Author: admin_gst

Delay in Section 107 CGST appeals, refunds violates one-year limit; authority ordered to decide by 10 January 2026
Case-Laws
GST
The HC held that the prolonged non-disposal of statutory appeals filed in 2021, 2022, and 2023 under Section 107 of the CGST Act, 2017, and consequential delay in refund, was contrary to the statutory mandate requiring disposal within one year. Observing that such undue delay and blocking of refunds adversely affects business, the HC directed the Appellate Aut

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Relief Denied Under Art. 226 for GST Fraud Scheme Despite s.68 and r.138 Compliance; Costly Seizure Upheld
Case-Laws
GST
HC held that, although the procedural requirements under s.68 and r.138 CGST Rules for movement of goods were ostensibly complied with and the vehicle was no longer in transit, the petitioner's conduct disentitled it to equitable relief under Art. 226. The record established that the petitioner, in collusion with others, had devised a systematic scheme to defraud the

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Allahabad HC slams GST authorities for cancelling registration without assigning reasons
GST
Dated:- 26-11-2025
PTI
Prayagraj (UP), Nov 26 (PTI) The Allahabad High Court has come down heavily on GST authorities for passing frequent orders for the cancellation of the GST registration of traders without assigning reasons.
The court has said that such action of the authorities amount to announcing an “economic death” of a business entity as the cancellation orders passed in such a casual manner inflict disproportionate hardship on traders and disrupt legitimate business activity.
The court has highlighted that depriving a dealer of this statutory lifeline, without assigning reasons or affording an adequate opportunity to rectify

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le opportunity in such matters, so that similar lapses are not repeated,” the bench said.
The petitioner had challenged the October 15 order. Prior to this, a show-cause notice was issued alleging wrongful availing and passing on of bogus input tax credit in violation of section 16 of the Goods and Services Tax (GST) Act.
The court took strong exception to the manner in which the officer had exercised powers under the GST regime.
In this backdrop, the court observed that merely stating that a reply is “not satisfactory” reveals only the conclusion of the authority and not the reasoning that led to that conclusion, thereby failing the minimum standard of a reasoned administrative order.
The court remarked that the officer had acted “care

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India's eco growth to remain robust; GST reform to help cushion adverse impact of US tariffs: IMF
GST
Dated:- 26-11-2025
PTI
New York/Washington, Nov 26 (PTI) India's economy is estimated to grow at 6.6 per cent in 2025-26, the International Monetary Fund said, noting that the Goods and Services Tax reforms are likely to help cushion the country from the adverse impact of the 50 per cent tariffs imposed by the US.
“India’s economy has continued to perform well. Following the economic growth of 6.5 per cent in fiscal year 2024/25, real GDP expanded by 7.8 per cent in the first quarter of fiscal year 2025/26,” the IMF said in a statement after its Executive Board completed an annual assessment for India.
The International Monetary Fund (IMF) said that looking ahead, India’s ambition to become an advanced economy can be supported by advancing comprehensive structural reforms that enable higher potential growth.
Despite external headwinds, growth is expected to remain ro

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ely impact rural consumption and reignite inflationary pressures, it added.
Headline inflation is projected to remain well contained, reflecting the one-off effect of the GST reform and continued benign food prices. “Headline inflation has declined markedly, driven by subdued food prices”, the IMF said.
It noted that the financial and corporate sectors have remained resilient, supported by adequate capital buffers and multi-year low non-performing assets. Fiscal consolidation has advanced, and the current account deficit has been contained, supported by resilient service exports.
IMF Executive Directors commended India's strong economic performance and resilience, which has benefited from sound macroeconomic policies and reforms. Amid high uncertainty, the Directors called for continued sound policies and noted that accelerated implementation of structural reforms will be critical to maintain stability and support India’s ambition of becoming an advanced economy.
They concurred w

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uld likely be scope for further monetary easing amid benign inflation dynamics. They broadly recommended continued efforts to enhance monetary transmission, as well as greater exchange rate flexibility to help the Indian economy absorb external shocks, with interventions aimed at addressing disorderly market conditions consistent with the integrated policy framework.
The IMF underscored that comprehensive structural reforms are critical to support India’s economic development.
Directors welcomed the recent labour market reforms and encouraged the authorities to enhance human capital and female labour force participation, continue with the public investment push, and strengthen the business environment.
They stressed that the deepening of trade integration can bolster India’s competitiveness and attract FDI. Investment in R&D and fostering innovation will also help support productivity-driven development. Advancing the green transition supported by greater access to concessional

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Non-speaking GST registration cancellation quashed for violating natural justice; matter remitted for fresh decision with reasons
Case-Laws
GST
HC set aside the impugned order cancelling the GST registration of A and allowed the writ petition. The Court held that the cancellation order was a non-speaking order, as the proper officer rejected A's explanation merely stating it was “not satisfactory” without disclosing any reasons, violating fundamental principles of natural justice and pr

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Writ challenge to GST assessment remanded, appeal delay condoned on 10% cash deposit under Section 107
Case-Laws
GST
HC considered a writ petition challenging the impugned assessment order and consequential Order in Form GST DRC-07, preceded by a SCN in Form GST DRC-01. The statutory limitation under Section 107 of the GST enactments for filing an appeal had expired by the time the petition was instituted. Noting earlier precedents where delayed challenges led to remand on conditions of

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Appeal under GST s.74 wrongly dismissed as time-barred without verifying actual portal upload date of order
Case-Laws
GST
HC held that the appellate authority erred in dismissing the appeal as time-barred without ascertaining the actual date of uploading/communication of the order passed under s.74 on the GST portal. The authority's reliance on a general assumption that orders are reflected “in no time” at the registered taxpayer's end, without any specific inquiry or material to dispro

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Question of converting arrest warrants to bailable warrants under s.70(2) CrPC, s.72(2) BNSS sent to Larger Bench
Case-Laws
GST
The HC, dealing with a petition under s.70(2) Cr.P.C. seeking conversion of arrest warrants into bailable warrants in an alleged large-scale tax evasion case, noted conflicting views of different Co-ordinate Benches on the scope of such power in economic and heinous offences. Observing absence of a settled legal position and the need for uniformity, the HC refr

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Refund appeal remanded for fresh decision after violation of natural justice under s.13(3)-(13) IGST Act
Case-Laws
GST
HC examined challenge to an appellate order setting aside a refund sanction relating to alleged zero-rated export of services under the IGST Act, 2017. HC held that the appellate authority had acted in violation of principles of natural justice, having failed to apply its mind or record adequate reasons, particularly regarding classification of services as exports and t

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GST payable on recruitment exam fees by governmental authority; application charges treated as taxable recruitment services, registration mandatory
Case-Laws
GST
AAR held that the applicant, a recruitment board constituted under State legislation, qualifies as a “governmental authority” but its activities of conducting recruitment examinations for Devaswom Boards do not relate to functions entrusted to Panchayats or Municipalities under the Constitution and therefore do not fall within

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GST AAR: advances not time of supply; single tax invoice, receipt vouchers only under s12(2)(a), s31(3)(d), Rules 46/50
Case-Laws
GST
AAR held that, for supplies of goods, time of supply for a registered person not under composition is mandatorily determined under s.12(2)(a) CGST Act, as modified by Notif. 66/2017, i.e., on the earlier of the date of issue of invoice or the last date on which the invoice is required to be issued, and not on the date of receipt of advance. The applicant

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Educational institution status confirmed; HDC & BM and JDC course fees fully exempt from GST under Entry 66(a).
Case-Laws
GST
AAR held that the applicant qualifies as an “educational institution” under the relevant GST exemption notification, as it imparts structured education through prescribed curriculum, qualified faculty, and formal evaluation leading to diplomas recognized under Kerala Co-operative Law. The services rendered by the applicant to its students enrolled in HDC & BM and

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Self-drive car rentals held leasing under Heading 9973, Entry 17(viia); not transfer of right to use
Case-Laws
GST
AAR held that the applicant's activity of providing self-drive passenger vehicles (without driver) on rent is classifiable under Heading 9973 as “leasing or rental services without operator,” specifically under residual Service Code 997329 concerning other goods. It does not qualify as “transfer of the right to use goods” under Entry 17(iii) of Notif. No. 11/2017-CT (Rate)

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AAR: Training services to state-controlled society taxable; Entry 72, Entry 3B exemptions inapplicable; full ITC allowed
Case-Laws
GST
AAR held that services rendered by the applicant to the recipient-society are not exempt under Entry 72 of Notif. No. 12/2017-CT (Rate) because the recipient, though under administrative control and funding of the State, is a separate legal entity registered as a society and cannot be treated as the Central/State Government or a Government Department. It

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GST on Joint Development: entry 5(b) Schedule II makes TDR and landowner flat share taxable construction services
Case-Laws
GST
AAR held that the Joint Development Agreement between the developer and landowner constitutes a “supply” of services under the CGST Act, as per entry 5(b) of Schedule II. The developer's construction of residential flats for the landowner, in consideration of transfer of development rights (TDR), is taxable as construction service. As the project is not an affo

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GST appeal delay condoned due to portal access issues, matter remanded on deposit of Rs 15,000 costs
Case-Laws
GST
HC held that dismissal of the petitioners' appeal as time-barred was unsustainable in view of technical difficulties in accessing adjudication orders on the GST portal, particularly where the order was uploaded under the “View Additional Notices and Orders” tab. Relying on similar precedents, HC directed that the petitioners be accorded identical treatment and that the dela

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GST AAR: Reverse charge on residential rent to registered employer, no ITC due to exempt employee housing under s17(2)/2(47)
Case-Laws
GST
AAR held that renting of residential dwellings by unregistered landlords to the applicant, a registered entity, constitutes a taxable supply of services to the applicant under GST. The employer-employee relationship applies only between the applicant and its employees, not between the landlords and the applicant; therefore, the exemption for resident

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Supplying fitted assets on hire treated as mixed supply, taxable at 18% GST under serial no.17(viii).
Case-Laws
GST
AAR held that the applicant's activity of supplying fitted assets on hire to occupants of a building constitutes leasing or renting services, as the applicant remains the legal owner and only grants access to utilities without transfer of possession. The installed assets, having become integral to the building, lose their character as movable goods; therefore, the supply i

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GST payable on skill training fees; no exemption under Entries 66, 69 of Notification 12/2017, ITC allowed per Section 16
Case-Laws
GST
AAR held that the applicant's share of fees received from skill training partners and fees collected from its own training institutes are liable to GST. The receipts do not qualify for exemption under Entry 69 or Entry 66 of Notif. No. 12/2017-CT(R), as the outsourced training partners are not shown to be NSDC/SSC approved, the courses are not NSQF/NCVE

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GST exemption for solid waste management to Governmental Authority under Entry 3B of Notification 12/2017-CT (Rate)
Case-Laws
GST
AAR held that the applicant's activities of collection, handling, storage, transportation, processing, bundling and final disposal of non-recyclable plastic waste supplied to a State-owned company (CKCL) constitute “solid waste management” services. AAR further held that CKCL, being a public limited company with 100% equity owned and controlled by the State G

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Refund of unutilised GST Compensation Cess ITC on coal for zero-rated exports allowed; Section 11(2) proviso inapplicable
Case-Laws
GST
The HC held that unutilised input tax credit of GST Compensation Cess paid on coal, used in manufacture of goods exported on payment of IGST as zero-rated supplies, is refundable. It reiterated that when zero-rated supplies are made with payment of IGST, and no Compensation Cess is leviable on the finished goods, the assessee cannot utilise the input ta

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S tax cuts, lower interest rates to drive consumption
GST
Dated:- 24-11-2025
PTI
New Delhi, Nov 24 (PTI) S&P Global Ratings on Monday projected India's economy to grow 6.5 per cent in the current fiscal year and 6.7 per cent in the next, saying tax cuts and monetary policy easing will give a boost to consumption-driven growth.
India's real gross domestic product (GDP) is estimated to have grown at the fastest pace in five quarters at 7.8 per cent in the April to June period of current fiscal year. The official data for Q2 (July-September) GDP growth estimates is scheduled to be released on November 28.
“We anticipate that India's GDP will grow by 6.5 per cent in fiscal year 2026 (ending March 2026) and 6.7 per cent in fiscal

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tment, in this fiscal year, and the next,” S&P added.
The Government in Budget for 2025-26 fiscal year has hiked I-T rebate to Rs 12 lakh, from Rs 7 lakh, which gave tax relief of Rs 1 lakh crore to the middle class.
Besides, the RBI in June had cut key policy rates by 50 basis points to a 3-year low of 5.5 per cent.
Further, effective September 22 the GST rates on about 375 items were slashed making mass consumption items cheaper.
S&P further said the spike in the effective US tariff on India is weighing on the expansion of export-oriented manufacturing in the country.
But there are signs the US may lower tariffs on Indian products.
“The US's new approach to trade policy is causing governments and firms to spend time and money

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GST demand enhanced beyond SCN set aside for violating Sections 73 and 75(7); fresh action permitted
Case-Laws
GST
HC held that the tax and penalty demand under s.73 of the GST Act was illegally enhanced from Rs. 5,11,145.80 in the SCN to Rs. 38,60,604/- in the impugned order, in contravention of s.75(7), which bars adjudication beyond the scope and quantum specified in the SCN. Relying on a prior Division Bench ruling on identical facts, the HC reiterated that absence of proper opportu

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Ex parte CGST order set aside; matter remanded on costs to ensure fresh adjudication on merits
Case-Laws
GST
HC addressed a challenge to an ex parte Order-in-Original passed pursuant to show cause notices under the CGST regime, where the petitioner neither replied nor attended the personal hearing, citing serious medical condition of the proprietor. While noting that the petitioner was duly served and granted repeated opportunities, HC accepted that the matter warranted adjudication on

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Penalty under s.74 CGST reduced where tax and interest pre-paid; proceedings end on 15% penalty payment
Case-Laws
GST
HC examined levy of penalty under s.74 CGST Act where tax with interest was paid prior to issuance of SCN. HC noted the distinction between s.74(5) and s.74(8), holding that on payment of tax, interest and 15% penalty after notice under s.74(1) read with s.74(3), further proceedings stand terminated. In this case, the petitioner had already discharged tax and interest pu

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