Author: admin_gst

High Court Quashes GST Registration Cancellation Order for Deceased Taxpayer's Heir Due to Lack of Substantive Evidence
Case-Laws
GST
HC allowed the petition challenging a GST registration cancellation order under section 93(1)(a) of CGST Act, 2017. The order against a deceased taxpayer was deemed perverse and unsustainable, as the respondent failed to provide material evidence demonstrating the petitioner's continued operation of the deceased father's proprietary concern after obtaining a fresh registration. The court found no substantive basis for holding the petitioner liable for the deceased's tax obligations, effectively nullifying the impugned order without establishing legal continuity of business operations.
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Landmark CGST Act Amendment: Interim Deposit Reduced from 20% to 10% Under Finance Act, 2024 Provisions
Case-Laws
GST
HC modified its prior interim order regarding CGST Act amendment, reducing the mandatory deposit from twenty percent to ten percent as per the Finance (No. 2) Act, 2024. The court interpreted Section 112(8) and Section 143, concluding that the statutory amendment directly impacts the interim deposit requirement. Consequently, the original direction for twenty percent deposit shall now be construed as a ten percent deposit, effectively aligning with the recent legislative modification. Application disposed of with consequential relief.
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GST Registration Cancellation Voided: Procedural Fairness Demands Proper Hearing and Opportunity to Defend Business Interests
Case-Laws
GST
HC ruled that due to the death of key business principals and potential violation of natural justice principles, the GST registration cancellation proceedings against the Petitioner were procedurally flawed. The Court set aside the impugned order, remanded the matter to the adjudicating authority, and directed the Petitioner be granted a substantive opportunity to defend itself, including filing a reply within 30 days and receiving a personal hearing on merits.
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Judicial Intervention Halts Tax Penalty Enforcement, Mandates Goods Release and Security Compliance Under Section 112
Case-Laws
GST
HC held that the appeal against the Additional Commissioner's order under Section 112 of UPGST Act, 2017, cannot be immediately adjudicated due to non-constitution of appellate tribunal. The penalty order is stayed, and seized goods shall be released subject to compliance with Rule 140 of CGST Rules, 2017. The previously deposited penalty amount shall be adjusted against security requirements. The modification application was allowed, providing interim relief to the petitioner pending tribunal formation.
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No GST on UPI Transactions: Government Confirms Zero Taxation for Digital Payments Under Rs. 2,000
News
GST
The GOI officially refutes claims of proposed GST on UPI transactions over Rs.2,000, confirming no such taxation measure exists. CBDT has eliminated Merchant Discount Rate (MDR) on Person-to-Merchant UPI transactions, rendering GST inapplicable. An active Incentive Scheme from FY 2021-22 supports low-value UPI transactions, with escalating allocations (FY2021-22: Rs.1,389 crore; FY2022-23: Rs.2,210 crore; FY2023-24: Rs.3,631 crore). The policy aims to promote digital payments, evidenced by India's leadership in real-time transactions, accounting for 49% globally in 2023 and witnessing UPI transaction values surge from Rs.21.3 lakh crore in FY 2019-20 to Rs.260.56 lakh crore by March 2025.
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High Court Invalidates GST Rule 86A Blocking of Electronic Credit Ledger Due to Procedural Defects and Lack of Fair Hearing
Case-Laws
GST
HC ruled that blocking of Electronic Credit Ledger (ECL) under Rule 86A of CGST Rules, 2017 was procedurally invalid. The order was quashed due to absence of pre-decisional hearing, lack of independent reasons to believe, and reliance on borrowed satisfaction from enforcement authorities. The court directed immediate unblocking of petitioner's ECL, emphasizing principles of natural justice. The impugned order was deemed illegal and arbitrary, thus rendering the ECL blockage null and void. Respondents were mandated to restore the petitioner's ECL forthwith, enabling normal tax compliance proceedings.
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Natural Justice Prevails: GST Authorities Penalized for Denying Hearing Rights Under Section 75(4)
Case-Laws
GST
HC found a clear violation of natural justice principles under Section 75(4) of GST Act, 2017, where administrative authorities failed to provide personal hearing to the petitioner. The ex-parte assessment and show cause notice were procedurally defective, with 'NA' marked against hearing date despite specific hearing request. The Court imposed Rs. 20,000 cost on the Joint Commissioner SGST and remanded the matter for fresh proceedings with mandatory personal hearing, emphasizing fundamental principles of administrative fairness and due process.
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GST Proceedings Upheld: Cross-Examination Denial Does Not Invalidate Administrative Process, Statutory Appeal Pathway Confirmed
Case-Laws
GST
HC dismissed the writ petition challenging GST proceedings, holding that mere rejection of cross-examination request does not automatically vitiate administrative proceedings. The Court emphasized that parties cannot convert show cause notice proceedings into mini-trials and must provide specific reasons for cross-examination. The petitioner was directed to exhaust statutory appellate remedies under Section 107 of CGST Act by filing an appeal before the Appellate Authority within thirty days, thereby preserving the administrative order and maintaining procedural integrity.
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Government Contractor Wins Tax Dispute: Mega Exemption Notification 25/2012 Shields Services from Extended Limitation Period
Case-Laws
GST
HC determined that the service tax demand against the government contractor was invalid. The court found the services were exempted under Mega Exemption Notification No. 25/2012, and the respondent could not invoke the extended limitation period under Section 73 of the Finance Act, 1994. The show cause notice was time-barred, and there was no evidence of fraud or intentional tax evasion. The court quashed the show cause notice and the consequent demand order, effectively ruling in favor of the petitioner and dismissing the tax liability.
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High Court Rejects Bail Modification in GST Fraud Case, Upholds Original Order Based on Investigation Completion and Cooperation
Case-Laws
GST
HC set aside CJM's order regarding bail in a fraudulent GST invoicing case, finding no material change in circumstances warranting release. Despite seeking cancellation of regular bail, the court determined no re-arrest was necessary as the investigation is complete and the respondent has fully cooperated. The respondent demonstrated availability for further statements, and the petitioner department is preparing to file a prosecution complaint. Consequently, the court disposed of the petition, acknowledging significant time had elapsed since the original bail order.
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Apartment Allotment Triggers GST Liability Based on Payments Made During Construction Phase Under Section 7
Case-Laws
GST
HC ruled that the petitioners' apartment/duplex allotment involved GST liability based on payments made during construction period prior to completion certificate. The court determined that contractual agreements and partial consideration paid before project completion on 31.12.2018 triggered service tax obligations under Section 7 and Schedule II of CGST Act, 2017. The transaction's essence, involving payments during construction phase, constituted supply of services requiring GST. Consequently, the respondent-BDA's GST demand was deemed legally valid and the writ petition was dismissed.
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High Court Invalidates Rs. 50,330 Tax Recovery, Orders Verification and Re-crediting of Electronic Cash and Credit Ledgers Under GST Act
Case-Laws
GST
HC ruled that the recovery of Rs. 50,330/- from petitioners' electronic cash and credit ledgers was unlawful. The court directed respondents to verify the recovery and re-credit the amounts to petitioners' respective cash/credit ledgers, considering the mandatory pre-deposit under Section 112(8) of the GST Act and the circular dated 11th September, 2024. The writ petition was disposed of without examining the substantive merits, with instructions for immediate rectification of the electronic liability ledger entries for the specified tax periods.
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Taxpayer Wins Challenge Against Improper GST Refund Rejection, Court Orders Reconsideration Under Rules 89, 90, and 92
Case-Laws
GST
HC allowed the petition challenging the refund claim rejection. The court found that the respondent improperly rejected the refund application in GST RFD-03 by stating refund was not permissible due to voluntary payment. The court quashed the deficiency memo and remanded the matter back to the respondent to reconsider the refund application in GST RFD-01 in accordance with procedural rules, specifically Rules 89, 90, and 92 of GST Rules, and take appropriate action on the application's deficiencies.
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GST Registration Cancelled for Persistent Non-Compliance: Statutory Obligation Upheld with Potential Reinstatement Pathway
Case-Laws
GST
HC upheld GST registration cancellation under Section 29(2)(c) of CGST Act, 2017 for non-filing of returns for over six months. The court recognized the statutory obligation to electronically file returns and confirmed the administrative authority's power to cancel registration. However, the HC provided a remedial pathway, allowing the petitioner to potentially reinstate registration by submitting pending returns, paying tax dues, applicable interest, and late fees. The cancellation order was deemed valid, with discretionary reinstatement subject to compliance with prescribed procedural requirements.
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Judicial Intervention Nullifies Ex-Parte Order, Reinstates Petitioner's Right to Fair Hearing and Natural Justice Principles
Case-Laws
GST
HC set aside ex-parte order due to violation of natural justice principles, specifically lack of proper service of pre-intimation notice and show-cause notice. Despite previous dismissal of petitioner's appeal as time-barred, the court adopted a justice-oriented approach. Recognizing petitioner's claim of bona fide reasons for non-participation, the court remitted the matter to the first respondent. The order directs a fresh consideration of the case, providing the petitioner an opportunity to submit a reply and contest the proceedings in accordance with legal principles.
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Tax Credit Order Nullified: Insufficient Evidence Review Exposes Procedural Flaws in Supplier Invoice Verification Process
Case-Laws
GST
HC invalidated the tax order under BGST Act, 2017 and IGST Act, 2017 regarding input tax credit claims. The court found the assessing authority failed to properly evaluate evidence concerning invoices from non-existent suppliers. Specifically, the impugned order was deemed unsustainable due to lack of comprehensive material review, indicating procedural irregularities in the tax credit assessment process. The court concluded that the order could not be maintained as it was passed without thorough examination of available documentary evidence, effectively setting aside the original administrative determination.
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Petitioner Wins Challenge Against GST Assessment Orders Due to Procedural Flaws and Lack of Fair Hearing
Case-Laws
GST
HC allowed the petition challenging GST assessment orders for 2018-19, finding procedural irregularities in ex-parte orders issued without proper hearing. The court recognized the petitioner's bona fide reasons for non-response to show cause notice and remitted the matter back to the respondent for fresh consideration in accordance with law, directing a comprehensive review of the case while adhering to established GST guidelines and principles of natural justice.
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GST Registration Canceled for Persistent Non-Compliance: Piecemeal Returns Insufficient to Prevent Statutory Penalty Under Rule 22(4)
Case-Laws
GST
HC upheld the cancellation of taxpayer's registration due to non-filing of returns for six consecutive months. Despite filing returns after the show cause notice, the taxpayer failed to submit returns for all six months with requisite tax interest and late fees. The court emphasized that piecemeal return filing does not satisfy the statutory requirement under Rule 22(4) of CGST Rules. The cause of action for registration cancellation remained valid since the taxpayer did not comprehensively rectify the default by submitting all pending returns and associated financial obligations. Consequently, the registration cancellation order was deemed legally justified and the petition was dismissed.
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Legal Challenge Succeeds: Partial Bank Account Release Granted with 10% Security in GST Evasion Case
Case-Laws
GST
HC partially allowed the petition challenging provisional attachment of bank accounts for alleged GST evasion. The court found that complete bank account attachment would prejudice the petitioner's business operations. The ruling mandates maintaining a 10% minimum balance as security while the GST evasion matter is adjudicated. The alleged tax evasion amount of Rs. 15.09 crores does not warrant immediate full attachment, considering the petitioner's ongoing business and tax compliance history. The provisional attachment order was modified to permit limited operational banking access pending final determination of the tax dispute.
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Tax Assessments Require Separate Proceedings: Distinct Notices and Time Limits Mandated for Each Financial Year Under Sections 74(1), (2), and (10)
Case-Laws
GST
HC held that under Sections 74(1), (2), and (10), each assessment year must be proceeded separately by the proper officer. The statutory time limit for issuing orders is distinct for each financial year. The court mandates independent show cause notices for different assessment years, recognizing that taxpayers can raise separate defenses for each year. The composite notice challenging jurisdictional propriety was partially set aside, with the notice for 2017-2018 sustained and notices for 2018-2019, 2019-2020, 2020-2021, and 2021-2022 quashed. The appellate court found the single judge's interpretation erroneous and allowed the appeal, emphasizing the need for precise, year-specific tax assessment procedures.
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Tax Assessment Overturned: Section 73 Limits Challenged, Demand Invalidated Due to Procedural Discrepancies in Notice Scope
Case-Laws
GST
HC upheld the challenge to tax assessment under Section 73 of GST Act, finding the tax demand exceeded the scope of the show cause notice (SCN). The court set aside tax liabilities for multiple entities totaling approximately Rs. 15,63,100, determining that the tax officer's assessment went beyond the original SCN's parameters. The court also provided a limitation period exclusion, stipulating that the timeframe between the order date and petition disposal shall not count towards potential future proceedings against the petitioners. Petition disposed of with favorable ruling for the taxpayers.
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Employers Must Pay GST on Nominal Salary Deductions for Canteen and Transport Services Under Specific Conditions
Case-Laws
GST
The AAR ruled that nominal deductions from employee salaries for canteen and transportation services constitute a “supply of service” under GST. The authority determined that the recovered amounts are taxable, while the employer's perquisite portion remains non-taxable. For canteen services, input tax credit (ITC) is not available, and GST applies to the employee-recovered amount. In the case of non-air-conditioned bus transportation, GST is applicable on the nominal deduction, and ITC can be claimed from the transport service provider. The decision hinges on distinguishing between employer-provided benefits and taxable service recoveries, ultimately establishing a nuanced approach to GST treatment of employee welfare services.
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CBIC Introduces Streamlined GST Registration Process with Clear Verification Guidelines and Standardized Timelines
Circulars
GST
The CBIC issued comprehensive instructions for processing GST registration applications, establishing clear guidelines for tax officers to streamline and standardize the verification process. Key directives include: (a) accepting one documentary proof for principal place of business ownership, (b) restricting additional document requests, (c) mandating registration approval within 7-30 days depending on risk assessment, and (d) prohibiting presumptive queries unrelated to submitted documents. Officers must carefully scrutinize applications, avoid unnecessary delays, and ensure genuine applicants are not harassed while preventing fraudulent registrations. The instructions aim to create a transparent, efficient GST registration mechanism with defined timelines and reduced administrative discretion.
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Claims that Government is considering levying Goods and Services Tax (GST) on UPI transactions over Rs.2,000 are completely false, misleading, and without any basis
GST
Dated:- 19-4-2025

The claims that the Government is considering levying Goods and Services Tax (GST) on UPI transactions over Rs.2,000 are completely false, misleading, and without any basis. Currently, there is no such proposal before the Government.
GST is levied on charges, such as the Merchant Discount Rate (MDR), relating to payments made using certain instruments.
Effective January 2020, the Central Board of Direct Taxes (CBDT) has removed the MDR on Person-to-Merchant (P2M) UPI transactions through the Gazette Notification dated 30th December

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Employee Canteen and Transportation Services Trigger Complex GST Implications for Salary Deductions and Benefit Provisions
Case-Laws
GST
The AAR ruled that deductions from employee salaries for factory canteen services constitute a taxable supply under Section 7 of CGST Act, 2017. Recoveries from employees are liable for GST as consideration for canteen services. ITC is not available for catering services under Section 17(5)(b). Regarding transportation services, the AAR determined that employee bus transportation provided as a contractual perquisite is not a GST supply. ITC is also disallowed for transportation services under Section 17(5)(g), as these are considered personal consumption services not mandated by statutory obligations. The decision effectively distinguishes between taxable and non-taxable employee benefits within the GST framework.
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