Author: admin_gst

Reverse Charge Liability on ocean freight not permissible; importers under CIF cannot be made liable, refunds allowed subject to unjust enrichment.
Case-Laws
GST
Levy of service tax/IGST on ocean freight under CIF contracts is not sustainable where the transporter is located outside the taxable territory; reverse charge cannot be imposed on an importer who is neither the service provider nor the service recipient, so notifications attempting to make importers liable under reverse charge exceed legislative and rule making powers. The composite supply principle bars a separate tax on the transport service component of a composite import transaction. Any demand issued under the impugned notifications is without authority; petitioner may seek refunds subject to statutory procedure and the doctrine of unjust enrichment.
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Restoration of GST registration permitted if pending returns are filed and tax with interest and late fee is paid, authority to restore.
Case-Laws
GST
Where GST registration was cancelled for continuous non-filing of returns, the proviso to Rule 22(4) permits restoration if the person files all pending returns and makes full payment of tax dues with applicable interest and late fee; upon such compliance the proper officer may drop cancellation proceedings and pass the restoration order in Form GST REG-20. The petitioner was directed to apply to the concerned CGST authority for restoration and to comply with the proviso; the authority must consider and decide the application in accordance with law within the timeframe fixed by the court.
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Consideration and Supply: corpus fund contributions are advances for future services and attract GST on receipt.
Case-Laws
GST
The article addresses whether corpus/sinking fund contributions collected by a residential association constitute “consideration” and attract GST. It applies the statutory definitions of supply and consideration, rejects the doctrine of mutuality by operation of the deeming provision, and treats the association as a person distinct from members. Corpus contributions are characterised as advances for future supply of membership-organisation services and are distinct from recurring monthly maintenance by purpose and accounting. Consequently time-of-supply rules for advances apply and GST liability arises on receipt/collection. Questions on accounting, documentation and audit demonstration were held outside the admissible advance-ruling scope.
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Advance payment as consideration triggers GST at receipt; corpus fund contributions are not eligible for the monthly maintenance exemption.
Case-Laws
GST
Collection of a corpus fund by an unincorporated membership organisation constitutes a supply because contributions characterised as advances (not refundable deposits) amount to consideration for future services; therefore such collections fall within the supply definition and attract GST. The time of supply for these corpus advances is the date of receipt/collection, as the earlier trigger under the time-of-supply rule for services. Corpus contributions cannot be aggregated with recurring monthly maintenance charges to claim the per-member monthly exemption under the relevant notification, and the specified per-member exemption does not apply to corpus fund contributions.
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Input Tax Credit entitlement on input services and capital goods remains available despite margin scheme restriction, subject to statutory conditions.
Case-Laws
GST
Notification No. 08/2018-Central Tax (Rate) bars ITC only on the specified old and used motor vehicles listed; its phrase 'such goods' confines the prohibition to those vehicles and does not extend to other inputs or input services. Consequently, registered persons selling under the notification's margin scheme may claim ITC on admissible input services and capital goods (for example, refurbishment, repair, marketing, professional fees, rent, office expenses, software subscriptions, staffing, administrative overheads, laptops, equipment, furniture) provided the conditions and eligibility requirements under the CGST provisions and Rules are met. The margin-scheme restriction therefore does not ipso facto deny ITC on other business inputs.
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Jurisdictional limitation: advance rulings cannot determine refund quantification or sanction under inverted duty refunds, application inadmissible.
Case-Laws
GST
Advance Ruling Authority declined jurisdiction to rule on the manner of claiming refund of accumulated input tax credit under the inverted duty structure and on refunds asserted as 'any other ground', holding that questions of quantification and sanction of refund fall within refund administration and are not among the categories listed under section 97(2). Applying section 95(a) read with section 97(2), the Authority found the application outside its statutory scope and rejected it as inadmissible, refusing to entertain advance ruling on refund quantification or sanction.
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GST exemption for local authority services: pure solid waste management to a Gram Panchayat is exempt where it fulfils Panchayat functions.
Case-Laws
GST
Solid waste management services supplied to a Gram Panchayat qualify for exemption under Entry No. 3 of Notification No. 12/2017 because both cumulative conditions are met: the services are pure services (not works contracts or composite supplies involving goods), satisfying the recipient/character requirement as a local authority, and the services relate to functions entrusted to Panchayats under Article 243G of the Constitution, with solid waste management falling within Eleventh Schedule entry on health and sanitation. The factual activities (collection, transportation, segregation, processing, street sweeping and public awareness) were held to fall within that scope and thus are exempt from GST.
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Regarding the reimbursement of the amount equivalent to the State Goods and Services Tax (SGST) payable for the exhibition of the film “Shatak – 100 Years of Rashtriya Swayamsevak Sangh
GST
Dated:- 7-3-2026

संख्या-1/1254603/2026 /133/2026235/11-5-2026

प्रेषक,

श्याम प्रकाश नारायण,

विशेष सचिव,

उ०प्र० शासन।

सेवा में,

आयुक्त,

राज्य कर,

उ०प्र० लखनऊ।

राज्य कर अनुभाग-5

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2375;ं।

महोदय,

उपर्युक्त विषयक आपके पत्र संख्या-1252/प्र०क०-2/2025-26 दिनांक 23-02-2026 के संबंध में मुझे यह कहने का निदेश हुआ है कि फिल्म “शतक-राष्ट्रीय स्वयंसेवक संघ के 100 वर्ष” को मल्टीप्लेक्सों/&#2

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#2344; शर्तों के अधीन प्रदान की जाती है :-

(1) फिल्म के प्रदर्शन के लिये सम्बंधित सिनेमा/मल्टीप्लेक्स की प्रचलित सामान्य प्रवेश शुल्क में वृद्धि नहीं की जा सकेगी और न ही विभिन्न क्&

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2360;प्ताह की संख्या का गुणांक 200 प्रिंट/स्क्रीन वीक से अधिक नहीं होगा। इस सम्बंध में स्पष्ट करना है कि यदि प्रदेश में 200 प्रिंट द्वारा फिल्म का प्रदर्शन एक साथ किया जाता है तो प्र&#

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8; एवं उपभोग की पूरी अवधि तीन माह से अधिक नहीं होगी।

(3) मल्टीप्लेक्स/सिनेमाघरों के स्वामियों को इस नीति के अंतर्गत राज्य सरकार द्वारा नियत अवधि के अन्दर प्रदर्शित होने वाली &

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के स्वामियों द्वारा अपने पास से राजकोष में उसी विहित प्रक्रिया के अनुसार जमा की जायेगी, जैसे इस नीति के अतिरिक्त प्रदर्शित की जाने वाली फिल्मों हेतु विहित है।

कृपया तदन&#2369

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reference to your letter No. 1252/Pr.K.-2/2025-26 dated 23-02-2026, I have been directed to inform you that the administrative approval for the reimbursement of the State Goods and Services Tax (SGST) equivalent payable for the screening of the film “Shatak -100 Years of Rashtriya Swayamsevak Sangh” in multiplexes/cinemas is being granted under the conditions mentioned in Government Order No. 612/11-6-2017-M(43)/17 dated 09.08.2017 as outlined below:

(1) For the release of the film, the prevailing normal entry fee of the respective cinema/multiplex will not be increased nor will the posture capacity of different classes be changed.

(2) In the State, reimbursement for the film may be granted subject to a maximum of 200 print-weeks at any given time, such that the product of the number of prints and the number of weeks does not exceed 200 print/screens-weeks. It is clarified that if the film is exhibited simultaneously on 200 prints in the State, the reimbursement period shall be

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Natural Justice breached by non-service and no hearing; adjudication quashed and matter remitted for fresh, speaking reconsideration.
Case-Laws
GST
Failure to serve statutory notices and to afford an opportunity of hearing breached principles of natural justice and constituted a procedural irregularity; as a result the ex parte adjudication was quashed and the matter remitted for fresh consideration. The petitioners were permitted to file a physical reply within a limited period and the adjudicating authority was directed to afford a hearing (virtual or physical), pass a speaking order considering the reply and available material, and communicate the decision within specified time-frames; merits were not adjudicated.
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Reliance on Precedent must be verified; unverified or AI generated citations can vitiate orders and require regulatory parameters.
Case-Laws
GST
Reliance on precedent by adjudicating authorities must be verified: the article identifies that reliance on non existent, incorrect or irrelevant judicial citations (apparently AI generated) breaches principles of natural justice and produces a procedural defect in reasoned orders; such unverified dependence indicates failure to apply independent judicial mind and can vitiate findings. It recommends prescribing parameters and directions to regulate how quasi judicial authorities rely on High Court and Supreme Court decisions, calls for institutional guidance (including Senior Standing Counsel assistance), and notes interim relief was granted pending formulation and final disposal.
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Duty to consider material submissions: authority must afford hearing, pass a reasoned order and reconsider refund eligibility.
Case-Laws
GST
High Court found procedural infirmity where the adjudicating authority failed to record reasons for not considering material documents filed in response to assessment; the absence of reasoned consideration vitiated the order and the impugned adjudication was quashed. The authority was directed to revisit paragraph 10 and annexed bills of entry, afford the petitioners an opportunity of hearing, and pass a reasoned, speaking order within three months. Amounts debited from the petitioners' ledger may be considered for refund only conditionally and subject to the final outcome of the reconsideration; entitlement to refund was not decided on merits.
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Statutory Appeal Right preserved; 30 day stay allowed, perishable goods to be auctioned and proceeds held pending appeal.
Case-Laws
GST
The article explains that the court preserved the petitioner's right to institute a statutory appeal, extended limitation for 30 days and granted a limited 30 day stay of the impugned detention and penalty order; if no appeal is filed the stay lapses. It directs prompt public auction of seized perishable goods with consignor permitted to participate and mandates retention of auction proceeds by the department, preferably in an interest bearing account, pending the appeal. It further authorises conditional release of the detained vehicle on payment and furnishing of a bond, all interim measures being subject to the appellate outcome.
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Consolidation of tax periods is impermissible; year wise assessment and limitation must be preserved despite fraud allegations.
Case-Laws
GST
Consolidation of separate tax periods into a single show cause notice under the CGST Act is impermissible: the statutory scheme ties tax liability and assessment to returns for each tax period and the limitation for demand and recovery runs year by year, so aggregating financial years collapses the legislated period-wise structure and prejudices the assessee; accordingly a consolidated notice and order covering multiple financial years were quashed. Allegations of fraudulent availment of input tax credit may extend the limitation window but do not authorize clubbing distinct tax periods into one proceeding; fresh notices may be issued year-wise in accordance with the statute.
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Right to Travel Abroad upheld; court permits travel subject to security deposit, itinerary disclosure and passport production.
Case-Laws
GST
High Court reviewed a magistrate's refusal to allow a director to travel abroad where corporate entities had been penalised for alleged bogus input tax credits. The Court held that corporate penalties and revenue loss alone do not justify depriving an individual of personal liberty or the right to travel abroad; absent material showing personal flight risk or intent to evade process, travel may be permitted. The Court applied principles protecting personal liberty, weighed offence gravity and case stage, and allowed travel subject to conditions including a security deposit, itinerary and passport disclosure and cooperation with investigators.
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Mandatory DRC-07 summary preserves appellate rights-issuance directed to enable appeal; penalty challenge barred once proved or paid.
Case-Laws
GST
Uploading the summary of a final order in FORM GST DRC-07 is a mandatory procedural requirement that functions as the notice of demand and preserves the taxpayer's statutory right to appeal; accordingly the court directed issuance/upload of DRC-07 to enable filing of an appeal despite the petitioner's delay. The decision relied on the statutory scheme and prior higher-court reasoning to treat the DRC-07 upload as essential for exercising appellate remedies. The court also recorded that, as a matter of substantive effect, a taxpayer is precluded from challenging a penalty once the penalty amount has been proved or paid under the relevant GST provisions.
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Input Tax Credit availability must trigger distribution only when legal entitlement arises, not merely on invoice issuance.
Case-Laws
GST
Rule 39(1)(a) of the GST Rules survives constitutional challenge when read with the entitlement scheme: the phrase “input tax credit available for distribution in a month” must be construed to mean ITC that has become legally available after satisfaction of entitlement conditions in Section 16(2). The Rule does not mandate distribution merely on invoice issuance; distribution is required in the month the recipient becomes entitled to credit. Show cause notices alleging delayed distribution are remitted for fresh adjudication applying this construction; petitioners given two months to file replies where applicable.
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Entitlement to Input Tax Credit requires reconsideration after statutory insertion, remand and conditional relief on compliance.
Case-Laws
GST
Entitlement to input tax credit was reconsidered in light of subsequent statutory insertions of Sections 16(5) and 16(6); because the impugned order denied credit solely on the ground of belated availment under Section 16(4), the HC remitted the matter for fresh adjudication so the respondent must re-examine entitlement on merits leaving aside the belated-availment ground and decide after hearing the petitioner. The court granted conditional interim relief by directing the petitioner to pay amounts due for belated returns and file a reply within 30 days; on compliance and absence of other arrears the bank attachment will be lifted pending final adjudication.
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Omission of statutory rule removes legal basis, so recovery orders issued solely under that rule were set aside.
Case-Laws
GST
Omission of a statutory rule that lacks a saving clause removes the legal basis for actions taken solely under it; the impugned recovery proceedings were instituted exclusively under Rule 96(10) of the CGST Rules and, following the rule's omission, the statutory foundation ceased to exist, requiring those orders to be set aside. The article explains the court's application of the principle that administrative orders cannot survive the repeal or omission of the provision authorising them in the absence of a saving clause, and records the consequent allowance of the writ petitions and dismissal of related contentions without costs.
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Garnishee notice withdrawal ordered; account access restored pending departmental re examination after document submission within prescribed timeframe.
Case-Laws
GST
Garnishee notice directing provisional attachment of the petitioner's bank account was ordered withdrawn because the revenue authority failed to consider the petitioner's prior submissions and offered documents; immediate freezing was unjustified absent findings of deliberate evasion. The petitioner must submit requisite documents within ten days, and the department must examine them, invite clarification or hearing if needed, and decide the recovery question on merits within one month of submission; all contentions remain open pending that reconsideration.
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Consolidation of tax periods impermissible; show cause notice quashed and reissuance allowed only year wise under limitation regime.
Case-Laws
GST
The note addresses validity of a single show cause notice aggregating multiple financial years under the CGST Act: each financial year is a distinct tax period with separate limitation periods under Sections 73(10) and 74(10), so limitation runs year by year and notices must respect that structure; allegation of fraudulent availment of input tax credit permits only application of any extended limitation provided by law but does not authorise clubbing of different years into one notice. Consequence: a consolidated multi year notice is invalid to the extent of aggregation, but respondents may reissue year wise notices complying with the statutory limitation regime.
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Consolidation of Tax Periods is impermissible; multi year show cause notices must be issued year wise per statutory limitation.
Case-Laws
GST
The article addresses consolidation of assessment periods under the GST statutory scheme, holding that tax liability and limitation run year by year tied to returns and that separate limitation timelines apply to each financial year; therefore issuing a single show cause notice aggregating multiple years is impermissible and was quashed. It explains that allegations of fraudulent availment do not create a rule permitting clubbing of distinct tax periods, although fraud affects limitation for the relevant year. The revenue may reissue year wise notices conforming to the statutory periodicity and may revive challenges if controlling precedent is altered by higher courts.
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Exemption for consultancy to local authority: GST relief where pure services relate to municipal functions, so exempt.
Case-Laws
GST
Consultancy and project management services consisting of architectural and supervisory activities, without transfer of property in goods, qualify as pure services rather than a works contract; the recipient is a local authority and the services relate to municipal functions (fire services, public amenities including parking) under Article 243W, with staff quarters for fire personnel treated as integrally linked to fire services. Because all conditions of Sl. No. 3 of Notification No. 12/2017 Central Tax (Rate) are met, such supplies to the municipal authority are exempt from GST; ancillary questions on past tax collection/refund were not adjudicated.
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Export of Services rules: receiver location controls export status; services treated as exported and not taxable.
Case-Laws
GST
Export of services is governed by the location of the service receiver: where services rendered qualify as Business Auxiliary Services to an overseas recipient, they fall within the Export of Services Rules and are not exigible to service tax. The court applied the receiver-location principle affirmed by the Supreme Court in the Vodafone India Limited precedent and held that the assessee's forwarding of Indian enquiries to an overseas group entity, which contracted and supplied to Indian customers while paying commission to the assessee in convertible foreign exchange, resulted in export of services. Outcome: services to the overseas group entity are exported and not taxable.
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Blocking of Input Tax Credit under Rule 86A sustained, but petitioner granted hearing and representation before final decision.
Case-Laws
GST
Challenge to blocking of Input Tax Credit under Rule 86A was rejected where inspection and recorded statements indicated availment of credit on disputed invoices; the impugned blocking was held to fall within the regulatory scheme and not amenable to interference. A jurisdictional objection that a subordinate officer effected the block was dismissed because blocking was shown to be authorised by senior officers. The court nevertheless granted liberty to the petitioner to make a representation and directed that the concerned officer hear the petitioner and decide the merits expeditiously, preferably within thirty days.
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Support services to animal husbandry: semen sex sorting is job work, classifiable under Heading 9986 and exempt from GST.
Case-Laws
GST
Semen sex sorting services are classified as support services to animal husbandry and exempt from GST because the specialised laboratory processing of semen supplied by semen stations qualifies as job work and an intermediate production process in relation to rearing of animals; consequently the activity falls within Heading 9986 and benefits from the nil rate in Entry No. 24 to Notification No. 11/2017 CT(R). The prefatory rule favouring a specific description over a residual one means semen sorting cannot be classified under the general 'not elsewhere classified' entry (SAC 998399) when Heading 9986 specifically applies.
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