Author: admin_gst

Bona fide input tax credit cannot be denied for supplier default; collusive transactions may still be challenged.
Case-Laws
GST
Input tax credit cannot be denied to a bona fide purchasing dealer merely because the supplier failed to deposit the tax collected, where the purchaser dealt with a registered supplier and complied with statutory requirements. The Department's remedy lies against the defaulting supplier, not by imposing vicarious liability on the purchaser or raising a consequential demand against a genuine transaction. The denial may still be revisited if material shows the purchases were not bona fide or were entered into in collusion with the supplier; on that footing, the impugned demand order was set aside with liberty to proceed afresh in accordance with law.
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GST registration restoration after six months' non-filing depends on filing pending returns and Rule 22(4) compliance
Case-Laws
GST
GST registration cancelled for continuous non-filing of returns may be restored where the taxpayer files the pending returns and complies with the proviso to Rule 22(4) of the CGST Rules. The text notes that, on facts similar to an earlier Gauhati HC decision, the petitioner was allowed to apply within sixty days for restoration, and the competent authority was directed to consider the request in accordance with law after statutory compliance. It also records that the period under Section 73(10) was to run from the date of the order, except for FY 2024-25, which was to be governed by Section 44, with arrears of tax, penalty, interest and late fee to be paid.
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Section 122(1A) extends penalty to persons who benefited from and caused contravening transactions, even for earlier conduct.
Case-Laws
GST
Section 122(1A) is construed to cover “any person” other than the taxable person where that person retained the benefit of the contravening transactions and acted at whose instance they were done; on that basis, partners of a firm can be proceeded against if those factual conditions are recorded. The provision is treated as complementary to Section 122(1), not as creating a new independent offence, so it may apply to transactions predating 1 January 2021 if the show-cause notice was issued after the provision came into force. The writ challenge was rejected, while the petitioners were left free to contest the factual findings before the Appellate Tribunal.
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Late fee and general penalty upheld for non-filing of annual GST return; liability extends beyond belated filing
Case-Laws
GST
Late fee is leviable for failure to furnish the annual return by the due date, not only for belated filing after eventual submission; on that construction, non-filing of Form GSTR-9 attracts liability under the late-fee provision up to the prescribed cap. Where no separate penalty is prescribed for failure to file the annual return, the general penalty provision may still be invoked, and the existence of late-fee liability does not bar that recourse. The High Court upheld both the late fee and the penalty and dismissed the writ petition.
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Mandatory personal hearing safeguards invalidate ex parte adjudication when no effective opportunity is granted before adverse order.
Case-Laws
GST
A personal hearing is a mandatory procedural safeguard before an adverse adjudication order under Section 73; where the date for hearing and reply filing are the same, the opportunity is not effective and violates audi alteram partem. Applying Mahaveer Trading Company, the High Court treated this defect as going to the root of the adjudication and held that the order could not stand. The impugned order was quashed and the matter remanded for fresh adjudication after granting a proper hearing.
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Specific GST late fee bars general penalty for delayed returns, while late-fee liability remains payable
Case-Laws
GST
Where the GST enactments prescribe a specific late fee for delayed filing of annual returns, recourse to the general penalty provision is impermissible. The general penalty imposed for the relevant period was therefore set aside, while the liability to pay late fee under the GST enactments was preserved. The writ petition was partly allowed, and the bank attachment was to be lifted subject to payment of the late fee demanded.
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Defective GST cancellation notice requires disclosure of contraventions; cancellation and appellate orders cannot stand under prescribed procedure
Case-Laws
GST
A show cause notice seeking cancellation of GST registration must disclose the alleged contraventions and follow the procedure prescribed in Rules 21 and 22. In the absence of a detailed notice setting out the shortcomings, the cancellation order and the appellate order were treated as unsustainable and were set aside. The authority was permitted to issue a fresh notice and proceed afresh in accordance with law, while the taxpayer was directed not to avail input tax credit until the proceedings are finalised.
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Article 226 writs are not used for disputed contractual dues without a public law element.
Case-Laws
GST
Article 226 writ jurisdiction is ordinarily not used to enforce purely contractual monetary claims where liability is disputed and no public law element is shown. The source decision turned on contested issues about supplies, invoice genuineness, an alleged settlement, the parties' relationship, contractual performance, and account correctness, all requiring oral and documentary evidence. The fact that official respondents benefited from the work did not itself create a right to divert amounts payable to the contractor. The writ petition was therefore not amenable to adjudication under Article 226, leaving the claimant to pursue remedies in accordance with law.
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IGST export refund cannot be defeated by a circular inconsistent with statutory rules and binding precedent.
Case-Laws
GST
IGST refund on exports could not be denied merely because the exporter had taken higher duty drawback, since the rejection rested on Circular No. 37/2018-Cus, which had already been found inconsistent with the governing rules. The HC held that an executive circular cannot override statutory provisions or binding precedent, and the claim had to be examined under the applicable rules rather than the circular. The rejection order was set aside, and the matter was remanded for fresh consideration after granting the exporter a reasonable hearing.
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Writ maintainability and alternate remedy bar applied where amalgamation plea raised for the first time in GST dispute.
Case-Laws
GST
Writ challenge to GST show cause notice, order-in-original and demand was not entertained where the petitioner raised an amalgamation-based plea for the first time in the writ court. The text notes that the petitioner had already replied on merits to the input tax credit dispute before the department, but had not disclosed the fresh incorporation or new GST registration, and had also not replied to the show cause notice or attended personal hearings. Because the challenge turned on disputed facts better examined by the statutory forum, the petitioner was relegated to the appellate remedy, with liberty to file an appeal within the stipulated time with the required pre-deposit and to seek condonation of delay, which was to be considered sympathetically.
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Retrospective input tax credit re-availment barred where section 16(5) extends time limit only and section 150 blocks refund.
Case-Laws
GST
Retrospective input tax credit under section 16(5) was held to relax only the time bar in section 16(4) for specified returns and not to waive other eligibility conditions. Because the credit had already been denied for excess availment under rule 36(4) and related circulars, the later amendment did not reopen any right to reclaim the reversed credit. Re-availment of reversed input tax credit was also treated as a refund barred by section 150 of the Finance (No. 2) Act, 2024, since the provision expressly covers reversed credit and a narrower reading would produce absurd results.
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Govt waives excise duty on ethanol-blended petrol
GST
Dated:- 11-6-2026
PTI
New Delhi, Jun 11 (PTI) The government has waived excise duty on variants of ethanol-blended petrol, a notification by the finance ministry said.

The duty waiver is applicable on E22, E25, E27 and E30 variants of petrol.

In the notification, the ministry said excise duty will be 'nil' on petrol with 22 per cent, 25 per cent, 27 per cent and 30 per cent ethanol blend.

The excise duty waiver is aime

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Govt highlights tax reforms, investor confidence as Modi completes 12 years as PM
GST
Dated:- 10-6-2026
PTI
New Delhi, Jun 10 (PTI) From tax reforms to digital push, and ease of doing business to moving towards becoming the fastest-growing economy, the government on Wednesday highlighted the achievements during the 12 years of Narendra Modi as India's longest-serving elected prime minister.

Modi surpassed Jawaharlal Nehru's record of 4,398 days as an elected prime minister.

A booklet released by the Centre on the occasion said the reduction in income tax burden over the past 12 years reflects the government's vision of 'Ramrajya', adding reforms like GST, faceless tax, and Digital India have helped build trust in the publi

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t, and carried out banking reforms, which led to a reduction in non-performing assets (NPAs).

“Twelve years of reforms have become twelve years of trust. Whether it is GST, faceless tax, or Digital India, every step has made citizens feel that they too are nation-builders. India is moving towards a 5-trillion-dollar economy. This is not just a figure, it is the flight of every Indian's dream,” the booklet said.

Highlighting the achievements of the government's digital push, an official document released on Wednesday said the cost of 1 GB of data plunged by 97 per cent to around Rs 8-10 from Rs 269 in 2014, which led to an increase in internet usage in rural areas and opened a new world of opportunities for the people.

In the last 1

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, launched in February 2019, the government provides Rs 6,000 to eligible farmers annually in three equal instalments.

Industry leaders lauded the government's reforms and policies, and said the nation has emerged as an influential global voice under Modi's transformative leadership.

They highlighted the government's emphasis on improving ease of doing business, saying that it has benefited from the enabling environment marked by increased investor confidence and that India Inc stands firmly with the prime minister in realising the Vision of Viksit Bharat by 2047.

Confederation of Indian Industry President R Mukundan said the growing confidence in India's capabilities is reflected in its resilience, ambition, and continued progress

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GST registration cannot be used to bypass prior state-wise non-compliance; denial upheld where returns were not filed.
Case-Laws
GST
Under the parallel CGST and State GST framework, State-wise registration does not permit a taxpayer to evade compliance by shifting business to another State. Where a company has obtained registration in one State but failed to file returns, leading to cancellation or suspension of that registration, it remains a defaulter under the GST scheme. That default can justify refusal of registration in another State until the earlier statutory obligations are complied with. The HC upheld denial of GST registration in Rajasthan based on non-compliance in Tamil Nadu and dismissed the writ petition.
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Bona fide purchaser protection: input tax credit cannot be denied merely because the supplier failed to remit tax.
Case-Laws
GST
Input tax credit could not be denied to a bona fide purchasing dealer who bought from a registered supplier and complied with statutory requirements merely because the supplier failed to deposit the collected tax. The Department's remedy lies against the defaulting supplier, not against the purchaser, unless there is material showing that the transactions were not bona fide or were entered into in collusion. On that basis, the impugned demand and appellate orders were set aside, while the authorities were left free to proceed afresh if evidence of collusion or lack of bona fides exists.
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GST assessment remitted for fresh adjudication where inadvertent input tax credit reversal required factual examination
Case-Laws
GST
GST assessment was set aside and remitted because the taxpayer's defence raised factual questions that had not been examined: whether input tax credit was inadvertently claimed under the IGST column, whether it was voluntarily reversed, and whether that reversal affected the liability imposed. The Court required the authority to give the taxpayer an opportunity to file a detailed response with supporting documents and to adjudicate the matter afresh in light of that defence and the statutory provisions. The taxpayer was also left free to seek revocation of suspension of registration by separate representation.
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Bail on fraudulent input tax credit allegations refused where investigation remained crucial and parity arguments failed.
Case-Laws
GST
Regular bail was refused in allegations of fraudulent availment and utilisation of input tax credit on fake invoices because the investigation was still at a crucial stage and the alleged fraud was of significant magnitude. The Court held that parity decisions cited by the petitioners did not assist, as the facts were different and their custody period was shorter. The medical condition of a relative was also found insufficient to justify release at that stage. The criminal petitions were dismissed.
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Natural justice in refund rejection: hurried disposal after a short reply period was quashed and remitted for fresh decision
Case-Laws
GST
Refund rejection without a reasonable opportunity to reply to the show-cause notice breached principles of natural justice. Although the Department had discretion to grant further time, that discretion had to be exercised fairly; where the taxpayer sought extension the next day to gather documents and file a reply, immediate rejection on expiry of a short period showed unwarranted haste. The impugned order was quashed, the taxpayer was given two weeks to file its reply with supporting documents, and the Department was left free to pass a fresh order thereafter.
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Corporate guarantee taxability under GST remitted for fresh assessment after circulars and prior ruling were overlooked.
Case-Laws
GST
Corporate guarantee taxability under GST was remitted for fresh assessment because the assessing authority had not properly considered the petitioner's reliance on applicable GST circulars, the contention that only 1% of turnover was taxable, and the earlier Madras HC ruling cited in support. The Court held that these aspects required examination and that the assessment could not stand on the corporate guarantee issue alone. The impugned order was therefore set aside only to that limited extent, with directions for fresh orders after hearing the petitioner and considering supporting material; all other findings were left undisturbed.
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Consolidated GST show cause notices across financial years are permissible, with limitation tested year by year.
Case-Laws
GST
Sections 73 and 74 of the GST law do not bar a consolidated show cause notice or consolidated adjudication covering multiple financial years. Limitation must be tested separately for each financial year, but that does not deprive the proper officer of jurisdiction to issue one common notice or pass one common order. The scheme also permits statements for other periods on the same grounds, supporting multi-period proceedings. If one included year is time-barred, the entire proceeding is not void; the barred portion can be severed because each financial year is a distinct cause of action.
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Transit remand and written grounds of arrest are mandatory; illegal detention set aside for non-compliance
Case-Laws
GST
An arrest in one State cannot be followed by production before a remand magistrate in another State without transit remand. The Court also reiterated that grounds of arrest must be explained to the arrested person and furnished in writing as an annexure to the arrest memo, with the place of arrest and grounds properly reflected in the memo. On the uncontroverted record, the arrest memo omitted the place of arrest and the annexed grounds, and no transit remand order was shown. These defects rendered the remand order illegal and the arrest and detention unsustainable; the petitioner was ordered to be released forthwith, with liberty to proceed afresh in accordance with law.
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Statutory pre-deposit in GST appeals cannot be waived merely because tax was paid during adjudication.
Case-Laws
GST
No exemption from the statutory pre-deposit is available when filing a GST appeal merely because tax was paid during adjudication or because penalty is disputed. Whether the tax or penalty was correctly imposed, including the effect of payment made during adjudication on penalty liability, is a merits issue for the appellate authority and cannot by itself justify dispensing with the mandatory deposit. The writ petition was disposed of on that footing, leaving the taxpayer to pursue the appeal only with the prescribed pre-deposit.
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Conditional restoration of GST registration follows ex parte cancellation when pending returns and dues are regularised
Case-Laws
GST
Ex parte cancellation of GST registration can be set aside conditionally where the taxpayer is willing to regularise the default by filing pending returns and paying the consequential tax, interest and penalty. The HC stated that restoration should be granted on compliance within a reasonable time, and directed that the registration be restored after the portal is enabled if the petitioner uploads all pending returns and makes the required payments within the time granted. The cancellation order and the appellate order were quashed subject to that compliance, with liberty to the authorities to proceed according to law on default.
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Portal service of GST notices upheld, and extended limitation applied for suppression-based short payment assessments.
Case-Laws
GST
Service of a show cause notice through the GST common portal was treated as valid where the taxpayers later admitted the notice was available there, so the non-service challenge failed and the best judgment assessment stood. The limitation objection also failed: the court accepted that lesser tax payment despite knowledge of the applicable rate amounted to suppression, attracting the extended period, and relied on the notification extending the annual return due date to hold that the order was passed within time. The writ petition was dismissed and the order-in-original upheld.
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India eyes more FDI, speed up divestment, asset monetisation as economy faces external risks
GST
Dated:- 9-6-2026
PTI
New Delhi, Jun 9 (PTI) The government plans to push ahead with reforms, including further measures to boost foreign investment, speeding up divestment and asset monetisation, as it seeks to preserve India's growth momentum in the face of rising fuel and fertiliser import costs triggered by the West Asia crisis, government sources said on Tuesday.

They said that the country's GDP growth momentum remains intact, with domestic consumption holding up.

“Growth is not under stress, but there are external challenges… Quarter after quarter, growth is showing momentum. Domestic economy is doing good, consumptions are not coming down…,” the sources said.

The stress that India is facing currently in terms of high oil and fertiliser import bills due to the closure of the Strait of Hormuz are “not just the normal kind of uncertainties”, they said.

Sou

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adwinds from rising fuel and fertiliser import costs linked to the West Asia crisis, but growth momentum remains intact as domestic consumption stays resilient.

Sources said the government sees no immediate need for additional borrowing or supplementary spending approvals in the upcoming monsoon session of Parliament, with the FY27 Budget having already factored in uncertainties stemming from global trade tensions and tariff-related disruptions.

The growth momentum seen in the January-March quarter is continuing in the first quarter of FY27, sources said, adding that there has been no adverse impact on remittance inflows so far.

“We have no indications that remittances have come down so far,” sources added.

India's economy grew at a higher pace of 7.7 per cent during 2025-26 as compared to 7.1 per cent in 2024-25, according to government data released on Friday.

The same day RBI slashed its FY27 GDP growth forecast to 6.6 per cent from 6.9 per cent, citing rising ri

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budgeted Rs 80,000 crore under this head exceeds the budget estimate,” a source said.

The source added that the government's planned sale of its stake in IDBI Bank is expected to move forward.

Officials said a reassessment of macroeconomic conditions would be undertaken in July once April-June quarter economic data and the impact of the monsoon season become clearer.

High-frequency indicators continue to point to economic resilience, sources said, citing robust GST collections, improving private-sector investment trends and recent industry data showing a pickup in capital expenditure plans.

The government also intends to continue its reform agenda, with additional measures to attract foreign direct investment under consideration. Sources said there is no proposal to impose restrictions on capital outflows.

However, pressure is building on the subsidy front as global fertiliser prices rise.

According to sources, the fertiliser ministry has sought a 100 per cent

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