Author: admin_gst

Late Fees for Incomplete Annual GST Returns Clarified, Section 47 Applies to FORM GSTR-9C Filing Requirements
Circulars
GST – States
The CCST clarifies the applicability of late fees for delayed filing of FORM GSTR-9C under the APGST Act, 2017. Late fees under section 47 are leviable for incomplete annual returns where FORM GSTR-9C is required but not furnished. The late fee calculation covers the period from the due date until complete filing, encompassing both FORM GSTR-9 and FORM GSTR-9C. For financial years up to 2022-23, late fees are waived if the reconciliation statement is filed by 31st March 2025, with no additional charges beyond the standard late fee under section 47. No refunds will be provided for previously paid late fees related to FORM GSTR-9C filing.
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Government Clarifies Tax Treatment for Co-Insurance and Reinsurance Transactions Under GST Regulations, Providing Retroactive Compliance Relief
Circulars
GST – States
Circular regularizing GST payment for co-insurance and reinsurance transactions retroactively from 01.07.2017 to 31.10.2024. The circular clarifies that apportionment of co-insurance premiums and ceding/reinsurance commissions will be treated neither as goods nor service supplies under Schedule III of CGST Act, subject to specific tax payment conditions. The GST Council recommended normalizing past tax treatments on an 'as is where is' basis, effectively providing tax compliance relief for insurers and reinsurers during the specified period.
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Procedural Flaws Invalidate GST Tax Order, Restore Petitioner's Right to Fair Hearing Under DRC-07 Guidelines
Case-Laws
GST
HC quashed the summary order in GST DRC-07 for procedural irregularities, specifically violation of natural justice principles. The court found the tax authority passed an order on 30.12.2023 without considering petitioner's objections, which were due on 28.12.2023. The impugned order was set aside conditionally, mandating petitioner to deposit 25% of disputed tax amount within four weeks. This judicial intervention restored procedural fairness by providing an opportunity for the petitioner to present their case on merits, ensuring compliance with principles of natural justice and due process in tax assessment proceedings.
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GST Registration Cancellation Upheld: Failure to File Returns and Respond to Notices Leads to Dismissal of Petition
Case-Laws
GST
HC dismissed the petition challenging registration cancellation under CGST Act. The petitioner failed to furnish final returns as mandated by Section 29(2)(c), did not respond to show cause notice, and did not avail hearing opportunity. Despite statutory provisions for revocation under Section 30 and appellate remedy under Section 107, petitioner remained inactive for over 13 months. The court held that procedural requirements were followed, and the petitioner is estopped from challenging the cancellation order due to acquiescence. The petition was consequently dismissed.
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Procedural Fairness Prevails: Notice Defect Invalidates Demand Order, Grants Petitioner 30-Day Response Window Under Natural Justice Principles
Case-Laws
GST
HC ruled that the Petitioner was denied natural justice due to improper service of Show Cause Notice (SCN), which was uploaded on an 'additional notices tab' without actual knowledge. The court directed the Petitioner be granted a 30-day period to file a reply to the SCN. The Adjudicating Authority must provide a fair hearing before proceeding, and the previous demand order was consequently set aside. The petition was disposed of, ensuring procedural fairness and the Petitioner's right to respond to allegations.
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Tax Assessment Against Resolved Corporate Debtor Blocked, Protecting Insolvency Resolution Integrity and Preventing Post-Approval Claims
Case-Laws
GST
HC ruled that ex-parte tax assessment against a corporate debtor post-CIRP resolution plan approval is impermissible. The court held that once the NCLT approves a resolution plan, subsequent claims by creditors are barred to preserve the integrity of the insolvency resolution process. The tax department's argument of lack of awareness was rejected, as the corporate debtor had previously communicated the resolution plan approval. The court emphasized that initiating fresh tax demands after NCLT's resolution plan approval would fundamentally undermine the Corporate Insolvency Resolution Process, thereby protecting the sanctity of the resolution mechanism and ensuring finality in corporate restructuring.
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Tax Liability After Death: Section 93 Requires Legal Representatives' Notification Before Proceeding Against Deceased Taxpayer
Case-Laws
GST
HC held that Section 93 addresses tax liability post-death but does not authorize determination against a deceased person. Issuance of show cause notice (SCN) and demand against a deceased individual without notifying legal representatives is procedurally invalid. The statutory requirement mandates serving SCN on legal representatives and obtaining their response before initiating any determination proceedings. The impugned order was consequently deemed unsustainable, with the court allowing the petition and invalidating the tax determination against the deceased taxpayer.
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Procedural Fairness Prevails: GST Department Ordered to Rectify Notice Deficiencies and Ensure Proper Hearing Mechanisms
Case-Laws
GST
HC remanded the matter to the Department for fresh consideration due to violation of natural justice principles. The Petitioner was not afforded an opportunity to file a reply or receive a personal hearing. The Court directed the Department to ensure service of notices through GST portal, personal email, mobile number, and speed post as per Section 169 of Central Goods and Services Act, 2017, to prevent similar procedural lapses in future. Petition was disposed of with instructions for the Department to place final standard operating procedure on record.
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Late GST Appeal Dismissed: Statutory Limitation Bars Challenge to Registration Cancellation Under Section 107
Case-Laws
GST
HC dismissed petitioner's appeal as time-barred under Section 107 of CGST Act, 2017. The appeal was filed on 29.09.2023, approximately one year and three months beyond the prescribed limitation period. The court held that the appellate authority lacks power to entertain appeals beyond the statutory 30-day extension period. The petitioner's failure to file regular returns and late appeal submission precluded any relief. The court found no perversity in the original registration cancellation order and upheld the appellate authority's decision, thereby conclusively rejecting the petitioner's challenge to the GST registration cancellation.
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GST Clarifications: Loan Penalties, Payment Aggregators, R&D Services, and Multiple Sector Guidelines
Circulars
GST – States
Clarifications on several tax-related matters including: (1) no GST is payable on penal charges levied by Regulated Entities for loan contract non-compliance; (2) GST exemption is available to RBI-regulated Payment Aggregators for settlement of transactions up to 2,000; (3) regularization of GST payment for research and development services provided by Government Entities from 2017-2024; (4) restoration of GST exemption for Training Partners approved by NSDC; (5) GST applicability on facility management services for MCD Headquarters; (6) confirmation that Delhi Development Authority is not a local authority; (7) regularization of GST on commercial property rental by unregistered persons to registered composition levy taxpayers; (8) regularization of GST on support services by electricity transmission utilities; and (9) regularization of GST for Goethe Institute/Max Mueller Bhawan services from 2017-2023.
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Late Fee Clarification for GSTR-9C: Mandatory Annual Return Filing Penalties and Waiver Under Section 47 of CGST Act
Circulars
GST – States
Legal clarification issued by tax authorities regarding late fee applicability for delayed submission of FORM GSTR-9C. The circular establishes that late fees under section 47 of CGST Act are leviable for incomplete annual return filing, specifically when FORM GSTR-9C is mandatorily required but not submitted alongside FORM GSTR-9. Late fees will be calculated from the original due date until complete return submission. For financial years up to 2022-23, late fees for delayed FORM GSTR-9C submission are waived if filed by 31st March 2025, with no additional penalties beyond original late fee calculation period.
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Simplified GST Guidelines: Pepper, Raisins, Popcorn, Concrete Blocks, and Motor Vehicle Cess Clarified
Circulars
GST – States
The GST clarification on various several taxation issues. Key points include: (1) pepper of genus Piper attracts 5% GST under HS 0904, with agriculturists supplying dried pepper exempt from registration, (2) agriculturists supplying raisins are GST-exempt, (3) ready-to-eat popcorn is classified under different HSN codes with varying GST rates (5-18%) depending on ingredients and packaging, (4) autoclaved aerated concrete blocks with over 50% fly ash content attract 12% GST under HS 6815, and (5) amended motor vehicle compensation cess entry effective from 26.7.2023. The circular aims to ensure uniform GST implementation across jurisdictions.
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Legal Clarity on WBGST Act Section 128A: Tax Payment Eligibility and Dispute Resolution Mechanism for Taxpayers
Circulars
GST – States
The Trade Circular addresses key interpretative issues regarding Section 128A of the WBGST Act, 2017, clarifying two primary concerns: (1) taxpayers who paid taxes through FORM GSTR-3B prior to 1st November 2024 remain eligible for benefits under Section 128A, subject to proper officer verification; and (2) for notices/orders spanning periods partially within and outside Section 128A's scope, taxpayers may file FORM SPL-01/SPL-02 after paying tax liability for covered periods, with appellate authorities empowered to adjudicate remaining periods independently, thereby providing a flexible mechanism for resolving complex tax dispute scenarios while maintaining procedural compliance.
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GST Registration License Cancellation Overturned Due to Procedural Gaps in Verification Process Under Rule 25
Case-Laws
GST
HC held that GST registration license cancellation was improper due to procedural irregularities. The visit note by the CGST Superintendent lacked corroborative evidence, as no additional witnesses were present during the physical verification. The officer failed to record statements from nearby shop owners and obtain their signatures, rendering the verification process fundamentally flawed. The subsequent administrative orders at different levels were found unsustainable, primarily because the initial verification was conducted without proper protocol. The court emphasized the importance of following Rule 25 of GST Rules 2017, which mandates comprehensive documentation and witness verification during business premise inspections. Consequently, the petitioner's license cancellation was quashed, and the administrative orders were set aside.
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Landmark GST Cancellation Ruling: Procedural Fairness Prevails, Order Quashed for Lack of Substantive Reasoning
Case-Laws
GST
HC allowed the writ petition challenging the rejection of a voluntary GST cancellation application. The court found the original order defective due to lack of reasoned explanation, violating principles of natural justice. The impugned order dated 20 November 2024 was quashed, directing the competent authority to reconsider the cancellation application afresh and dispose of it in accordance with legal principles, ensuring procedural fairness and providing substantive reasoning for any subsequent decision.
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Tax Appeal Dismissed: Strict Adherence to Limitation Period Bars Judicial Review Under Statutory Remedy Provisions
Case-Laws
GST
HC dismissed the writ petition challenging tax assessment orders, finding the appeal time-barred under the 2017 Act. The appellate authority correctly rejected the appeal filed beyond the prescribed limitation period, with no power to condone delay beyond one month. Relying on Supreme Court precedent, the HC held that where statutory remedy is foreclosed by limitation, judicial review under Article 226 is impermissible. The petitioner failed to demonstrate jurisdictional error or violation of natural justice principles, resulting in outright dismissal of the petition.
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Legal Victory: Tax Evasion Arrest Upheld, Bail Granted After Careful Review of Procedural Compliance and Cooperation
Case-Laws
GST
DSC ruling on petitioner's lawful arrest in tax evasion matter. Despite allegations of procedural irregularities, court found arrest memo valid, with proper grounds explained to accused and her father. Authorization order under Section 69 was signed by accused and witnesses. Court determined further judicial custody unnecessary, noting revenue adequately secured and accused's willingness to cooperate. Considering gender and nature of offense, bail application granted, allowing petitioner's release, with understanding that investigation may continue. Arrest deemed legally sound, but continued detention deemed unwarranted.
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Legal Proceedings Against Deceased Person Invalidated: Show Cause Notice Quashed Due to Procedural Irregularities Under Rule
Case-Laws
GST
HC ruled that proceedings initiated against a deceased person are legally invalid. The show cause notice and subsequent order issued to the deceased proprietor were procedurally incorrect, as legal proceedings cannot be commenced against a deceased individual. The court held that while authorities may proceed against legal representatives, the existing proceedings were fundamentally flawed. The writ petition challenging the notice was consequently allowed, rendering the entire proceeding from the show cause notice stage null and void. The decision emphasizes the principle that legal actions must be directed appropriately and cannot be sustained against a deceased person's estate without proper legal representation.
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GST Exemption for Rice Milling By-Products: Conversion Charges and Estimated Value Not Considered Taxable Consideration
Case-Laws
GST
HC ruled that GST cannot be levied on the value of by-products (broken rice, husk, and bran) generated during paddy milling for public distribution system (PDS). The court applied precedent from a prior case (Shiridi Sainath Industries) and determined that the conversion charges and estimated value of by-products do not constitute taxable consideration. The impugned assessment orders dated 25.10.2024 and 24.10.2024 were consequently set aside, effectively exempting the milling service provider from GST on retained by-products.
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Legal Challenge Succeeds: GST Seizure Invalidated Due to Lack of Substantive Evidence and Procedural Gaps
Case-Laws
GST
HC allowed the petition challenging goods seizure during transit. The court found no legal basis for seizure under GST Act, as authorities failed to establish tax evasion intent or document discrepancies. The goods were being transported from Meerut to Kanpur, intercepted at Basti solely due to an alternate route, without any substantive evidence of procedural violations. The court emphasized that absent specific statutory provisions mandating route declaration, the seizure was unwarranted. All accompanying documents were verified as genuine in quality and quantity, further invalidating the administrative action. The ruling underscores procedural propriety and protects taxpayer rights against arbitrary administrative interventions.
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Ex Parte Tax Assessment Invalidated: Procedural Defect in Notice Service Violates Natural Justice Principles, Order Set Aside
Case-Laws
GST
HC set aside ex parte assessment order due to violation of natural justice principles. The order was passed without proper service of show cause notice, as notices were uploaded in an obscure portal column rendering them effectively unnoticed by the petitioner. The Deputy Commissioner's rejection of appeal on limitation grounds was overruled. The HC remanded the matter for fresh consideration, with the petitioner willing to pay 15% of disputed tax. The procedural defect in service of notice fundamentally invalidated the original assessment, ensuring the petitioner's right to fair hearing was reinstated.
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Interim Relief Granted: Tax Notifications Challenged on Natural Justice Grounds, Coercive Actions Restrained
Case-Laws
GST
HC granted interim relief to petitioner challenging tax notifications, restraining respondents from taking coercive action. The court found a prima facie case of violation of natural justice principles due to non-service of show cause notice and denial of personal hearing. Multiple high courts have divergent views on the validity of the notifications, with some striking them down and others upholding them. The Supreme Court is currently adjudicating related matters. Interim protection was granted, directing respondents not to take adverse actions against the petitioner pending final resolution of the legal issues.
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GST Appellate Tribunal Procedure Rules 2025 Streamline Dispute Resolution with Electronic Filing and Clear Judicial Protocols
Notifications
GST
The GSTAT Procedure Rules, 2025 comprehensively regulate the procedural framework for the Goods and Services Tax Appellate Tribunal, establishing comprehensive guidelines for filing appeals, conducting hearings, maintaining records, and managing tribunal proceedings. Key provisions include electronic filing mechanisms, detailed procedural requirements for appeals, standards for document submission, rules governing authorized representatives, and protocols for case disposal. The rules emphasize transparency, efficiency, and structured judicial processes, providing a systematic approach to resolving GST-related disputes through a specialized appellate mechanism with clearly defined operational parameters.
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Taxpayer Challenge Rejected: Rule 86A(1)(a) Upholds ITC Blocking with Procedural Safeguards for Administrative Review
Case-Laws
GST
HC upheld the blocking of Input Tax Credit (ITC) under Rule 86A(1)(a) of Bihar GST Rules, 2017, finding sufficient material justifying the interim measure. The court confirmed the administrative order's validity while preserving the taxpayer's procedural remedy to challenge the ITC blockage. The respondent was directed to expeditiously consider and pass a reasoned order if the petitioner submits a request, ensuring principles of natural justice are maintained during the administrative process. Application disposed of with procedural guidance for potential future challenges.
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GST Assessment Order Valid: Statutory Time Limit Extended Through Government Notifications for Fiscal Year 2017-18
Case-Laws
GST
HC held that the assessment order dated 13.12.2023 was not time-barred due to successive government notifications extending the statutory time limit for GST assessment proceedings for FY 2017-18. Specifically, notifications dated 21.07.2022 and 24.04.2023 extended the time limit to 31.12.2023, rendering the impugned order legally valid. Since the order was passed within the extended timeline and the notifications were not challenged, the writ petition was deemed non-maintainable, with the statutory remedy of appeal being the appropriate recourse. Consequently, the HC dismissed the petition.
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