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Inverted duty structure GST refund claims after 13.07.2022: Circular 181 para 2(2) invalid; rejection quashed, remand ordered. (3)
Case-Laws
GST
Refund under the inverted duty structure was denied by applying paragraph 2(2) of a circular restricting eligibility for refund applications filed after 13.07.2022. Relying on a coordinate bench ruling, the court held that paragraph 2(2) of Circular No. 181/13/2022-GST was ultra vires Section 54(3) of the CGST/GGST Act and violative of Article

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Omission of CGST Rules 89(4B) and 96(10) makes pending export refund show-cause notices and orders lapse, petition disposed
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GST
On repeal/omission of CGST Rules 89(4B) and 96(10) by Notification dated 08 October 2024, and in the absence of any saving clause or applicability of Section 6 of the General Clauses Act, pending proceedings founded on the omitted provisions are not preserved; undisposed show cause notices, and orders (whether passed after 08 October 2024 or passed ea

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Greater FDI in insurance to promote competition, increase penetration: FM
GST
Dated:- 16-12-2025
PTI
New Delhi, Dec 16 (PTI) Finance Minister Nirmala Sitharaman on Tuesday said that raising the FDI limit to 100 per cent in the insurance sector will help attract more capital, improve competition and increase insurance penetration by making policies more affordable.
Replying to the debate on the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, in the Lok Sabha, Finance Minister Nirmala Sitharaman said the proposed removal of the upper cap on FDI in the insurance sector would ensure capital flow in the sector.
This will ensure that the country benefits from better technology and world-class risk assessment models, as well as the best insurance products available anywhere in the world, she said, adding that FDI will attract more players and make insurance policies more affordable.
“Monopoly doesn't give us that advantage, and therefore, the more the compe

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o 100 per cent.
It also paves the way for the merger of a non-insurance company with an insurance firm.
The finance minister said that the government led by Prime Minister Narendra Modi raised the FDI limit for insurance companies from 26 per cent to 49 per cent in 2015 and from 49 per cent to 74 per cent in 2021 to attract global capital and technical know-how.
Similarly, the FDI limit for insurance intermediaries was raised to 100 per cent in 2019 to enable them to provide better advisory services to citizens.
To make insurance more affordable, Sitharaman said the 56th GST Council Meeting held in September unanimously agreed to remove GST on individual life and health insurance premiums.
There is now a nil GST rate, which was earlier 18 per cent on all individual life insurance policies and individual health insurance policies and this is a significant tax relief that directly reduces the cost of premiums for policyholders, encouraging more people to insure themselves and t

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corporate structure.
In addition, the bill seeks to provide greater autonomy to Life Insurance Corporation of India (LIC).
“We are providing autonomy to LIC to open zonal offices and aligning compliance for its foreign offices with the laws and regulations which prevail in the respective jurisdictions,” she said.
The Bill also proposed rationalising the penalties imposed by the regulator and increasing the penalty limit to Rs 10 crore.
“Earlier, the fine of one crore, which we are now proposing to increase to Rs 10 crore, was only applicable to the insurance companies and not for the intermediaries. Now we are bringing both on board, and both will be at Rs 10 crore penalty, so that they will be some deterrent from compliance oversights as a result of which many of the policyholders suffer,” she said.
With regard to the term of office of the Chairperson and other whole-time members, the Bill provides for a five-year term or until they attain the age of 65 years, whichever is e

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Opposition MPs in RS demand funds for infrastructure, education, central schemes
GST
Dated:- 16-12-2025
PTI
New Delhi, Dec 16 (PTI) Opposition MPs in the Rajya Sabha on Tuesday raised demands for release of pending dues to states for various ongoing central schemes as they sought more funds for development of infrastructure, education and other welfare activities.
Participating in the debate on supplementary demands for grants, S Niranjan Reddy, YSRCP MP from Andhra Pradesh, said that out of the additional expenditure of Rs 1.32 lakh crore sought by the government, the net outgo (actual fresh cash to be withdrawn from the Consolidated Fund of India) amounts to Rs 41,455 crore.
According to him, a large portion of this fund ha

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d that while the government has reduced GST on fertilisers, insecticides and pesticides still attract high GST rates, increasing the burden on farmers..
Prakash Chik Baraik, AITC MP from West Bengal, praised Chief Minister Mamata Banerjee’s leadership but accused the Centre of not releasing funds worth Rs 2 lakh crore due to the state for several centrally-funded projects.
CPI (M) MP from Kerala, AA Rahim also accused the Centre of discriminating against the state in the release of funds for relief measures for flood and landslide victims. Rahim further criticised the Union Government for increasing GST on the sale of lottery tickets in the state.
Another MP from Kerala, Sandosh Kumar P, representing the CPI in the Rajya Sabha, dema

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nvestment reforms, Make in India and Startup India.
Tiwari said the Indian economy is performing extremely well under the Modi government, citing that 25 crore people have been lifted out of poverty, 54 universities and 12 IITs have featured in global rankings, grains are being exported to 131 countries, and India has become the world’s largest producer of milk, among several other positive developments.
G C Chandrashekhar of the Congress highlighted the “extra additional allocation of Rs 1.32 lakh crore”, claiming that unfortunately, the central government's allocation for popular programmes is not even implemented 50 per cent due to non-release of the funds. He also raised the issue of fertiliser subsidies and imports.
“India's ur

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AAR clarifies medicaments under pharmacopoeia formulas taxed at 5% GST under HSN 30039014, 30049014, Notification 1/2017
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GST
AAR held that the applicant's products qualify as “medicaments” under the GST Tariff when manufactured exclusively as per formulae in the specified authoritative pharmacopoeias. Medicaments consisting of two or more constituents, mixed for therapeutic or prophylactic use and not put up in measured doses or retail packing, are classifiable under HSN 30039

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AAR: JJM digitalisation and monitoring services treated as pure services, GST exempt under Notification 12/2017-CT, serial 3
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GST
AAR held that the applicant's activities for the State PHE Directorate under the JJM-comprising digitalisation and monitoring of water supply schemes, GIS-based data management, development and enhancement of software/applications (including Jal Mitra and UTWID generation), technical consultancy, documentation, and orientation programmes-constitute “

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Security and scavenging services to state medical colleges exempt from GST as pure services under Entry 3 N/N 12/2017-CT
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GST
AAR held that security and scavenging services provided by the applicant to Government of West Bengal medical colleges and hospitals are exempt from GST under Entry 3 of N/N 12/2017-CT (Rate) dated 28.06.2017. The authority found the services to be “pure services” (no supply of goods), supplied to the State Government, and in relation to functions entrus

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Writ against GST demand dismissed; taxpayer directed to appeal u/s 107 CGST Act with extended deadline
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GST
HC held the writ petition challenging the GST demand order and SCN as not maintainable in view of the efficacious statutory appellate remedy under Section 107 CGST Act. The Court found the plea of non-access to the SCN and order via “additional notices' tab” not bona fide, noting the substantial delay, absence of explanation for non-response to SCN, and non-attendance of

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AAR exempts going concern transfer and JJM-related pure services under Sl. 2 and 3, Notification 12/2017-CT(R)
Case-Laws
GST
AAR held that transfer of assets and liabilities from the transferor to the transferee constitutes a “service by way of transfer of a going concern as a whole or an independent part thereof” and is therefore an exempt supply under Sl. No. 2 of N/N 12/2017-CT(R). It further ruled that the work orders relating to digital asset management, GIS/WebGIS-based monitoring

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Refund rejection communication u/s107(11) KGST & CGST held appealable; appellate dismissal set aside, remanded
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GST
HC held that the refund rejection communication issued under s.107(11) of the KGST & CGST Acts constituted a proper, appealable refund rejection order. The First Appellate Authority erred in summarily dismissing the appeal as not maintainable on the incorrect premise that no refund rejection order existed and without recording any findings on merits or considering

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Section 8 company under Companies Act 2013 treated as body corporate; sponsorship services taxable under GST on forward charge
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GST
The AAR held that the applicant, a not-for-profit entity incorporated under the Companies Act, 1882 and presently governed by s. 8 of the Companies Act, 2013, qualifies as a “company” and hence a “body corporate” under the Companies Act, 2013. It is neither a co-operative society nor a body corporate notified for exclusion. Consequently, for sponso

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AAR: Municipal service contracts to local authorities u/s2(69) CGST, composite supplies, exemption only via Entry 3A
Case-Laws
GST
AAR held that services provided by the applicant to designated Municipal Corporations and Municipalities are rendered to “local authorities” under s.2(69) CGST Act, as these bodies are “Municipalities” under Arts. 243P and 243Q of the Constitution. The activities are in relation to functions entrusted under Arts. 243G and 243W, read with the Eleventh and Twe

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Carbonated drinks in restaurants are composite restaurant service under Clause 6(b) Schedule II, Entry 7, taxed 18% GST
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GST
AAR held that supply of carbonated drinks (aerated water) by the applicant's restaurant, whether served alone or along with food, constitutes “restaurant service” and a composite supply under Clause 6(b) of Schedule II. The beverages are value-added, served in restaurant glassware with accompaniments, and consumed using the restaurant's facilities, thus q

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GTA services via e-commerce portal to unregistered customers exempt under Sl. No. 21A, Notification 12/2017-CT (Rate)
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GST
AAR held that the applicant's proposed activities constitute “goods transport agency” (GTA) services because it will transport goods by road and issue consignment notes transferring lien and responsibility for safe delivery. Issuance of a consignment note was treated as a sine qua non for GTA status, consistent with the pre-GST service tax regime. The end c

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Jal Jeevan Mission data collection via mobile app held exempt pure service under Art. 243G, 243W, Notification 12/2017-CT
Case-Laws
GST
AAR held that the applicant's services of collecting household data through a mobile app for Functional Household Tap Connection (FHTC) under the Jal Jeevan Mission constitute pure services in relation to functions entrusted to Panchayats and Municipalities under Art. 243G and 243W of the Constitution. The activities, involving software development and

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GST exemption for JJM pure services: data validation, GIS work, training under Notification 12/2017-CT, Serial No.3
Case-Laws
GST
AAR held that the applicant's activities relating to field-level data validation of Functional Household Tap Connections, orientation programmes for mission stakeholders, and GIS-based collection and visualization of components of Piped Water Supply Schemes are integrally connected to supply of safe drinking water under JJM. These services fall within functio

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Tax authority told to adjust SGST and CGST toward IGST and refund excess u/s 77 GST Act
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GST
HC quashed the impugned orders concerning misclassification of tax paid under SGST and CGST instead of IGST. It directed the tax authorities to reconsider the matter afresh by duly appropriating the amounts already deposited under SGST and CGST towards the IGST liability. The Court further mandated that, upon such reconsideration, any excess payment or refund legitimately due to the pet

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Contractor entitled to reimbursement of extra tax from KVAT to GST transition on ongoing works, with returns relaxed
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GST
HC held that the petitioner-contractor is entitled to reimbursement of differential tax arising from transition from KVAT to GST in respect of ongoing works contracts, following its earlier decision in a similar matter. The respondent-State and its agencies were directed to segregate pre- and post-01.07.2017 work, assess tax liability under KVAT for pre-GST

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Interim Protection Granted Against Composite Section 74 CGST Demand-Cum-Show Cause Notices Covering Multiple Tax Periods
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GST
HC entertained a challenge to a composite demand-cum-show cause notice issued under Section 74 of the CGST Act, 2017 covering multiple tax periods. Observing that a coordinate bench had earlier granted a reasoned interim order in similar matters, and that no contrary view had been taken by any other bench, the HC applied the rule of consistency and noted

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Clarifying CGST Sections 129 and 130: Confiscation Threshold, Tax Evasion Intent, and Limits After Section 67(6) Omission
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GST
HC upheld the independence and mutual exclusivity of Sections 129 and 130 CGST, holding that confiscation under Section 130 can be invoked at the threshold if, upon interception and seizure during transit, the proper officer forms an opinion of intention to evade tax based on attendant circumstances. Section 129 applies where no such intention is found,

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Contractor allowed to seek refund of differential GST on pre-GST works contracts, similar to earlier writ directions
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GST
HC dealt with a writ petition seeking refund of differential GST (GST minus VAT) on works contracts executed under the earlier VAT regime, where contractors had not remitted GST. Noting that a co-ordinate Bench had already issued comprehensive directions on an identical issue, the HC held the petitioner similarly circumstanced and entitled to the same relief

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Proceedings u/s73 U.P. GST Act Void When Initiated Against Deceased Proprietor Without Notifying Legal Heirs
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GST
HC quashed proceedings initiated under s.73 of the U.P. GST Act, 2017 against a proprietary concern whose sole proprietor had died prior to issuance of show cause notice. The Court held that s.93 governs the liability of legal representatives for tax, interest or penalty post death, but does not authorize determination of liability in the name of a deceased person.

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Tax demands before 04.09.2019 barred against successful resolution applicant due to IBC clean slate after CIRP
Case-Laws
GST
HC, dealing with tax demands post-CIRP under IBC, held that in view of prior coordinate bench rulings in the petitioner's own matters and the language of NCLT orders, the relevant date of final approval of the resolution plan is 04.09.2019, when the new management assumed control on a “clean slate” basis. Consequently, the impugned order raising demands for the pe

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GST demand on escrowed lease amounts for government entities quashed, relying on Finance Ministry clarification and exemption
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GST
HC examined the levy of GST on lease amounts deposited in an escrow account, meant to be ultimately transferred to the Ministry of Urban Development or the Consolidated Fund of India. Petitioner contended that receipts included consideration from Government Departments and Autonomous Bodies, which are exempt from GST, and that demand raised on the e

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GST on chit funds: Only foreman commission taxable; interest and penalties on subscriber defaults treated as exempt loans
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GST
HC held that while remuneration/commission up to 7% of the gross chit amount received by the foreman is taxable under GST as per Section 21(b) of the Chit Funds Act, 1982, interest and penalty recovered from defaulting subscribers under Section 21(c) are of a different character. Relying on the characterization of chit amounts as loans recoverable as de

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