Author: admin_gst

Natural justice in transfer-pricing proceedings requires a personal hearing and reasoned consideration of written objections before determination.
Case-Laws
GST
Natural justice in transfer-pricing proceedings requires a personal hearing, reasoned findings, and meaningful consideration of written submissions. Although the transfer-pricing order recorded that written replies had been considered, it neither disclosed that a personal hearing was granted nor addressed the contentions raised. The cryptic and unreasoned order was set aside, with directions for a fresh reasoned determination after a personal hearing. The time for completing the assessment was extended.
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GST adjudication limits: demands and penalties cannot exceed the show-cause notice, requiring fresh adjudication when statutory limits are breached.
Case-Laws
GST
Section 75(7) of the GST law prohibits an adjudicating authority from confirming a tax demand or penalty exceeding the amounts proposed in the show cause notice. This statutory restriction is mandatory, and any adjudication order exceeding the proposed demand is without jurisdiction. The impugned order was set aside, with the matter remitted for fresh adjudication after providing an opportunity of hearing.
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Mandatory employee canteens: recoveries avoid GST, while input tax credit is limited to the employer-borne cost.
Case-Laws
GST
Employee recoveries for subsidised canteen meals provided under statutory obligations at factories, R&D facilities and corporate offices are treated as employer-employee contractual perquisites rather than supplies under section 7 of the CGST Act; GST is therefore not payable on those recoveries. Input tax credit on GST charged by the canteen provider is available where the facility is legally mandatory, because the proviso to section 17(5)(b) applies across that clause. Credit remains restricted to the employer-borne canteen cost, while the proportion attributable to employee meal recoveries is disallowed.
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Alternative statutory remedy and delay bar GST writ challenges despite pending rectification, while distinct subject matter permits parallel proceedings.
Case-Laws
GST
Writ jurisdiction against a GST adjudication order is generally unavailable where an efficacious statutory appeal was not pursued within time and delay remains unexplained; a pending rectification application does not create a fresh period to challenge the original order. The statutory restriction on parallel GST proceedings applies only where proceedings concern the same subject matter, rather than merely the same assessee, period, transactions, or factual background. Proceedings based on incorrect tax liability and inadmissible input tax credit may continue independently from allegations of fraudulent credit without actual supply. The bar on duplicate penalties requires a prior penalty imposed on the person concerned for the same act or omission.
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GST registration cancellation requires a fair opportunity to produce evidence; unrelated input tax credit demands require separate notice.
Case-Laws
GST
GST registration cancellation without deciding a registrant's request for time to submit transaction and input tax credit evidence breaches natural justice. The High Court quashed the show cause notice and cancellation order because the authority failed to consider material the registrant sought to produce, while permitting fresh proceedings on proper notice and opportunity. Registration-revocation proceedings cannot be combined with input tax credit disallowance or demands for tax, interest and penalty on grounds absent from the original notice. The rejection of revocation and appellate order were also quashed; fresh proceedings may be initiated in accordance with law, with merits left open.
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Erroneous refund recovery permits statutory interest on excess inverted-duty ITC refunds despite unchallenged sanction orders and principal repayment.
Case-Laws
GST
Recovery of an excess monetary refund of unutilised input tax credit under the inverted-duty scheme may proceed as an erroneous refund under section 73, even where the original refund sanction was not challenged by appeal or revision. The recovery mechanism is distinct from appellate or revisional review of the sanction order. Statutory interest applies under sections 73 and 50 until the principal is repaid; repayment through FORM GST DRC-03 does not close proceedings unless interest is also paid. Substituted Rule 89(5), operative before the refund claim and sanction, governs entitlement; later judicial validation and Rule 88B do not make interest impermissibly retrospective. Interest is computed for the period the erroneous refund remained with the recipient.
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Overlapping GST proceedings bar consolidated demands for periods already covered by State tax action and require fresh determination.
Case-Laws
GST
GST law bars overlapping Central and State departmental proceedings when they assess or recover the same tax liability arising from the same contravention. The prohibition does not extend to distinct infractions solely because they produce similar liabilities or deficiencies. A consolidated GST demand that included FY 2017-18 and FY 2018-19, already covered by State proceedings, had to exclude those overlapping periods. The consolidated demand was quashed, and fresh determination was confined to periods not subject to the State proceedings.
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Personal liberty safeguards restrict arrest after court-directed GST appearance, requiring interim release where authorities overreach pending proceedings.
Case-Laws
GST
Personal liberty under Article 21 was prima facie infringed when GST authorities arrested a petitioner who had appeared with records pursuant to a court direction in pending proceedings. The arrest authorisation omitted the direction and appearance, relied on routine grounds considered misplaced, and reflected a discrepancy between the summons time and later generation of its DIN, indicating possible manipulation. Interim release was directed, subject to passport surrender and travel conditions, while officers were required to explain their conduct before any disciplinary recommendation. The interim relief did not determine the merits of the pending proceedings.
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Effective service of rectification notices is essential before rejecting inverted-duty GST refunds, requiring fresh hearing on remand.
Case-Laws
GST
Effective service of a rectification notice is required before adjudicating a refund of accumulated input tax credit under an inverted duty structure. Adjudication after the notice was returned undelivered breached principles of natural justice because the claimant was denied an opportunity of hearing. The refund rejection was set aside and remitted for fresh adjudication after granting a hearing, while leaving the merits of the refund claim open.
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Post-death GST liability remains recoverable from estate assets, while retained investigation deposits require a lawful basis and hearing.
Case-Laws
GST
Section 93 of the CGST Act permits post-death determination of tax, interest or penalty through a legal representative, without requiring adjudication to have begun during the deceased's lifetime. Liability remains confined to estate assets and does not attribute the underlying contravention to the representative; effective hearing and appellate safeguards support its constitutional validity. Pure questions concerning Section 93 may be examined in writ jurisdiction despite an alternative remedy, but factual and merits disputes, including service, proof, representative-liability conditions and penalty computation, belong in statutory appeal. Retention or appropriation of investigation deposits requires a disclosed lawful basis and reasoned determination after hearing; any unsupported balance must be released with accrued fixed-deposit interest.
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Incorrect GST head payments may be adjusted against IGST liability without duplicate tax payment or interest.
Case-Laws
GST
Tax paid under the CGST and SGST heads through a clerical error may be appropriated towards the corresponding IGST liability where the entire liability was discharged within the prescribed period. Although Section 77 does not expressly address this payment error, its underlying principle avoids requiring the taxable person to make a duplicate payment and then pursue a refund. Interest should not apply where the required tax has already been remitted, albeit under incorrect GST heads. Appropriation may be made on application, with a refund application filed if required procedurally.
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Rule 86A ledger blocking remains distinct from deemed recovery stay following an appellate pre-deposit, requiring separate unblocking consideration.
Case-Laws
GST
Rule 86A blocking of an electronic credit ledger is a provisional measure that requires recorded reasons and cannot continue beyond one year. Filing an appeal with the prescribed pre-deposit creates a deemed stay of recovery for the remaining demand, preventing appropriation from the electronic cash ledger and the blocked credit ledger. That recovery stay does not automatically lift the separate Rule 86A blocking order. Unblocking must be sought independently, and any refusal should be issued through a speaking order after consideration of the request.
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Provisional GST bank-account attachments lapse after one year, requiring defreezing where no fresh attachment order exists.
Case-Laws
GST
Provisional attachment of bank accounts under GST is a pre-emptive revenue-protection measure that ceases by operation of law one year after the attachment order. Continued freezing cannot rest on an expired attachment where no fresh provisional attachment order has been issued. Where account holders were not recipients of a later demand-cum-show cause notice, that notice did not provide a basis to maintain restrictions on their accounts. The lapsed attachments required the bank accounts to be defreezed and made operable upon production of a certified copy of the order.
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Duplicate GST adjudication on identical issues and periods undermines later State GST assessment and rectification action.
Case-Laws
GST
Parallel Central and State GST proceedings concerning identical issues for the same assessment period require avoidance of duplicate adjudication. Where Central GST authorities issue an earlier adjudication order and an appeal against it remains pending, subsequent State GST assessment and rectification orders addressing the same issues and period cannot be sustained. The overlap between the two proceedings makes the later State GST action duplicative of the prior Central GST adjudication.
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E-way bill validity requires correct Part B vehicle details; expired bills with mismatched vehicles can support tax-evasion penalty.
Case-Laws
GST
E-way bill validity requires Part B to state the actual vehicle used for movement; a concession for minor clerical errors does not cover entirely different vehicle particulars. Transport under an expired e-way bill bearing a wholly different vehicle number may support a rebuttable presumption of intent to evade tax. Mens rea is not required for a civil fiscal penalty unless the governing enactment makes it essential. The presumption remains rebuttable through surrounding facts, but failure to provide a satisfactory rebuttal supports penalty under the CGST/UPGST transport-of-goods provisions. On the stated facts, the penalty was sustained and the second appeal dismissed.
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Composite coaching supply keeps study materials taxable, while pure-agent fees require strict conditions and forex differences remain outside GST.
Case-Laws
GST
Professional coaching supplied by an entity that does not itself deliver a recognised qualifying curriculum, conduct examinations or award qualifications is not exempt as education by an educational institution and is taxable. Examination, registration and related student fees remain within taxable value unless all pure-agent conditions, including student authorisation and separate invoice disclosure, are met. Coaching bundled for a single fee with study materials and digital resources is a composite supply whose principal supply is commercial training. Retained foreign-exchange differences unconnected with separate consideration are outside GST. Training-partner services to universities are taxable where no exempt service or educational-institution status is established; insufficient contractual material prevents precise six-digit classification.
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Mixed Supply Classification Applies Highest GST Rate to Bundled Digital Cinema Equipment Leasing Under a Single Rental Agreement
Case-Laws
GST
Leasing digital cinema equipment comprising a projector, server, UPS and VSAT for a single rental is classified as a mixed supply where the items are not naturally bundled in the ordinary course of business and can be supplied independently. The bundled lease therefore does not meet the requirements of a composite supply. GST is payable at the highest rate applicable to any constituent supply, which is the rate applicable to the projector: 28% up to 21 September 2025 and 18% thereafter. The bundled-lease treatment as a mixed supply is accordingly correct.
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Inverted Duty Refund Turnover Requires Verified Treatment of Differently Taxed Outward Supplies Before Refund Computation
Case-Laws
GST
Inverted duty structure refund computation requires accurate determination of turnover of inverted-rated supplies and adjusted total turnover. The treatment of outward supplies allegedly taxable at a higher rate must be verified before deciding whether they form part of the relevant turnover figures. Where supporting invoices or other documents are unavailable and the relevant issue has not been examined, the admissible accumulated input tax credit refund cannot be correctly quantified. Refund computation requires fresh examination after production of relevant records and a reasonable opportunity for both sides to address the turnover treatment.
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Pre-GST service tax refunds for cancelled flat bookings must be claimed in cash, not through GST input tax credit.
Case-Laws
GST
Pre-GST service tax paid on advances for flat bookings later cancelled after the appointed day does not qualify as input tax under the CGST/SGST Acts and cannot be carried as GST input tax credit. Where services are ultimately unprovided, the transitional provision requires the service-tax refund claim to be processed under the existing law and paid in cash. Taxpayers cannot adjust that claim through an electronic credit ledger without specific statutory authority. The claimed GST credit was therefore inadmissible.
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Agglomerated cork classification permits concessional GST treatment, while inverted-duty refund eligibility remains outside advance-ruling jurisdiction.
Case-Laws
GST
Advance-ruling jurisdiction under section 97(2) does not extend to eligibility for refund of unutilised input tax credit arising from an inverted duty structure; that question is therefore not admissible. Heading 4504 covers agglomerated cork with or without a binding substance, without limits on the binder's quantity or nature. Cork sheets formed from agglomerated cork granules held together by a polymer system, rather than cork used merely as a rubber filler, fall under tariff item 4504 10 10 and qualify for the concessional GST entry. The bar applies only where the same question is pending or decided in proceedings concerning the applicant; absent such proceedings, classification and rate questions remain admissible.
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Psyllium seed GST classification confirms taxability where godown storage gives supplies a dried character, denying claimed exemptions.
Case-Laws
GST
Psyllium seeds (Isabgol) are classified under tariff sub-heading 1211 9013, supported by the express tariff description and HSN coverage of Plantago psyllium herbs and seeds. GST exemption as fresh or chilled plant parts under Entry 87 was denied for supplies stored in godowns before onward sale. Eligibility depends on the goods' condition when supplied by the applicant, and godown storage was treated as giving the seeds a dried character. The supplies were consequently taxable at 5% under Entry 71 of Schedule I. The alternative exemption for goods of seed quality under Entry 77 was also denied.
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Mandatory e-way bill compliance was not enforceable before nationwide implementation, preventing detention and penalty for non-production.
Case-Laws
GST
Mandatory nationwide e-way bill compliance for inter-State movement of goods took effect only from 1 April 2018, despite rule 138 having provided the operational mechanism earlier. Non-production of an e-way bill for goods intercepted before that date therefore did not justify detention or penalty. Correspondence between the goods, invoice and transport documents, coupled with the absence of discrepancies or material indicating intent to evade tax, supported deletion of the detention proceedings and penalty. The Revenue's challenge against that deletion failed.
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Reasoned GST appellate orders required as unaddressed grounds and procedural objections require fresh adjudication in full.
Case-Laws
GST
Reasoned appellate orders are required by natural justice: common GST appellate orders confirming demands were invalid because they gave only a general conclusion without addressing material appeal grounds, cited judicial authorities, or each appellant's distinct contentions. The failure to give cogent reasons constituted a failure to exercise appellate jurisdiction. Objections concerning show cause notices, availability of relied-upon documents, and effective personal hearing in original proceedings also required consideration. The Tribunal set aside the appellate and original orders and remitted the matters for fresh adjudication after providing relied-upon documents, allowing replies and effective hearings, and issuing reasoned orders.
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11th Meeting of National Traders’ Welfare Board Convened in New Delhi
GST
Dated:- 25-9-2026

Board Reviews Measures for Trader Welfare, Ease of Doing Business, Digital Empowerment and Export Promotion

The 11th Meeting of the National Traders' Welfare Board (NTWB) was convened at Vanijya Bhawan, New Delhi, in hybrid mode. The Board reviewed a range of measures concerning trader welfare, Ease of Doing Business, digital empowerment, access to finance, Centre-State coordination and export promotion. The deliberations also covered issues relating to GST, MSMEs, trader grievance redressal, digital platforms and strengthening institutional support for traders, retailers, manufacturers, exporters and service providers.

During th

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district level, Women Entrepreneurship Facilitation Desks under NITI Aayog, POSH cells for grievance redressal and strengthening of cyber fraud redressal mechanisms.

Special emphasis was laid on enhancing export participation by traders and MSMEs, increasing awareness regarding export opportunities, strengthening institutional support mechanisms and promoting India's emergence as a globally competitive trading nation. The Board also discussed the need for thematic committees and focused working groups to examine sector-specific issues and provide structured recommendations for policy intervention.

The meeting was chaired by Chairman, NTWB, Shri Sunil J. Singhi. He apprised the Board of major initiatives undertaken towards achieving i

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in Dehradun and Indore, and Tiranga Yatra activities in Chandigarh and Indore.

The Chairman also apprised Members of developments relating to Next Generation GST 2.0 reforms, ONDC integration and expansion of DigiDukaan. DigiDukaan, a B2B procurement and Kirana digitisation initiative by ONDC, is enabling kirana stores to digitise procurement through a single ordering interface, with over 19,000 retailers currently live across Hyderabad and Jaipur.

At the outset of the meeting, Director, DPIIT, Shri Yuvraj Ravindra Patil, welcomed the Board Members and Ex-Officio Members from line Ministries and Departments and outlined the mandate of the NTWB. He emphasised the importance of promoting the Board's initiatives and ensuring wider dissem

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Wrong-head GST payments require appropriation rather than duplicate payment and refund when aggregate liability was timely discharged.
Notes
GST
Wrong-head GST remittances, where a taxpayer timely pays the full aggregate liability but selects an incorrect tax head, are distinct from a later correction of a supply's inter-State or intra-State character. Sections 19 of the IGST Act and 77 of the CGST Act, with Rule 89(1A), address classification errors and the related refund framework, not a pure allocation error. An identifiable wrong-head payment may be appropriated against the correct CGST and SGST liabilities rather than requiring duplicate payment followed by refund. Where funds remain in the electronic cash ledger, Section 49(10) and Rule 87(13) permit inter-head transfer through FORM GST PMT-09; refund may be procedurally necessary if transfer is unavailable.
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