Author: admin_gst

'Fake' GST ITC case: ED raids in multiple states
GST
Dated:- 20-1-2026
PTI
New Delhi/Kolkata, Jan 20 (PTI) The Enforcement Directorate on Tuesday conducted multi-state searches in connection with an alleged fake GST input tax credit case of Rs 658 crore that originated in Arunachal Pradesh, officials said.
Multiple premises of individuals and companies linked to the case located in Jharkhand, West Bengal and Manipur are being searched as part of an investigation being undertaken as

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Belated input tax credit claims under retrospective Sections 16(5)-16(6) and GSTR-2A/GSTR-3B mismatch; orders quashed, reassessed
Case-Laws
GST
Belated availing of input tax credit: statutory amendment inserting Sections 16(5)-16(6) (Finance Act 2024, retrospective to 01.07.2017) governs late ITC claims, requiring re-adjudication in favour of the assessee on that legal point – outcome: reassessment on merits. Mismatch between GSTR-2A and GSTR-3B: factual discrepancy must be re-examined

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Blocking electronic input tax credit u/r 86A requires independent reasoned satisfaction; authority directed to pass fresh speaking order
Case-Laws
GST
Issue: Whether blocking electronic input tax credit under Rule 86A was predicated on an independent, reasoned satisfaction or on a mechanical/borrowed conclusion. Reasoning: The court held that Rule 86A requires an independent application of mind and a speaking order; reliance on the Board's Circular dated 02.11.2021 does not permit a mer

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Legality of arrest and non-production after medical transfer in Section 132(1) case – challenge rejected
Case-Laws
GST
Dominant issue: legality of arrest and custody – Court held that illegal arrest may be challenged by writ only where arrest flagrantly breaches procedural safeguards or is mala fide; ordinarily bail provisions govern custody, and judicial scrutiny focuses on material justifying arrest. Outcome: challenge rejected because arrest was supported by material establishing rea

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Jurisdiction to issue show-cause notice u/s74 CGST/MGST after para 2 of Notification No.11/2017 struck down; reply affidavit ordered
Case-Laws
GST
Whether the issuing authority had jurisdiction to serve the impugned show-cause notice under s.74 CGST/MGST, given paragraph 2 of Notification No.11/2017-Central Tax (Rate) was declared ultra vires; court applied principles from the Supreme Court's Kusum Ingots decision on pan-India applicability to frame this as the primary jurisdictional is

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Alleged GST fraud through fictitious firms and fake invoices leading to denial of anticipatory (pre-arrest) bail
Case-Laws
GST
The sole issue was entitlement to anticipatory (pre-arrest) bail where authorities allege operation of fictitious firms, issuance of fake invoices and fraudulent availment/circulation of ineligible input tax credit. Relying on ongoing nascent inquiry under notice provisions and the court's inherent jurisdiction, the High Court found specific and serious allegati

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Reverse-charge supplies treated as forward-charge GST without show-cause notice violates s.75(7); appellate order set aside and remitted
Case-Laws
GST
Notice to show-cause confines adjudication: an order cannot extend beyond issues specified in the notice and Section 75(7) manifests that principle; holding that treating reverse-charge supplies as forward-charge without such notice violated statutory mandate, and that the appellate authority erred in deeming this a mere “technical” quant

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Extraordinary writ availability when alternate statutory remedy requires pre-deposit – writ declined; petitioner ordered to file statutory appeal within six weeks
Case-Laws
GST
The court addressed whether extraordinary writ relief was maintainable where an alternate statutory remedy with a pre-deposit exists and whether the impugned order was time-barred or tainted by denial of natural justice; factual mixed-questions (service, exemption status, limitation) required adjudication and did

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ISD distribution monthly time-limit u/r 39(1)(a) found to exceed delegated power, extinguish ITC; audit quashed
Case-Laws
GST
Rule 39(1)(a) validity: Rule 39(1)(a) impermissibly adds a mandatory monthly time-limit for ISD distribution beyond Section 20's delegated “manner” power, extinguishing vested ITC rights and violating Article 14; consequence – Rule 39(1)(a) struck down. Natural justice: audit finalization and placement before MMCM without granting requested time or hearing breach

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Classification of repackaged rice-bran oil sold as lamp oil under competing tariff headings; writ dismissed, appeal allowed within 30 days
Case-Laws
GST
The central issue is classification of a repackaged rice bran oil marketed as lamp oil under competing tariff headings; the Court declined to determine classification, reasoning that statutory administrative and appellate fora must decide classification to secure uniformity and avoid divergent High Court rulings, and because material fa

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Failure to pass Input Tax Credit to 1,104 home buyers u/s 171 CGST; ordered to remit Rs.3.13 crore
Case-Laws
GST
Dominant issue: whether the respondent violated Section 171 CGST by not passing on Input Tax Credit (ITC) benefits. Reasoning: DGAP admitted partial pass-through of ITC (Rs. 91,45,350) but also identified a prima facie computation requiring Rs. 3,12,78,937 to be passed to 1,104 eligible home buyers; despite a reporting error, the authority held the obligation to remit the lar

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SC sets aside service tax demand from HT Media on fees paid to global speakers at summit
GST
Dated:- 16-1-2026
PTI
New Delhi, Jan 16 (PTI) The Supreme Court on Friday set aside a service tax demand raised on fees paid to international speakers invited for the Hindustan Times Leadership Summit, holding that such payments do not fall within the ambit of “event management service” under the Finance Act.
A bench comprising Justices J B Pardiwala and Justice K V Viswanathan held that the fees paid to booking agents for securing international speakers for a summit cannot be taxed under the category of “event management service.” Justice Pardiwala, who authored the judgement, allowed the appeal of HT Media Limited.
The verdict

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vice-president Al Gore, and astronaut Jerry Linenger, to the event, HT Media entered into contracts with specialised booking agencies like the Washington Speakers Bureau and the Harry Walker Agency.
The revenue department issued show-cause notices proposing to levy service tax on the fees paid to these speakers through booking agents under the category of 'event management service', invoking the extended period of limitation.
The total tax demand involved was approximately Rs 60.56 lakh. The Commissioner confirmed the demand along with interest and penalties on February 13, 2014.
On appeal, the CESTAT partly allowed HT Media’s plea by setting aside the invocation of the extended period of limitation.
However, the CESTAT upheld the se

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Appellate enhancement of petitioner's taxable turnover without prior notice set aside and remitted for fresh hearing
Case-Laws
GST
Appellate enhancement of petitioner's taxable-turnover without prior notice breached natural justice because the turnover issue was not raised by the adjudicating authority and thus was not before the appellate forum; applying the second proviso to section 107(11) (Act of 2017), the appellate addition cannot stand-consequence: that portion is set aside and r

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Consolidation of short-paid GST across tax periods in Section 74 show-cause notice held ultravires; notice quashed
Case-Laws
GST
The central issue was whether a show-cause notice under Section 74 CGST could consolidate alleged short-payments across different financial years/tax periods. Relying on binding Division Bench precedent, the court held that an assessing authority lacks jurisdiction to issue composite assessment or club periods in a single notice; accordingly, such consolidatio

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GST debit-note reporting mismatch causing ITC discrepancy due to GSTR-1 misclassification; portal must allow rectification and reopen filings
Case-Laws
GST
Error in reporting debit notes caused mismatch of input tax credit because the GST portal matches only buyer-acknowledged credit notes in GSTR-1 and ignores seller-entered debit notes, despite tax having been admitted and paid on those debit notes; consequence-mismatch in GSTR-2A and reversal of electronic credit balance. Legal deter

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Parallel adjudication by Central and State tax authorities u/s 6(2)(b) CGST barred once one authority initiates proceedings
Case-Laws
GST
The principal issue was whether Section 6(2)(b) CGST permits parallel adjudication by Central and State authorities where proceedings overlap. Relying on the Apex Court's delineation of “initiation of proceedings,” “subject-matter,” and inter-authority relations, the court held that once one authority first initiates proceedings, subsequent parallel a

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Composite intimation and single DRC-01 show-cause notice across different financial years held impermissible; notices quashed
Case-Laws
GST
The court held that where the subject matter relates to different financial years, a composite intimation and single show-cause notice are impermissible: separate intimations and, after considering statutory replies, separate DRC-01 show-cause proceedings are required – consequence: the impugned intimation and show-cause notice are quashed and set a

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Refund recovery timelines u/s 56/Rule 94 considered; revision seeking relief dismissed for failure to show non-consideration
Case-Laws
GST
Whether the impugned judgment erred by not considering statutory review timelines for refund recovery under Section 56 of the WBGST Act and Rule 94 – court examined the Canon India principle that omission of a statutory provision may be an error apparent on the face of the record but found the trial court did address Section 56 (noting it reinforces

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BIC extends export incentives to postal shipments from 15th January 2026
GST
Dated:- 16-1-2026

Incentives expected to significantly enhance competitiveness of MSME exporters, especially from smaller towns and remote areas, and give a major fillip to postal exports
In a significant boost to India's e-commerce and MSME exports, the Central Board of Indirect Taxes and Customs (CBIC) has extended export-related benefits under the Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) schemes to exports made through the postal mode in electronic form, with effect from 15th January 2026.
This landmark measure aims to provide a level playing field fo

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toms explaining the amendments and detailing the operational modalities have been issued on 15 January 2026.
Over recent years, the Government of India has undertaken a series of policy initiatives, digital reforms and regulatory measures to transform India's e- commerce export ecosystem. A dedicated chapter titled “Promoting Cross-Border Trade in the Digital Economy” has been introduced in the Foreign Trade Policy 2023, providing a comprehensive framework to promote cross-border e-commerce through courier, post, e-commerce export hubs, Dak Niryat Kendras and other facilitative mechanisms.
India currently has 28 Foreign Post Offices (FPOs) notified under Section 7 of the Customs Act, 1962. CBIC has undertaken several measures to strengthe

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Alleged fraudulent availing and passing on of input tax credit: accused granted regular bail subject to bonds and surety
Case-Laws
GST
Whether regular bail should be granted for alleged fraudulently availed and passed on input tax credit: court noted prosecution rests on documentary evidence already seized, absence of prior similar involvement, that the offence attracts maximum five years' imprisonment and offences involving evasion up to Rs.5 crore are bailable, the matter is a magiste

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Statutory appellate forum functioning bars writ challenge to order; petitioner must comply with Section 112(8) pre-deposit and file appeal
Case-Laws
GST
Where a statutory appellate forum exists but was non-functional, the court permits writ jurisdiction to prevent remedilessness; however, once the forum is constituted, the writ court must decline relief and ensure statutory conditions for appeal (including pre-deposit requirements) are strictly observed. The petition challenging an orde

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GST pre-deposit obligation u/s 112(8) for statutory appeals – petition ordered to make deposit and file appeal electronically
Case-Laws
GST
Where an alternative statutory appellate forum exists, the court held that a writ is maintainable only if that forum is non-functional or not constituted; conversely, where the forum is functional the writ court must refrain from adjudicating and insist on compliance with statutory preconditions for appeal. The court applied this principle to requir

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Accumulated input tax credit refund claim blocked by portal upload of shipping bills; court orders verification and processing of refund
Case-Laws
GST
The principal issue was whether the taxpayer's refund claim for accumulated input tax credit, filed in Form GST RFD-01 after portal-size constraints prevented uploading supporting shipping bills and after earlier rejection and re-credit to the electronic credit ledger, was maintainable despite the portal error and the issuance of a defici

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Cinema ticket pricing refusing to pass GST rate cut u/s 171, found profiteering Rs.11,88,482; limited interest
Case-Laws
GST
Whether respondent violated Section 171 by not passing on GST rate reduction: Section 171 requires commensurate reduction in the all-inclusive price and state cinema regulatory ceilings or tariffs cannot justify retaining tax benefit; finding: respondent contravened Section 171 and profiteered Rs. 11,88,482 (outcome). Whether remittance of GST to the exchequer neg

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CGST Delhi South Commissionerate arrests two people for fraudulent availment of Input Tax Credit (ITC) of around Rs.8.52 crore through bogus invoices of Rs.199.90 crore
GST
Dated:- 15-1-2026

The Anti-Evasion Branch of the Central Goods & Services Tax (CGST) Delhi South Commissionerate has arrested the key persons for fraudulent availment of ineligible Input Tax Credit (ITC) amounting to approximately Rs.8.52 crore through bogus invoices of Rs.199.90 crore without actual receipt of g

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