Author: admin_gst

Judicial Intervention Nullifies Ex-Parte Order, Reinstates Petitioner's Right to Fair Hearing and Natural Justice Principles
Case-Laws
GST
HC set aside ex-parte order due to violation of natural justice principles, specifically lack of proper service of pre-intimation notice and show-cause notice. Despite previous dismissal of petitioner's appeal as time-barred, the court adopted a justice-oriented approach. Recognizing petitioner's claim of bona fide reasons for non-participation, the court remitted the matter to the first respondent. The order directs a fresh consideration of the case, providing the petitioner an opportunity to submit a reply and contest the proceedings in accordance with legal principles.
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GST Proceedings Upheld: Cross-Examination Denial Does Not Invalidate Administrative Process, Statutory Appeal Pathway Confirmed
Case-Laws
GST
HC dismissed the writ petition challenging GST proceedings, holding that mere rejection of cross-examination request does not automatically vitiate administrative proceedings. The Court emphasized that parties cannot convert show cause notice proceedings into mini-trials and must provide specific reasons for cross-examination. The petitioner was directed to exhaust statutory appellate remedies under Section 107 of CGST Act by filing an appeal before the Appellate Authority within thirty days, thereby preserving the administrative order and maintaining procedural integrity.
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High Court Invalidates Rs. 50,330 Tax Recovery, Orders Verification and Re-crediting of Electronic Cash and Credit Ledgers Under GST Act
Case-Laws
GST
HC ruled that the recovery of Rs. 50,330/- from petitioners' electronic cash and credit ledgers was unlawful. The court directed respondents to verify the recovery and re-credit the amounts to petitioners' respective cash/credit ledgers, considering the mandatory pre-deposit under Section 112(8) of the GST Act and the circular dated 11th September, 2024. The writ petition was disposed of without examining the substantive merits, with instructions for immediate rectification of the electronic liability ledger entries for the specified tax periods.
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Tax Assessments Require Separate Proceedings: Distinct Notices and Time Limits Mandated for Each Financial Year Under Sections 74(1), (2), and (10)
Case-Laws
GST
HC held that under Sections 74(1), (2), and (10), each assessment year must be proceeded separately by the proper officer. The statutory time limit for issuing orders is distinct for each financial year. The court mandates independent show cause notices for different assessment years, recognizing that taxpayers can raise separate defenses for each year. The composite notice challenging jurisdictional propriety was partially set aside, with the notice for 2017-2018 sustained and notices for 2018-2019, 2019-2020, 2020-2021, and 2021-2022 quashed. The appellate court found the single judge's interpretation erroneous and allowed the appeal, emphasizing the need for precise, year-specific tax assessment procedures.
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GST Registration Cancelled for Persistent Non-Compliance: Statutory Obligation Upheld with Potential Reinstatement Pathway
Case-Laws
GST
HC upheld GST registration cancellation under Section 29(2)(c) of CGST Act, 2017 for non-filing of returns for over six months. The court recognized the statutory obligation to electronically file returns and confirmed the administrative authority's power to cancel registration. However, the HC provided a remedial pathway, allowing the petitioner to potentially reinstate registration by submitting pending returns, paying tax dues, applicable interest, and late fees. The cancellation order was deemed valid, with discretionary reinstatement subject to compliance with prescribed procedural requirements.
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High Court Rejects Bail Modification in GST Fraud Case, Upholds Original Order Based on Investigation Completion and Cooperation
Case-Laws
GST
HC set aside CJM's order regarding bail in a fraudulent GST invoicing case, finding no material change in circumstances warranting release. Despite seeking cancellation of regular bail, the court determined no re-arrest was necessary as the investigation is complete and the respondent has fully cooperated. The respondent demonstrated availability for further statements, and the petitioner department is preparing to file a prosecution complaint. Consequently, the court disposed of the petition, acknowledging significant time had elapsed since the original bail order.
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Employers Must Pay GST on Nominal Salary Deductions for Canteen and Transport Services Under Specific Conditions
Case-Laws
GST
The AAR ruled that nominal deductions from employee salaries for canteen and transportation services constitute a “supply of service” under GST. The authority determined that the recovered amounts are taxable, while the employer's perquisite portion remains non-taxable. For canteen services, input tax credit (ITC) is not available, and GST applies to the employee-recovered amount. In the case of non-air-conditioned bus transportation, GST is applicable on the nominal deduction, and ITC can be claimed from the transport service provider. The decision hinges on distinguishing between employer-provided benefits and taxable service recoveries, ultimately establishing a nuanced approach to GST treatment of employee welfare services.
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CBIC Introduces Streamlined GST Registration Process with Clear Verification Guidelines and Standardized Timelines
Circulars
GST
The CBIC issued comprehensive instructions for processing GST registration applications, establishing clear guidelines for tax officers to streamline and standardize the verification process. Key directives include: (a) accepting one documentary proof for principal place of business ownership, (b) restricting additional document requests, (c) mandating registration approval within 7-30 days depending on risk assessment, and (d) prohibiting presumptive queries unrelated to submitted documents. Officers must carefully scrutinize applications, avoid unnecessary delays, and ensure genuine applicants are not harassed while preventing fraudulent registrations. The instructions aim to create a transparent, efficient GST registration mechanism with defined timelines and reduced administrative discretion.
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Claims that Government is considering levying Goods and Services Tax (GST) on UPI transactions over Rs.2,000 are completely false, misleading, and without any basis
GST
Dated:- 19-4-2025

The claims that the Government is considering levying Goods and Services Tax (GST) on UPI transactions over Rs.2,000 are completely false, misleading, and without any basis. Currently, there is no such proposal before the Government.
GST is levied on charges, such as the Merchant Discount Rate (MDR), relating to payments made using certain instruments.
Effective January 2020, the Central Board of Direct Taxes (CBDT) has removed the MDR on Person-to-Merchant (P2M) UPI transactions through the Gazette Notification dated 30th December

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High Court Rules Physical Tax Invoice Essential for Goods Transport Under WB GST Rules, Electronic Display Insufficient for Statutory Compliance
Case-Laws
GST
HC held that under West Bengal GST Rules, 2017, a physical tax invoice is mandatory during goods transportation. While electronic display was attempted, it did not constitute statutory compliance with Rule 138A(1)(a). The court noted no evidence of tax evasion intent and referenced prior precedent in Ashok Sharma case. Critically, the revenue authority did not dispute tax invoice authenticity or allege tax payment default. Consequently, the court set aside the penalty order, finding Section 129 invocation unjustified without demonstrable tax evasion intention. The appellate authority's order affirming the original penalty was quashed, and the petitioner was deemed entitled to penalty refund.
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Employee Service Recoveries Taxable Under GST: Canteen and Transport Charges Subject to Specific Rate Structures
Case-Laws
GST
The AAR ruled that recoveries from employees for canteen and transportation services are taxable under GST laws. Transportation services fall under SAC 9964, taxable at 5% without ITC or 12% with ITC. The taxable value is limited to the actual amount recovered from employees, with the perquisite portion considered non-taxable. Notice pay recoveries for premature employment termination are not considered taxable, as they are penalties designed to discourage non-serious employment candidates. The ruling clarifies the tax treatment of various employee-related recoveries, emphasizing the distinction between recoveries, perquisites, and penalty payments.
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E-way Bill Violation: Invalid Documentation Leads to Penalty Confirmation for Goods Transportation Under GST Regulations
Case-Laws
GST
HC upheld the penalty order for non-compliance with e-way bill requirements under the Uttar Pradesh GST Act, 2017. The goods were intercepted on 19.01.2023 with invalid e-way bills: one bill was for a different vehicle than declared, and the other had expired prior to transportation. The Court followed precedential rulings establishing that absence of a valid e-way bill creates a rebuttable presumption of tax evasion. The petitioner failed to provide sufficient evidence to rebut this presumption. Consequently, the Court dismissed the petition, affirming the mandatory nature of e-way bill compliance post-01.04.2018 and sustaining the imposed penalty.
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Renting Property to Social Justice Department for Girls' Hostel Qualifies as Exempt Service Under GST Notification 12/2017
Case-Laws
GST
The AAR determined that renting immovable property to the Social Justice and Special Assistance Department for a girls' hostel constitutes an exempt service under GST. The service falls within constitutional functions related to Panchayat (Article 243G) and Municipality (Article 243W) provisions. Since the activity involves residential accommodation for backward class girls, it qualifies for tax exemption as per Notification No. 12/2017-Central Tax (Rate). The service is considered a pure service without goods supply, and therefore, is completely exempt from GST levy.
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Universities Exempt from GST on Affiliation Fees as Non-Commercial Regulatory Activities Under Section 7 of CGST Act
Case-Laws
GST
HC adjudicated the jurisdictional dispute regarding GST levy on university affiliation fees. The court determined that university's statutory affiliation activities do not constitute a commercial transaction under Section 7 of CGST Act. Fees collected for affiliation, PG registration, and convocation are regulatory in nature, lacking commercial intent, and therefore not amenable to GST. The court found no jurisdictional basis for the show cause notice, emphasizing that the university's primary educational function precludes treating incidental transactions as business activities. Consequently, the HC allowed the petition, invalidating the proposed GST demand on the university's regulatory fees.
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Employee Canteen and Transportation Services Trigger Complex GST Implications for Salary Deductions and Benefit Provisions
Case-Laws
GST
The AAR ruled that deductions from employee salaries for factory canteen services constitute a taxable supply under Section 7 of CGST Act, 2017. Recoveries from employees are liable for GST as consideration for canteen services. ITC is not available for catering services under Section 17(5)(b). Regarding transportation services, the AAR determined that employee bus transportation provided as a contractual perquisite is not a GST supply. ITC is also disallowed for transportation services under Section 17(5)(g), as these are considered personal consumption services not mandated by statutory obligations. The decision effectively distinguishes between taxable and non-taxable employee benefits within the GST framework.
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Land Rights Transfer Triggers 18% GST, Covering Leasehold, Buildings, and Infrastructure Under Comprehensive Service Classification
Case-Laws
GST
The AAR held that: (i) assignment of leasehold land rights constitutes a taxable service under GST Laws, classifiable as “Other miscellaneous service” (SAC 999792) and taxable at 18%; (ii) transfer of building does not qualify as a separate goods or services transaction, but is part of leasehold rights assignment, also taxable at 18%; and (iii) sale of plant and machinery qualifies as goods supply, with GST applicable based on input tax credit rules or agreed price, subject to Section 18(6) of CGST Act. The ruling emphasizes that leasehold rights transfer, including associated buildings and infrastructure, is a comprehensive service subject to GST taxation.
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Accused in Fraudulent ITC Case Secures Conditional Bail Following Comprehensive Investigation Review and Preliminary Allegations Assessment
Case-Laws
GST
HC grants bail to accused in fraudulent ITC case after considering investigation completion, potential five-year maximum sentence, and pending trial. The court recognized the applicant's ongoing incarceration and noted that the specific role in creating fake firms remains an evidentiary matter. Bail was conditionally granted, acknowledging the preliminary nature of allegations and the absence of trial commencement. The decision reflects a balanced approach to pre-trial detention, prioritizing the applicant's liberty while maintaining judicial oversight through prescribed bail conditions.
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Geo Membrane Water-Proof Lining Classified as Technical Textile Under Tariff Item 59111000 with 12% GST Rate
Case-Laws
GST
AAR held that Geo Membrane for Water Proof Lining-Type-II is classifiable under Tariff Item 59111000, a textile article laminated with plastic used for technical purposes. The product comprises HDPE woven fabrics manufactured with specific weaving patterns to create water-impermeable characteristics. Despite involving plastic components, the item does not fall under Chapter 39's residuary entries but is specifically classified under Chapter 59. Consequently, the product attracts 12% GST rate, recognizing its technical textile nature and specialized manufacturing process involving precise weaving and lamination techniques.
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Taxpayer Wins Challenge to Input Tax Credit Denial, Court Orders Comprehensive Review of Transaction Evidence Under Section 16(2)(b)
Case-Laws
GST
HC allowed the petitioner's challenge to the rejection of ITC claim, finding a procedural error in the original orders. The court determined that physical movement of goods is not the sole criterion for ITC eligibility. The matter was remanded to the Deputy Commissioner to re-examine the case, specifically focusing on verifying the memorandum of understanding between the dealer and supplier, and assessing the documentation related to goods delivery. The court directed a fresh review of the ITC claim under Section 16(2)(b) of CGST Act, emphasizing the need for comprehensive examination of transaction details and supporting evidence.
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CBIC issues revised instructions for processing applications for GST registration by CBIC formations
GST
Dated:- 18-4-2025

Revised guidelines to field formations will reduce compliance burden on taxpayers and facilitate transparency
Several grievances have been received by the Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance, regarding difficulties being faced by applicants during the GST registration process, mainly on account of queries raised by officers on the grounds of seeking additional documents.
To resolve these grievances and to smoothen GST registration process, CBIC has issued instructions on 17th April, 2025 (Instruction No. 03/2025-GST) to the officers for proc

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Clubs and Associations Win: Retrospective Tax Amendments Struck Down, Mutuality Principle Preserved Under CGST and KGST Acts
Case-Laws
GST
HC held that amendments to CGST and KGST Acts regarding deemed supply of services by clubs/associations to members are unconstitutional. The court determined that the principle of mutuality survives constitutional interpretation, and the retrospective amendments violate the Rule of Law. The statutory provisions improperly expanded the definition of “supply” and “service” without constitutional basis. The amendments were declared void, with the court emphasizing that legislative actions must respect fairness and cannot impose unexpected tax liabilities retrospectively. The judgment upholds the principle that taxation mechanisms cannot arbitrarily redefine fundamental legal concepts without appropriate constitutional amendments.
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Railway Infrastructure Services Blend Multiple Contract Types, Determined as Mixed Supply Under GST Rule 995419 for Maintenance and Construction Work
Case-Laws
GST
AAR held that services provided by the applicant for reconstruction, maintenance, housekeeping, and security at Kalamboli Goods Shed constitute a mixed supply, primarily classified under works contract services. The services are not considered a composite supply and will be taxed at 18% under Heading 995419. The services involve cement concreting, platform construction, drainage, and water supply systems. The ruling explicitly notes that the input tax credit (ITC) entitlement for Central Railway cannot be determined within the scope of this advance ruling, leaving that aspect unresolved. The key determination is the tax classification and rate applicable to the mixed service contract.
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Cancer Diagnostic Research Services Denied GST Exemption Under Notification 12/2017-CT(R) Due to Research Classification
Case-Laws
GST
AAR ruled that the applicant's cancer diagnostic services do not qualify for GST exemption under Notification No. 12/2017-CT(R). The tests were determined to be clinical research and experimental development, primarily focused on acquiring new knowledge in biotechnology and cancer prognostic technologies. Without proper licensing from CDSCO or ICMR, the services were classified under Service Accounting Code 9981 for research services, rendering them ineligible for tax exemption. The determination hinged on the nature of the service being research-oriented rather than a direct diagnostic healthcare service.
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Textile-Based Geo-Membrane Water Proofing Material Classified Under 5911 10 00 as Technical Textile Product
Case-Laws
GST
AAR ruled that Geo-Membrane for Water Proof Lining – Type-II manufactured from HDPE woven fabrics with specific weaving patterns is classifiable under Tariff Heading 5911 10 00. The determination was based on the product's manufacturing process, technical textile characteristics, and compliance with IS Standards. Despite being laminated with plastic and involving textile components, the product's technical use and Chapter 5911 specifications dictate its classification, prioritizing Section Notes and Chapter Notes over commercial understanding or trade interpretation.
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GST Rate Reduction Not Automatically Applicable: Council Recommendation Insufficient Without Formal Notification
Case-Laws
GST
HC ruled on GST rate applicability for works contract services. The retrospective reduction of GST rate from 18% to 12% recommended by GST Council on 5th August, 2017 was not legally binding until formal notification on 21st September, 2017. The court held that the original GST rate of 18% prescribed in the 8th July, 2017 notification remained valid for tenders submitted before the final notification date. The GST Council's recommendation alone cannot be construed as a statutory rate change, particularly considering constitutional provisions. Consequently, the petitioner's claim for retrospective rate reduction was rejected, and the petition was dismissed.
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