Author: admin_gst

Consideration and Supply: corpus fund contributions are advances for future services and attract GST on receipt.
Case-Laws
GST
The article addresses whether corpus/sinking fund contributions collected by a residential association constitute “consideration” and attract GST. It applies the statutory definitions of supply and consideration, rejects the doctrine of mutuality by operation of the deeming provision, and treats the association as a person distinct from members. Corpus contributions are characterised as advances for future supply of membership-organisation services and are distinct from recurring monthly maintenance by purpose and accounting. Consequently time-of-supply rules for advances apply and GST liability arises on receipt/collection. Questions on accounting, documentation and audit demonstration were held outside the admissible advance-ruling scope.
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Input Tax Credit entitlement on input services and capital goods remains available despite margin scheme restriction, subject to statutory conditions.
Case-Laws
GST
Notification No. 08/2018-Central Tax (Rate) bars ITC only on the specified old and used motor vehicles listed; its phrase 'such goods' confines the prohibition to those vehicles and does not extend to other inputs or input services. Consequently, registered persons selling under the notification's margin scheme may claim ITC on admissible input services and capital goods (for example, refurbishment, repair, marketing, professional fees, rent, office expenses, software subscriptions, staffing, administrative overheads, laptops, equipment, furniture) provided the conditions and eligibility requirements under the CGST provisions and Rules are met. The margin-scheme restriction therefore does not ipso facto deny ITC on other business inputs.
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Jurisdictional limitation: advance rulings cannot determine refund quantification or sanction under inverted duty refunds, application inadmissible.
Case-Laws
GST
Advance Ruling Authority declined jurisdiction to rule on the manner of claiming refund of accumulated input tax credit under the inverted duty structure and on refunds asserted as 'any other ground', holding that questions of quantification and sanction of refund fall within refund administration and are not among the categories listed under section 97(2). Applying section 95(a) read with section 97(2), the Authority found the application outside its statutory scope and rejected it as inadmissible, refusing to entertain advance ruling on refund quantification or sanction.
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Regarding the reimbursement of the amount equivalent to the State Goods and Services Tax (SGST) payable for the exhibition of the film “Shatak – 100 Years of Rashtriya Swayamsevak Sangh
GST
Dated:- 7-3-2026

संख्या-1/1254603/2026 /133/2026235/11-5-2026

प्रेषक,

श्याम प्रकाश नारायण,

विशेष सचिव,

उ०प्र० शासन।

सेवा में,

आयुक्त,

राज्य कर,

उ०प्र० लखनऊ।

राज्य कर अनुभाग-5

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2375;ं।

महोदय,

उपर्युक्त विषयक आपके पत्र संख्या-1252/प्र०क०-2/2025-26 दिनांक 23-02-2026 के संबंध में मुझे यह कहने का निदेश हुआ है कि फिल्म “शतक-राष्ट्रीय स्वयंसेवक संघ के 100 वर्ष” को मल्टीप्लेक्सों/&#2

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#2344; शर्तों के अधीन प्रदान की जाती है :-

(1) फिल्म के प्रदर्शन के लिये सम्बंधित सिनेमा/मल्टीप्लेक्स की प्रचलित सामान्य प्रवेश शुल्क में वृद्धि नहीं की जा सकेगी और न ही विभिन्न क्&

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2360;प्ताह की संख्या का गुणांक 200 प्रिंट/स्क्रीन वीक से अधिक नहीं होगा। इस सम्बंध में स्पष्ट करना है कि यदि प्रदेश में 200 प्रिंट द्वारा फिल्म का प्रदर्शन एक साथ किया जाता है तो प्र&#

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8; एवं उपभोग की पूरी अवधि तीन माह से अधिक नहीं होगी।

(3) मल्टीप्लेक्स/सिनेमाघरों के स्वामियों को इस नीति के अंतर्गत राज्य सरकार द्वारा नियत अवधि के अन्दर प्रदर्शित होने वाली &

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के स्वामियों द्वारा अपने पास से राजकोष में उसी विहित प्रक्रिया के अनुसार जमा की जायेगी, जैसे इस नीति के अतिरिक्त प्रदर्शित की जाने वाली फिल्मों हेतु विहित है।

कृपया तदन&#2369

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reference to your letter No. 1252/Pr.K.-2/2025-26 dated 23-02-2026, I have been directed to inform you that the administrative approval for the reimbursement of the State Goods and Services Tax (SGST) equivalent payable for the screening of the film “Shatak -100 Years of Rashtriya Swayamsevak Sangh” in multiplexes/cinemas is being granted under the conditions mentioned in Government Order No. 612/11-6-2017-M(43)/17 dated 09.08.2017 as outlined below:

(1) For the release of the film, the prevailing normal entry fee of the respective cinema/multiplex will not be increased nor will the posture capacity of different classes be changed.

(2) In the State, reimbursement for the film may be granted subject to a maximum of 200 print-weeks at any given time, such that the product of the number of prints and the number of weeks does not exceed 200 print/screens-weeks. It is clarified that if the film is exhibited simultaneously on 200 prints in the State, the reimbursement period shall be

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Statutory Appeal Right preserved; 30 day stay allowed, perishable goods to be auctioned and proceeds held pending appeal.
Case-Laws
GST
The article explains that the court preserved the petitioner's right to institute a statutory appeal, extended limitation for 30 days and granted a limited 30 day stay of the impugned detention and penalty order; if no appeal is filed the stay lapses. It directs prompt public auction of seized perishable goods with consignor permitted to participate and mandates retention of auction proceeds by the department, preferably in an interest bearing account, pending the appeal. It further authorises conditional release of the detained vehicle on payment and furnishing of a bond, all interim measures being subject to the appellate outcome.
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Right to Travel Abroad upheld; court permits travel subject to security deposit, itinerary disclosure and passport production.
Case-Laws
GST
High Court reviewed a magistrate's refusal to allow a director to travel abroad where corporate entities had been penalised for alleged bogus input tax credits. The Court held that corporate penalties and revenue loss alone do not justify depriving an individual of personal liberty or the right to travel abroad; absent material showing personal flight risk or intent to evade process, travel may be permitted. The Court applied principles protecting personal liberty, weighed offence gravity and case stage, and allowed travel subject to conditions including a security deposit, itinerary and passport disclosure and cooperation with investigators.
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Omission of statutory rule removes legal basis, so recovery orders issued solely under that rule were set aside.
Case-Laws
GST
Omission of a statutory rule that lacks a saving clause removes the legal basis for actions taken solely under it; the impugned recovery proceedings were instituted exclusively under Rule 96(10) of the CGST Rules and, following the rule's omission, the statutory foundation ceased to exist, requiring those orders to be set aside. The article explains the court's application of the principle that administrative orders cannot survive the repeal or omission of the provision authorising them in the absence of a saving clause, and records the consequent allowance of the writ petitions and dismissal of related contentions without costs.
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Entitlement to Input Tax Credit requires reconsideration after statutory insertion, remand and conditional relief on compliance.
Case-Laws
GST
Entitlement to input tax credit was reconsidered in light of subsequent statutory insertions of Sections 16(5) and 16(6); because the impugned order denied credit solely on the ground of belated availment under Section 16(4), the HC remitted the matter for fresh adjudication so the respondent must re-examine entitlement on merits leaving aside the belated-availment ground and decide after hearing the petitioner. The court granted conditional interim relief by directing the petitioner to pay amounts due for belated returns and file a reply within 30 days; on compliance and absence of other arrears the bank attachment will be lifted pending final adjudication.
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Natural Justice breached by non-service and no hearing; adjudication quashed and matter remitted for fresh, speaking reconsideration.
Case-Laws
GST
Failure to serve statutory notices and to afford an opportunity of hearing breached principles of natural justice and constituted a procedural irregularity; as a result the ex parte adjudication was quashed and the matter remitted for fresh consideration. The petitioners were permitted to file a physical reply within a limited period and the adjudicating authority was directed to afford a hearing (virtual or physical), pass a speaking order considering the reply and available material, and communicate the decision within specified time-frames; merits were not adjudicated.
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Mandatory DRC-07 summary preserves appellate rights-issuance directed to enable appeal; penalty challenge barred once proved or paid.
Case-Laws
GST
Uploading the summary of a final order in FORM GST DRC-07 is a mandatory procedural requirement that functions as the notice of demand and preserves the taxpayer's statutory right to appeal; accordingly the court directed issuance/upload of DRC-07 to enable filing of an appeal despite the petitioner's delay. The decision relied on the statutory scheme and prior higher-court reasoning to treat the DRC-07 upload as essential for exercising appellate remedies. The court also recorded that, as a matter of substantive effect, a taxpayer is precluded from challenging a penalty once the penalty amount has been proved or paid under the relevant GST provisions.
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Consolidation of tax periods is impermissible; year wise assessment and limitation must be preserved despite fraud allegations.
Case-Laws
GST
Consolidation of separate tax periods into a single show cause notice under the CGST Act is impermissible: the statutory scheme ties tax liability and assessment to returns for each tax period and the limitation for demand and recovery runs year by year, so aggregating financial years collapses the legislated period-wise structure and prejudices the assessee; accordingly a consolidated notice and order covering multiple financial years were quashed. Allegations of fraudulent availment of input tax credit may extend the limitation window but do not authorize clubbing distinct tax periods into one proceeding; fresh notices may be issued year-wise in accordance with the statute.
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Input Tax Credit availability must trigger distribution only when legal entitlement arises, not merely on invoice issuance.
Case-Laws
GST
Rule 39(1)(a) of the GST Rules survives constitutional challenge when read with the entitlement scheme: the phrase “input tax credit available for distribution in a month” must be construed to mean ITC that has become legally available after satisfaction of entitlement conditions in Section 16(2). The Rule does not mandate distribution merely on invoice issuance; distribution is required in the month the recipient becomes entitled to credit. Show cause notices alleging delayed distribution are remitted for fresh adjudication applying this construction; petitioners given two months to file replies where applicable.
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Duty to consider material submissions: authority must afford hearing, pass a reasoned order and reconsider refund eligibility.
Case-Laws
GST
High Court found procedural infirmity where the adjudicating authority failed to record reasons for not considering material documents filed in response to assessment; the absence of reasoned consideration vitiated the order and the impugned adjudication was quashed. The authority was directed to revisit paragraph 10 and annexed bills of entry, afford the petitioners an opportunity of hearing, and pass a reasoned, speaking order within three months. Amounts debited from the petitioners' ledger may be considered for refund only conditionally and subject to the final outcome of the reconsideration; entitlement to refund was not decided on merits.
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Reliance on Precedent must be verified; unverified or AI generated citations can vitiate orders and require regulatory parameters.
Case-Laws
GST
Reliance on precedent by adjudicating authorities must be verified: the article identifies that reliance on non existent, incorrect or irrelevant judicial citations (apparently AI generated) breaches principles of natural justice and produces a procedural defect in reasoned orders; such unverified dependence indicates failure to apply independent judicial mind and can vitiate findings. It recommends prescribing parameters and directions to regulate how quasi judicial authorities rely on High Court and Supreme Court decisions, calls for institutional guidance (including Senior Standing Counsel assistance), and notes interim relief was granted pending formulation and final disposal.
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Support services to animal husbandry: semen sex sorting is job work, classifiable under Heading 9986 and exempt from GST.
Case-Laws
GST
Semen sex sorting services are classified as support services to animal husbandry and exempt from GST because the specialised laboratory processing of semen supplied by semen stations qualifies as job work and an intermediate production process in relation to rearing of animals; consequently the activity falls within Heading 9986 and benefits from the nil rate in Entry No. 24 to Notification No. 11/2017 CT(R). The prefatory rule favouring a specific description over a residual one means semen sorting cannot be classified under the general 'not elsewhere classified' entry (SAC 998399) when Heading 9986 specifically applies.
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Blocking of Input Tax Credit under Rule 86A sustained, but petitioner granted hearing and representation before final decision.
Case-Laws
GST
Challenge to blocking of Input Tax Credit under Rule 86A was rejected where inspection and recorded statements indicated availment of credit on disputed invoices; the impugned blocking was held to fall within the regulatory scheme and not amenable to interference. A jurisdictional objection that a subordinate officer effected the block was dismissed because blocking was shown to be authorised by senior officers. The court nevertheless granted liberty to the petitioner to make a representation and directed that the concerned officer hear the petitioner and decide the merits expeditiously, preferably within thirty days.
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Consolidation of Tax Periods is impermissible; multi year show cause notices must be issued year wise per statutory limitation.
Case-Laws
GST
The article addresses consolidation of assessment periods under the GST statutory scheme, holding that tax liability and limitation run year by year tied to returns and that separate limitation timelines apply to each financial year; therefore issuing a single show cause notice aggregating multiple years is impermissible and was quashed. It explains that allegations of fraudulent availment do not create a rule permitting clubbing of distinct tax periods, although fraud affects limitation for the relevant year. The revenue may reissue year wise notices conforming to the statutory periodicity and may revive challenges if controlling precedent is altered by higher courts.
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Exemption for consultancy to local authority: GST relief where pure services relate to municipal functions, so exempt.
Case-Laws
GST
Consultancy and project management services consisting of architectural and supervisory activities, without transfer of property in goods, qualify as pure services rather than a works contract; the recipient is a local authority and the services relate to municipal functions (fire services, public amenities including parking) under Article 243W, with staff quarters for fire personnel treated as integrally linked to fire services. Because all conditions of Sl. No. 3 of Notification No. 12/2017 Central Tax (Rate) are met, such supplies to the municipal authority are exempt from GST; ancillary questions on past tax collection/refund were not adjudicated.
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Garnishee notice withdrawal ordered; account access restored pending departmental re examination after document submission within prescribed timeframe.
Case-Laws
GST
Garnishee notice directing provisional attachment of the petitioner's bank account was ordered withdrawn because the revenue authority failed to consider the petitioner's prior submissions and offered documents; immediate freezing was unjustified absent findings of deliberate evasion. The petitioner must submit requisite documents within ten days, and the department must examine them, invite clarification or hearing if needed, and decide the recovery question on merits within one month of submission; all contentions remain open pending that reconsideration.
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Consolidation of tax periods impermissible; show cause notice quashed and reissuance allowed only year wise under limitation regime.
Case-Laws
GST
The note addresses validity of a single show cause notice aggregating multiple financial years under the CGST Act: each financial year is a distinct tax period with separate limitation periods under Sections 73(10) and 74(10), so limitation runs year by year and notices must respect that structure; allegation of fraudulent availment of input tax credit permits only application of any extended limitation provided by law but does not authorise clubbing of different years into one notice. Consequence: a consolidated multi year notice is invalid to the extent of aggregation, but respondents may reissue year wise notices complying with the statutory limitation regime.
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Export of Services rules: receiver location controls export status; services treated as exported and not taxable.
Case-Laws
GST
Export of services is governed by the location of the service receiver: where services rendered qualify as Business Auxiliary Services to an overseas recipient, they fall within the Export of Services Rules and are not exigible to service tax. The court applied the receiver-location principle affirmed by the Supreme Court in the Vodafone India Limited precedent and held that the assessee's forwarding of Indian enquiries to an overseas group entity, which contracted and supplied to Indian customers while paying commission to the assessee in convertible foreign exchange, resulted in export of services. Outcome: services to the overseas group entity are exported and not taxable.
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IICA Hosts “Meet the Legend” Session for PGIP Cohort on GST and PMLA–IBC Interplay.
GST
Dated:- 5-3-2026

The Indian Institute of Corporate Affairs (IICA), Manesar, recently organised an enriching session under its flagship “Meet the Legend” series for the 7th cohort of the Post Graduate Insolvency Programme (PGIP). The three-hour masterclass featured two distinguished judicial experts: Mr. J.P. Singh, Hon'ble Judicial Member, GST Appellate Tribunal, and Mr. Balesh Kumar, Hon'ble Member, Appellate Tribunal (PMLA, FEMA, PBPTA, NDPSA, and SAFEMA).

Mr. J.P. Singh provided a comprehensive overview of the Goods and Services Tax (GST) framework and its intersection with insolvency proceedings un

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guished.

The session also addressed practical compliance considerations during CIRP, such as fresh GST registration, filing of returns by IRP/RP, availability of ITC, and the effect of the moratorium under Section 14 of the IBC on recovery proceedings.

Mr. Balesh Kumar delivered an insightful session on the interplay between the IBC and the Prevention of Money Laundering Act, 2002 (PMLA). He explained the concept of “proceeds of crime” and outlined the three stages of money laundering – Placement, Layering, and Integration.

The discussion examined jurisdictional complexities between the National Company Law Tribunal (NCLT) and PMLA authorities, particularly in cases involving attachment of assets of corporate debtors undergoin

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Principal supply rule: hookah served in restaurants is treated as supply of goods, not restaurant service, and taxed by classification.
Case-Laws
GST
The note addresses classification and tax treatment of hookah served within restaurant premises, applying ejusdem generis to read “any other article for human consumption” as limited to substances ingested via the alimentary canal; smoke inhaled from hookah therefore falls outside the food/drink concept. It concludes hookah supplies constitute a composite supply whose principal element is the goods used for smoking, so the transaction is treated as supply of goods under the principal-supply rule. Consequent effects: food continues to be taxed as restaurant service at the concessional rate, tobacco-based hookah is taxed under tobacco product classification, and described non-tobacco smoking preparations are taxed as goods under their appropriate HSN classification.
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Writ jurisdiction revival of cancelled GST registration permitted subject to compliance with return filing, payment and ITC safeguards.
Case-Laws
GST
HC exercised Article 226 writ jurisdiction to restore a cancelled GST registration, applying the revival framework laid down in the cited precedent Tvl. Suguna Cut Piece Center. The court required compliance with filing of returns, payment of tax, interest, fines and fees, imposed restrictions on utilisation of Input Tax Credit pending scrutiny, and directed other safeguards as conditions for revival. The petitioner's electronic credit ledger status and a second inspection informed the factual backdrop, and the writ petition was disposed of by directing revival on those specified conditions.
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Audi alteram partem requires fresh consideration with a hearing; authorities must re-examine the representation and decide expeditiously.
Case-Laws
GST
Petition seeking extension of previously granted benefits was remitted for fresh consideration because the issues raised implicate policy choices requiring inter-departmental consultation. The competent Ministries/authorities are directed to re-examine the petitioner's representation, give the petitioner an opportunity to be heard and to file additional documents, and to decide the matter in accordance with law expeditiously. The court refrained from expressing any view on the merits and kept all contentions open; the decision is to be taken promptly by the appropriate authorities after consultation.
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