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DGGI Bengaluru Unit uncovers six shell companies with fraudulent invoices worth Rs. 266 crore involving Rs. 48 crore fraudulently claimed Input Tax Credit; mastermind arrested
GST
Dated:- 11-7-2025

In a follow up operation connected with investigation of a case initiated in Bengaluru, the officers of Directorate General of GST Intelligence, Bengaluru Zonal Unit, carried out searches in over six premises in Delhi, and uncovered fraudulent invoices worth over Rs 266 crore, involving availment and passing on of fraudulent Input Tax Credit (ITC) of Rs 48 crore from the shell companies.
The masterminds floated shell companies with no actual business activity, carried circular trading to inflate turnover, listed one of the companies

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Sitharaman inaugurates 72 digital libraries, lays foundation stones for key projects in Meghalaya
GST
Dated:- 11-7-2025
PTI
Shillong, Jul 11 (PTI) Union Finance and Corporate Affairs Minister Nirmala Sitharaman on Friday inaugurated 72 digital libraries and laid foundation stones for multiple key infrastructure and development projects worth over Rs 1,500 crore in Meghalaya.
Accompanied by Meghalaya Chief Minister Conrad K Sangma, Sitharaman also launched the IICA North East Conclave 2025 at IIM Shillong and laid the foundation stone for the IICA Northeast Regional Campus.
The Union Finance minister also laid the foundation for the redevelopment of Umiam Lake at a cost of Rs 99.99 crore. It will be funded under the Special Ass

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als and students.
Another key project unveiled was the CBIC Integrated Complex at Umsawli, intended to streamline operations of the Central Board of Indirect Taxes and Customs in the state.
Chief Minister Conrad K Sangma said the Digital Libraries initiative will “significantly enhance access to knowledge, especially in rural and remote areas, and empower youth through digital learning resources.” The 72 Digital Libraries, spread across all 12 districts of Meghalaya, are designed to provide free access to e-books, online courses, research materials, government services, and digital skill-building tools.
These libraries are built at a cost of over Rs 100 crore and will operate as community knowledge hubs, equipped with internet connectiv

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Assignment of leasehold rights is not a supply and exempt from GST under Section 7(1)(a) and Section 9
Case-Laws
GST
The HC held that the assignment of leasehold rights by the petitioner constitutes a transfer of benefits arising from immovable property, which is excluded from the scope of supply under Section 7(1)(a) read with Schedule 2 and Schedule 3 of the State GST Act, 2017. Consequently, such a transaction is not subject to GST levy under Section 9. The court quashed and set asid

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Petitioner's IGST Refund Denial Under Rule 96 Was Improper; Appellate Authority Must Reconsider Evidence
Case-Laws
GST
The HC held that the petitioner's rejection of IGST refund under Rule 96 of the CGST Rules was improper as the petitioner was not required initially to submit the EPCG Certificate, and its subsequent submission during appellate proceedings was valid. Clauses (a) to (d) of Rule 112(1) were inapplicable since the petitioner was neither denied the opportunity to produce ev

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Regular Bail Granted Under Sections 132 and 137 of CGST and Gujarat GST Act, 2017 with Conditions
Case-Laws
GST
The HC granted regular bail to the applicant accused under various provisions of the CGST Act, 2017 and the Gujarat GST Act, 2017, relating to offences under Sections 132 and 137. Considering the allegations and prima facie assessment without detailed evidence examination, the Court found it appropriate to exercise discretion in favor of bail. The applicant was ordered to be r

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Bail Denied for Accused in Major GST Fraud Involving Over 3,100 Fake Firms Under CGST Act
Case-Laws
GST
The DSC rejected the bail application of the accused involved in a large-scale GST evasion scheme. The accused, along with co-conspirators, orchestrated the creation of over 3,100 fictitious firms to fraudulently avail and pass input tax credit (ITC) totaling approximately Rs. 174.46 Crores and Rs. 163.50 Crores, respectively, through bogus invoices without actual supply of goods or s

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Cancellation of registration without proper SCN service violates natural justice under GST rules, order quashed
Case-Laws
GST
The HC held that cancellation of registration without proper service of the show cause notice (SCN) violates the principles of natural justice. The petitioner was not required to monitor the GST portal for receipt of the SCN. Service must be effected through alternative, reliable means to ensure proper notice. Consequently, the impugned order dated February 11, 2

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Petition Allowed for Revised TRAN-1 Form Under Section 140 CGST Act; Manual Revision and Credit Claim Valid
Case-Laws
GST
The HC set aside the impugned order rejecting the petitioner's revised TRAN-1 form under Section 140 of the CGST Act, 2017. The court held that the petitioner could not have electronically revised excise returns filed prior to 1 July 2017 after the GST regime commenced, as the excise portal was non-functional post that date. Consequently, the rejection based on the a

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Assignment of GIDC Leasehold Rights Not a GST Supply Under Section 7(1)(a), Exempt Under Section 9
Case-Laws
GST
The HC held that the assignment by sale and transfer of leasehold rights in immovable property allotted by GIDC does not constitute a supply liable to GST under Section 7(1)(a), Schedule 2, and Schedule 3 of the Act. Consequently, such transactions are exempt from GST levy under Section 9. The Court quashed and set aside the impugned order issued under Section 73, along with

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Rental Income from Government Hotel Accommodation Subject to 12% GST Under CGST and J&K GST Acts
Case-Laws
GST
The HC held that rental income earned by the landlord from the Department of Home for hotel accommodation is subject to GST at 12% under the CGST and Jammu and Kashmir GST Acts. Although the tariff was fixed pre-GST implementation without considering tax implications, the subsequent GST regime renders such rental income taxable. The Department of Home is legally obligated t

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Retrospective GST Registration Cancellation from 2017 Quashed; Cancellation Effective from SCN Date June 27, 2023
Case-Laws
GST
The HC quashed the impugned order insofar as it imposed retrospective cancellation of the petitioner's GST registration from 3 July 2017, holding that the cancellation with retrospective effect was unsustainable due to non-application of mind and lack of opportunity to represent against such retrospective action. The court directed that the cancellation shall t

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Authorities must verify supplier's GST compliance under ITC rules before denying credit claims
Case-Laws
GST
The HC held that the authorities erred by focusing solely on ancillary documents without examining the substantive evidence regarding the movement of goods or verifying compliance with statutory ITC conditions. Although the supplier was later deregistered, their registration was valid at the relevant time, and the revenue failed to conclusively determine whether the supplier had

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Penalties Imposed Under IGST Section 20 and CGST Sections 129(1)(a), 129(6); Vehicle Released on Bond Payment
Case-Laws
GST
The HC affirmed the dismissal of the writ petition, emphasizing the availability of statutory appellate remedies. Penalties totaling Rs. 2,00,000/- were imposed under Section 20 of the IGST Act read with Sections 129(1)(a) and 129(6) of the CGST Act, including a vehicle penalty for conveyance of goods. The vehicle was ordered released upon payment of Rs. 50,000/- a

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Petition dismissed for not challenging Circular dated 09.02.2018; reply to SCN required within four weeks
Case-Laws
GST
The HC dismissed the petition challenging the SCN issued by the first respondent, noting the petitioner did not contest the underlying Circular dated 09.02.2018. The court held that without challenging the Circular, it would not interfere with the SCN. The petitioner was directed to submit their reply or objections to the second respondent within four weeks of receivin

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Penalty upheld under Section 122(1A) for fraudulent ITC through fake firms; petitioner allowed to appeal under Section 107
Case-Laws
GST
The HC dismissed the writ petition challenging the imposition of penalty under Section 122(1A) of the CGST Act for fraudulent availment of ITC through fake firms. The court found that the petitioner, a GST consultant and former GST Department employee, was complicit in creating fictitious entities and aware of the ongoing fraudulent transactions. The p

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Penalty upheld as due process followed; mens rea not needed under relevant tax evasion law upheld
Case-Laws
GST
The HC dismissed the petition challenging the respondents' jurisdiction and penalty imposition, affirming that due process was followed. The consignment was intercepted from the driver, who produced relevant documents; notices were issued accordingly, and physical verification occurred in his presence. The petitioner, as the sole authorized signatory, was granted a reasonable

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Icing Sugar Classified Under HSN 1701, Attracting 12% GST Despite Added Edible Starch
Case-Laws
GST
The AAR held that icing sugar, being finely pulverized refined sucrose with added edible starch as an anti-caking agent, is properly classified under HSN code 1701, specifically 17019990, which covers cane or beet sugar and chemically pure sucrose in solid form. The product does not fall under HSN 1702, which pertains to chemically pure sugars such as lactose or glucose. Consequently, ici

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Government Insurance Services to Employees Exempt from GST; Registration Needed Only if Turnover Exceeds Threshold
Case-Laws
GST
The AAR held that insurance services provided by the Government Insurance Department to State Government employees are exempt from GST under the relevant exemption entry applicable to government services, except where services fall under specific taxable categories provided to business entities. Regarding GST registration, the authority noted that registration

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Short GST Payment on Works Contract Seen as Non-Fraudulent; Section 73 Applies, Not Section 74
Case-Laws
GST
The HC held that the petitioner's short payment of GST related to works contract services did not amount to wilful suppression of facts or fraud. Consequently, proceedings under Section 74 of the CGST/KGST Act, which apply to cases involving fraud or wilful misstatement, were inappropriate. Instead, the matter fell under Section 73, which addresses determination of tax short paid

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GST exemption applies to bundled inpatient healthcare supplies under Notification No. 12/2017-Central Tax
Case-Laws
GST
The AAR held that supplies naturally bundled with healthcare services to inpatients are exempt from GST under Serial No. 74 of Notification No. 12/2017-Central Tax (Rate). However, absent clear details on what constitutes “other required supplies,” the taxability must be assessed on a case-by-case basis. Conversely, when medicines and allied items are supplied to outpa

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GST on marine engines and parts at 5% when used in fishing vessels under Notification No. 01/2017 CT (R)
Case-Laws
GST
The AAR held that marine engines classified under headings 8407 and 8408, and their spare parts, attract GST at 5% when supplied as components of fishing vessels under heading 8902, pursuant to entry No. 252 of Schedule I of Notification No. 01/2017 CT (R). If supplied otherwise, the applicable GST rate under their respective tariff headings applies. Repair and maintena

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Assessment order in Form DRC-07 quashed for missing Document Identification Number under GST rules
Case-Laws
GST
The HC set aside the impugned assessment order issued in Form DRC-07 due to the absence of a Document Identification Number (DIN), rendering the proceedings invalid. This decision aligns with binding precedents and a circular mandating the inclusion of a DIN for validity under the GST Act. The court granted liberty to the revenue authority to initiate fresh assessment proceed

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Service of Show Cause Notice Solely via GST Portal Insufficient Under Section 169, Remand Ordered with Payment Condition
Case-Laws
GST
The HC set aside the impugned order canceling the petitioner's registration, holding that service of the show cause notice solely via the GST portal was insufficient without exploring alternative modes of service under Section 169 of the GST Act, thereby denying the petitioner effective opportunity of personal hearing. The Court emphasized that repeated

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Petitioner lacks locus standi under Article 226; no personal legal injury shown, writ petition dismissed for maintainability
Case-Laws
GST
The HC dismissed the writ petition for lack of maintainability, holding that the petitioner lacked locus standi to invoke Article 226 jurisdiction. Although the petitioner filed complaints leading to notices by GST and Income Tax authorities, no personal legal injury or infringement of rights was demonstrated. The Court emphasized that Article 226 ju

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SC restores petition for fresh ITC claim on breakwater under plant and machinery classification per precedent
Case-Laws
GST
The SC allowed the appeal and restored the petition to the HC, directing it to adjudicate afresh in line with the precedent set in M/s Safari Retreats Pvt Ltd. The HC had previously denied ITC on the breakwater, holding it was not “plant and machinery” used for outward supply. The SC's order implies reconsideration of ITC eligibility regarding the breakwater's clas

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