Author: admin_gst

Advisory on Appeal withdrawal with respect to Waiver scheme
GST
Dated:- 14-5-2025

In the GST system, when Withdrawal application (APL 01W) for appeal is filed before issuance of final acknowledgment (APL 02) by the Appellate authority, then the system automatically withdraws the Appeal application (APL 01). In such cases, the status of the appeal application will automatically change from “Appeal submitted” to “Appeal withdrawn”.
However, if withdrawal application is filed after is

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Job Work Classification Dispute Escalates: Technical Disagreement on GST Treatment Triggers Formal Appellate Review Under Section 98(5)
Case-Laws
GST
The AAR encountered conflicting interpretations regarding the classification of job work under Section 2(68) of the CGST Act and the nature of service supply under Section 7(1A) read with Schedule-II. Due to fundamental disagreements between authority members on the tariff classification and applicable GST rate, the matter was formally ref

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Procedural Fairness Prevails: GST Appeal Overturned Due to Lack of Adequate Hearing Opportunity Under Section 107
Case-Laws
GST
HC held that principles of natural justice were violated as petitioner was not provided adequate opportunity of hearing. The appeal's rejection under Section 107 of GST Act was deemed improper due to procedural unfairness. The appellate authority's order dated 19.03.2024 and tax determination order dated 08.02.2021 were set aside. Petitioner was directed to sub

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Accused Granted Bail Due to Procedural Lapses in Arrest, Violation of Constitutional Rights Highlighted in Detailed Order
Case-Laws
GST
HC granted bail to the petitioner after finding procedural irregularities in arrest. The court observed non-compliance with Sections 41/41A of Cr.P.C. and Sections 47/48 of BNSS, specifically the failure to communicate grounds of arrest and “reasons to believe” to the accused. Noting substantial investigation progress and unnecessary custodial interroga

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Tax Appeal Dismissed: Case Remanded for Fresh Hearing with Full Opportunity to Present Evidence and Challenge Original Order
Case-Laws
GST
HC dismissed the appeal involving tax computation for the period 1st April 2018 to 31st March 2019, where the original order was passed ex parte due to non-response to show cause notice. Despite time limitation challenges, the court determined that remanding the matter to the appellate authority would be most appropriate. The HC noted the electronic

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Tax Authority Ordered to Reconsider ITC Reversal Notice After Procedural Fairness Violation and Improper Double Recovery Attempt
Case-Laws
GST
HC held that the tax authority improperly issued a show-cause notice demanding reversal of Input Tax Credit (ITC) without considering the petitioner's prior voluntary reversal. The non-speaking order violated principles of natural justice by seeking double recovery of tax. The court remanded the matter, directing the authority to issue a fresh or

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GST Registration Restored: Procedural Flaws Invalidate Cancellation Order Despite Non-Compliance with Statutory Filing Requirements
Case-Laws
GST
HC quashed GST registration cancellation order due to procedural irregularities. Despite petitioner's non-compliance with GST Act by failing to file returns for six consecutive months, the court found a violation of natural justice principles. The petitioner demonstrated willingness to rectify defaults by paying outstanding GST, interest, and

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GST Registration Dispute: Voluntary Compliance and Remedial Actions Prevail, Section 29(2)(c) Interpretation Highlights Procedural Flexibility
Case-Laws
GST
HC adjudicated a GST registration cancellation dispute, finding that while the petitioner initially failed to comply with statutory filing requirements under section 29(2)(c), subsequent remedial actions were significant. The court recognized the petitioner's voluntary compliance by paying outstanding GST, interest, and penalties, a

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Taxpayer Wins Appeal: GST Return Filing Reinstated with Opportunity to Rectify Outstanding Tax Compliance
Case-Laws
GST
HC allows petitioner's appeal challenging registration cancellation, remanding matter to respondent at show-cause notice stage. Petitioner directed to file belated GST returns from April 2020 onwards, paying outstanding tax, interest, and penalties. Respondent-Authority must consider submitted returns, with discretion to pursue appropriate legal proceedings excluding n

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Tax Authorities Cannot Double-Levy When Self-Assessed Returns Already Filed Under Section 37 of GST Act
Case-Laws
GST
HC held that Section 75(12) of WBGST & CGST Act, 2017 cannot be invoked when self-assessed tax under Section 37 is already included in returns under Section 39. The court quashed the demand notice raised by tax authorities, finding that alternative legal provisions under Sections 65, 66, 67, 73, or 74 should have been pursued if discrepancies were identified. The consequ

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Tax Authority's Power Affirmed: SGST Jurisdiction Validated Under Section 6(2)(b) for Comprehensive Tax Proceedings Review
Case-Laws
GST
HC determined the jurisdictional authority of SGST to initiate and adjudicate tax proceedings. The court held that under Section 6(2)(b) of CGST Act, the DGST Department must reconsider the prior appellate order and reassess the show cause notice and subsequent impugned order. The impugned order was set aside, with instructions to place the Commissione

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Tax Fraud Writ Dismissed: High Court Upholds Rs. 56.2 Crore ITC Penalty Order Against 527 Firms for Contradictory Claims
Case-Laws
GST
HC dismissed writ petition challenging tax penalty order involving alleged fraudulent Input Tax Credit (ITC) of Rs. 56.2 crores across 527 firms. The Court found no violation of natural justice, noting the petitioner's contradictory statements and lack of arbitrary administrative action. The impugned order was deemed appropriate, with the Court declining

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Fraudulent Tax Credit Claims Rejected: Partial Cooperation Insufficient to Secure Pre-Arrest Bail
Case-Laws
GST
HC denied pre-arrest bail application involving fraudulent Input Tax Credit (ITC) claims. Despite petitioner's partial cooperation with investigating authorities and appearing after interim bail, the court rejected the anticipatory bail. The court noted the prima facie evidence of ineligible ITC amounting to Rs. 3.42 Crores, which is below the Rs. 5 Crores threshold. The appli

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Zero-Rated Exports: Merchant Exporters Win Relief from Compensation Cess, Ensuring Smooth Working Capital Flow Under GST
Case-Laws
GST
HC held that supplies to merchant exporters qualify as zero-rated export under IGST Act. While petitioners are technically liable to pay 160% Compensation Cess in absence of specific exemption notification, the court recognized this creates unnecessary working capital blockage. The levy is essentially revenue neutral since merchant exporters can claim fu

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Clarification on Late Fee for Delayed GSTR-9C: Comprehensive Calculation Under Section 47 with Waiver Provision for FY 2022-23
Circulars
GST – States
The GoK Commercial Taxes Dept clarified the late fee applicability for delayed FORM GSTR-9C submission. For annual returns where reconciliation statement (FORM GSTR-9C) is mandatory, late fee under KGST Act Section 47 will be leviable for the entire period from the original due date until complete annual return submission. Late fee is calc

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Clarification regarding GST Tax Rates for Pepper, Raisins, Popcorn, Concrete Blocks, and Utility Vehicles Under Circular 38/2024
Circulars
GST – States
The Karnataka Commercial Taxes Dept. issued Circular No. GST-38/2024 clarifying multiple GST rate and classification issues based on the 55th GST Council meeting recommendations. Key clarifications include: (1) pepper of genus Piper attracts 5% GST, and agriculturists supplying dried pepper are GST-exempt; (2) agriculturists supplying ra

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HC Allows Tax Credit Appeal Despite Missing Docs, Affirms Right to Challenge Procedural Decisions Under Section 16(5)
Case-Laws
GST
HC held that the Petitioner's claim for Input Tax Credit (ITC) involving belated GST return filing under Section 16(5) of CGST Act, 2017 constitutes an appealable order per Section 107. The court determined that factual aspects regarding non-filing of returns and potential procedural deficiencies should be evaluated by the Appellate Authority. Despite absen

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Seized Goods Held Pending Investigations: Departments Must Notify Petitioner and Preserve Evidence Without Immediate Release
Case-Laws
GST
HC adjudicated a petition regarding illegal seizure of goods, finding that ongoing investigations by GST and Income Tax Departments preclude immediate release. The court directed: (i) Departments must provide notice to Petitioner of proceedings, (ii) Petitioner may seek goods' release through statutory provisions under CGST Act or Income Tax Act, and

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Bail Upheld in Massive Tax Refund Fraud Case Despite Allegations of Fraudulent Claims Exceeding 63 Crores
Case-Laws
GST
HC dismissed the petition seeking recall of bail in a fraudulent IGST refund case. The respondent, arrested for allegedly claiming fraudulent tax refund exceeding 63 crores, was granted bail by the MM after careful consideration of facts. The court found no justification to interfere with the bail order, noting that previous prosecutions were primarily for non-appearan

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Fortis Trademark Auction Validated: FHL Secures Rights at Rs 200 Crores, Overcoming Legal Challenges and Valuation Objections
Case-Laws
GST
HC held that the auction sale of the Fortis trade mark was valid and fair. The court confirmed the sale to FHL at Rs 200 Crores, rejecting objections to the valuation and auction process. Section 92 of CGST Act was deemed inapplicable to the court auctioneer. Upon sale confirmation, FHL shall become the trade mark owner with full rights, authorized

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High Court Clarifies: Lessee's Industrial Land Rights Transfer Not Taxable Under GST, Exempting Lump Sum Property Assignments
Case-Laws
GST
HC held that assignment of leasehold rights for industrial land by a lessee to a third party for a lump sum consideration does not constitute a supply under GST provisions. The court determined that Section 7(1)(a) of the GST Act, read with Schedule II, Clause 5(b) and Schedule III, Clause 5, does not attract GST levy for such transactions involving

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High Court Suspends GST Recovery Demand, Grants Interim Relief and Allows Affidavit Filing by End of Year
Case-Laws
GST
HC granted interim relief in GST recovery matter, staying demand order until end of December 2025. The court recognized a prima facie case raised by petitioner and allowed filing of affidavit-in-opposition within four weeks, with potential reply within subsequent three weeks. Jurisdictional challenge accepted, with liberty to mention after affidavit exchange period. In

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Statutory Remedy Under CGST Act Precludes Writ Petition, Emphasizing Exhaustion of Administrative Remedies First
Case-Laws
GST
HC dismissed the writ petition for lack of maintainability, holding that an alternate statutory remedy exists under the CGST Act, 2017. The court emphasized the rule of exhausting statutory remedies before invoking extraordinary writ jurisdiction under Article 226. The detailed show cause notice served to the petitioner demonstrated procedural compliance, and no

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Tax Fraud Exposed: Systematic Evasion Through Fake Invoices Leads to Denial of Pre-Arrest Bail Under GST Regulations
Case-Laws
GST
HC denied pre-arrest bail in tax fraud case involving fraudulent ITC claims. Evidence prima facie indicated petitioner's proprietorship of enterprise generating fake GST invoices without actual goods/services supply. Despite prior interim protection and multiple notices, petitioner remained evasive and untraceable. Court determined petitioner was deliberatel

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Thane businessman duped of Rs 4.5 cr in GST fraud
GST
Dated:- 12-5-2025
PTI
Thane, May 12 (PTI) A 60-year-old businessman from Maharashtra's Thane city was allegedly duped of Rs 4.5 crore by a man who carried out transactions through his company and evaded payment of Goods and Services Tax (GST), police said on Monday.
Based on a complaint, the police registered a case under sections 318(4) (cheating), 336 (forgery) and other relevant provisions of the Bharatiya Nyaya Sanhita and IT

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