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GST Registration Cancellation Voided: Procedural Fairness Demands Proper Hearing and Opportunity to Defend Business Interests
Case-Laws
GST
HC ruled that due to the death of key business principals and potential violation of natural justice principles, the GST registration cancellation proceedings against the Petitioner were procedurally flawed. The Court set aside the impugned order, remanded the matter to the adjudicating authority, and directed the Petitioner be granted a substantive

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No GST on UPI Transactions: Government Confirms Zero Taxation for Digital Payments Under Rs. 2,000
News
GST
The GOI officially refutes claims of proposed GST on UPI transactions over Rs.2,000, confirming no such taxation measure exists. CBDT has eliminated Merchant Discount Rate (MDR) on Person-to-Merchant UPI transactions, rendering GST inapplicable. An active Incentive Scheme from FY 2021-22 supports low-value UPI transactions, with escalating allocations (FY2021-22: Rs.1,389 crore; F

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High Court Invalidates GST Rule 86A Blocking of Electronic Credit Ledger Due to Procedural Defects and Lack of Fair Hearing
Case-Laws
GST
HC ruled that blocking of Electronic Credit Ledger (ECL) under Rule 86A of CGST Rules, 2017 was procedurally invalid. The order was quashed due to absence of pre-decisional hearing, lack of independent reasons to believe, and reliance on borrowed satisfaction from enforcement authorities. The court directed immediate unblocking of petitioner's ECL, em

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Natural Justice Prevails: GST Authorities Penalized for Denying Hearing Rights Under Section 75(4)
Case-Laws
GST
HC found a clear violation of natural justice principles under Section 75(4) of GST Act, 2017, where administrative authorities failed to provide personal hearing to the petitioner. The ex-parte assessment and show cause notice were procedurally defective, with 'NA' marked against hearing date despite specific hearing request. The Court imposed Rs. 20,000 cost on the Joint Co

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Apartment Allotment Triggers GST Liability Based on Payments Made During Construction Phase Under Section 7
Case-Laws
GST
HC ruled that the petitioners' apartment/duplex allotment involved GST liability based on payments made during construction period prior to completion certificate. The court determined that contractual agreements and partial consideration paid before project completion on 31.12.2018 triggered service tax obligations under Section 7 and Schedule II of CGST Act, 2017.

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GST Registration Canceled for Persistent Non-Compliance: Piecemeal Returns Insufficient to Prevent Statutory Penalty Under Rule 22(4)
Case-Laws
GST
HC upheld the cancellation of taxpayer's registration due to non-filing of returns for six consecutive months. Despite filing returns after the show cause notice, the taxpayer failed to submit returns for all six months with requisite tax interest and late fees. The court emphasized that piecemeal return filing does not satisfy the statutory

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High Court Rejects Bail Modification in GST Fraud Case, Upholds Original Order Based on Investigation Completion and Cooperation
Case-Laws
GST
HC set aside CJM's order regarding bail in a fraudulent GST invoicing case, finding no material change in circumstances warranting release. Despite seeking cancellation of regular bail, the court determined no re-arrest was necessary as the investigation is complete and the respondent has fully cooperated. The respondent demonstrated availability

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Taxpayer Wins Challenge Against Improper GST Refund Rejection, Court Orders Reconsideration Under Rules 89, 90, and 92
Case-Laws
GST
HC allowed the petition challenging the refund claim rejection. The court found that the respondent improperly rejected the refund application in GST RFD-03 by stating refund was not permissible due to voluntary payment. The court quashed the deficiency memo and remanded the matter back to the respondent to reconsider the refund application in GST RFD-01 i

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Judicial Intervention Nullifies Ex-Parte Order, Reinstates Petitioner's Right to Fair Hearing and Natural Justice Principles
Case-Laws
GST
HC set aside ex-parte order due to violation of natural justice principles, specifically lack of proper service of pre-intimation notice and show-cause notice. Despite previous dismissal of petitioner's appeal as time-barred, the court adopted a justice-oriented approach. Recognizing petitioner's claim of bona fide reasons for non-participation, the

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Petitioner Wins Challenge Against GST Assessment Orders Due to Procedural Flaws and Lack of Fair Hearing
Case-Laws
GST
HC allowed the petition challenging GST assessment orders for 2018-19, finding procedural irregularities in ex-parte orders issued without proper hearing. The court recognized the petitioner's bona fide reasons for non-response to show cause notice and remitted the matter back to the respondent for fresh consideration in accordance with law, directing a comprehensive re

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High Court Invalidates Rs. 50,330 Tax Recovery, Orders Verification and Re-crediting of Electronic Cash and Credit Ledgers Under GST Act
Case-Laws
GST
HC ruled that the recovery of Rs. 50,330/- from petitioners' electronic cash and credit ledgers was unlawful. The court directed respondents to verify the recovery and re-credit the amounts to petitioners' respective cash/credit ledgers, considering the mandatory pre-deposit under Section 112(8) of the GST Act and the circular dated 11th

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Tax Assessments Require Separate Proceedings: Distinct Notices and Time Limits Mandated for Each Financial Year Under Sections 74(1), (2), and (10)
Case-Laws
GST
HC held that under Sections 74(1), (2), and (10), each assessment year must be proceeded separately by the proper officer. The statutory time limit for issuing orders is distinct for each financial year. The court mandates independent show cause notices for different assessment years, recognizing that taxpayers can raise separa

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GST Proceedings Upheld: Cross-Examination Denial Does Not Invalidate Administrative Process, Statutory Appeal Pathway Confirmed
Case-Laws
GST
HC dismissed the writ petition challenging GST proceedings, holding that mere rejection of cross-examination request does not automatically vitiate administrative proceedings. The Court emphasized that parties cannot convert show cause notice proceedings into mini-trials and must provide specific reasons for cross-examination. The petitioner was d

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GST Registration Cancelled for Persistent Non-Compliance: Statutory Obligation Upheld with Potential Reinstatement Pathway
Case-Laws
GST
HC upheld GST registration cancellation under Section 29(2)(c) of CGST Act, 2017 for non-filing of returns for over six months. The court recognized the statutory obligation to electronically file returns and confirmed the administrative authority's power to cancel registration. However, the HC provided a remedial pathway, allowing the petitioner to po

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Tax Credit Order Nullified: Insufficient Evidence Review Exposes Procedural Flaws in Supplier Invoice Verification Process
Case-Laws
GST
HC invalidated the tax order under BGST Act, 2017 and IGST Act, 2017 regarding input tax credit claims. The court found the assessing authority failed to properly evaluate evidence concerning invoices from non-existent suppliers. Specifically, the impugned order was deemed unsustainable due to lack of comprehensive material review, indicating procedura

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Tax Assessment Overturned: Section 73 Limits Challenged, Demand Invalidated Due to Procedural Discrepancies in Notice Scope
Case-Laws
GST
HC upheld the challenge to tax assessment under Section 73 of GST Act, finding the tax demand exceeded the scope of the show cause notice (SCN). The court set aside tax liabilities for multiple entities totaling approximately Rs. 15,63,100, determining that the tax officer's assessment went beyond the original SCN's parameters. The court also provided

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Legal Challenge Succeeds: Partial Bank Account Release Granted with 10% Security in GST Evasion Case
Case-Laws
GST
HC partially allowed the petition challenging provisional attachment of bank accounts for alleged GST evasion. The court found that complete bank account attachment would prejudice the petitioner's business operations. The ruling mandates maintaining a 10% minimum balance as security while the GST evasion matter is adjudicated. The alleged tax evasion amount of Rs. 15.09 cr

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Government Contractor Wins Tax Dispute: Mega Exemption Notification 25/2012 Shields Services from Extended Limitation Period
Case-Laws
GST
HC determined that the service tax demand against the government contractor was invalid. The court found the services were exempted under Mega Exemption Notification No. 25/2012, and the respondent could not invoke the extended limitation period under Section 73 of the Finance Act, 1994. The show cause notice was time-barred, and there was no evidenc

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Employers Must Pay GST on Nominal Salary Deductions for Canteen and Transport Services Under Specific Conditions
Case-Laws
GST
The AAR ruled that nominal deductions from employee salaries for canteen and transportation services constitute a “supply of service” under GST. The authority determined that the recovered amounts are taxable, while the employer's perquisite portion remains non-taxable. For canteen services, input tax credit (ITC) is not available, and GST applies to the employe

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CBIC Introduces Streamlined GST Registration Process with Clear Verification Guidelines and Standardized Timelines
Circulars
GST
The CBIC issued comprehensive instructions for processing GST registration applications, establishing clear guidelines for tax officers to streamline and standardize the verification process. Key directives include: (a) accepting one documentary proof for principal place of business ownership, (b) restricting additional document requests, (c) mandating registr

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Claims that Government is considering levying Goods and Services Tax (GST) on UPI transactions over Rs.2,000 are completely false, misleading, and without any basis
GST
Dated:- 19-4-2025

The claims that the Government is considering levying Goods and Services Tax (GST) on UPI transactions over Rs.2,000 are completely false, misleading, and without any basis. Currently, there is no such proposal before the Government.
GST is levied on charges, such as the Merchant Discount Rate (MDR), relating to payments made using certain instruments.
Effective January 2020, the Central Board of Direct Taxes (CBDT) has removed the MDR on Person-to-Merchant (P2M) UPI transactions through the Gazette Notification dated 30th December

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Land Rights Transfer Triggers 18% GST, Covering Leasehold, Buildings, and Infrastructure Under Comprehensive Service Classification
Case-Laws
GST
The AAR held that: (i) assignment of leasehold land rights constitutes a taxable service under GST Laws, classifiable as “Other miscellaneous service” (SAC 999792) and taxable at 18%; (ii) transfer of building does not qualify as a separate goods or services transaction, but is part of leasehold rights assignment, also taxable at 18%; and (iii

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Employee Canteen and Transportation Services Trigger Complex GST Implications for Salary Deductions and Benefit Provisions
Case-Laws
GST
The AAR ruled that deductions from employee salaries for factory canteen services constitute a taxable supply under Section 7 of CGST Act, 2017. Recoveries from employees are liable for GST as consideration for canteen services. ITC is not available for catering services under Section 17(5)(b). Regarding transportation services, the AAR determined that

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Employee Service Recoveries Taxable Under GST: Canteen and Transport Charges Subject to Specific Rate Structures
Case-Laws
GST
The AAR ruled that recoveries from employees for canteen and transportation services are taxable under GST laws. Transportation services fall under SAC 9964, taxable at 5% without ITC or 12% with ITC. The taxable value is limited to the actual amount recovered from employees, with the perquisite portion considered non-taxable. Notice pay recoveries for premature

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Renting Property to Social Justice Department for Girls' Hostel Qualifies as Exempt Service Under GST Notification 12/2017
Case-Laws
GST
The AAR determined that renting immovable property to the Social Justice and Special Assistance Department for a girls' hostel constitutes an exempt service under GST. The service falls within constitutional functions related to Panchayat (Article 243G) and Municipality (Article 243W) provisions. Since the activity involves residential accommodation fo

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