Author: admin_gst

GST AAR classifies Quick Lime and Hydrated Lime under Heading 2522, confirms continued 5% rate despite new notification
Case-Laws
GST
AAR held that the applicant's products, namely 90% Quick Lime and 85%-95% Hydrated Lime with 10%-15% impurities, are classifiable under Heading 2522 as Quicklime and Slaked Lime, and not under Heading 2825. On this classification, the applicable GST rate is 5% under the relevant rate notification. The AAR observed that although N/N. 1/2017-Central Tax (Rate) was superseded by a subsequent notification, the concessional 5% GST rate on Quick Lime and Hydrated Lime under Heading 2522 remained unchanged.
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GST registration cancellation upheld for fake business premises, non-existent operations, contravention of CGST Rules Rule 21A
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GST
HC upheld cancellation of petitioner's GST registration, dismissing the writ petition. The Court accepted the appellate authority's findings that there were serious inconsistencies regarding the petitioner's declared place of business, including submission of two rental agreements for different premises with conflicting dates. It further held that the petitioner had not conducted any business from the declared place, constituting contravention of Rule 21A of the CGST Rules. Finding no perversity or legal infirmity in the cancellation order or the appellate confirmation, HC declined to exercise writ jurisdiction.
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Sales incentives as services: GST payable on tour packages valued via section 194R TDS, rule 35 applies
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GST
AAR held that non-monetary benefits/perquisites, including tour packages received by the applicant from a manufacturer for achieving sales targets, constitute a taxable “supply of services” in the course or furtherance of business. No exemption under Notification No. 12/2017-Central Tax (Rate) applies. The applicant is the supplier of sales promotion/business support services and the manufacturer is the recipient; accordingly, the applicant must raise a tax invoice on the manufacturer. For valuation, the value of service is the value of gifts/perquisites/tour packages as reflected in the TDS certificate under section 194R of the Income-tax Act. The applicant may issue invoices on a tax-inclusive basis in terms of rule 35 of the valuation provisions.
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ITC denial on fictitious invoices under S.74 GST Act set aside; tax already credited to revenue
Case-Laws
GST
HC examined proceedings under S.74 GST Act against the purchasing dealer for alleged inadmissible ITC on fictitious invoices without movement of goods. It found the supplier had filed GSTR-1 and GSTR-3B and that GSTR-2A was auto-populated, with no dispute by authorities regarding these statutory records. HC held there was no material indicating fraud or wilful misstatement by the petitioner and that tax collected had reached the revenue. Relying on binding precedent that ITC cannot be denied where the selling dealer was registered and tax deposited, HC quashed the impugned orders and allowed the petition.
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NDA says Bill seeking excise duty on tobacco a health safeguard; hurts poor, breaks GST spirit: Oppn
GST
Dated:- 4-12-2025
PTI
New Delhi, Dec 4 (PTI) Members of the ruling NDA on Thursday said in the Rajya Sabha that the bill seeking to levy excise duty on tobacco products is aimed at safeguarding public health and not earning revenue, and further claimed that the interests of tobacco farmers will be taken care of.
Opposition parties, however, opposed the Bill, saying it not only undermines the GST foundational promise of one nation, one tax but also disproportionately affects the poorest and the most vulnerable sections of society.
Supporting the Bill, TDP MP Masthan Rao Yadav Beedha said by keeping tobacco expensive, the g

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DA, said the Bill will benefit the people of the country.
“Government health expenditure as a percentage of GDP rose from 1.13 per cent in 2014-15 to 1.84 per cent in 2021-22,” TMC (M) MP G K Vasan said, highlighting the deteriorating impact of the use of tobacco on public health.
Vasan said the Bill does not impose any new tax and what was earlier collected under cess will be collected under the central excise tax.
Seconding Vasan's views, another BJP MP Dr Ajeet Madhavrao Gopchade said once a person gets addicted to tobacco, he or she not only becomes a patient but also economic, mental and social burden on the family.
He stated that the Bill is a strong effort to stop the vicious cycle of use of tobacco, which causes several type

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it is a slow poison,” Maurya said, appreciating PM Modi for envisaging the bill.
BJP MP from Goa Sadanand Mhalu Shet Tanvade called the Bill an economically prudent and socially responsible initiative while according to Mahendra Bhatt, BJP Uttarakhand MP, it is a decisive step in the direction of welfare of the state.
Opposition party NCP-SCP opposed the Bill saying it undermines the GST foundational promise of one nation, one tax.
NCP-SCP MP Dr Fauzia Khan said, “This will leave manufacturers dealing with two tax audits, two valuation regimes, doubling the filings and the risk of all excise disputes. The Bill and its explanation do not clarify whether the dual systems will coordinate or share data, nor do they address the audit comp

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No GST on leasing out residential premises as hostel for students: SC
GST
Dated:- 4-12-2025
PTI
New Delhi, Dec 4 (PTI) The Supreme Court on Thursday held that leasing out of residential premises to an entity which is using it as hostel for students and working professionals is exempted from GST.
A bench of justices JB Pardiwala and KV Viswanathan upheld the verdict of the Karnataka High Court which said that leasing out of residential premises to an entity which is using it as hostel to students and working professionals is exempt under GST.
“In the case on hand, the ultimate use of the property as residence remains unchanged. However, if 18 per cent GST is levied on this transaction between the respondent No. 1 and the lessee

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its eligibility to seek exemption for the renting services provided and filed an application before the Authority of Advance Ruling, Karnataka.
The AAR, Karnataka held that the renting of residential dwelling for use as residence is not covered under entry 13 and the benefit of exemption according to notification is not available.
The petitioner filed an appeal before the Appellate Authority for Advance Ruling which held that the property rented out is a hostel and cannot be termed as residential accommodation or residential dwelling and denied the benefit of exemption.
The Karnataka High Court held that the leasing out of residential premises to an entity who is using it as 'hostel' to students and working professionals is exempt under

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Rajya Sabha members seek ban on 'misleading' advertisements on tobacco products
GST
Dated:- 4-12-2025
PTI
New Delhi, Dec 4 (PTI) Several members of the Rajya Sabha on Thursday asked the government to immediately stop “misleading” advertisements to promote tobacco, liquor and other products, while citing an alarming number of deaths due to cancer and other diseases associated with the consumption of such intoxicants.
They were speaking on the Central Excise (Amendment) Bill, 2025, introduced in the Upper House earlier during the day. The bill proposes to levy a higher excise duty on tobacco and related products once the GST compensation cess ends.
BJP's Sanjay Seth said it has been seen that people from different walks of life be it a man, woman or children have started using tobacco and related products and because of which cancer, heart and lung diseases are on the rise.
According to a report of the World Health Organisation (WHO), approximately 1.35 million people

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r such harmful products by film actors or actresses.
He proposed a licence for sellers of gutkha and cigarettes, akin to the similar mandatory requirement for liquor sellers, to discourage sales.
BJP's Govindbhai Laljibhai Dholakia, who started to speak on the matter with a Sanskrit verse, mentioned his “addiction-free” export firm.
“Our company is Shri Ramakrishna Export. It has more than 7,000 employees. Today, our company is tobacco-free. There is nobody who suffers from addiction. I want India to become tobacco-free like this company,” he said, adding that tobacco is the biggest cause of death among the country's youths.
AIADMK's M Thambidurai extended his support to the bill, provided the shares of the state governments get their due share.
“This bill is a timely and necessary reform aimed at safeguarding public health, maintaining revenue stability and ensuring that harmful products like tobacco do not become cheaper as the GST compensation cess is gradually phased out.

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ose, that is to stabilise tobacco taxation, to strengthen the health policy of the central government to ensure reduction of cancer patients, heart and lung diseases.
He supported the bill, saying the legislation is in the national and public interest.
The Central Excise (Amendment) Bill, 2025 was passed by a voice vote in the Lower House on Wednesday.
The bill, once enacted, will give the government the fiscal space to increase the rate of central excise duty on tobacco and related products after the GST compensation cess, which is currently levied on all tobacco products like cigarettes, chewing tobacco, cigars, hookah, zarda, and scented tobacco, ceases to exist.
Currently, a 28 per cent Goods and Services Tax (GST) plus cess at a varied rate is levied on tobacco and related products.
The bill proposes to levy an excise duty of 60-70 per cent on unmanufactured tobacco. Excise on cigars and cheroots is proposed at 25 per cent or Rs 5,000 per 1,000 sticks, whichever is highe

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Parliament approves bill to levy excise duty on tobacco
GST
Dated:- 4-12-2025
PTI
New Delhi, Dec 4 (PTI) Parliament on Thursday approved a bill to levy a higher excise duty on tobacco and related products once the GST compensation cess ends, with the Rajya Sabha returning the legislation to Lok Sabha.
Lok Sabha had passed the Central Excise (Amendment) Bill, 2025, on Wednesday.
Replying to a discussion on the bill in Rajya Sabha, Finance Minister Nirmala Sitharaman spoke on the various aspects of the legislation, and responded to questions from various members.
Sitharaman also told the House that farmers are being encouraged to give up tobacco and grow other cash crops.
“This is being done in Andhra, Bihar, Karnataka, Ma

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Opposition in RS calls for govt initiative to check tobacco use
GST
Dated:- 4-12-2025
PTI
New Delhi, Dec 4 (PTI) Several opposition MPs on Thursday expressed concern in the Rajya Sabha that the government is focusing on increasing revenue from tobacco, rather than initiating strong public health measures to control its use.
Participating in a discussion on a bill seeking to levy more excise duty on tobacco products, members also asked the government to put a check on surrogate advertisements on tobacco products.
The Central Excise (Amendment) Bill, 2025, passed by the Lok Sabha on Wednesday, was moved in the Upper House on Thursday by Minister of State for Finance Pankaj Choudhary.
Speaking on the Bill, Congress deputy leader in the Rajya Sabha Pramod Tiwari said the bill should have been sent to a Parliamentary panel for scrutiny.
Tiwari said the bill is silent on tobacco farmers and labourers who work in the sector.
He said the money earned through levying excise dut

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teps to control pan masala and tobacco advertisements that are being done by celebrities and influencers across the media. What is the government doing to control these kinds of advertising?” she questioned.
She said global best practices show that tobacco taxes are most effective only when paired with strong public health interventions.
“Therefore, this bill is a pure and simple revenue move. It is not a public health reform. This is a revenue move to profiteer from taxes. It is not a public health reform,” she added.
Ghose also said the Centre owed West Bengal around Rs 2 lakh crore.
Noting that tobacco addiction is a major problem faced by the country, DMK MP R Girirajan said instead of taking steps to reduce its consumption, the government is imposing taxes.
“It will only lead to more avoidance of tax as opposed to revenue collection. The middle class, all over the country, is very unhappy that they are paying the majority of taxes, and that they are not getting any tax deduct

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ear,” he added.
There is a massive revenue loss due to tobacco-related health issues, he added.
“The question arises if it can be totally banned…The liquor ban in Gujarat has totally failed; it is delivered at home. Same with Bihar… No matter if your intentions are good… You have to see whether it works or not,” he said.
“Your intention is not clear; it looks like you are doing this just for revenue generation.” BJP MP Arun Singh said that under the NDA regime, the share of taxes given to states has increased.
“During the UPA, 32 per cent of the taxes were given to states…Our government decided to give 42 per cent to states,” he added.
He said that as far as health is concerned, the BJP government “does not need to learn from UPA”, and mentioned government schemes like Ayushman Bharat.
“Congress never thought people should get clean water.” The Central Excise (Amendment) Bill will replace the GST compensation cess, which is currently levied on all tobacco products like

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Union Minister of State for Finance Shri Pankaj Chaudhary inaugurates the 68th Founding Day of Directorate of Revenue Intelligence (DRI), New Delhi, today.
GST
Dated:- 4-12-2025

MoS Finance reiterates Government's endeavour to ensure that honest taxpayers can do business with dignity and that the use of India's land, waterways, or air becomes impossible, risky, and futile for illegal trade
CBIC Chairman encourages DRI officers to continue leveraging technology, risk management tools, and global partnerships to strengthen India's border security framework
DRI DG highlights DRI's relentless efforts in busting smuggling syndicates and choking the stream of illicit funds generated from smuggling
DRI releases its annual flagship

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on the occasion, MoS Finance Shri Pankaj Chaudhary, lauded DRI's steadfast commitment to protecting India's economic borders and trade infrastructure since its establishment in 1957. He commended DRI for tackling global challenges, technological changes, and the emergence of organised international crime networks and continuing to perform its duties with steadfastness, dedication, and efficiency on every front. He underscored that the endeavour of the Government is to ensure that honest taxpayers can do business with dignity and that the use of India's land, waterways, or air becomes impossible, risky, and futile for illegal trade.
CBIC Chairman Shri Vivek Chaturvedi praised DRI for its unwavering professionalism and its central role

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Commendation Certificates for Meritorious Service and Excellence were awarded to DRI officers for exceptional contributions to enforcement and intelligence operations.
DRI also released the Smuggling in India Report 2024-25, its annual flagship publication that highlights trends in illicit trade, major enforcement achievements, emerging challenges, and policy recommendations.
The ceremony was attended by 30 international delegates from 15 participating countries in the 10th Regional Customs Enforcement Meeting (RCEM), reflecting the growing partnership between India and global enforcement agencies in combating transnational smuggling. Their presence underscored DRI's role as a key contributor to international customs collaboration.
DRI

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Fitch ups India's FY'26 GDP growth forecast to 7.4 pc on better consumer spending, GST reforms
GST
Dated:- 4-12-2025
PTI
New Delhi, Dec 4 (PTI) Fitch Ratings on Thursday raised India's GDP growth forecast for the current fiscal to 7.4 per cent, from 6.9 per cent, on increased consumer spending and improved sentiment boosted by GST reforms.
It said falling inflation gives the Reserve Bank of India (RBI) room for one more policy rate cut in December to 5.25 per cent, following 100 bp of cuts in 2025 so far.
Fitch said GDP growth accelerated further in the July-September quarter to 8.2 per cent, from 7.8 per cent in the April-June quarter.
“Growth will ease over the remainder of the financial year 2025-26 (to end-March), but

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Tobacco excise duty not extra tax, revenue to be shared with states: FM
GST
Dated:- 3-12-2025
PTI
New Delhi, Dec 3 (PTI) Excise duty sought to be levied on tobacco and its products through a new Bill will ensure that tax incidence on demerit items does not fall after the recent GST overhaul, Finance Minister Nirmala Sitharaman said, vowing to share revenues collected with states.
Replying to the debate on the Central Excise (Amendment) Bill in the Lok Sabha, Sitharaman said this is not an additional tax, and the tax burden, as currently applicable under the GST regime, will continue.
The Lok Sabha later passed the Bill with a voice vote.
The provisions of the Bill will come into effect once the GST compensation cess, which is

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ty of Rs 2,700 to Rs 11,000 per 1,000 sticks of various categories of cigarettes. The Bill also proposes a levy of 60-70 per cent on every kilogram of tobacco used for various purposes and 100 per cent per kg on chewing tobacco.
Quoting the World Health Organisation (WHO) observation that cigarette affordability has either stagnated or increased in the past decade in India, Sitharaman said that cess rates on cigarettes have remained unchanged since 2017, when GST was implemented.
She said that before GST, tax rates of tobacco were increased every year, so that high prices act as a deterrent to the consumption of the demerit good. After the sunset of compensation cess, the government is bringing back the excise duty, which existed prior to

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e levy of GST and compensation cess on tobacco and its products, the rates of central excise duties were reduced significantly to allow for the levy of compensation cess without a substantial impact on tax incidence.
Sitharaman also clarified that there is no change in the tax incidence on beedi even after the levy of the excise duty.
With regard to concerns of MPs on the livelihood of farmers, Sitharaman said the government is trying to wean away farmers from growing tobacco and encouraging them to diversify to other crops.
“In order to ensure that the incidence is not lower than what it was during GST with the compensation cess, we are bringing this excise. In a way, we are saying cigarettes should not become affordable now because inc

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Lok Sabha passes Bill to levy excise duty on tobacco
GST
Dated:- 3-12-2025
PTI
New Delhi, Dec 3 (PTI) Lok Sabha on Wednesday passed a law to levy a higher excise duty on tobacco and related products once the GST compensation cess ends.
The Central Excise (Amendment) Bill, 2025, was passed by a voice vote in the lower house.
The Bill, once enacted, will give the government the fiscal space to increase the rate of central excise duty on tobacco and related products after GST compensation cess, which is currently levied on all tobacco products like cigarettes, chewing tobacco, cigars, hookah, zarda, and scented tobacco, ceases to exist.
Currently, a 28 per cent Goods and Services Tax (GST) plus cess at a varied rate is levied

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without a large impact on their tax incidence.
Compensation cess levied on tobacco and tobacco products will be discontinued once interest payment obligations and loan liabilities under the compensation cess account are completely discharged. ” Finance Minister Nirmala Sitharaman said in the Lok Sabha: “In another, probably, couple of weeks the loans will be completely repaid. The Centre, therefore, wants to make sure that the excise will come back to us so that we can levy the duty”.
At the time of the introduction of the GST on July 1, 2017, a compensation cess mechanism was put in place for five years till June 30, 2022, to make up for the revenue loss suffered by states on account of GST implementation.
The levy of compensation

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Lok Sabha: MPs make candid confessions about personal struggle with tobacco
GST
Dated:- 3-12-2025
PTI
New Delhi, Dec 3 (PTI) A debate on a bill for overhauling the tax structure on tobacco products in Lok Sabha on Wednesday saw MPs making candid confessions about their personal struggles with tobacco use while urging stronger measures to curb its consumption.
The Central Excise (Amendment) Bill, 2025, seeks to replace the existing GST compensation cess on cigarettes, chewing tobacco, cigars, hookah, zarda and scented tobacco with a revised excise structure.
During the discussion, TMC MP Sougata Roy openly acknowledged his struggle with smoking.
“I have been a smoker myself and I am trying to quit the habit because people s

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entary constituency should have a space where quitting support can be initiated; medications and formulations should be made available. Even a 10–20% reduction can improve quality of life,” he said.
His remarks prompted a moment of light banter. TDP MP Lavu Sri Krishna Devarayalu said, “Kalanidhi spoke very emotionally… he is a doctor and explained all the ill effects of smoking, but he still smokes 40 cigarettes a day. That is the problem we have in this country.” The Chair intervened, asking, “Is it necessary to disclose on the floor of the House?” Currently, tobacco products attract 28% GST plus a variable cess. Under the proposed regime, unmanufactured tobacco would face an excise duty of 60-70%, cigars and cheroots would be taxed

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MPs flag livelihood fears for farmers, workers as Lok Sabha debates tobacco tax overhaul
GST
Dated:- 3-12-2025
PTI
New Delhi, Dec 3 (PTI) Some Lok Sabha MPs on Wednesday expressed concern over the impact of the bill that will allow the government to raise taxes on tobacco products, saying it could adversely affect the livelihoods of tobacco farmers and workers, even as they backed measures to curb tobacco consumption. The Central Excise (Amendment) Bill, 2025 seeks to replace the GST compensation cess currently levied on cigarettes, chewing tobacco, cigars, hookah, zarda and scented tobacco, all of which attract a 28 per cent GST plus a variable cess.
Opening the discussion on the bill in the lower house, BJP MP D. Purandes

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e tobacco industry to other sectors,” he said, warning that steep duty hikes could increase counterfeiting and black markets.
Merely “tinkering” with tax rates, he argued, would not address the structural challenge.
Samajwadi Party MP Naresh Chand Uttam Patel voiced concerns of bidi rollers, leaf-pluckers and small supari growers, saying he was speaking “for the lakhs who break tobacco leaves, who roll bidis under lantern light, who toil day and night in areca nut orchards”.
Their sweat, he said, contributes thousands of crores to the economy each year. Accusing the government of imposing a heavy cess on the poorest, he urged that the Bill be sent to a select committee instead of being “rushed through”.
TMC MP Saugata Roy questioned

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GST registration cancellation set aside; Section 39 procedural lapses overlooked due to medical issues and bona fide conduct
Case-Laws
GST
HC, exercising writ jurisdiction, ordered restoration of petitioner's cancelled GST registration within one week. The registration had been cancelled for failure to file returns under Section 39 of the CGST Act pursuant to a show cause notice to which the petitioner did not respond. HC noted the peculiar facts, including petitioner's medical condition and dispute with the chartered accountant, and accepted that petitioner is a bona fide trader whose business operations were paralysed by the cancellation. HC held that, notwithstanding procedural lapses, the circumstances justified intervention, and therefore allowed the petition and directed revival of GST registration.
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Affiliation and university fees not taxable as GST supply; writ quashes s.73(9) orders read with Rule 142(5)
Case-Laws
GST
HC allowed the writ petition challenging adjudication orders passed under s.73(9) of the CGST/KGST Acts read with Rule 142(5) of the CGST/KGST Rules concerning GST liability on affiliation-related fees. Relying on a prior co-ordinate Bench decision, the HC held that affiliation fees, postgraduate registration fees, admission fees, convocation fees and other sums collected by the petitioner-university from affiliated colleges/students do not constitute “supply” in the course or furtherance of “business” and are not exigible to GST. Consequently, the impugned show cause notices and adjudication orders were quashed, and the petition was allowed in favour of the assessee-university.
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Bail granted in GST evasion case; documentary evidence seized, no antecedents, parity with co-accused, strict conditions imposed
Case-Laws
GST
DSC, considering a bail application in a GST evasion investigation, held that pre-trial incarceration was unwarranted as the case rests on documentary evidence already seized and the applicant's statements have been recorded. The court found no criminal antecedents, noted the applicant's cooperation with MGST authorities, and observed that further custodial interrogation was unnecessary. It emphasized that apprehensions of absconding or tampering with evidence could be adequately addressed through stringent conditions. The offence is triable by the DSC and is of a compoundable nature under GST law; similarly situated co-accused directors have already been granted bail. Accordingly, the applicant was ordered to be provisionally released on bail subject to specified conditions.
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Late GSTR-9 filing allowed; ignoring unclaimed cess credit risks tax without authority under Article 265, Section 44(2)
Case-Laws
GST
HC held that ignoring the petitioners' GSTR-9, which reflected unavailed ITC of Cess on inward supplies and rendered the earlier non-disclosure revenue neutral, may offend Article 265, as it would effectively tax without proper authority of law. The Court found that, prior to the 2023 amendment, Section 44(2) did not prohibit filing GSTR-9 beyond the prescribed date and that the statutory scheme (including Section 47) did not contemplate total preclusion of late filers. The impugned appellate order dated 06.02.2025 was set aside and the matter remanded to the appellate authority for fresh consideration in accordance with law.
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GST on assignment of industrial leasehold rights held not a taxable supply under Sections 7(1)(a), 9, 74
Case-Laws
GST
HC examined a challenge to a SCN and order u/s 74 of the CGST Act concerning GST liability on assignment of leasehold rights over industrial land originally allotted by a state industrial corporation. Relying on its earlier precedents, HC held that assignment/sale/transfer of leasehold rights in such plots constitutes transfer of benefits arising from immovable property, not a “supply” of services u/s 7(1)(a), nor covered by Schedule II or III so as to attract GST u/s 9. Consequently, the impugned order dated 15.09.2025 was quashed and the petition allowed.
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Omission of Rules 89(4B) and 96(10) by Notification 20/2024 nullifies pending demands, restores IGST export refunds
Case-Laws
GST
HC held that Notification No. 20/2024 omitting Rules 89(4B) and 96(10) of the CGST Rules, 2017, without any saving clause, operates to render those provisions redundant ab initio and applies to all pending proceedings. Following its own coordinate bench and a similar view of another HC, it ruled that show cause notices, orders-in-original and orders-in-appeal not attaining finality (including those pending in writ or appellate proceedings, with no Tribunal constituted) are not “transactions past and closed” and stand lapsed. Consequently, the impugned actions were quashed and petitioners were held entitled to refund of IGST paid on export of goods in accordance with Rule 96.
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Refund rejection overturned where foreign exchange receipt proven; FIRCs not mandatory under Section 54 and Rule 89
Case-Laws
GST
HC set aside the rejection of refund of unutilized input tax credit on export of services under Section 54 CGST Act read with Rule 89 CGST Rules. The authorities had denied refund on the ground that the exporter furnished FIRAs and a Chartered Accountant's certificate instead of FIRCs as required under a CBIC circular. Relying on its earlier decision in the same assessee's case, HC held that receipt of convertible foreign exchange was established and mere non-furnishing of FIRCs could not justify rejection of refund. Authorities were directed to process the refund claims for the specified tax periods within twelve weeks.
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GST on leasing co-owned property to company for student housing, exemption under Entry 12 of Notification 12/2017 denied
Case-Laws
GST
AAR held that the applicant's leasing of a co-owned property to an unregistered company for providing residential accommodation to students and working professionals is not exempt under Entry 12 of Notification No. 12/2017-CT (Rate). The property is treated as commercial, and the lessee uses it for commercial purposes (providing accommodation), not as its own residence in personal capacity, defeating the exemption's intent. The supply is classified under Sl. No. (iii) of Entry 16 of Notification No. 11/2017-CT (Rate) as renting of immovable property and attracts GST at 18%. As the applicant is a registered person, it is liable to discharge GST on such rental income.
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GST on canteen charges: no tax on employees, taxable supply to contractual workers under Section 7 CGST
Case-Laws
GST
AAR held that subsidized recoveries from regular employees for canteen services mandated under the Factories Act do not constitute “supply” under Section 7 of CGST/GGST Acts, following its ruling in Troikaa Pharmaceuticals and CBIC Circular No. 172/04/2022-GST; hence, no GST is leviable on the employees' share. However, contractual workers are not in an employer-employee relationship with the applicant; the applicant deals only with the contractor, who retains supervision and control. Consequently, subsidized amounts recovered from contractual workers towards canteen charges constitute a taxable “supply” by the applicant, and GST is payable on the amount recovered from payments to the workers' contractor, not on open market value.
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RS returns Manipur GST bill to Lok Sabha
GST
Dated:- 2-12-2025
PTI
New Delhi, Dec 2 (PTI) The Rajya Sabha on Tuesday returned to the Lok Sabha the Manipur GST bill, which replaces an Ordinance to implement the GST 2.0 reforms in the northeastern state, with Finance Minister Nirmala Sitharaman saying that the bill will benefit people and businesses there.
The Lok Sabha had passed the bill on Monday.
Replying to the discussion on the proposed law, Sitharaman hit out at the Opposition for shedding “crocodile tears” on Manipur and indulging in “drama” over the grievances of people of the state.
“Did the prime minister visit? Did the home minister visit? Did the law and order come to normal? Every time, about Manipur they will

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the entire nation has benefited from but Manipur has been denied because there was no government. Now we are giving that benefit to them,” she said.
Referring to issues raised by members on the GST reforms, Sitharaman said 28 per cent tax slab has been abolished and several items have been moved to 18 per cent slab.
Earlier, participating in the discussion on the bill, Biju Janta Dal's Sulata Deo said that President's rule should be lifted in Manipur and elections be held there.
“India was the only country in the world with the highest GST rate, at 28 per cent, while Argentina charges 27 per cent. We've even surpassed that,” she had said.
Speaking in support of the bill, YSRCP's Ayodhya Rami Reddy Alla said by reducing compliance bu

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clearly support higher economic activity as seen in the trade, entrepreneurship and local industries,” said the Rajya Sabha member from Andhra Pradesh.
More than 260 people have been killed and thousands rendered homeless in ethnic violence between Meiteis and Kuki-Zo groups in Manipur since May 2023.
Alla said, sustainable peace also requires addressing disparities between hill and valley regions and between majoritarian and tribal communities in Manipur.
Nominated member Harsh Vardhan Shringla said the bill would help in Manipur's efforts for economic recovery and growth.
“A clearer and more predictable GST system would boost investment, improve tax revenue and support the state's efforts towards economic recovery and growth,” he

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