Author: admin_gst

Transitional input tax credit cannot be converted into cash refund after carry forward; re-credit of rejected claim remains available.
Case-Laws
GST
Transitional input tax credit carried forward from the VAT regime could be utilised under GST, but not converted into a cash refund once it had been brought into the electronic credit ledger. The HC read the transitional provisions together and held that the second proviso to the refund-saving provision bars refund of credit already carried forward, while the refund provision applies only to unutilised GST input tax credit in the cases it specifically covers. It also noted that no prior hearing was given, but refused remand because the dispute turned on a pure question of law. The Court further stated that any rejected refund amount should be re-credited to the electronic credit ledger under the prescribed procedure.
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Refund withholding under GST requires a pending proceeding, not merely time left to file an appeal
Case-Laws
GST
Refund under GST can be withheld only when the statutory conditions for invoking Section 54(11) are actually satisfied, including a pending proceeding or appeal; the mere possibility that the State may file an appeal is insufficient. The High Court held that the authority could not refuse to process a refund arising from an appellate order simply because the appeal period had not expired, as that showed no conscious application of mind and no valid basis under Rule 92(2). The refusal was set aside and the refund claim remitted for fresh consideration after hearing the taxpayer and passing a reasoned order.
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GST proceedings against a deceased proprietor are void; notice, adjudication and recovery were quashed, with liberty preserved.
Case-Laws
GST
GST notice and adjudication order issued against a deceased proprietor were unsustainable because foundational proceedings taken in the name of a dead person are void. The consequential recovery steps, including freezing of the bank account, also failed as they depended on invalid proceedings. The High Court quashed the notice, order and recovery action, while reserving liberty to initiate fresh proceedings against the legal heir if permissible in law.
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GST reimbursement in works contracts remains contractual, but statutory return, interest and limitation rules cannot be overridden.
Case-Laws
GST
Contractual claims for reimbursement of GST in post-GST works contracts arise from the agreement between contractor and employer, but they do not alter the statutory scheme for levy, assessment, recovery and enforcement of GST. Any reimbursement direction operates only against the employer under the contract and cannot be enforced against tax authorities or the State. The statutory GST framework also cannot be bypassed through directions permitting revised returns contrary to the Act, or by granting waiver of statutory interest and penalty, or relaxation of the prescribed limitation for returns and revised returns. The impugned order was therefore confined to the contractual reimbursement issue and set aside to the extent it conflicted with GST law.
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Wrongful input tax credit availment and reverse charge default justified Section 74 invocation under GST
Case-Laws
GST
Wrongful availment of input tax credit, where credit exceeded GSTR-2A and was utilised in GSTR-3B, was treated as prima facie suppression of facts with intent to evade tax, supporting invocation of the extended limitation under GST. The Court also noted an apparent failure to discharge reverse charge liability on commissions from foreign booking agencies. The limitation challenge was rejected as covered by the earlier Madras High Court ruling in Tata Play Limited, and the Court further observed that, for the relevant assessment years, even the period for passing orders under the lesser limitation regime had not expired. The writ petitions were dismissed, with liberty to pursue the statutory appeal on merits.
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GST short-payment with GSTR-1 disclosure: remand for Section 73 reconsideration under the amnesty scheme despite mismatch.
Case-Laws
GST
In a GST short-payment dispute, the HC noted that once outward supply was correctly disclosed in GSTR-1, the corresponding tax still had to be paid in GSTR-3B for the relevant period, so mere invocation of the stricter provision did not by itself warrant interference. After considering the later amnesty framework and the GST Council material, the Court treated the matter as one arising from return-filing glitches and admitted-liability mismatch capable of examination under the lesser provision. The demand and penalty order was quashed and the matter remitted for fresh consideration.
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Zero-rated export services refund: LUT omission is not an incurable defect, and denial was remitted.
Case-Laws
GST
Refund entitlement for zero-rated export services turns on a proper examination of the true nature of the transaction under the governing provisions. The HC held that the adjudicating authority failed to do so and also failed to consider the relevant circular on the effect of non-furnishing of a Letter of Undertaking. It accepted that omission to furnish an LUT/Bond is not an incurable defect and may be considered later for refund purposes. Because the character of the services and the refund claim based on the LUT were not addressed, the adjudication and appellate orders were quashed and the matter was remitted for fresh decision after permitting production of the LUT.
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Retrospective Section 16(5) restores input tax credit for belated GSTR-3B returns filed by the cut-off date
Case-Laws
GST
Retrospective insertion of Section 16(5) was treated as curative and operative from 01.07.2017, so input tax credit could not be denied merely because GSTR-3B returns were filed after the original due date if they were filed by 30.11.2021. The HC held that such returns regularised the credit claim for the relevant period and directed re-adjudication after verifying the filing dates. The impugned order was set aside, the matter was remitted for fresh consideration, and coercive steps were kept in abeyance until re-adjudication.
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Scrutiny-based tax notices for unreconciled input credit can proceed separately from earlier audit proceedings at the notice stage.
Case-Laws
GST
Scrutiny-based show cause notices for unreconciled input tax credit were treated as distinct from earlier audit-based proceedings, and the overlap with the prior section 73 action could not be resolved at the notice stage without a reply. The court held that, where the record suggests possible non-payment or short payment by reason of fraud, wilful misstatement or suppression, a section 74 notice may be issued. The challenge was therefore not entertained at issuance, and the taxpayer was directed to respond before final adjudication.
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Writ jurisdiction to condone appellate delay beyond statutory GST limits preserves the right to have cancellation appeals heard.
Case-Laws
GST
Writ jurisdiction may be used to condone delay beyond the statutory appellate ceiling under the GST limitation scheme where the delay was beyond the petitioner's control and refusal to hear the appeal would cause grave prejudice. The appellate authority remains bound by the limitation prescribed in the Act, but the High Court can grant relief in appropriate cases, including where cancellation of GST registration affects business continuity and livelihood. The delay was condoned and the appeal was restored for decision on merits after considering the statutory relaxation already available.
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Writ jurisdiction yields to a functional GST appeal remedy, with pre-deposit and filing timeline still required.
Case-Laws
GST
A writ petition against an appealable GST order is maintainable only when the statutory appellate forum is not functional and the taxpayer would otherwise be left remediless. Once the GST Appellate Tribunal becomes functional and the appeal period is extended, the dispute should be pursued before that forum, and writ jurisdiction should not be used to bypass statutory conditions such as pre-deposit and the notified filing timeline. The petitioner was therefore relegated to the statutory appeal before the GSTAT, and the merits of the impugned order were not examined.
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Liquidated damages recovered for transport defaults are compensatory and not taxable as supply of services under GST.
Case-Laws
GST
Recoveries from transporters for transit loss, damage, shortage, contamination, theft, delay and negligence were treated as liquidated damages arising from breach or non-performance of the transport contracts. Because the contracts themselves allocated liability for losses and provided for deduction and recovery, the amounts were compensatory rather than payment for any independent service. Applying Circular No. 178/10/2022-GST, the Authority held that where payment merely compensates injury or loss and there is no agreement to tolerate an act, refrain from an act, or do anything in return, it is not consideration for a supply. The recoveries were therefore outside GST as non-taxable and not a supply of services under para 5(e) of Schedule II.
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GST portal service valid when notice is uploaded; writ challenge failed after appellate limitation expired.
Case-Laws
GST
Upload of the GST notice and adjudication order on the common portal constituted valid service under the statutory scheme; the HC rejected the claim that physical or postal service was additionally required. The petitioner had admitted that the notice was uploaded and did not place material particulars showing the actual date of knowledge, while the record also showed prior participation in the proceedings. On that basis, the plea of complete ignorance was not accepted, and the petitioner failed to justify bypassing the statutory remedy after expiry of the appellate period. The writ challenge to the GST demand was therefore dismissed as lacking merit.
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GST extended limitation and legal representative liability sustained, while ex parte assessment orders were remanded for fresh consideration.
Case-Laws
GST
Under the GST law, proceedings initiated in the name of a deceased assessee were not invalidated where the death had not been intimated to the department. The HC further noted that, even if recourse to the extended limitation under Section 74 was unavailable, proceedings under Section 73 could still be maintained because of the limitation extensions under Section 168A and the Supreme Court's exclusion of limitation in Re: Cognizance; objections based on absence of Section 74 ingredients and limitation were rejected. The Court also affirmed that a legal representative is liable, out of the estate, for tax dues of the deceased, but set aside the ex parte assessment orders and remitted the matters for fresh adjudication on merits.
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US-Iran thaw to provide tailwinds for growth: RBI
GST
Dated:- 30-6-2026
PTI
Mumbai, Jun 30 (PTI) The Reserve Bank on Tuesday said the interim peace deal between Iran and the US can provide tailwinds to Indian economic growth.

In its bi-annual financial stability report released on Tuesday, the central bank also said that the growth in gold imports has decelerated “substantially” in May 2026 over April.

It, however, flagged that fiscal deficit can come under pressure because of the higher prices of energy and other commodities, their limited pass through to pump prices, excise duty cuts and higher outgo on subsidies.

“'… the interim peace deal has laid the foundation for cessation of this conflict and normalisation of

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the Government, including support to MSME and export sectors, are expected to help sustain economic activity, while mitigating the impact of external shocks, the central bank said.

On the inflation front, it said a combination of conflict-driven supply shock and projected weak monsoon due to El Niño can push headline inflation to the higher end of the tolerance band or around 6 per cent in Q3FY27 and also worsen inflation expectations.

The recent decline in net FDI (foreign direct investment) may reflect the tightening of global financial conditions, it said, adding that foreign portfolio flows to India have also been under pressure.

Asserting that India's external sector remains “resilient”, the FSR said, “The recent measures

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Government extends last date for filing appeals before the GST Appellate Tribunal to 31st July 2026
GST
Dated:- 30-6-2026

The Government has extended the due date for filing of appeals before the Goods and Services Tax Appellate Tribunal (GSTAT) under Section 112(1) read with Section 112(3) to 31.07.2026.

By an earlier notification dated 17.09.2025, the Government had notified 30.06.2026 as the last date for filing of appeals before GSTAT.

The Government has extended the due d

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GST Appellate Tribunal filing deadline extended to 31 July 2026, with three-month and six-month statutory periods preserved.
Notifications
GST
The GST Appellate Tribunal filing deadline is extended up to 31 July 2026, subject to the statutory filing periods under section 112. For orders communicated before 1 May 2026, appeals may be filed by that date; for orders communicated on or after 1 May 2026, appeals must be filed within three months of communication. For orders passed before 1 February 2026, applications may be filed by that date; for orders passed on or after 1 February 2026, applications must be filed within six months of passing of the order.
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Taxpayers can file appeal before GSTAT till July 31: FinMin
GST
Dated:- 30-6-2026
PTI
New Delhi, Jun 30 (PTI) The government on Tuesday extended the deadline for filing appeals before the GST appellate tribunal by one month till July 31.

The Goods and Services Tax Appellate Tribunal (GSTAT) was launched in September last year, and the government had then notified June 30, 2026, as the last date for filing of appeals before GSTAT.

“The government has extended the due date for filing of appeals before the Goods and Services Tax Appellate Tribunal (GSTAT) to July 31, 2026,” the finance ministry said in a statement.

The ministry said it has decided to extend the due date after it received representation from various stak

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a taxpayer and GST department used to go to High Courts or Supreme Court, thus delaying dispute resolution. With the operationalisation of GSTAT in September 2025, the disputes resolution is expected to be faster.

AMRG Global Managing Partner Rajat Mohan said the government's decision is a pragmatic move that protects taxpayers' right to appeal while providing certainty during the transition to a fully operational GSTAT.

“While the additional time offers much-needed relief, taxpayers should avoid waiting until the last date and instead complete their filings well in advance to minimise the risk of portal congestion and technical disruptions,” Mohan added.

Abhishek Jain, Indirect Tax Head & Partner, KPMG said: “The extension w

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GST Section 74 notices need prima facie foundational facts; prior disclosure can cure gaps in the notice
Case-Laws
GST
In GST proceedings, invocation of the extended period under Section 74 depends on jurisdictional or foundational facts and a prima facie view, based on available material, that non-payment, short payment, wrongful input tax credit, fraud, wilful misstatement or suppression exists. The notice should ordinarily disclose the basis for alleging the mental element, but prior communication of those grounds through scrutiny, audit, inspection or pre-notice intimation can satisfy the requirement, so a detailed notice is not invalid merely because it repeats earlier allegations. Notices were upheld where the basis had already been disclosed, while an inadequately particularised order was remitted for fresh consideration under Section 73, with possible recourse to Section 74 if information remained unprovided.
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Limitation in GST appeals: time spent in bona fide rectification can be excluded, and condonation opportunity must be given
Case-Laws
GST
Availability of an alternative statutory remedy did not bar writ entertainability where the challenge was confined to the legality of rejection of the statutory appeal on limitation and to computation of limitation under the CGST Act. The High Court reiterated that the doctrine of merger does not apply when a filing is rejected as time-barred without consideration on merits. It further held that time spent in bona fide rectification proceedings could be excluded on Section 14 principles, as the proceeding was pursued with due diligence and good faith, and that an appellant must be given a reasonable opportunity to explain delay before dismissal as time-barred.
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GST registration cancellation needs specific reasons and precise notice; non-speaking orders can be quashed despite delay
Case-Laws
GST
GST registration cancellation requires a show-cause notice that states the precise defaults alleged and a cancellation order that records specific reasons; a notice referring only to continuous non-filing without identifying the relevant period, and an order merely reciting the notice and cancellation date, is a non-speaking order showing non-application of mind and is illegal. The Court also held that although the writ petition was filed belatedly, the defect went to the legality of an order carrying serious civil consequences, so delay alone did not justify refusal of relief. The cancellation was quashed and the matter remitted to the notice stage, with liberty to reply or regularise the defaults.
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Interim protection in GST adjudication preserved a writ challenge to show-cause notice jurisdiction and prevented an ex parte final order.
Case-Laws
GST
A High Court granted interim protection in a GST matter by deferring adjudication where the writ petitions directly challenged the jurisdiction and validity of show-cause notices issued in Form GST DRG-01. The court noted that the rejection of adjournment was technically in line with law because no stay had been granted, but held that fixing final personal hearing for the very next day, with an indication of an ex parte final order, reflected undue haste. On a prima facie view, interference was necessary to preserve the subject matter of the writ petitions, so the hearing was to be adjourned and refixed after the writ petitions were taken up.
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Specific GST revocation notices and reasoned orders are required; non-speaking rejection for lack of particulars was set aside.
Case-Laws
GST
Revocation proceedings under the CGST Act require a specific show cause notice, consideration of the revocation application, and a reasoned order recording written reasons. The notice here did not specify the actual government dues relied on, and the rejection order failed to disclose any real reasoning, disposing of the matter only on the ground that no reply was filed in time. The HC held that this did not satisfy fair procedure or the statutory duty to record reasons, so the rejection was quashed and the matter restored for fresh notice particulars, a meaningful opportunity to respond, and a fresh reasoned decision.
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Mistaken penalty provision references are not fatal, but a higher penalty rate can show substantive misapplication.
Case-Laws
GST
A mistaken reference to the wrong tax penalty provision does not, by itself, invalidate proceedings; however, where the order imposes a penalty rate consistent with the wrong provision, the error is substantive rather than clerical. The discrepancy between a 100% penalty under one provision and a 50% penalty under the applicable provision showed that the power had been exercised on the wrong footing, making the order unsustainable. Fresh proceedings may be initiated under the correct provision in accordance with law.
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GST registration cancellation needs a specific show-cause notice and reasoned order; vague default allegations cannot sustain cancellation.
Case-Laws
GST
In GST registration cancellation matters, a show-cause notice must disclose the precise default and the relevant period so the assessee gets an effective opportunity to reply. A notice that only alleges continuous non-filing of returns, without identifying the period of default, is defective; a later cancellation order cannot cure that defect by relying on reasons not stated in the notice. The cancellation order must also be reasoned in the prescribed form. Because cancellation has adverse civil consequences, compliance with Section 29 and Rule 22 is part of natural justice. The impugned cancellation was quashed and the matter restored to the show-cause stage.
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