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Consolidated show-cause notices valid if fraudulent input tax credit proven; appeal and DRC-07 summary allowed until 31 Oct 2025
Case-Laws
GST
The HC held that consolidated show-cause notices and orders may be valid where fraudulent availment or utilization of input tax credit is established; the Petitioner's challenge on the ground of issuance across multiple financial years is untenable in light of that precedent. The Petitioner was directed to exhaust statutory appellate remedy and is permitted to file an appeal and the summary in DRC-07 before the Appellate Authority by 31 October 2025, together with the requisite pre-deposit; if so filed by that date the appeal shall not be dismissed as time-barred and shall be adjudicated on merits. The writ petition is disposed.
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Consolidated show-cause notices valid if fraudulent input tax credit proven; appeal and DRC-07 summary allowed until 31 Oct 2025
Case-Laws
GST
The HC held that consolidated show-cause notices and orders may be valid where fraudulent availment or utilization of input tax credit is established; the Petitioner's challenge on the ground of issuance across multiple financial years is untenable in light of that precedent. The Petitioner was directed to exhaust statutory appellate remedy and is permitted to file an appeal and the summary in DRC-07 before the Appellate Authority by 31 October 2025, together with the requisite pre-deposit; if so filed by that date the appeal shall not be dismissed as time-barred and shall be adjudicated on merits. The writ petition is disposed.
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Consolidated show-cause notices valid if fraudulent input tax credit proven; appeal and DRC-07 summary allowed until 31 Oct 2025
Case-Laws
GST
The HC held that consolidated show-cause notices and orders may be valid where fraudulent availment or utilization of input tax credit is established; the Petitioner's challenge on the ground of issuance across multiple financial years is untenable in light of that precedent. The Petitioner was directed to exhaust statutory appellate remedy and is permitted to file an appeal and the summary in DRC-07 before the Appellate Authority by 31 October 2025, together with the requisite pre-deposit; if so filed by that date the appeal shall not be dismissed as time-barred and shall be adjudicated on merits. The writ petition is disposed.
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GST circular: post-sale/secondary discounts, credit notes under Section 34 and when ITC reversal is not required
Circulars
GST
Circular clarifies GST treatment of secondary/post-sale discounts: when suppliers issue financial/commercial credit notes that do not reduce the original transaction value, recipients need not reverse input tax credit as the supplier's tax liability remains unchanged. Post-sale discounts from a manufacturer to a dealer are generally viewed as price reductions be

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Extended limitation under s.74(1) read with s.74(10) of GST Act not available absent fraud, wilful misstatement or suppression
Case-Laws
GST
HC held that the respondent lacked jurisdiction to invoke the extended limitation under s.74(1) read with s.74(10) of the GST Act in the absence of fraud, wilful misstatement or suppression by the petitioner. The court found the impugned show-cause notice failed to allege omission to declare information in returns or failure to furnish information

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Retrospective GST registration cancellation set aside; cancellation can apply only from SCN date July 26, 2023
Case-Laws
GST
The HC set aside the retrospective cancellation of the Petitioner's GST registration backdated to 21 July 2017 and held the impugned rejection order invalid for lack of reasons. Noting the Petitioner had sought cancellation and that the SCN did not propose retrospective cancellation, the Court directed that cancellation, if sustained, shall operate only from the S

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Adjudication set aside and matter remanded for fresh adjudication after denial of effective opportunity to be heard
Case-Laws
GST
The HC set aside the impugned adjudication and remanded the matter to the concerned Adjudicating Authority for fresh adjudication, observing a breach of natural justice. The court found that the show-cause notice was uploaded only to the portal's “Additional Notices” tab and the Petitioner had not availed any personal hearing or filed a reply, resulting in de

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Remand for fresh adjudication under section 74 GST Act after non-speaking order rejected reply without addressing grounds
Case-Laws
GST
The HC allowed the writ petition, holding the adjudication order to be a non-speaking order lacking application of mind; the authority had merely rejected the petitioner's reply as “not satisfactory” without addressing the grounds raised. The petition was remitted for de novo adjudication of the show-cause notice under section 74 of the GST Act, with di

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States should get compensation for GST revenue loss; eco growth should benefit all: Kerala FM
GST
Dated:- 14-9-2025
PTI
New Delhi, Sep 14 (PTI) Kerala Finance Minister KN Balagopal on Sunday said GST rate rationalisation benefits should be passed on to the common people, but if there is no compensation for the annual revenue loss, then states will be unable to continue to meet their social responsibilities.
For Kerala, the annual revenue loss due to the GST rate rationalisation is estimated at Rs 8,000 crore to Rs 10,000 crore.
Asserting that economic growth should be beneficial for the entire country, Balagopal told PTI that progressive taxation should not mean less tax for all and high-income or high-end luxury goods should

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r the public finances in the future.
“GST rationalisation will result in huge discounts in taxes, and the prices should come down in the coming days. It should be passed on to the common consumers 'Aam Aadmi'… in the past, whenever rate rationalisation came (in 2017-18), the tax difference was not passed on to the people,” the senior leader of the ruling CPI(M)-led Left Front in Kerala said.
GST, sales tax and Value Added Tax (VAT) are among the main revenue income sources for a state, while the Centre has a lot more options, the minister said and highlighted that if the revenue loss is not compensated, then states cannot continue with their social responsibilities like health, education and public distribution system.
According to Ker

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GST reforms are huge victory for each, every citizen of country: Nirmala Sitharaman
GST
Dated:- 14-9-2025
PTI
Chennai, Sep 14 (PTI) Union Finance Minister Nirmala Sitharaman on Sunday said that the GST reforms are a huge victory for each and every citizen of the country.
Taking into account that every state in India has their own festivals, it has been decided to implement the GST reforms much ahead of Prime Minister Narendra Modi's instruction of launching them before Deepavali fes

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NPPA asks drug makers, medical device industry to pass on GST rate cut benefit to consumers
GST
Dated:- 13-9-2025
PTI
New Delhi, Sep 13 (PTI) The National Pharmaceutical Pricing Authority has asked pharmaceutical companies and medical device makers to pass on the benefit of reduced GST rates to consumers with effect from September 22.
“The benefit of reduction in GST rates shall be passed on to consumers/patients effective from September 22, 2025. All the manufacturers /marketing companies selling drugs/formulations shall revise the MRP of drugs/formulations (including medical devices) accordingly, with effect from September 22,” the authority said in an order.
The manufacturer and marketing companies shall issue a revised pr

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Forensic analysis approved for seized CPU with strict protections; inspection on 11-12 Sept 2025, fees split equally
Case-Laws
GST
The HC declined to adjudicate on the petitioner's role in the underlying business and, without deciding merits, authorised forensic analysis of the seized CPU subject to strict protective conditions to prevent access to third-party client data. The CPU, seized during a raid at a firm in which the petitioner's parents are partners, shall be inspected on 11 an

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Omission of Rules 89(4B) & 96(10) CGST erases provisions ab initio; s.6 GCA and s.174(3) do not save pending matters
Case-Laws
GST
The HC held that the omission of Rule 89(4B) and Rule 96(10) of the CGST Rules by the 08.10.2024 notification operates to erase those provisions ab initio for all matters other than “transactions past and closed”; Section 6 of the General Clauses Act does not apply to the omission effected by subordinate Rules and no savings clause was afforded, nor does s.1

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Belated s.161 rectification dismissed as time-barred; sent back for fresh adjudication on Serial No.20 exemption, 25% provisional payment
Case-Laws
GST
The HC dismissed the belated application for rectification under s.161 as time-barred but observed that, prima facie, the petitioner may fall within the exemption under Serial No.20 of N.N. 2/2017-CT (Rate); however, the factual question whether the petitioner dealt in goods covered by that entry was held to be inappropriate for determin

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Petitioner liable for late fee under Section 47(2) for failure to file GSTR-9; petition dismissed
Case-Laws
GST
HC dismissed the writ petition and upheld the impugned order, holding the petitioner liable for late fees under Section 47(2) of the TN GST Act for failure to furnish the annual return (GSTR-9) for AY 2021-22 in violation of Section 44 read with Rule 80. The court found no merit in the challenge, noting the petitioner did not file the return within three years; issuance of a n

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Delay condoned; assessment and appeal rejection set aside; petitioner allowed to prosecute appeal after 5% additional deposit within two weeks
Case-Laws
GST
The HC exercised its discretionary jurisdiction to condone delay in filing the appeal, finding the petitioner's reasons for delay bona fide, and thus set aside both the impugned assessment order issued by the first respondent and the rejection of the appeal by the second respondent. The Court granted the petitioner one opportunity t

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Penalty under s.129 quashed where Form GST-MOV-01, invoice, e-way bill, and transport voucher showed no tax evasion intent
Case-Laws
GST
The HC allowed the appeal and writ petition, holding that penalty under s.129 could not be imposed. The court found the appellant had produced requisite documentation (Form GST-MOV-01), an invoice from the job-worker, an e-way bill for stock transfer, and a stock transfer voucher corroborated by the transporter's document, demonstrating absence of mens

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GST reforms have ushered in revolutionary economic era, says Chhattisgarh CM; hails Modi
GST
Dated:- 12-9-2025
PTI
Raipur, Sep 12 (PTI) Chhattisgarh Chief Minister Vishnu Deo Sai on Friday said the Goods and Services Tax (GST) reforms under Prime Minister Narendra Modi's leadership have ushered in a new revolutionary economic era and eased the lives of 150 crore Indians.
Addressing a press conference at Kushabhau Thakre Parisar, the BJP state office here, Sai said GST has now truly become 'Good and Simple Tax'.
“Prior to the introduction of GST on July 1, 2017, India had 17 types of taxes and 13 types of cess. At one time, income tax rates had gone up to 97.5 percent. Now, income up to Rs 12 lakh annually has been made tax-fre

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0 per tractor. With around 30,000-35,000 tractors sold annually in Chhattisgarh, this alone would save farmers over Rs 200 crore,” he pointed out.
Similarly, lower GST on agricultural machinery, fertilizers, bio-pesticides, irrigation equipment, drip and sprinkler systems will reduce costs and increase profitability for cultivators, Sai said.
He said removing GST on health and life insurance is a landmark step in strengthening social security.
“Reduction of GST on tendu leaf and minor forest produce processing equipment will also benefit leaf collectors in tribal-dominated Bastar and Surguja regions,” he said while calling the reforms a new dawn for the poor and middle class.
“The initiative is a big step toward realizing Prime Ministe

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GST 'fraud': ED claims MNCs benefitted from fake ITC worth crores
GST
Dated:- 12-9-2025
PTI
New Delhi, Sep 12 (PTI) The Enforcement Directorate (ED) on Friday said its preliminary probe into a multi-crore pan-India alleged fake input tax credit (ITC) fraud has found that “big MNCs” were benefiting from these illegal transactions.
The Itanagar (Arunachal Pradesh) office of the federal probe agency carried out searches in this case on Thursday and covered about 10 premises in the northeastern state apart from Delhi, Haryana, Tamil Nadu and Telangana.
The raids were undertaken in connection with a multi-crore fake ITC fraud following registration of a case under the Prevention of Money Laundering Act (PMLA), it said in a statemen

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ts and recovery of incriminating records, exposing systematic misuse of the GST framework through bogus invoicing, fake e-way bills, and layered fund transfers.
“Primary investigation reveals that fake ITC has been passed to big MNCs for which a detailed investigation is going on,” the ED said.
It claimed “significant” frauds came to light during the searches.
In Arunachal Pradesh, it said, the proprietors of Rainbow Enterprises and A K Enterprises “admitted” to availing fake ITC of over Rs 2 crore each without any actual supply or movement of goods.
Another entity, Tanor Engineering, was found to have “fraudulently” obtained fake ITC of Rs 4 crore.
In Hyderabad, a company named Vinardh Automobiles “admitted” to projecting a “fake” tur

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Centre, states to earn Rs 40,000 cr in GST if all 97 lakh polluting vehicles scrapped: Gadkari
GST
Dated:- 12-9-2025
PTI
New Delhi, Sep 12 (PTI) Union Minister Nitin Gadkari on Friday said the Centre and states could earn up to Rs 40,000 crore in Goods and Services Tax if all 97 lakh unfit and polluting vehicles are scrapped.
Addressing ACMA Annual Session 2025, Gadkari further said up to August this year, 3 lakh unfit and polluting vehicles have been scrapped, out of which 1.41 lakh were government vehicles.
“According to our estimate, there are 97 lakh (unfit and polluting) vehicles, which we need to scrap…70 lakh jobs will be created and Rs 40,000 crore benefits will go to the Centre and states in GST if all unfit and p

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the name of governments, the usage expires after 15 years.
Gadkari also urged the automobile industry to consider offering a minimum discount of 5 per cent to customers who submit a scrappage certificate while buying a new vehicle. “It is not charity, because it is going to increase the demand,” he said.
According to Gadkari, while the auto industry has benefited a lot from the GST rationalisation, the successful implementation of Vehicle Scrapping Policy is going to reduce the cost of automobile component by 25 per cent.
“Prime Minister Narendra Modi has taken decision reduce the GST rates, and that is a good incentive for all of you. This is going to increase your market potential, boost demand and increase size of the industry.
“

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global point of view is very very important..Now global instability is there.” Raising concerns over road safety, Gadkari pointed out that in 2023, there were 5 lakh accidents and 1.8 lakh deaths, in which 66 per cent were from the 18-34 age group.
Responding to a question on the government's proposal of 27 per cent ethanol blending in petrol(E27), Gadkari said countries like Brazil are using 27 per cent ethanol blending in petrol for the last 49 years.
” We are not going to compromise with the quality… after completing all tests, ARAI( Automobile Research Association of India) will send the proposal to the petroleum ministry. The the ministry will recommend to the Cabinet and then we will take the decision on E27, so there is no co

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GST rates rationalistion should stimulate economy: Cong leader Tharoor
GST
Dated:- 12-9-2025
PTI
Singapore, Sep 12 (PTI) Senior Congress leader Shashi Tharoor on Friday said the rationalisation of GST rates should stimulate Indian economic and business activities, but stressed on the need to move towards a single rate.
He said the Congress party had been demanding the simplification and rationalisation of Goods and Services Tax rates for many years.
“I think the GST cut was a very constructive decision. To be honest, We have been calling for it for some years now. My party has been advocating a simplification of GST from the very beginning,” Tharoor said on the sidelines of CREDAI-NATCON conference here.
“Having four rates

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d. And we can learn from places like Singapore, where we are today, where things are so much more simple and efficient,” Tharoor said.
The GST Council has approved a two-tier GST structure with rates of 5 per cent and 18 per cent for most goods and services and a special rate of 40 per cent for tobacco and related products as well as ultra-luxury items.
The new rates will be effective September 22, barring tobacco and associated products, which will continue to be taxed at 28 per cent plus a compensation cess till December 31.
As part of the rationalisation, GST has been exempted on individual life insurance, including term, ULIP, and endowment plans and reinsurance services. Currently, premium payment on such policies attracts 18 per

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TVS Motor expects spurt in demand post GST rate cut
GST
Dated:- 12-9-2025
PTI
Kolkata, Sep 12 (PTI) TVS Motor Company expects that the GST rate cut on the automobile industry will cause a spurt in demand, which the firm is ready to meet, an official said on Friday.
The company launched a 150 cc scooter in the city, targeting the new generation riders.
“The GST rate cut on the automobile sector from 28 per cent to 18 per cent is a big boost and will create a spurt in demand. TVS has the capacity to meet this rise in demand,” senior VP (commuter and EV business) of TVS Motor Aniruddha Haldar said.
Haldar said TVS is the third largest two-wheeler manufacturer in India and present in both the ICE and electric vehicles (EV) segmen

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Ludhiana CGST officers detect Rs 5.29 cr GST evasion
GST
Dated:- 12-9-2025
PTI
Ludhiana, Sep 12 (PTI) The Central GST officers have busted a fake firm in the iron and steel sector for generating fake bills worth Rs 29.43 crore, which resulted in Rs 5.29 crore GST evasion.
The fake firm, which was set up to fraudulently pass on input tax credit was based in Mandi Gobindgarh, district Fatehgarh Sahib, and was busted by the Ludhiana CGST Commissionerate, an official statement said on

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DGAP report partly accepted; respondent ordered to deposit Rs.6,88,770 to Consumer Welfare Fund; 18% interest rule not retrospective
Case-Laws
GST
The AT accepted the DGAP report in part, finding that the respondent had profiteered Rs. 6,88,770 for the period 27.07.2018-31.10.2018 and directed the respondent to deposit that profiteered amount into the Consumer Welfare Fund, to be apportioned equally between the Centre and States. The Tribunal held that the statutory provision imposing i

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Show-cause notices under s.73 invalidly served via GST portal; order quashed, petitioner given two weeks to reply
Case-Laws
GST
The HC found a breach of natural justice where show-cause notices and orders under s.73 were only uploaded to the GST portal's “Additional Notices and Orders” tab, depriving the petitioner of effective service and opportunity to be heard; noting the disputed amount was deposited and no outstanding demand existed, the Court quashed and set aside the impugned ord

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