Author: admin_gst

Bidder Cannot Challenge Tender Terms Post-Execution After Voluntarily Participating in Bidding Process with Tax-Inclusive Rates
Case-Laws
GST
HC dismissed the writ petition challenging tender conditions related to GST inclusion. The court held that the tender document clearly stipulated rates should be inclusive of taxes, and after GST regime introduction, 'sales tax' must be interpreted as GST. The petitioner cannot challenge tender terms post-contract execution after voluntarily parti

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Legal Challenge Upheld: GST Order Invalidated for Procedural Unfairness and Incomplete Evidence Evaluation Under Section 73
Case-Laws
GST
HC set aside the Order-in-Original and Summary Order under Section 73 of GST Act due to violation of principles of natural justice. The adjudicating authority failed to consider the petitioner's reply to show-cause notice and supporting documents filed on 20.12.2024 before passing the order on 20.02.2025. The matter was remitted for fresh adjudication

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GST Registration Cancellation Can Be Remedied: Taxpayers Allowed to File Pending Returns and Restore Status Under Section 29(2)(c)
Case-Laws
GST
HC ruled that GST registration cancellation under Section 29(2)(c) of CGST Act, 2017 for non-filing of returns for over six months can be remedied. The petitioner is permitted to approach the designated authority within two months, submit pending returns, pay tax dues, interest, and late fees. If all statutory requirements are fulfilled, the au

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CBI arrests CGST superintendent, seizes assets worth crores
GST
Dated:- 10-6-2025
PTI
New Delhi, Jun 10 (PTI) The CBI has arrested a Central Goods and Services Tax (CGST) superintendent in Uttar Pradesh for allegedly accepting a Rs 1 lakh bribe for waiving penalty on a private company, officials said.
During searches at the premises of Nishan Singh Malli post arrest, the CBI seized 17 property documents, in his and his family members' name, worth crores.
“These properties include three residential flats in Ghaziabad and Moradabad; one commercial shop in Moradabad; 12 residential plots in Rampur and Gajraula. One Creta vehicle in the name of accused public servant was also seized,” a CBI spokesperson on Tuesday said.
Rs 3 l

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System Validation for Filing of Refund Applications on GST Portal for QRMP Taxpayers
GST
Dated:- 10-6-2025

1.In the month of May 2025, a system-level validation was deployed on the GST Portal to ensure adherence to the provisions outlined in Para 6 of Circular No. 125/44/2019-GST dated 18.11.2019. As per the said circular:
“Any refund claim for a tax period may be filed only after furnishing all the returns in FORM GSTR-1 and FORM GSTR-3B which were due to be furnished on or before the date on which the refund application is being filed. However, in case of a claim for refund filed by a composition taxpayer, a non-resident taxable person, or an Input Service Distributor (ISD), furnishing of returns in FORM GSTR-1 and FORM GSTR

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Furnishing Facility (IFF) for the first two months of the quarter (M1 and M2), resulting in the inability to proceed with refund filing. Additionally, in cases where GSTR-1 for the previous quarter had already been filed, the system was erroneously prompting taxpayers to file returns for M1 and M2 of the current quarter too. Taxpayers were facing this issue when the refund application was being submitted during the period between the two quarters.
4.This is to inform the taxpayers that the aforementioned technical issue has now been resolved. Taxpayers under the QRMP scheme can now file refund applications for the invoices for which GSTR-3B has been already filed. Please note invoices furnished through IFF for which GSTR-3B is yet to be fi

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Tax Search Dispute Rejected: Delayed Petition Lacks Urgency, No Interim Relief Granted Until Further Notice
Case-Laws
GST
HC denied interim relief in tax search and seizure matter. The court noted significant procedural delays, with petitioner approaching court 8 months after July 2024 search operations. Only a preliminary DRC 1A notice was issued, with no show cause notice yet served. Given the current stage of proceedings, no interim order was granted. The matter was scheduled for Jun

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Procedural Defects Invalidate Tax Notices: Inadequate Service and Hearing Rights Render Notifications Null and Void
Case-Laws
GST
HC set aside N/N. 56/2023-Central Tax and N/N. 56/2023-State Tax due to procedural irregularities in serving show cause notice. The court found that the notice was uploaded without providing adequate opportunity for personal hearing and reply. Relying on precedent from a similar case, the HC remanded the matter to the Adjudicating Authority, directing proper

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High Court Quashes Input Tax Credit Order, Mandates Reconsideration Under CGST Act Section 16(5) for Fair Adjudication
Case-Laws
GST
HC allowed the petition challenging the adjudication order related to input tax credit under CGST/WBGST Act. The court set aside the existing order and directed the adjudicating authority to re-adjudicate the show-cause notice, taking into consideration the newly inserted sub-section (5) of Section 16, which was effective from 1st July, 2017. The decision

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Vehicle Detention Invalid: Section 129 CGST Act Requires Actual Goods Transportation, Not Mere E-Way Bill Possession
Case-Laws
GST
HC ruled that detention of vehicle under Section 129 of CGST Act, 2017 was invalid. The statutory provision requires actual transportation of goods in contravention of law, which was absent in this case. Mere possession of an e-way bill without corresponding goods movement does not justify vehicle impoundment. The court strictly interpreted the penal provisi

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Ex-parte demand order upheld as petitioner failed to demonstrate procedural violations, directed to file appeal under Section 107 CGST Act
Case-Laws
GST
HC dismissed the writ petition challenging an ex-parte demand order of Rs. 33,68,140/-. Despite arguments of procedural impropriety and violation of natural justice, the court found that sufficient opportunities were provided to the petitioner. The HC directed the petitioner to file an appeal under Section 107 of CGST Act by 15th July,

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Procedural Flaw Invalidates Show Cause Notice: Adjudicating Authority Ordered to Reconsider Case with Proper Service
Case-Laws
GST
HC set aside the impugned order and remanded the matter back to the Adjudicating Authority due to procedural irregularities in serving the Show Cause Notice (SCN). The SCN was uploaded in the 'Additional Notices Tab' prior to 16th January 2024, which was not readily visible to the Petitioner, thus violating principles of natural justice. The Court found that

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CBI arrests UP CGST superintendent in bribery case
GST
Dated:- 9-6-2025
PTI
New Delhi, Jun 9 (PTI) The CBI has arrested two persons, including a superintendent of Central Goods and Services Tax (CGST) in Uttar Pradesh, while allegedly accepting bribe of Rs 1 lakh for waiving off penalty on a private company, officials said Monday.
The other person arrested by the agency is a tax lawyer who was representing the complainant in the case, they said.
CGST superintendent Nishan Singh M

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Himachal suffered losses after implementation of GST: CM Sukhu
GST
Dated:- 9-6-2025
PTI
Shimla, June 9 (PTI) Himachal Pradesh has suffered losses after the implementation of the Goods and Service tax (GST) as the state with a population of 75 lakh, is not a consumer state, Chief Minister Sukhvinder Singh Sukhu said on Monday.
Talking to PTI Videos here, he said that “there has been no advantage to us after GST as we are not a consumer state and states such as Uttar Pradesh, Bihar and West Bengal have benefitted from the GST.” “Our population is 75 lakh and we have suffered losses following GST's implementation despite being the biggest pharma hub, there has been no benefit as far as industry is concerned. Earlier we used to

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d Chitkul in Kinnaur district, along with selected areas in Lahaul-Spiti.
Access to these areas, which previously required special permissions from the ITBP and Indian Army due to their strategic locations and security, has now been eased under revised protocols and as per the new guidelines, local residents and bona-fide tourists can now visit these locations by presenting valid identity documents.
The ITBP and Army will continue to facilitate smooth and secure movement in alignment with prescribed protocols. The initiative is expected to strengthen local infrastructure, enhance livelihood opportunities through responsible tourism, and foster a deeper sense of National integration for communities residing in remote tribal belts.
“Pun

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Developer's Services to Housing Society Trigger GST Liability Based on Market Value of Comparable Property Transactions
Case-Laws
GST
AAR held that construction services rendered by developer to society members in exchange for development rights constitute a taxable supply under GST. The taxable value shall be determined by the market value of similar flats sold to independent buyers. GST liability is payable by the promoter on unsold flats at the time of completion certificate, with ta

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Motor Vehicle Exhaust After-Treatment System Classified as Automotive Part Under Tariff Heading 8708 for Emission Compliance
Case-Laws
GST
AAR ruled that the Exhaust After-Treatment System (ATS) is classifiable under tariff heading 8708 for motor vehicle parts. The system is specifically designed for particular motor vehicles, cannot function independently, and is manufactured per original equipment manufacturers' specifications. The ATS is tailor-made to fit precisely within a vehicle'

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Electricity Transmission Utility Services Deemed Taxable When Modifying Infrastructure at Third-Party Request Under GST Regulations
Case-Laws
GST
The AAR ruled on GST applicability for electricity transmission utility services. The key findings are: shifting/raising transmission towers at third-party request constitutes a taxable supply under service category “agreeing to do an act” (HSN 999792). The services are not transmission-related but infrastructure modification services. The sup

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Tax Authorities Validated in Search and Attachment Order, Petitioner Granted Opportunity to File Specific Objections Within Two Weeks
Case-Laws
GST
HC upheld the search authorization and attachment orders issued by State Tax authorities. The court found that the Commissioner's delegation of powers to the Assistant Commissioner was valid under the order dated 15.01.2018. While not adjudicating on the merits of the provisional attachment, the HC directed the respondent authorities to expe

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Infosys gets huge relief on GST as DGGI closes Rs 32,400 cr pre-show cause notice
GST
Dated:- 7-6-2025
PTI
New Delhi, Jun 7 (PTI) In a major relief for Infosys, the Director General of GST Intelligence has closed pre-show cause notice proceedings against the company for financial years 2018-19 to 2021-22 involving a staggering Rs 32,403 crore in GST dues.
The latest move effectively ends nearly a year-long GST saga for India's second-largest IT services firm.
Mid-last year, the goods and services tax (GST) authorities had slapped Rs 32,403 crore notice on Infosys for services availed by the company from its overseas branches for five years starting 2017.
The GST demand, in fact, exceeds Infosys's annual profits (net profit

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ved and responded to a pre-show cause notice issued by DGGI for the period July 2017 to March 2022 on the issue of non-payment of IGST under Reverse Charge Mechanism.
“The GST amount as per the pre-show cause notice for this period was Rs 32,403 crore. The company had on August 3, 2024 received a communication from DGGI closing the pre-show cause notice proceedings for the financial year 2017-2018. With the receipt of today's communication from DGGI, this matter stands closed,” Infosys said.
In July last year, Infosys had informed that Karnataka State GST authorities issued a pre-show cause notice for payment of GST of Rs 32,403 crores for the period July 2017 to March 2022 towards the expenses incurred by overseas branch offices of Inf

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nfosys has paid all its GST dues and is fully in compliance with the central and state regulations on this matter,” the company had contended.
The document sent to Infosys by GST authorities at that point had reportedly said, “In lieu of receipt of supplies from overseas branch offices, the company has paid consideration to the branch offices in the form of overseas branch expense. Hence, M/s Infosys Ltd, Bengaluru is liable to pay IGST under reverse charge mechanism on supplies received from branches located outside India to the tune of Rs 32,403.46 crores for the period 2017-18 (July 2017 onwards) to 2021-22.” The Directorate General of GST Intelligence in Bengaluru had been of the opinion that Infosys did not pay the Integrated-GST (

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Citing CAG data, Jagan claims Andhra's fiscal performance indicates 'distress'
GST
Dated:- 7-6-2025
PTI
Amaravati, June 7 (PTI) YSRCP chief YS Jagan Mohan Reddy on Saturday cited the CAG's data for the month of April and claimed Andhra Pradesh's fiscal performance indicates 'distress'.
The former chief minister noted that the figures released by CAG for the month of the April 2025 convey the 'real picture'.
“The State GST revenues for the first month of this financial year (April 2025) demonstrated contraction to the tune of 24.20 percent, when compared to the April 2024,” he said in a post on 'X'.
Though the TDP-led NDA government on May 1 proclaimed that net GST collection of the state government for the month of April 2025

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said this is a regular process and net GST revenues would be arrived at after accounting for all these adjustments, and added that it was the case in the previous years as well.
“The May 1 press release says that net GST collection is Rs 3,354 crore for April 2025. Now, they (govt) say that Rs 796 crore is adjusted. One can clearly understand that this is nothing but a cover up after truth about the GST revenue is brought to light by the CAG,” said Reddy.
Further, the opposition leader observed that quite contrary to what the NDA alliance government had suggested, the figures released by CAG indicate that the 'trend of economic sluggishness' is more pronounced in April with the tax revenues dropping by 12.21 percent and non-tax revenues

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Barring of GST Return on expiry of three years
GST
Dated:- 7-6-2025

As per the Finance Act,2023 (8 of 2023), dt. 31-03-2023, implemented w.e.f 01-10-2023 vide Notification No. 28/2023 – Central Tax dated 31th July, 2023, the taxpayers shall not be allowed file their GST returns after the expiry of a period of three years from the due date of furnishing the said return under Section 37 ( Outward Supply), Section 39 (payment of liability), Section 44 ( Annual Return) and Section 52 (T

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Advisory regarding non-editable of auto-populated liability in GSTR-3B
GST
Dated:- 7-6-2025

1. GST Portal provides a pre-filled GSTR-3B, where the tax liability gets auto-populated based on the outward supplies declared in GSTR-1/ GSTR-1A/ IFF. As of now taxpayers can edit such auto populated values in form GSTR 3B itself.
2. With introduction of form GSTR 1A, taxpayer now has a facility to amend their incorrectly declared outward supplies in GSTR-1/IFF through GSTR-1A, allowing th

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GST Notification Limits Preferential Tax Rate to Select Towers A, B, C in Residential Project Under Specific Conditions
Case-Laws
GST
The AAR determined that the applicant's residential project did not fully qualify as an “ongoing project” under the GST notification. Only towers A, B, and C were eligible for the 12% GST rate (net 8% after land deduction) with input tax credit, subject to specified conditions. Projects initiated after 01.04.2019 were ineligible for the previous tax struc

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Free Drug Samples and Logistics Services Disqualified from Input Tax Credit Under CGST Act Section 17(5)(h)
Case-Laws
GST
AAR ruled that the applicant is not entitled to input tax credit (ITC) in three key scenarios: (1) IGST paid on importing sample drugs supplied free to hospitals/clinics, (2) IGST paid by logistics service provider under Delivered Duty Paid model, and (3) CGST paid for Customs House Agent and logistics services. The ruling hinged on Section 17(5)(h) of CGST Act, whic

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Electronic Credit Ledger Restrictions: Rule 86B Limits Taxpayer's Credit Utilization for High Monthly Turnover Partnerships
Case-Laws
GST
AAR held that Rule 86B restrictions apply to the taxpayer, preventing use of electronic credit ledger beyond 99% of total tax liability. The cumulative income tax paid by the partnership firm and its partners cannot be aggregated to satisfy the exemption threshold. Since no individual partner paid more than Rs. 1 lakh in income tax during the last two

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Labor Contract for Housing Project Fails GST Exemption Test, Triggering 18% Tax Rate Under Notification 12/2017
Case-Laws
GST
The AAR determined that the taxpayer's labor contract service for constructing 380 flats does not qualify as a pure labor service under Pradhan Mantri Awas Yojana. Despite being a sub-contract with a builder, the agreement involves supplying machines and materials beyond labor, rendering it ineligible for GST exemption under Notification No. 12/2017. Consequently

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