to refining expansion, energy security infrastructure, ethanol blending, biofuels and transition fuels would continue with government

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Personal hearing requirement under GST natural justice led to quashing of an ex parte assessment order
Case-Laws
GST
Failure to grant a personal hearing vitiated the assessment order. The Court noted that only two opportunities of hearing had been given, while the statute permits adjournment up to three times, and the petitioner had expressly sought a personal hearing in its GST DRC-06 response. As Section 75(4) requires a hearing when a written request is made or an adverse decision is contemplated, the proper officer was bound to hear the petitioner before deciding the matter. The ex parte assessment order was therefore quashed for breach of natural justice, and the case was remanded for fresh consideration after hearing the petitioner, with revival of the earlier order if the petitioner again defaulted in appearance.
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GST appeal limitation and writ condonation fail where no exceptional circumstances justify delay
Case-Laws
GST
The Appellate Authority cannot entertain a GST appeal filed beyond four months from communication of the adjudicating order, and Article 226 interference to bypass that statutory bar is confined to exceptional and extraordinary cases. Here, the order was served through the GST Portal and was within the taxpayer's knowledge, while the medical evidence did not show any disabling circumstance sufficient to explain the delay. The Court therefore found no exceptional ground to condone the delay or invoke writ jurisdiction, and the rejection of the appeal as time-barred was sustained.
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Alternative remedy and disputed facts led the High Court to decline writ interference in an input tax credit matter.
Case-Laws
GST
The High Court found no breach of natural justice because the impugned order showed that a personal hearing had been given. It also relied on factual findings that no business activity existed at the declared premises and that fake invoices were used through the petitioner's credentials to avail input tax credit. As the dispute turned on contested facts, the Court declined to examine the merits in writ jurisdiction and directed the petitioner to pursue the statutory appellate remedy, with liberty to file an appeal within the time granted and have it heard on merits.
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Provisional attachment and parallel proceedings: writ challenge failed for lack of foundational facts and statutory post-decisional remedy.
Case-Laws
GST
A jurisdictional objection based on the statutory bar against parallel proceedings was rejected as premature because no material was produced to show initiation of adjudicatory proceedings, identity of subject matter, tax period, or cause of action; a writ court could not record even a prima facie finding without such foundational facts. The challenge to provisional attachment for want of a pre-decisional hearing also failed, as Section 83 was treated as not requiring prior notice and the statutory scheme was held to provide a complete post-decisional remedy under Rule 159(5). The petitioner's custody at the time of attachment did not, by itself, invalidate the action, and writ interference was declined.
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GST on leasehold rights and land development cost upheld as taxable supply of service
Case-Laws
GST
Transfer of unexpired leasehold rights was treated as a taxable supply of service because only the right to use immovable property for the balance lease period was assigned, not title in the land, so the transaction did not fall within sale of land under Schedule III. The Authority also held that decisions cited by the appellant had not attained finality, while Safari Retreats was inapplicable because it concerned input tax credit on construction for leasing, not the taxability of leasehold assignments. Separately, recovery of land development cost was held taxable as consideration for construction and development services, since the underlying works were distinct, identifiable services enhancing the premises. The appeal was dismissed and the advance ruling upheld.
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Corporate guarantee without consideration is not taxable as a supply of service, though the GST valuation challenge failed.
Case-Laws
GST
Corporate guarantees issued by a company to secure loans for its subsidiaries were held not to constitute a taxable supply of service where no fee, commission, security or other consideration was received or payable. The Court treated the guarantees as in-house financial support, not a regular business of providing guarantees, and quashed the summons and show cause notice founded on GST demand. By contrast, the constitutional challenge to Rule 28(2) of the GST valuation rules failed because fiscal legislation and delegated tax measures are entitled to wide legislative deference, and no clear constitutional transgression was shown. The petition was therefore partly allowed.
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Deemed withdrawal of GST assessment ends garnishee recovery once returns are filed and dues are paid, subject to verification.
Case-Laws
GST
Section 62(2) was applied to hold that an assessment made for non-filing of returns stands automatically withdrawn when the registered person files the returns for the relevant period and pays the tax, interest and late fee. On the petitioner's assertion that these requirements had been met, the assessment order was treated as deemed withdrawn, so recovery steps founded on it, including garnishee proceedings, could not continue. The relief was made subject to verification by the authorities of the date of filing and payment of the dues.
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CBI Arrests CGST Superintendent, Meerut in a Bribery Case
GST
Dated:- 7-5-2026

The Central Bureau of Investigation (CBI), today, i.e., 07.05.2026, has arrested Superintendent, CGST Meerut, U.P. and a Computer Operator working in the office of  Superintendent, in a bribery case.

The CBI registered the instant case on 06.05.2026 against the accused Computer Operator working in the office of the accused Superintendent, CGST Office, Range-I, Meerut (UP), on the allegations of de

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GST registration cancellation may be remedied through revocation, draft returns, tax payment, and manual filing where needed.
Case-Laws
GST
GST registration cancellation for non-filing of returns and non-payment of tax was addressed by permitting the taxpayer to seek revocation, file draft returns and deposit dues by 31.03.2026. The authority was directed to consider the revocation application within the stipulated time and, if online filing was not possible, to accept manual filing. The approach follows an earlier High Court order in similar circumstances and reflects a remedial route aimed at restoring registration rather than sustaining cancellation where compliance can still be regularised.
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Statutory GST appeal remains available despite tribunal non-constitution; writ jurisdiction cannot bypass appellate remedy or pre-deposit.
Case-Laws
GST
The High Court held that, where the GST Appellate Tribunal has not yet been constituted, the statutory right of appeal remains available and limitation for filing that appeal runs from the date the President or State President enters office, whichever is later, in line with the Board Circular. It further held that writ jurisdiction cannot be used to bypass the statutory appellate remedy or avoid the pre-deposit requirement. Following its earlier order on identical facts, the Court dismissed the writ petition and granted liberty to pursue the appeal before the GST Tribunal against the impugned appellate orders.
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Changed facts in advance ruling on post-sale discounts led to remand for fresh GST consideration.
Case-Laws
GST
Post-sale discounts and non-monetary benefits in a principal-to-principal supply dispute could not be examined on merits because the factual basis before the appellate authority had materially changed. The original advance ruling had proceeded on the supplier-franchise relationship and the absence of any prior agreement on such benefits, while the appeal introduced a different case based on principal-to-principal transactions and prior scheme documents. As the altered facts were divergent from those placed before the original authority, the AAAR held that the correctness of the earlier ruling could not be determined on that record and remanded the matter to the AAR for fresh consideration in accordance with natural justice.
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Alternative statutory remedy under GST bars writ petition where appeal lies before the functioning Appellate Tribunal
Case-Laws
GST
A writ petition challenging a GST appellate order was not entertained because an effective statutory appeal before the now-functioning GST Appellate Tribunal was available. The Court held that writ jurisdiction should ordinarily not be used where a specialised remedy exists, especially when the petitioner's objections concerned GST issues suited to the Tribunal's examination. No exception applied: there was no challenge to the statute's vires, no lack of jurisdiction, and no violation of natural justice because the petitioner had participated and filed a reply. The petitioner was relegated to the appellate remedy, with interim protection continued until the Tribunal decides the stay application.
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Grant-in-aid treated as consideration, with research services held taxable and exemption claims under local-body functions denied.
Case-Laws
GST
Grant-in-aid from CCRAS was treated as consideration because the payments were linked to approved proposals, deliverables, reporting, audits and specified research work, and the subsidy exclusion for Government grants did not extend by implication. The appellant and CCRAS were separate legal persons, so the research work constituted supply between distinct taxable persons in the course of business, and the appellant was not a pure agent. Exemption under Entries 3 and 3A was denied because the services were research and documentation for a central research body, not functions entrusted to Panchayat or Municipality bodies. The work was classified as taxable research and development services under Heading 9981, and the appeal was rejected.
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Fluid coupling classification prevails over motor vehicle parts entry, with GST applied under Heading 8483.
Case-Laws
GST
The Authority treated the Fan Drive Assembly as a fluid coupling because it transmits torque through viscous fluid and matches Heading 8483.60.20, so the specific Chapter 84 heading prevailed over the general motor vehicle parts entry in Heading 8708. It also applied the tariff notes excluding Heading 8483 goods from Chapter 87 where they are integral engine parts. On GST, the product was covered by the notified entry for clutches and shaft couplings under Heading 8483 and attracted 18% tax. Separately procured parts and components, for which no specific sub-entry exists, were placed in the residual heading 8483.60.90.
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Exempt electrical energy supply under rooftop solar arrangement does not require GST registration, subject to unchanged facts and law.
Case-Laws
GST
AAR held that rooftop solar supply under the power purchase arrangement was a supply of electrical energy, with the plant remaining the applicant's asset during the contract term. Electrical energy was treated as exempt goods, so the applicant was supplying only wholly exempt goods and, under Section 23, was not required to obtain GST registration. The Authority added that this exemption would not apply if taxable goods or services were supplied alongside electricity, or if taxable inter-State supplies were made. It also held that an advance ruling binds only the applicant and the relevant officers under Section 103, and only while the same law, facts and circumstances continue.
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