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Registration Under GST Cannot Be Denied Based On Applicant's Non-Residency Status, Constitutional Right To Trade Must Be Protected
Case-Laws
GST
HC overturned rejection of sales tax registration application, ruling that non-residency in Andhra Pradesh cannot be grounds for denial under APGST Act. The court emphasized fundamental rights under Art. 19 guaranteeing citizens' freedom to conduct business anywhere in India. Despite authorities' concerns, rejection based on applicant's out-of-

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GST Reassessment Challenge Fails as Section 107A Appeal Provides Adequate Remedy; 30 Days Given for Statutory Appeal
Case-Laws
GST
HC dismissed writ petition challenging GST reassessment order, holding that statutory appeal under Section 107A GST Act provides adequate remedy. Court emphasized established principle that writ jurisdiction cannot be invoked when statutory remedies exist, absent exceptional circumstances. Petitioner's claims of natural justice violations and denial of witne

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DGGI probe detects Rs 1,196 cr fraudulent Input Tax Credit transactions
GST
Dated:- 12-2-2025
PTI
Pune, Feb 12 (PTI) The Directorate General of GST Intelligence (DGGI) has unearthed fraudulent Input Tax Credit (ITC) transactions amounting to Rs 1,196 crore by exposing a network of bogus companies and arrested a person, as per an official release.
DGGI, Pune zonal unit, conducted searches at multiple locations in Pune, Delhi, Noida and Muzaffarnagar. The investigation showed that the accused had set up shell entities that generated fake invoices and e-way bills.
“These e-way bills had no RFID movements associated with them, confirming the absence of the actual supply of goods. The fraudulent network facilitated the availing and

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Central Government Sets Phased Implementation Dates for CGST Amendment Rules Under Section 164 Starting February 2025
Notifications
GST
The Central Government, exercising powers under Section 164 of CGST Act 2017, has notified the implementation dates for specific provisions of CGST (Amendment) Rules 2024. Rules 2, 24, 27, and 32 will come into effect from February 11, 2025, while Rules 8, 37, and clause (ii) of Rule 38 will be implemented from April 1, 2025. This notification, issued b

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GST evasion racket busted in Thane; 1 held
GST
Dated:- 12-2-2025
PTI
Thane, Feb 12 (PTI) Authorities have busted a Goods and Services Tax (GST) evasion racket involving a fraudulent input tax credit (ITC) scam of Rs 26.92 crore and arrested its “mastermind” in Maharashtra's Thane district, officials said.
The accused, Kapadiya Mahamad Sultan, orchestrated the fraud by setting up 18 fictitious entities which were used to generate fake invoices and claim ITC without any actual supply of goods or services, CGST Joint Commissioner Amit Kumar Singh said in a release issued on Tuesday.
Sultan, resident of Mira Road area in Thane, was arrested on Monday, the official said.
Investigations suggested that Sultan exploited the Aadhaar

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Port Authority's Land Lease for Commercial Complex Not Exempt Under Entry 41, Must Pay GST on Services
Case-Laws
GST
AAAR ruled that long-term land lease services by Port Authority to Company A for establishing a commercial office complex does not qualify for GST exemption under Entry 41 of Notification 12/2017-CT(Rate). The authority determined that constructing an office complex for corporate use and rental purposes constitutes neither industrial nor financial activity. The definition

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Tax Assessment Order Quashed: Section 169 Violation for Improper Notice Delivery and Denial of Fair Hearing Opportunity
Case-Laws
GST
HC quashed assessment order for 2018-19 due to violation of natural justice principles under Section 169. Authority failed to serve proper notice seeking explanation regarding alleged defects. Following precedent established in prior cases, Court affirmed mandatory requirement of notice delivery either in person, registered post, or registered email. Only

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GST Registration Cancellation Cannot Be Retrospective Without Prior Notice And Reasons In Show Cause Notice
Case-Laws
GST
HC invalidated the retrospective cancellation of GST registration due to procedural deficiencies in the show cause notice (SCN). The original SCN failed to disclose the intent for retrospective cancellation or provide supporting reasons, violating principles of natural justice. The Court determined that absence of prior notice regarding retrospective action rendered

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Input Tax Credit Claim Valid Under Amended Section 16; Reversal Orders Quashed and Credit Amounts Restored
Case-Laws
GST
HC held that petitioner's claim for input tax credit (ITC) was valid under amended Section 16 provisions. Following precedent established in Sri Ganapathi Pandi Industries case, the court affirmed taxpayer's entitlement to avail ITC for the disputed financial periods. The reversal of ITC along with associated penalties and interest was set aside. The court's ruling re

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Tax Authority's GST Demand Order Invalid Due to Missing Show Cause Notice Under Section 73 AGST Act
Case-Laws
GST
HC quashed the impugned order dated 30.12.2023 due to procedural non-compliance with Section 73 of AGST Act, 2017. The authority failed to issue a proper Show Cause Notice as mandated under Section 73(1), instead only serving a Summary Notice in Form GST DRC-01. The court emphasized that compliance with subsections (1) to (8) and (10) to (11) of Section 73, along with Rule 1

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Assessment Order Under Section 73 of GST Act Quashed as Time-Barred, Exceeding Three-Year Limitation Period
Case-Laws
GST
HC quashed demand order and show cause notice issued under Section 73 of UP GST Act 2017. For FY 2017-18, annual return filing deadline was extended to 05.02.2020. Per Section 73(10), three-year limitation period for passing assessment order would expire on 05.02.2023. Assessment order dated 02.12.2023 was time-barred as it exceeded statutory limitation period. Court

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Provisional Attachment Order Under Section 83 CGST Act Invalidated Due To Lack Of Reasoning And Necessity
Case-Laws
GST
HC quashed provisional attachment order under Section 83 of CGST Act, finding it legally deficient on multiple grounds. The order lacked tangible material justifying attachment necessity, failed to disclose substantive reasons beyond mere statutory reproduction, and showed no application of mind regarding jurisdictional elements. While Section 83 permits immediate acti

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GST Registration Cancellation Invalid: Show Cause Notice Under Rule 21(b) Lacked Specific Violations and Reasoned Order
Case-Laws
GST
HC determined the cancellation of GST registration invalid due to procedural deficiencies. The show cause notice (SCN) merely cited Rule 21(b) of CGST Rules 2017 without specifying material violations, preventing adequate response from the registrant. Despite the registrant's explanation of bank-verified invoices, the assessing authority failed to provide

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FM dispels concern of rise in GST rate, says there is not even one such item
GST
Dated:- 11-2-2025
PTI
New Delhi, Feb 11 (PTI) Finance Minister Nirmala Sitharaman on Tuesday dispelled concerns over a rise in Goods and Services Tax (GST), saying that there is not even one item on which the rate has been increased after the implementation of GST regime.
Intervening during Question Hour in Rajya Sabha, Sitharaman stated that GST rates have been brought down and the average GST rate has come down to 11.3 per cent from 15.8 per cent (at the time of GST implementation).
“That is the level of rate of reduction in the GST Council. Therefore I appeal to all the members here, kindly spare some time, meet your respective finance minist

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lso pointed out that the GST Council is a constitutional body.
She also said, “I would to take this opportunity to dispel this thought after GST implementation, rates have gone up. Not at all.” She asked that is there an obstruction by the union government members, MOS and myself, to (where we have said) say no no, don't reduce the rate, we want to burden the consumer.
“Is there be an instance? One such instance,” she said.
She also explained in the written reply on the oral question tabled in the House that as per Article 279A (4) of the Constitution of India, the GST Council shall make recommendations to the Union and the States, on rates, including floor rates with bands of goods and service tax.
Thus, the GST rates are notifie

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Lottery distributors not liable to pay service tax to Centre: SC
GST
Dated:- 11-2-2025
PTI
New Delhi, Feb 11 (PTI) Lottery distributors are not liable to pay service tax to the Union government, the Supreme Court held on Tuesday while dismissing an appeal of the Centre on the issue.
A bench comprising Justices BV Nagarathna and NK Singh did not agree to the appeal of the Centre against the Sikkim High Court judgement.
“Since there is no agency in the relationship, the respondents (lottery distributors) were not liable to pay service tax. However, the respondents will continue to pay the gambling tax levied by the state under Entry 62, List II of the Constitution,” Justice Nagarathna said while pronouncing the verdict.

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GST Officers' Cash Seizure Ruled Illegal; Income Tax Transfer Under Section 132A Cannot Validate Unauthorized Action
Case-Laws
GST
HC determined the initial cash seizure by state GST officers was unlawful, lacking statutory authority under CGST/SGST Act. The subsequent transfer of seized funds to Income Tax Department under Section 132A of IT Act could not legitimize the original illegal seizure. The court emphasized constitutional principles under Articles 265 and 300A protecting again

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Tax Authority Must Allow Taxpayer Final Hearing Before Assessment After 25% Payment Commitment Under GST Law
Case-Laws
GST
Petitioner contested order regarding deficient monthly returns and lack of supporting documentation. Following precedent in K. Balakrishnan case, HC set aside the impugned order. Petitioner demonstrated willingness to pay 25% of disputed tax amount and requested final opportunity for presenting objections before adjudicating authority. Government Pleader raised no s

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Tax Authorities Must Initiate Recovery Within One Year of ITC Block Under Rule 86A to Prevent Automatic Unblocking
Case-Laws
GST
HC affirmed that blocking under Rule 86A of Orissa GST Rules serves as revenue security by preventing utilization of future ITC through negative balance insertion in electronic credit ledger. The court emphasized the necessity for tax authorities to initiate recovery proceedings within the one-year blocking period, as automatic unblocking would otherwise allow

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Tax Assessment Order Quashed as Notice Lacked Document Identification Number Required Under CBIC Circular 128/47/2019-GST
Case-Laws
GST
HC set aside GST assessment proceedings due to absence of Document Identification Number (DIN). Following established precedents and CBIC Circular No.128/47/2019-GST mandating DIN, the court held that non-inclusion of DIN invalidates tax proceedings. While quashing the impugned order dated 17-10-2024, HC granted liberty to tax authorities to initiate fr

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Taxpayers eligible for interest and penalty waiver under Section 128A despite departmental appeals on tax demands
Circulars
GST
CBIC clarifies procedure for departmental appeals regarding interest/penalty under Section 128A of CGST Act. Where taxpayers have fully paid tax demands under Section 73 for FY 2017-20, they remain eligible for interest/penalty waiver even if department has filed or plans to file appeal concerning incorrect interest calculations or penalty impositions. Proper o

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Manpower Services to Government Project Through Intermediary Not Exempt Under GST Notification 12/2017
Case-Laws
GST
AAR ruled on GST exemption for manpower services provided by the applicant to Webel Technology Limited (WTL) for a government project. While the services qualify as “pure services” under N/N. 12/2017-Central Tax (Rate), they do not meet exemption criteria since they are provided to WTL, not directly to Public Health Engineering Department (PHED) or any government entity.

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Supply of Permanently Installed Machinery on Hire Basis Classified as Leasing Services Under GST at 18%
Case-Laws
GST
The AAR ruled on classification of fitted assets supply services on hire basis. The authority determined that the applicant's services constitute leasing/rental services rather than goods leasing, as permanently installed machinery loses its movable property nature under GST. The services involve restricted supply up to tap off points without responsibility for input pow

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Delay in Tax Appeal Not Fatal: Authority Must Consider Condonation Application Before Rejection Under Notification 53/2023
Case-Laws
GST
HC allowed the writ petition, quashing the appellate order that rejected an appeal solely on grounds of delay. The court emphasized that limitation provisions warrant liberal interpretation where genuine hardships exist. Despite petitioner's unawareness of the earlier appeal's rejection leading to a missed deadline under Notification No. 53/2023, the d

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GST Return Rectification Petition Rejected As Taxpayer Failed To Exhaust Statutory Remedies Under Section 107
Case-Laws
GST
HC dismissed the writ petition challenging GST return rectification and liability waiver, citing availability of statutory remedy under Section 107 CGST Act. The court noted petitioner failed to respond to show cause notice dated 27-12-2023, DRC-01A, and jurisdictional Range officer's communications. Following SC precedent in Assistant Commissioner of State Tax cas

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Input Tax Credit Claims Must Consider GSTR-9 Annual Returns, Not Just GSTR-3B and GSTR-2A Discrepancies Under Section 44
Case-Laws
GST
HC held that adjudicating authority must consider GSTR-9 annual returns when evaluating Input Tax Credit (ITC) claims, rather than solely relying on discrepancies between GSTR-3B and GSTR-2A returns. The term “reconciliation” in Section 44 implies potential rectification of errors in GSTR-3B through annual returns. Court emphasized that dismissing GSTR-9

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