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Input Tax Credit Claims Under Section 73 Must Be Reviewed When GSTN Details Were Actually Present Despite Initial Rejection
Case-Laws
GST
HC examined proceedings under Section 73 of UP GST Act regarding disputed input tax credit claims. The authority initially rejected certificates filed per Government Order dated 27.12.2022, claiming absence of GSTN details. Upon review, HC found GSTN numbers were clearly mentioned in submitted certificates. Given this material discrepancy in assessment, HC remanded the matter to original authority for fresh consideration. Authority directed to review all materials, conduct stakeholder hearings, and issue reasoned order within three months of certified order copy production. Petition allowed through remand, emphasizing need for comprehensive review of documentation and proper procedural compliance in input tax credit determination.
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Promoter Cannot Deduct GST Loss from Apartment Cancellation Refund Despite 10% Cancellation Charges in Agreement
Case-Laws
GST
HC ruled against the promoter's attempt to deduct GST loss of Rs. 11,40,376/- from the refund amount following apartment cancellation. The court found no contractual provision in the Sale and Construction Agreements for GST deduction upon cancellation. The promoter's initial communication only mentioned 10% cancellation charges, revealing GST loss deduction only after the allottee refused to purchase an alternative apartment. The promoter failed to prove double GST payment for the same apartment. The court upheld the Appellate Tribunal's order allowing withdrawal of pre-deposit amount with accrued interest, directing the allottee to provide biweekly updates on refund application progress. Appeal dismissed.
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Taxpayer's CGST Payments Made Under Duress and Threats of Arrest Invalid Under Section 74(5)
Case-Laws
GST
HC determined that payments made under CGST Act were coerced, not voluntary self-ascertainment under Section 74(5). Evidence showed statements were recorded and deposits made under duress, with implicit threats of arrest. The timing of payments – one made after summons issuance and another during Bengaluru appearance – indicated coercion. Court rejected appellant's argument that respondent's affidavit challenging statements was belated, noting one-week gap was not fatal. Finding the recovery contrary to law, HC upheld single judge's order directing refund with interest. The cumulative facts demonstrated clear pattern of threat and coercion, invalidating both recorded statements and subsequent payments. Appeal dismissed.
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GST Council to soon take decision on rates, number of slabs: FM Sitharaman
GST
Dated:- 4-2-2025
PTI
New Delhi, Feb 4 (PTI) The GST Council will soon take a decision on having fewer and lower rates as the review work is almost complete, Finance Minister Nirmala Sitharaman said on Tuesday.
Currently, Goods and Services Tax (GST) is a four-tier tax structure with slabs at 5, 12, 18 and 28 per cent. Luxury and demerit goods are taxed at the highest bracket of 28 per cent, while packed food and essential items are in the lowest 5 per cent slab.
The Council, chaired by Sitharaman and comprising her state counterparts, has set up a group of ministers (GoM) to suggest changes in GST rates as well as reduce slabs.
“To be fair to th

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er rates. So work has got to happen on that, and I hope the GST Council will decide on it soon,” Sitharaman said.
Days after presenting the Union Budget 2025-26 that also provides significant income tax relief to the middle class, the minister asserted the country's economic fundamentals are strong and there is no structural slowdown.
Tax relief in the Budget is a reflection of the prime minister's commitment to the taxpayers, Sitharaman said and refuted speculations that the move was aimed at Delhi assembly elections.
She also told the gathering that there is no proposal to “shut down” the old tax regime.
On a question related to capital expenditure, the minister further said the capex has not come down, in fact it has increased to

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DOMS A1 Pencils Bundled with Sharpener Classified as Mixed Supply Under Section 8(b), Attracting 12% GST Rate
Case-Laws
GST
AAAR determined that supply of DOMS A1 pencils with sharpener constitutes a mixed supply under CGST Act, 2017, not a composite supply, as items are not naturally bundled or supplied in conjunction during ordinary business. The appellant's argument to apply General Interpretative Rules (GIR) for classification was rejected as Section 8(b) of CGST Act prevails when unambiguous. For mixed supplies, the HSN code attracting higher tax rate among component supplies (8214, 9608, or 9609) applies. Consequently, the supply attracts 12% tax rate based on the highest applicable rate among individual components. Appeal dismissed.
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Pre-packaged Food Sales Without Service Elements Not Eligible for Restaurant Service GST Rate Under SAC 996331
Case-Laws
GST
The AAAR determined that sale of readily available food and beverages not prepared in restaurant premises, whether consumed on-site or taken away, does not constitute 'restaurant service' under SAC 996331. The ruling established that restaurant service requires a composite supply where food/beverage provision is bundled with service elements. The authority emphasized that per Schedule-II clause 6(b) read with Section 7(1A), mere sale of pre-packaged food items without accompanying services represents pure supply of goods, not restaurant service. Consequently, such transactions attract applicable GST rates for goods rather than the concessional rate available for restaurant services under Notification No. 11/2017-Central Tax (Rate) and corresponding State notifications.
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Tax Demand Stayed: Interim Relief Granted with 10% Payment Condition Under Section 107(6) for Non-Operational Tribunal Case
Case-Laws
GST
HC granted interim stay on tax demand following appeal disposal, acknowledging non-operational status of Appellate Tribunal. Initial two-week unconditional stay granted, with extension contingent on petitioner's payment of 10% of disputed tax balance, supplementing previous Section 107(6) deposits. Stay continuation linked to either writ petition resolution or subsequent orders. Court directed filing of affidavit-in-opposition within six weeks, allowing one week for reply. Decision balanced taxpayer protection with revenue interests while addressing procedural gap due to pending Tribunal establishment.
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Transition of CENVAT Credits to GST Cannot Be Denied Based on Previous Law's Ineligibility Rules
Case-Laws
GST
HC held that CENVAT credit transition from JVAT Act to JGST Act cannot be denied based on ineligibility under the repealed law. Following precedent in prior case, court determined GST authorities lack jurisdiction to adjudicate eligibility of credits under former regime. Credits' eligibility must be evaluated under provisions of erstwhile Act. The impugned adjudication order and subsequent appellate order were quashed, allowing petitioner's transition of input tax credits into GST system. This ruling affirms that migration to GST cannot be blocked solely due to disputed credit eligibility under previous tax framework.
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Provisional Bank Account Attachment Under GST Section 83 Quashed Due To Insufficient Evidence And Reasoning
Case-Laws
GST
HC invalidated provisional attachment of petitioner's bank account under Section 83 of MGST Act 2017. Court emphasized the draconian nature of provisional attachment powers, requiring strict fulfillment of statutory conditions and proper formation of Commissioner's opinion to protect revenue interests. The Joint Commissioner's order failed to demonstrate adequate material basis for concluding petitioner would defeat potential tax demands. The mere reference to GST Council's recommended amendment regarding “plant and machinery” terminology in Section 17(5)(d) was insufficient justification. Court found the attachment unjustified due to lack of substantive reasoning and evidentiary support. Petition disposed of with attachment order quashed.
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Mixed Flour Preparations for Indian Snacks Attract 18% GST Under HSN 2106 90 Despite Flour Being Key Component
Case-Laws
GST
AAAR determined instant mix flours for traditional Indian snacks and dishes cannot be classified under Chapter 11 (HSN 1101, 1102, or 1106) despite flour being a key component. Products were classified under HSN 2106 90 attracting 18% GST, as they constitute food preparations not specified elsewhere. The tribunal rejected appellant's argument that preparation requirements disqualify products from Chapter 21 classification. When supplied with accompaniments (chutney powder, masala pack), these constitute mixed supplies rather than naturally bundled composite supplies. Essential character test under Rule 3(b) of GRI was found inapplicable as products are explicitly excluded from Chapter 11 classification based on their composition.
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Services to GPSSB and GPSC for recruitment and selection not exempt under GST Notification 12/2017-CT(R)
Case-Laws
GST
AAAR determined that services provided to Gujarat Panchayat Service Selection Board (GPSSB) and Gujarat Public Service Commission (GPSC) are not exempt from GST under Notification No. 12/2017-CT(R). While interpreting exemption provisions strictly per SC precedent, AAAR found GPSSB does not qualify as Central/State Government, Union Territory or local authority under CGST Act definitions. Similarly, GPSC, despite being a constitutional body managed and financed by State Government, cannot be classified as State Government itself. Therefore, services to both entities fail to meet primary conditions for exemption under entries 3 and 3A, which specifically require services be provided to government bodies or local authorities. The appellant's claims for GST exemption were rejected.
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Tax Credit Cannot Be Claimed Under CGST Act Section 140(5) For Capital Goods In Transit During Transition
Case-Laws
GST
HC held that transitional credit under CGST Act is not available for capital goods in transit as of the appointed date. While Section 140 of CGST Act allows carrying forward unutilized CENVAT credit for both inputs and capital goods, sub-section (5) specifically distinguishes between them. The CENVAT Credit Rules 2017, which superseded the 2004 Rules, provides no facility for claiming credit of excise duty on capital goods in transit. Following RSPL Limited precedent, the court affirmed that treating inputs and capital goods differently is constitutionally valid under Article 14, as they form distinct classes. The distinction in transitional provisions between inputs and capital goods was found lawful and justified. Application dismissed.
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Penalty Under GST Act Section 129(3) Upheld for Detained Machine Due to Ownership Claim Investigation
Case-Laws
GST
HC dismissed petition challenging penalty under GST Act Section 129(3) regarding detained Pokland Machine. Court found petitioner's claim of transferring goods to Varanasi parking yard required investigation. Petitioner's failure to claim ownership within 15-day period and casual handling of matter undermined credibility of assertions. Court directed petitioner to pursue statutory appeal remedy, permitting application of Limitation Act Section 14. Petition dismissed without prejudice to alternative remedies available under law.
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Punjab sees 11 pc growth in GST collections
GST
Dated:- 2-2-2025
PTI
Chandigarh, Feb 2 (PTI) Punjab Finance Minister Harpal Singh Cheema on Sunday said the state achieved 11.87 per cent growth in net goods and services tax (GST) collection up to January as compared to the mobilisations in the corresponding period of last financial year.
Excise collections in the state rose by 15.33 per cent, he said in a statement here.
Cheema said Punjab is among the top three general category sta

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GST mop-up rises 12 pc to Rs 1.96 lakh cr in January
GST
Dated:- 1-2-2025
PTI
New Delhi, Feb 1 (PTI) Gross GST revenue rose 12.3 per cent to Rs 1.96 lakh crore in January on higher domestic economic activity, government data showed on Saturday.
This includes 10.4 per cent growth in revenue from sale of goods and services domestically at Rs 1.47 lakh crore and 19.8 per cent rise in tax revenue from imported goods at Rs 48,382 crore.
Total gross GST revenue stood at Rs 1,95,506 crore in January, a 12.3 per cent growth year-on-year.
Refunds of Rs 23,853 crore were issued during the month, a rise of 24 per cent. Total net GST revenue, after adjusting refunds, stood at Rs 1.72 lakh crore, higher by 10.9 per cent.
KPMG, Indire

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Gross and Net GST revenue collections for the month of Jan, 2025
GST
Dated:- 1-2-2025

Gross and net GST revenue collections for the month of January, 2025.
News – Press release – PIB

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Foreign Airlines' Indian Units Get GST Exemption on Import of Services from Overseas Related Parties Without Consideration
Circulars
GST
Department of Revenue issued notification exempting import of services by foreign airlines' Indian establishments from related parties/overseas establishments when made without consideration. Key conditions include: payment of applicable GST on transport services in India, MoCA certification of airline's designation under bilateral air service agreements, and reciprocal tax exemption for Indian airlines in the foreign country. MoCA provided a list of designated foreign airlines operating in Winter 2024-25 schedule and collected feedback from Indian carriers (Air India, IndiGo, Akasa Air) regarding reciprocal treatment. The notification stems from 54th GST Council recommendations and aims to establish tax parity in international aviation services while ensuring compliance with bilateral agreements.
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GST Implications: High Seas Sale Goods Value Must Be Included in Works Contract Under Section 15 CGST
Case-Laws
GST
The AAR ruled on GST implications in an EPC contract between the applicant and IOCL. The contract was determined to be a single, composite works contract rather than a divisible one, despite comprising two work orders. The high seas sale (HSS) transaction was deemed neither a supply of goods nor services under Schedule III of CGST Act. However, the value of imported goods sold on HSS basis must be included in the transaction value for GST computation on works contract services, as per Section 15 of CGST Act. The ruling established that subsequent incorporation of HSS goods into works contract constitutes a composite supply treated as service under Schedule II. The contract's taxation involves both customs duty at importation and GST on the composite works contract service.
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Oil Company's $80M Payment for Production Sharing Contract Breach Ruled as Damages, Not Service Consideration
Case-Laws
GST
ANP demanded settlement fees from appellant following breach of Production Sharing Contract (PSC). The AAAR determined that USD 80,000,000 payment constituted liquidated damages for PSC breach, not consideration for services. The payment was made to compensate losses under clause 4.5(a)(iii), with no evidence of agreement for ANP to perform, refrain from, or tolerate specific acts in exchange. Following established principles on liquidated damages, such payments represent mere flow of money without constituting consideration for supply. The AAAR overturned previous ruling which incorrectly characterized payment as service-related. Appellant not liable for GST on settlement fees as payment qualified as damages rather than consideration for supply under GST framework.
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Tax Authority Cannot Apply 40% Turnover Rule Without Statutory Basis When Actual Transaction Data Already Submitted
Case-Laws
GST
HC set aside both assessment and rectification orders, finding no statutory basis for computing tax on 40% of total turnover as taxable transactions within Bihar state. The petitioner had already shown specific gross turnover in annual returns. Court directed petitioner to appear before Assessing Officer with supporting documentation on December 20, 2024. Assessing Officer must provide hearing opportunity and complete reassessment either on same date or subsequent date with proper acknowledgment from assessee or authorized representative. Matter requires fresh assessment based on actual turnover data rather than arbitrary percentage calculations.
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Input Tax Credit Claims on Mall Construction Under Section 17(5)(d) Must Consider Business Purpose of Structure
Case-Laws
GST
HC set aside tax liability determination under section 73 of CGST Act, 2017 and remanded for fresh consideration. The case involved ITC claims related to construction of shopping malls. Following Safari Retreats precedent, court held that 'plant or machinery' interpretation under section 17(5)(d) requires factual determination based on business context. Original order failed to consider Safari Retreats principles regarding classification of malls as plant. Issues regarding 8 invoices and ITC reporting discrepancies between GSTR-3B and GSTR-9 forms remain open for fresh examination. Matter remanded for de novo consideration incorporating Supreme Court's interpretative guidance.
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Late Fee Under Section 47(2) Applies Until Complete Filing of Both GSTR-9 and GSTR-9C Annual Returns
Circulars
GST
Late fee under CGST Act section 47(2) applies for delayed filing of complete annual return comprising both GSTR-9 and GSTR-9C (where required). For taxpayers with turnover exceeding specified thresholds, annual return is deemed incomplete without GSTR-9C. Late fee calculation period extends from due date until complete submission. Per notification 08/2025-CT, excess late fee beyond GSTR-9 filing date is waived for FY 2022-23 and earlier if GSTR-9C is filed by March 31, 2025. No refund available for previously paid late fees. Single late fee applies for the entire delay period rather than separate penalties for GSTR-9 and GSTR-9C.
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Eco survey calls for Ease of Doing Business 2.0 but silent on GST 2.0, ending 'tax terrorism': Cong
GST
Dated:- 31-1-2025
PTI
New Delhi, Jan 31 (PTI) The Congress slammed the BJP-led Centre on Friday after the latest Economic Survey was tabled in Parliament, saying it calls for Ease of Doing Business 2.0 but is silent on a whole new GST 2.0 and an end to the “tax terrorism” unleashed over the last 10 years.
Congress general secretary in-charge communications Jairam Ramesh said the Economic Survey has little to say about an Ease of Living 1.0 to ensure that the public-health crisis caused by growing pollution and chemical contamination begins to be dealt with seriously.
“The Economic Survey of the Ministry of Finance is often a

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foisting an Aadhaar-based payment system on them, and keeping wages low,” Ramesh said.
The survey also points out that there are 11.5 crore unique investors with demat accounts in Indian financial markets and says that “higher investor participation has engendered a self-reinforcing cycle of strong market returns, bringing in even more investors”, he noted.
“Why then is the government overseeing the corruption and weakening of a valuable national asset like SEBI, whose integrity is central to the welfare of these investors? As the Economic Survey itself says 'It is reasonable to expect that financial regulators hold themselves to the same standards that they expect of regulated entities',” the Congress leader said.
Despite thousands of

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Dismissal Order Reversed: Appeal to Proceed After Pre-deposit Payment Within Two Weeks Despite Initial Technical Rejection
Case-Laws
GST
HC set aside the dismissal order regarding petitioner's appeal, which was initially rejected due to non-payment of mandatory pre-deposit. The court found procedural irregularities in the Appellate Authority's issuance of a common order for multiple appellants without establishing identity of cause of action or parties. While some appeals were partially allowed, the petitioner's case was dismissed solely on technical grounds of non-payment. Given petitioner's willingness to comply with payment requirements, HC granted relief conditional upon full pre-deposit payment within two weeks, enabling adjudication on merits.
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Tax Liability Notice on Royalty Under Section 73(5) Not Final Order, Premature Challenge Dismissed
Case-Laws
GST
HC dismissed the premature writ petition challenging tax liability on royalty under KGST/CGST Act. The disputed Annexure-D was merely an intimation of ascertained tax under s.73(5), providing opportunity to either pay with interest or file submissions. No formal show cause notice under s.73(1) or final order under s.73(9) had been issued yet. The court held that petitioner retained remedy to file submissions against the intimation, and formal adjudication process including show cause notice would follow only upon non-payment. Given the preliminary stage of proceedings, petition was rejected as premature.
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