Author: admin_gst

Reason to Believe requirement vitiated cash seizure; failure to give six month notice required return and payment with interest.
Case-Laws
GST
The article addresses validity of cash seizures under the CGST framework, holding that seizure under the statute requires a recorded 'reason to believe' that goods, documents, books or things relevant to proceedings are secreted at a place; absence of such reasons rendered the cash seizure arbitrary and unlawful. It further explains that failure to issue the statutorily mandated notice within the six month period obliges return of seized items, and that transferring seized cash to another agency without statutory authority compounds illegality; consequent remedy ordered was release and payment with interest.
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Effective service by portal cannot replace the right to a personal hearing; order set aside, matter remitted with conditions.
Case-Laws
GST
Effective service by upload on the GST common portal does not supplant the taxpayer's right to be heard; the HC held that an assessment order passed without effective service and without affording a personal hearing is infirm and was set aside. Where portal notices elicit no response, the officer must apply mind and invoke other valid modes of service rather than rely on repeated portal reminders; failure to do so risks ineffective service and ex parte orders. The matter was remitted for fresh consideration subject to the petitioner depositing 25%, filing a reply within three weeks, and issuance of a clear 14 day notice for personal hearing before disposal on merits.
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Final tax demand must be confined to the Show Cause Notice amount; excess demand set aside and remitted for fresh adjudication.
Case-Laws
GST
Requirement that final tax demand be confined to the amount proposed in the show cause notice under Section 75(7) is reiterated; where an adjudication confirms a demand exceeding the notice the order is contrary to the statutory limitation and must be set aside. The court remitted the matter for fresh adjudication, directed the taxpayer to file a reply treating the impugned order as an addendum within thirty days, and ordered the tax authority to pass a fresh final order expeditiously, with recovery measures available if the taxpayer fails to comply after due notice.
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Consideration and Supply: fees for statutory regulatory and quasi judicial functions are not taxable; notice quashed.
Case-Laws
GST
Fees charged by an electricity regulatory commission for discharging statutory, quasi judicial and regulatory functions do not constitute a taxable supply in the course or furtherance of business because the definitions of 'consideration' and 'business' must be read together under the GST scheme. The analysis adopts precedent finding that regulatory/tribunal like activities are not commercial trade or inducements for supply, and Schedule III excludes services rendered by courts or tribunals. Applying these principles the impugned show cause notice levying GST on tariff petition and licence fees was arbitrary and was quashed; the writ petition succeeds.
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CGST Delhi South Commissionerate arrests director of a company for fraudulent availment of Input Tax Credit (ITC) amounting to Rs.60.59 crore through bogus invoices of Rs.397.23 crore
GST
Dated:- 10-3-2026

As part of its ongoing enforcement drive against fraudulent Input Tax Credit (ITC) claims, the Anti-Evasion Branch of the Central Goods & Services Tax (CGST), Delhi South Commissionerate, has arrested a Director of a private limited company engaged in trading of Smartphones for fraudulent availment of Input Tax Credit (ITC) amounting to Rs.60.59 crore through bogus invoices of Rs.397.23 crore. This violates Section 16 of the CGST Act, 2017 and is punishable under Section 132.

Analysis of GST return data and

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Value of free-supplied goods not part of taxable supply; such materials cannot be included in GST valuation and levy set aside.
Case-Laws
GST
Value of goods supplied free of cost by a service recipient does not constitute consideration for the taxable supply; consequently such free materials cannot be included in the transaction value for GST valuation and are not exigible to tax. Relying on settled precedent and GST valuation guidance, the impugned levy adding the value of cement, admixtures and waterproofing material supplied free to the petitioner was held legally unsustainable and set aside. The writ petition was allowed and amounts deposited under interim order were ordered refunded, with no order as to costs.
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Assignment of leasehold rights as a supply – interim stay on recovery and adjudication granted pending higher court determination.
Case-Laws
GST
Assignment of leasehold rights and whether it constitutes a taxable supply is the central issue; the High Court noted pending Supreme Court appeals on whether such assignments amount to 'transfer of land' or a taxable supply and therefore extended interim protection. The Court stayed recovery under impugned orders and stayed adjudication of outstanding show cause notices until final disposal, directed issuance of notice to the Attorney General where constitutional validity of CGST provisions is challenged, and permitted filing of replies with liberty to apply further, while awaiting the Supreme Court's determination.
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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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Retrospective GST registration cancellation requires prior specific notice, disclosure of supporting material and a reasoned order.
Case-Laws
GST
Retrospective cancellation of GST registration requires a specific proposal in the show cause notice and disclosure of the material relied upon; absence of any proposal for retrospective effect in the notice vitiates such cancellation and the order must be set aside. Where reliance is placed on supporting documents or verification reports, those documents must be supplied so the person affected can meet the case; failure to supply them renders cancellation unsustainable. Any fresh order must be a reasoned, speaking order demonstrating application of mind and must follow service of proper notice, disclosure of materials and an opportunity to be heard.
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Entitlement to regular bail: granted where documentary evidence is departmental and further custodial interrogation is unnecessary.
Case-Laws
GST
Entitlement to regular bail in alleged fraudulent availment of input tax credit was allowed where the court found that allegations were documentary, records were already with the department, and further custodial interrogation would be purposeless; the petitioner had been detained since 03.11.2025 and trial was likely to be protracted given voluminous documents. The offences are magistrate-triable with limited sentences; precedents on similar bail grants and the protection of personal liberty informed the exercise of discretion. Bail was granted subject to furnishing bonds and the trial court was directed to proceed expeditiously; no opinion was expressed on merits.
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Valuation by transit authorities cannot determine tax liability; non compliance with inspection reporting warrants release and reassessment.
Case-Laws
GST
Valuation by check-post authorities under Sections 129/130 cannot determine tax liability; such valuation is reserved to the jurisdictional Assessing Authority, and interception/confiscation proceedings at transit check posts must refer valuation disputes to that authority, resulting here in refusal to uphold valuation-based seizures. Non-compliance with Rule 138C's contemporaneous online inspection report (Form A) requirement vitiated the detention/confiscation basis and warranted interlocutory release of goods and detained vehicles. Sampling must be redone: samples drawn in triplicate, sealed and countersigned with petitioners or representatives, with one part forwarded to the jurisdictional Assessing Officer who may proceed with assessment.
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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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GST on maintenance services: recoveries and corpus contributions treated as taxable consideration; membership exemptions remain subject to limits.
Case-Laws
GST
Recoveries by a resident welfare association for water and electricity, even if billed separately and on actual-cost basis, are treated as part of its maintenance service to members and constitute consideration for supply; they are taxable subject to the membership-organisation exemption ceiling. Costs procured and billed in the association's name do not meet the pure agent conditions and are includible in the composite supply. Contributions to a corpus fund are advances for future supply and trigger GST at receipt under time-of-supply rules. Community centre subscriptions qualify as membership maintenance services and benefit from the exemption subject to the prescribed ceiling and conditions.
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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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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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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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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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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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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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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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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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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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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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