Author: admin_gst

Double penalisation: general penalty barred where concessional late fee is levied; bank attachment lifted on payment.
Case-Laws
GST
Where a concessional late fee has been levied for delayed filing of annual returns, a separate general penalty cannot be imposed in addition; the article explains that the court applied the principle against double penalisation to quash imposition of a Section 125 general penalty while upholding liability for the late fee under the late-fee regime. It further records that attachment of bank accounts may be conditionally lifted provided the confirmed outstanding late fee is paid within the period directed, affecting enforcement against non-filers of annual GSTR returns.
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Retrospective cancellation requires specific notice and disclosed material; absence of these invalidates the cancellation.
Case-Laws
GST
Retrospective cancellation of GST registration cannot be exercised mechanically; a show cause notice must specifically propose retrospective cancellation and disclose the material relied upon, and any cancellation order must record reasons and evidence of application of mind. A cryptic or non speaking order based on grounds not disclosed in the notice and without supply of supporting documents is unsustainable; the impugned cancellation was set aside but authorities may proceed afresh after serving proper notice and affording an opportunity of hearing. The High Court also held writ jurisdiction available despite an alternate remedy in the circumstances.
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Deemed cancellation of GST registration on amalgamation: orders against non existent entity invalid; upload to successor registration.
Case-Laws
GST
Where a GST-registered company ceases to exist on amalgamation, its GST registration is to be treated as deemed cancelled from the merger effective date and orders framed in the name of the non-existent entity are invalid; the Revenue must make the successor's GST registration operational and upload adjudication orders and any demands against the successor's GST number, which the successor must contest or discharge according to law. Further, limitation does not bar either party from raising or contesting claims arising from those uploaded orders in view of Section 75(3) of the CGST Act, and the petitioner remains free to pursue remedies.
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Retrospective cancellation requires prior show cause notice with supplied material and reasoned order; otherwise cancellation is set aside.
Case-Laws
GST
Retrospective cancellation of GST registration cannot be exercised mechanically; a show cause notice must disclose any proposal for retrospective effect, identify or supply the material relied upon and afford a hearing, and any cancellation order must state reasons showing application of mind. An order that merely reproduces the notice or fails to supply supporting documents is non-speaking and unsustainable. Writ jurisdiction may be exercised despite availability of alternate remedies in exceptional cases where absence of fair notice, non-supply of material and a non-speaking order cause prejudice. The impugned retrospective cancellation was set aside; authorities may re-proceed only after proper notice, material and hearing.
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Jharkhand govt nod to tourist tax, Rs 276 cr fund to build libraries
GST
Dated:- 12-3-2026
PTI
Ranchi, Mar 12 (PTI) The Jharkhand cabinet on Thursday approved several proposals, including a tax to be levied on tourists staying at hotels in urban areas and a Rs 276.49 crore fund to construct libraries in 23 districts.

The council of ministers green-lighted the Jharkhand City Tourist Tax Rules, 2025, under which travellers staying in urban hotels will be required to pay a tax calculated on the total invoice value.

A total of 40 proposals, including those of infrastructure and education, were cleared in the cabinet meeting, chaired by Chief Minister Hemant Soren.

“The cabinet approved the Jharkhand City Tourist Tax Rules,

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e said.

Each library will have a seating capacity of 800, with an estimated cost of Rs 12.02 crore per facility, including furniture, equipment, and books.

The cabinet also gave its nod to the implementation of the centrally sponsored Pradhan Mantri Awas Yojana – Urban 2.0 in municipal areas across the state.

An estimated Rs 22 crore was approved for establishing an institute of driving, training and research in East Singhbhum district.

Of this, the Centre will provide Rs 17 crore, while Tata Motors, Jamshedpur, will contribute Rs 1.82 crore, and the remaining Rs 3.21 crore will be borne by the state government, she said.

For the current fiscal, the cabinet sanctioned the establishment of four centres of excellence at BIT Sin

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mum age limit and August 1, 2026, for the minimum age limit.

In the education sector, the cabinet approved over Rs 48 crore for the construction of a new building for SS Memorial College, a constituent college under the Ranchi University.

Similarly, Dadel said, Rs 88.92 crore was sanctioned for constructing a new building for Jawaharlal Nehru College, Chakradharpur, a constituent college under the Kolhan University.

Under the Sidhu Kanhu Murmu University, the cabinet cleared Rs 69.57 crore for the construction of a new Women’s College in Godda district, and Rs 40.19 crore for building a degree college at Boarijore in Godda.

It also green-lighted amendments to the 'Manki Munda Student Scholarship Scheme', earlier limited to stu

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Reasoned Show Cause Requirement: defective notices vitiate GST cancellation; fresh time bound adjudication authorised.
Case-Laws
GST
The text addresses cancellation of GST registration for alleged fraudulent input tax credit and the validity of a show cause notice. It holds that a notice referring only to statutory provisions without specifying transactions or factual basis fails to disclose reasons and cannot sustain cancellation; accordingly the defective notice and consequent cancellation were set aside. Simultaneously, on prima facie material of large scale fraud the authorities were authorised to issue a fresh show cause notice and complete time bound adjudication; an interim stay was continued for six weeks and registration must be restored if proceedings are not concluded for reasons not attributable to the registrant.
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Reason to Believe requirement vitiated cash seizure; failure to give six month notice required return and payment with interest.
Case-Laws
GST
The article addresses validity of cash seizures under the CGST framework, holding that seizure under the statute requires a recorded 'reason to believe' that goods, documents, books or things relevant to proceedings are secreted at a place; absence of such reasons rendered the cash seizure arbitrary and unlawful. It further explains that failure to issue the statutorily mandated notice within the six month period obliges return of seized items, and that transferring seized cash to another agency without statutory authority compounds illegality; consequent remedy ordered was release and payment with interest.
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Vesting of title on confiscation bars pre-confiscation release remedies; statutory appeal with prescribed pre-deposit required.
Case-Laws
GST
Vesting of title on confiscation: the Court held that once confiscation is ordered under Section 130(1) and title vests in the State under Section 130(5), the remedial release regime under Section 129 is no longer available; subsequent adjudication on confiscation, valuation, tax, penalty, interest and fine is governed exclusively by Section 130, and a collateral challenge limited to a prior Section 129 order is impermissible where the Section 130 order remains unchallenged. The Single Judge erred in ordering release; the writ is set aside and the respondent must pursue the statutory appeal under Section 107(6) with prescribed pre-deposit terms.
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Scope of Certiorari: declined to disturb Section 74 order for input tax credit; statutory pre deposit waiver refused.
Case-Laws
GST
On certiorari review of an order under Section 74 concerning alleged wrongful availment of input tax credit by misstatement and suppression, the court found that reasons were recorded and relevant factors considered and therefore declined to interfere absent any shown perversity or mala fides; the petitioner's request to waive or reduce the statutory pre deposit for filing a statutory appeal was refused for lack of extraordinary circumstances; the writ petition challenging the Section 74 order was dismissed, and the court's observations were treated as tentative and without prejudice to any appeal on merits.
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Monthly Exemption applies month-wise; incidental water is part of a composite maintenance service and is taxable.
Case-Laws
GST
Entry No.77 exemption for housing associations applies month-wise and cannot be aggregated across invoicing periods, making eligibility assessable each month. Water procured and distributed as part of upkeep is an incidental component of a composite supply whose principal supply is maintenance services, and thus the water component is taxable within that composite service. Collections labelled as corpus or sinking funds are advances for future services and trigger GST at receipt under the time-of-supply rules. Accounting treatments such as capitalization or depreciation do not affect levy or timing of tax. Sinking/corpus funds must not be clubbed with recurring maintenance for exemption eligibility. Voluntary festival donations without quid pro quo are not taxable supplies.
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Place of supply rules: pre-clinical R&D to foreign recipients treated as export; clarificatory notification applies retrospectively.
Case-Laws
GST
The article addresses whether pre-clinical R&D and testing services performed in India for foreign recipients qualify as export of services under the place-of-supply framework. It concludes that supplied samples/reference materials used in testing are not 'goods' attracting the place-of-performance exception, so the general place-of-supply rule applies and the location of the foreign recipient governs; consequently such services are not taxable in India when export conditions are met. It further finds that the clarificatory notification and amendment operate retrospectively as beneficial clarification, entitling the taxpayer to relief and justifying quashing of the impugned show-cause notices for the stated periods.
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Effective service by portal cannot replace the right to a personal hearing; order set aside, matter remitted with conditions.
Case-Laws
GST
Effective service by upload on the GST common portal does not supplant the taxpayer's right to be heard; the HC held that an assessment order passed without effective service and without affording a personal hearing is infirm and was set aside. Where portal notices elicit no response, the officer must apply mind and invoke other valid modes of service rather than rely on repeated portal reminders; failure to do so risks ineffective service and ex parte orders. The matter was remitted for fresh consideration subject to the petitioner depositing 25%, filing a reply within three weeks, and issuance of a clear 14 day notice for personal hearing before disposal on merits.
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Retrospective GST cancellation must be proposed in notice, supported documents supplied, and orders reasoned before enforcement.
Case-Laws
GST
Retrospective cancellation of GST registration requires a prior, specific proposal for retrospective effect in the show-cause notice and disclosure of the reasons/materials relied upon; absence of such proposal renders retrospective effect unsustainable. Authorities must supply any supportive documents referred to in the notice before final adjudication; failure to supply vitiates proceedings. Cancellation orders must be reasoned and not cryptic; non-speaking orders demonstrate non-application of mind and are unsustainable. Procedural defects of these kinds may justify exercise of extraordinary writ jurisdiction despite alternate remedies. Orders quashed with liberty to reopen proceedings after fresh notice, supply of materials and a reasoned hearing.
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Export of services classification requires fresh adjudication when intermediary status and procedural fairness were not properly addressed.
Case-Laws
GST
Rejection of an IGST refund was set aside because the authority failed to apply its mind and breached principles of natural justice by not addressing the petitioner's contentions and contractual arrangements on whether the services were exports or intermediary services; the Court identified need to examine agreements and relevant precedents/circulars and directed remand for de novo consideration after hearing the parties. Outcome: the impugned order was quashed and the matter returned for fresh determination of the export-versus-intermediary question with all contentions open and a three-month timeline for decision.
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Right to fair hearing: failure to supply relied-upon documents and deny cross-examination mandated remand and fresh inquiry.
Case-Laws
GST
Non-supply of relied-upon documents with the show-cause notice and refusal to permit requested cross-examination were held to breach the principles of natural justice and the right to a fair hearing; the impugned order was quashed and the matter remanded for a fresh inquiry from the stage of issuance of the show-cause notice. The respondents are directed to supply all relied-upon documents with a list of RUDs, permit cross-examination where requested, and complete the inquiry in accordance with law within three months.
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Opportunity to furnish documentary evidence and post-decisional hearing allowed, with temporary stay pending reconsideration within timelines.
Case-Laws
GST
Adjudicatory treatment of tax liability for parking services must account for material documentary evidence and permit post decisional remedy: where an order rejected a claim that the petitioner acted for a municipal corporation because no Agreement was on file, the court granted liberty to tender supporting documents and required the proper officer to grant a post decisional hearing and decide thereafter; the impugned order was temporar ily held in abeyance and related garnishee proceedings stayed subject to strict filing and decision timetables, and the authority may record supplementary reasons if unconvinced.
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Final tax demand must be confined to the Show Cause Notice amount; excess demand set aside and remitted for fresh adjudication.
Case-Laws
GST
Requirement that final tax demand be confined to the amount proposed in the show cause notice under Section 75(7) is reiterated; where an adjudication confirms a demand exceeding the notice the order is contrary to the statutory limitation and must be set aside. The court remitted the matter for fresh adjudication, directed the taxpayer to file a reply treating the impugned order as an addendum within thirty days, and ordered the tax authority to pass a fresh final order expeditiously, with recovery measures available if the taxpayer fails to comply after due notice.
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Consideration and Supply: fees for statutory regulatory and quasi judicial functions are not taxable; notice quashed.
Case-Laws
GST
Fees charged by an electricity regulatory commission for discharging statutory, quasi judicial and regulatory functions do not constitute a taxable supply in the course or furtherance of business because the definitions of 'consideration' and 'business' must be read together under the GST scheme. The analysis adopts precedent finding that regulatory/tribunal like activities are not commercial trade or inducements for supply, and Schedule III excludes services rendered by courts or tribunals. Applying these principles the impugned show cause notice levying GST on tariff petition and licence fees was arbitrary and was quashed; the writ petition succeeds.
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CGST Delhi South Commissionerate arrests director of a company for fraudulent availment of Input Tax Credit (ITC) amounting to Rs.60.59 crore through bogus invoices of Rs.397.23 crore
GST
Dated:- 10-3-2026

As part of its ongoing enforcement drive against fraudulent Input Tax Credit (ITC) claims, the Anti-Evasion Branch of the Central Goods & Services Tax (CGST), Delhi South Commissionerate, has arrested a Director of a private limited company engaged in trading of Smartphones for fraudulent availment of Input Tax Credit (ITC) amounting to Rs.60.59 crore through bogus invoices of Rs.397.23 crore. This violates Section 16 of the CGST Act, 2017 and is punishable under Section 132.

Analysis of GST return data and

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Retrospective GST registration cancellation requires prior specific notice, disclosure of supporting material and a reasoned order.
Case-Laws
GST
Retrospective cancellation of GST registration requires a specific proposal in the show cause notice and disclosure of the material relied upon; absence of any proposal for retrospective effect in the notice vitiates such cancellation and the order must be set aside. Where reliance is placed on supporting documents or verification reports, those documents must be supplied so the person affected can meet the case; failure to supply them renders cancellation unsustainable. Any fresh order must be a reasoned, speaking order demonstrating application of mind and must follow service of proper notice, disclosure of materials and an opportunity to be heard.
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Restoration of GST registration permitted if pending returns are filed and tax with interest and late fee is paid, authority to restore.
Case-Laws
GST
Where GST registration was cancelled for continuous non-filing of returns, the proviso to Rule 22(4) permits restoration if the person files all pending returns and makes full payment of tax dues with applicable interest and late fee; upon such compliance the proper officer may drop cancellation proceedings and pass the restoration order in Form GST REG-20. The petitioner was directed to apply to the concerned CGST authority for restoration and to comply with the proviso; the authority must consider and decide the application in accordance with law within the timeframe fixed by the court.
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Value of free-supplied goods not part of taxable supply; such materials cannot be included in GST valuation and levy set aside.
Case-Laws
GST
Value of goods supplied free of cost by a service recipient does not constitute consideration for the taxable supply; consequently such free materials cannot be included in the transaction value for GST valuation and are not exigible to tax. Relying on settled precedent and GST valuation guidance, the impugned levy adding the value of cement, admixtures and waterproofing material supplied free to the petitioner was held legally unsustainable and set aside. The writ petition was allowed and amounts deposited under interim order were ordered refunded, with no order as to costs.
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Assignment of leasehold rights as a supply – interim stay on recovery and adjudication granted pending higher court determination.
Case-Laws
GST
Assignment of leasehold rights and whether it constitutes a taxable supply is the central issue; the High Court noted pending Supreme Court appeals on whether such assignments amount to 'transfer of land' or a taxable supply and therefore extended interim protection. The Court stayed recovery under impugned orders and stayed adjudication of outstanding show cause notices until final disposal, directed issuance of notice to the Attorney General where constitutional validity of CGST provisions is challenged, and permitted filing of replies with liberty to apply further, while awaiting the Supreme Court's determination.
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GST on maintenance services: recoveries and corpus contributions treated as taxable consideration; membership exemptions remain subject to limits.
Case-Laws
GST
Recoveries by a resident welfare association for water and electricity, even if billed separately and on actual-cost basis, are treated as part of its maintenance service to members and constitute consideration for supply; they are taxable subject to the membership-organisation exemption ceiling. Costs procured and billed in the association's name do not meet the pure agent conditions and are includible in the composite supply. Contributions to a corpus fund are advances for future supply and trigger GST at receipt under time-of-supply rules. Community centre subscriptions qualify as membership maintenance services and benefit from the exemption subject to the prescribed ceiling and conditions.
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Reverse Charge Liability on ocean freight not permissible; importers under CIF cannot be made liable, refunds allowed subject to unjust enrichment.
Case-Laws
GST
Levy of service tax/IGST on ocean freight under CIF contracts is not sustainable where the transporter is located outside the taxable territory; reverse charge cannot be imposed on an importer who is neither the service provider nor the service recipient, so notifications attempting to make importers liable under reverse charge exceed legislative and rule making powers. The composite supply principle bars a separate tax on the transport service component of a composite import transaction. Any demand issued under the impugned notifications is without authority; petitioner may seek refunds subject to statutory procedure and the doctrine of unjust enrichment.
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