Author: admin_gst

Tax Reimbursement Clarified: Quarterly Calculation Method Approved for Manufacturing Units Under J&K GST Scheme
Case-Laws
GST
HC allowed the appeal, setting aside the previous order and judgment regarding budgetary support claims. The court held that claims for reimbursement under the Jammu & Kashmir GST scheme shall be calculated and filed on a quarterly basis, covering periods of January-March, April-June, July-September, and October-December. The departmental clarification dated

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CGST Delhi South Commissionerate awarded BIS IS 15700:2018 Certification for Excellence in Public Service Delivery
GST
Dated:- 17-5-2025

The Central Goods and Services Tax (CGST) Delhi South Commissionerate has been awarded the Bureau of Indian Standards (BIS) IS 15700:2018 certification, recognising its commitment to excellence in public service delivery.
This certification acknowledges the Delhi South Commissionerate's adherence to the highest standards of service quality, tr

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Insurance Salvage Claims Dispute: GST Demand Partially Challenged with Procedural Irregularities Identified and Coercive Recovery Restrained
Case-Laws
GST
HC partially allowed the petition challenging GST demand related to insurance salvage claims. The court found procedural irregularities in the demand calculation, specifically noting an erroneous conversion of demand from Rs. 7.21 crores to Rs. 144 crores. The HC restrained coercive recovery actions and directed respondents to seek cl

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Legal Challenge Upheld: CGST Section 107 Appeal Permitted with Pre-Deposit, Limitation Period Extended to July 10th
Case-Laws
GST
HC allowed the appellate remedy under Section 107 of CGST Act, 2017, permitting the Petitioner to file an appeal by 10th July, 2025 with pre-deposit. The appeal, if filed within the stipulated timeframe, will not be dismissed on limitation grounds and will be heard on merits. The court explicitly left open the issue regarding the validity of the impugned noti

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Tax Authority Fails to Follow Proper Procedure, Best Judgment Assessment Under GST Nullified for Lack of Mandatory Notice
Case-Laws
GST
HC nullified best judgment assessment under GST due to procedural irregularities. The court found the assessment order invalid as the tax authority failed to issue mandatory notice under Section 46 and did not provide an opportunity of hearing, thereby violating principles of natural justice. The assessment order lacked substantive material and reasonin

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Taxpayer Wins Partial Relief: 10% Tax Deposit Secures Interim Stay Under CGST Section 112(8)
Case-Laws
GST
HC granted conditional interim relief in tax dispute, directing petitioner to deposit 10% of remaining disputed tax amount within four weeks. Unconditional stay of demand issued for four weeks, with continued interim order contingent upon petitioner's compliance with deposit requirement. Order allows partial stay under Section 112(8) of CGST/WBGST Act, 2017, providing temporary rel

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Attention – Advisory on reporting values in Table 3.2 of GSTR-3B
GST
Dated:- 16-5-2025

This is to inform taxpayers of the following developments concerning Table 3.2 of Form GSTR-3B:
1.As per the earlier advisory dated April 11, 2025, it was communicated that the auto-populated values in Table 3.2 of Form GSTR-3B would be made non-editable starting from the April 2025 tax period (i.e., for the return to be filed in May 2025).
2.However,&nbsp

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Medicines and Consumables for Inpatients Deemed Integral Healthcare Service, Fully Exempt from GST Under Notification 12/2017
Case-Laws
GST
AAR determined that medicines and consumables supplied to in-patients as part of healthcare services constitute a composite supply exempt from GST. The services, including medical, pharmaceutical, and paramedical interventions from admission to discharge, are classified under inpatient services. The hospital, as a clinical establishment providing he

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GST Applies to Housekeeping Services for IIITDM, Not Exempt from Standard Tax Rates Under Current Regulations
Case-Laws
GST
AAR ruled that housekeeping services provided to IIITDM do not qualify for GST exemption. The services, involving cleaning, gardening, and security, are distinct from constitutional sanitation responsibilities. IIITDM does not constitute a governmental authority, and therefore, the service provider must charge GST when invoicing. The ruling explicitly states that r

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ITC Blocked for Immovable Property Construction Under Section 17(5): Limited Exceptions Apply for Plant and Machinery
Case-Laws
GST
The AAR ruled that Input Tax Credit (ITC) is not eligible for construction of immovable property under section 17(5)(c) and (d). The SC's interpretation in Safari Retreats P Ltd clarified that ITC is blocked for works contract services involving construction of immovable property, with limited exceptions for plant and machinery. In this case, the pre-engine

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Input Tax Credit Denied for Imported Warranty Parts When Foreign Supplier Pays Tax Under Section 16 CGST Act
Case-Laws
GST
AAR ruled that the applicant cannot claim Input Tax Credit (ITC) for IGST on imported warranty parts where the foreign supplier (M/s. MUEGGE GmbH) paid the tax. Despite importing parts in the applicant's name for warranty services, the ITC cannot be availed since the tax was discharged by the foreign supplier, and the invoice for warranty service did not include spa

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Panchayat's Weekly Market Fee Collection Through Contractors Deemed Non-Taxable Public Service Under Article 243G
Case-Laws
GST
The AAR determined that leasing weekly market space to tender contractors for collecting entry fees from vendors/farmers constitutes a function entrusted to Panchayat under Article 243G. The activity is considered a public authority service and falls outside the GST taxable framework. The ruling clarifies that such activities, even when performed through contra

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Free Silver Supply by Naval Formations Counts as Non-Monetary Consideration Under CGST Act Sections 15(2)(b) and 15(4)
Case-Laws
GST
AAAR determined that free silver supplied by Naval Formations as used batteries constitutes non-monetary additional consideration for battery supply. The taxable value must include the value of free silver under Section 15(2)(b) and Section 15(4) of CGST Act. The free material has direct economic nexus with the underlying supply and represents a substantia

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Taxpayer Wins Challenge Against Tax Notice Due to Procedural Irregularities in Natural Justice Violation
Case-Laws
GST
HC invalidated the impugned SCN and demand notice under N/N. 9/2023-Central Tax, finding a violation of natural justice principles. The court set aside the order due to lack of personal hearing and mandated that the department re-issue the show cause notice, provide proper hearing notice via email, and allow the petitioner to submit replies within thirty days. The decis

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Tax Credit Dispute: Authorities Must Provide Fair Hearing Before Disallowing Input Tax Claims Under Proper Procedural Safeguards
Case-Laws
GST
HC set aside ex parte assessment order disallowing Input Tax Credit (ITC) for Superior Kerosene Oil distribution under Public Distribution System. The court found the order unsustainable due to lack of proper verification and failure to provide the petitioner an opportunity to substantiate ITC claim. The ex parte order violated principles of natu

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Legal Challenge Succeeds: Procedural Flaws Invalidate Registration Cancellation Proceedings Under Natural Justice Principles
Case-Laws
GST
HC allowed the appeal, finding the registration cancellation proceedings fundamentally flawed. The show cause notice (SCN) was deemed legally non-existent due to lack of specific allegations and absence of reasoned grounds, constituting a violation of principles of natural justice. The court held that the jurisdictional defect was inherent and could

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DGGI officers bust inter-state nexus involving 3 biz; Rs 13-cr GST evasion detected
GST
Dated:- 15-5-2025
PTI
New Delhi, May 15 (PTI) GST Intelligence officers have busted an inter-state nexus by three business entities that were involved in fake billing and GST evasion of Rs 13.41 crore, the finance ministry said on Thursday.
The Directorate General of GST Intelligence (DGGI), Ludhiana, investigated three business entities based in Mandi Gobindgarh M/s Aar Dee Enterprises, M/s Aa

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Procedural Defects Cannot Override Substantive Rights: Appeal Allowed with Opportunity to Rectify Technical Errors Under Section 107
Case-Laws
GST
HC allowed the appeal, finding that procedural irregularities in filing should not defeat the petitioner's substantive rights. The court held that technical defects do not warrant automatic rejection of an appeal, particularly where the delay is within the condonable period under Section 107 of the GST Act. The petitioner was granted an oppor

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Groundnut Heat-Drying Process Transforms Product, Disqualifies from Original HSN 1202 Classification Based on Compositional Changes
Case-Laws
GST
AAR determined that heating groundnuts with shell to reduce moisture content constitutes a roasting process, rendering the product ineligible for classification under HSN 1202. The ruling hinged on the lack of detailed documentation regarding the heating process, potential temperature controls, and infrastructure. The authority found that heat

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Metal Cutting Blades for Chaff Cutters Classified Under Chapter 8208, Attracting 18% GST Based on Specific Heading Rule
Case-Laws
GST
AAR ruled that metal cutting blades for chaff cutters shall be classified under Chapter Heading 8208 40 00, attracting 18% GST. Applying Rule 1 of Interpretative Rules, the specific heading for cutting blades for agricultural machines takes precedence over general machinery headings. Note 1(k) of Section XVI excludes articles of Chapter 82, rendering Note

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Sada Tambaku Mixed with Lime Deemed Manufactured Tobacco Product, Triggering Higher Tax Rates and Classification
Case-Laws
GST
The AAR determined that 'sada tambaku pre-mixed with lime' constitutes a manufactured tobacco product through a mixing process that creates a new product with distinct characteristics. The goods are classifiable under HSN 24039910, attracting GST at 28% and compensation cess at 0.56R per unit for products with declared retail sale price or 160% for other product

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Ex-parte Order Invalidated: Procedural Fairness Demands Personal Hearing and Proper Notice in Tax Dispute Resolution
Case-Laws
GST
HC held that ex-parte order violated principles of natural justice by failing to serve show cause notice to the petitioner, thereby denying opportunity of being heard. Strict interpretation of tax statutes mandates procedural compliance, particularly regarding personal hearing requirements. The court emphasized that penal statutes affecting individual rights

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Tax Order Upheld: Petitioner's Failure to Respond and Engage Leads to Dismissal Under Section 107 of CGST Act
Case-Laws
GST
HC dismissed the petition challenging tax order, finding the petitioner failed to exercise due diligence in responding to show cause notices and personal hearing opportunities. Despite receiving multiple notices dated 22nd July, 2022 and 3rd August, 2024, the petitioner neither filed replies nor attended hearings. The court held that the administrative authority pr

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Tax Levy Challenge Rejected: Complex Fund Expense Dispute Requires Detailed Scrutiny Beyond Writ Jurisdiction
Case-Laws
GST
The HC dismissed the writ petition challenging tax levy on fund expenses, finding that the complex factual determination regarding establishment charges and service fee classification requires detailed scrutiny beyond writ jurisdiction. The court held that the petitioner's inconsistent positions regarding establishment charges necessitate a comprehensive examinatio

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GST Registration Cancellation Quashed Due to Vague Show-Cause Notice Violating Principles of Natural Justice
Case-Laws
GST
HC allowed the writ petition challenging GST registration cancellation. The show-cause notice was found vague and defective, violating principles of natural justice by failing to provide a meaningful opportunity to respond. The cancellation order dated 17.04.2025 was deemed mechanically passed without proper application of mind, thus rendering it invalid. The court

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