Author: admin_gst

GST rate rejig: Sitharaman to address Aug 20 GoM meet to put forth Centre's rate cut proposal
GST
Dated:- 18-8-2025
PTI
New Delhi, Aug 18 (PTI) Finance Minister Nirmala Sitharaman will on Wednesday address a crucial meeting of a group of ministers of states as she makes a case for the sweeping GST reforms that will slash tax rates and lead to reduction in prices of common use items.
The Centre has proposed a 2-tier GST structure of 5 and 18 per cent, besides a 40 per cent special rate on a select few items to the GoM on GST rate rationalisation.
The proposal, which entails removing the current 12 and 28 per cent tax slabs, will be discussed at the 2-day meeting of the state ministerial panel on August 20 and 21 here in the n

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ying items under the category of 'merit' and 'standard' and the broad principle followed in the classification is to reduce tax burden for middle class, MSMEs, and the farm sector.
The proposed 40 per cent slab, the highest permissible tax rate under the GST law, will be only for about 5-7 items, including demerit goods like pan masala, tobacco and online gaming.
Goods and Services Tax (GST) is currently levied at 5, 12, 18 and 28 per cent. While food and essential items are either at nil or 5 per cent, luxury and demerit goods are in 28 per cent slab, with a cess on top of it.
If the Centre's proposal is accepted by the GoM, it would be placed before the GST Council, chaired by Sitharaman and comprising finance ministers from all sta

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GST reforms: Congress says it is vindicated
GST
Dated:- 18-8-2025
PTI
New Delhi, Aug 18 (PTI) The Congress on Monday said it stands vindicated on its criticism of the “flawed” Goods and Services Tax after Prime Minister Narendra Modi promised a simplified GST structure.
Congress general secretary, communications, Jairam Ramesh claimed the economy has never recovered from the twin “Modi-inflicted shocks” of GST 1.0 and demonetisation.
“It was the Vijay Kelkar Committee report of 2004 that led to the first announcement of GST in Mr. P. Chidambaram's Budget Speech of Feb 28, 2006. Here, Dr. Kelkar and his colleagues offer their suggestions for a transformed GST 2.0,” Ramesh said in a post on X.
“The Indian National Congress st

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ced the proposal to reform the GST law in his Independence Day speech on August 15 from the ramparts of the Red Fort.
The present GST tax rates of nil/zero on essential food items, 5 per cent on daily use products, 12 per cent on standard goods, 18 per cent on electronics and services and 28 per cent on luxury and sin goods will be replaced by two tax slabs of 5 per cent and 18 per cent plus a special 40 per cent top bracket for 5-7 demerit goods.
The proposed two-slab regime, if approved by the GST Council, will replace the current four slabs in the Goods and Services Tax (GST) regime, doing away with the 12 per cent and 28 per cent slabs.
The changes that have come about after nearly six months of deliberations and dozens of meeting

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Proposed GST reforms fuel market rally; Sensex jumps 1,168 points, Nifty reclaims 25k level
GST
Dated:- 18-8-2025
PTI
Mumbai, Aug 18 (PTI) Stock markets rose sharply on Monday powered by heavy buying in auto and consumer durables stocks, buoyed by plans for big bang reforms in the GST regime by Diwali and S&P upgrading India's sovereign credit rating.
Extending the morning gains, the 30-share BSE Sensex further jumped 1,168.11 points or 1.44 per cent to 81,765.77. The 50-share NSE Nifty surged 390.7 points or 1.58 per cent to 25,022.
From the Sensex firms, Maruti zoomed over 8 per cent. Bajaj Finance, UltraTech Cement, Mahindra & Mahindra, Trent and Bajaj Finserv were among the other major gainers from the pack.
However, L

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odi had announced the proposal to reform the GST law in his Independence Day speech on August 15 from the ramparts of the Red Fort.
“The expectation is that most of the goods and services will be in the 5 per cent and 18 per cent tax slabs. Sectors like autos and cement, which are presently in the 28 per cent tax slabs, are expected to benefit. TVS Motors, Hero, Eicher, M&M and Maruti are likely to respond positively to the news. Insurance companies are also expected to benefit from the GST revision,” Vijayakumar added.
In Asian markets, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng traded in positive territory while South Korea's Kospi quoted lower.
The US markets ended mostly lower on Friday.
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Sensex jumps over 1,000 points, Nifty tops 24,953.50 level buoyed by proposed GST reforms
GST
Dated:- 18-8-2025
PTI
Mumbai, Aug 18 (PTI) Benchmark indices Sensex and Nifty surged in early trade on Monday, buoyed by plans for big bang reforms in the GST regime by Diwali and S&P upgrading India's sovereign credit rating.
Auto, consumer discretionary and consumer durables stocks propelled the rally in the equity market.
The 30-share BSE Sensex jumped 1,021.93 points to 81,619.59 in early trade. The 50-share NSE Nifty surged 322.2 points to 24,953.50.
From the Sensex firms, Maruti, Bajaj Finance, Mahindra & Mahindra, UltraTech Cement, Trent and Bajaj Finserv were among the major gainers.
However, Larsen & Toubro, ITC, HCL Te

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s and services will be in the 5 per cent and 18 per cent tax slabs. Sectors like autos and cement, which are presently in the 28 per cent tax slabs, are expected to benefit. TVS Motors, Hero, Eicher, M&M and Maruti are likely to respond positively to the news. Insurance companies are also expected to benefit from the GST revision,” Vijayakumar added.
In Asian markets, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng traded in positive territory while South Korea's Kospi quoted lower.
The US markets ended mostly lower on Friday.
Global oil benchmark Brent crude dipped 0.05 per cent to USD 65.82 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,926.76 crore on Thursday, ac

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Section 130 Proceedings Not Allowed Based on Excess Stock Found Without Proper Verification Under GST Act
Case-Laws
GST
Proceedings initiated under section 130 read with section 122 of the GST Act based solely on excess stock found during a survey, without actual verification or weightment, are impermissible. The HC held that the GST Act provides a specific mechanism under sections 73/74 for dealing with unrecorded goods, and thus section 130 cannot be invoked in such circumstances. Precedents from this HC and the SC affirm that excess stock discovered at survey does not warrant initiation of proceedings under section 130. Consequently, the impugned orders issued on this basis were quashed, and the petition was allowed, confirming that section 130 proceedings cannot be employed for excess stock findings during a survey.
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Penalty for delayed e-way bill quashed as fresh bill was produced before seizure, no tax evasion found under GST Act
Case-Laws
GST
The HC quashed the penalty imposed for the delayed updating of the e-way bill, as the petitioner generated and produced an updated e-way bill before the seizure order was passed. The court found no evidence of intent to evade tax, a necessary element for penalty imposition under the GST Act. Physical verification revealed no discrepancies in the goods, and the petitioner's explanation of an accident causing delay was accepted. The HC held that mere expiry of the initial e-way bill does not constitute a contravention if a fresh e-way bill is generated in time. The impugned orders imposing penalties were set aside, and the writ petitions were allowed.
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Section 130 proceedings cannot be initiated for excess stock; cases must follow Sections 73 or 74 under GST Act
Case-Laws
GST
The HC held that initiation of proceedings under section 130 read with section 122 of the GST Act based on excess stock found during a survey was improper. The Court reaffirmed that section 130 proceedings are not applicable for cases involving excess stock discrepancies, which must be addressed under sections 73 or 74 of the GST Act. Reliance was placed on precedent establishing that excess stock discovered during a survey cannot trigger section 130 proceedings. Consequently, the impugned orders initiating action under section 130 were quashed, and the petition was allowed, directing the authorities to proceed under the appropriate provisions for tax recovery and assessment.
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Petitioner held liable for fraudulent ITC claims over Rs. 50 crores; demands and penalties upheld under GST rules
Case-Laws
GST
The HC dismissed the writ petitions filed by the petitioner challenging the demand for wrongful availment of ineligible ITC, interest, and penalty arising from discrepancies between GSTR-1 and GSTR-3B returns. The petitioner, who voluntarily provided OTP access to a third party, facilitated the creation of multiple fraudulent GST registrations resulting in ITC claims exceeding Rs. 50 crores. The Court held that the petitioner cannot claim innocence given these facts and declined to conduct a factual inquiry into the misuse of ITC, directing that such investigations fall within the purview of police authorities. Consequently, the petitions were disposed of, upholding the impugned orders and affirming the demand for recovery of tax liabilities and associated penalties.
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Writ Petition Dismissed Over Fraudulent ITC Claims; Court Urges Statutory Appeal for Detailed Review
Case-Laws
GST
The HC dismissed the writ petition challenging the impugned order alleging fraudulent availment of Input Tax Credit (ITC) by multiple parties. The Court noted that the Petitioner's reply to the show cause notice (SCN) may not have been duly considered, raising a potential natural justice issue. However, given the complexity involving numerous transactions and multiple noticees, the Court held that detailed factual examination is inappropriate under writ jurisdiction. The Court emphasized that the Petitioner should pursue statutory appellate remedies instead of seeking relief via writ petition. Consequently, the petition was dismissed without adjudicating the merits of the alleged fraudulent ITC claims or penalties imposed.
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HIGHLIGHTS
GST
Dated:- 17-8-2025
PTI
New Delhi, Following are the stop stories at 9.20 pm: NATION DEL122 VP CANDIDATE-LD NDA
NDA picks Maharashtra Governor CP Radhakrishnan as vice-president candidate New Delhi: Maharashta Governor Chandrapuram Ponnusamy Radhakrishnan, a seasoned BJP leader from Tamil Nadu with an RSS background, was on Sunday named the vice-presidential candidate of the ruling National Democratic Alliance.
DEL123 RADHAKRISHNAN-PROFILE
Long-time RSS volunteer, former MP from TN and governor for multiple states is BJP's choice for VP post New Delhi: He became associated with RSS and Jan Sangh in his teens, won Lok Sabha elections twice from Coimbatore in the late 1990s and his supporters call him 'Modi of Tamil Nadu' Maharashtra Governor Chandrapuram Ponnusamy Radhakrishnan is the BJP and NDA's choice for the Vice President's post.
DEL104 EC-2NDLD BIHAR
Submit affidavit in 7 days to back 'vote chori' claims: CEC Gyanesh Kuma

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Narendra Modi during his two-day visit to India beginning Monday, according to the Ministry of External Affairs (MEA).
DEL20 JK-RAINS-3RDLD KATHUA
Cloudburst, landslide in J-KÂ’s Kathua; seven killed Jammu: Seven members of four families, including five children, were killed in two separate incidents of cloudburst and landslide in Kathua district of Jammu and Kashmir early Sunday, officials said.
DEL125 CONG-2NDLD EC
EC stands thoroughly exposed for incompetence, partisanship: Cong New Delhi: The Congress on Sunday alleged that the Election Commission stood “thoroughly exposed” not only for its “incompetence” but also for its “blatant partisanship”, soon after the chief election commissioner defended the SIR in Bihar and rejected as “baseless” the opposition party's allegations of “vote theft”.
DEL118 EC-BIHAR-MULTIPLE VOTERS
Persons holding multiple voter IDs due to migration, other issues: CEC Gyanesh Kumar New Delhi: Chief Election Commissioner Gyanesh K

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sion Road-II worth nearly Rs 11,000 crore to reduce traffic congestion in the national capital and its surrounding areas.
DEL44 ONOE-KHANNA
Ex-CJI Khanna to ONOE committee: Constitutional validity does not mean desirability New Delhi: Former chief justice of India Sanjeev Khanna has told a parliamentary committee scrutinising the simultaneous election bill that the constitutional validity of a proposal in no way amounts to a pronouncement upon the desirability or necessity of its provisions.
BUSINESS DEL16 BIZ-GST
Next-Gen GST step towards a single tax slab GST New Delhi: The proposed ‘Next Gen GST’ with sweeping reforms, lower tax rates, and just two slabs, aims to boost the economy amid tariff threats and set the stage for a single tax rate regime by the time India becomes a developed nation, government sources said.
FOREIGN FGN13 PAK-RAINS
Pak warns of more heavy rains as flash flood death toll hits 327 Peshawar: PakistanÂ’s weather department on

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Modi urges states to cooperate in implementing proposed GST reforms
GST
Dated:- 17-8-2025
PTI
New Delhi, Aug 17 (PTI) Prime Minister Narendra Modi on Sunday said the Centre has circulated the draft of the next-generation GST reforms among states and sought their cooperation to implement the proposal before Diwali.
He said the reform in GST would benefit poor and middle-class people, as well as small and big businesses.
Addressing an event here after the inauguration of two expressways, the Prime Minister said the Centre intends to make the GST law simpler and revise tax rates.
Modi had announced the proposal to reform the GST law in his Independence Day speech on August 15 from the ramparts of Red Fort.
“For us, reform means

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Proposed GST rate tweaks on automobiles to end classification disputes
GST
Dated:- 17-8-2025
PTI
New Delhi, Aug 17 (PTI) In upcoming sweeping reforms, the GST on automobiles – currently in the highest tax bracket – will be restructured to resolve classification disputes related to engine capacity and vehicle size, ultimately benefiting the common man, according to government sources.
Presently, automobiles are taxed at 28 per cent, which is the highest GST slab. A compensation cess, ranging from 1 to 22 per cent, is levied on top of this rate, depending on the type of vehicle.
The total tax incidence on cars, depending on engine capacity and length, ranges from 29 per cent for small petrol cars to 50 per cent for SUVs.
Electr

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Next-Gen GST step towards a single tax slab GST
GST
Dated:- 17-8-2025
PTI
New Delhi, Aug 17 (PTI) The proposed ‘Next Gen GST’ with sweeping reforms, lower tax rates, and just two slabs, aims to boost the economy amid tariff threats and set the stage for a single tax rate regime by the time India becomes a developed nation, government sources said.
They said the proposed new GST regime, which slashes tax rates and assigns just two slabs of 5 per cent and 18 per cent, will boost the economy and also serve to mitigate tariff threats.
The proposed two-slab regime, if approved by the GST Council, will replace the current four slabs in the Goods and Services Tax (GST) regime, doing away with the 12 per cent and 28 per cent slabs.
Calling it the “next Gen GSTÂ’, a government official said, “It is a game changer reform. In the pantheon of economic reforms seen in India, it's right up there”. The officials spoke on the condition of anonymity.
Government sources said the new struc

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n the system.
Once the CentreÂ’s proposal is accepted by the Group of Ministers (GoM) and is approved by the GST Council, it will end the flux of tax rates and ensure stability, the officials said.
“What we have suggested is a 'Next Gen GST' keeping the needs of the middle class, poor, farmers, and MSMEs in mind. Also, it has been ensured that tax on daily use items is low,” the official told PTI.
“Once the system is put in place and India becomes a developed nation, we can think about a single rate GST,” the official said, adding that a single rate structure is suitable for developed countries where income and spending capacities are uniform.
“The ultimate aim is to move to a single slab structure,” the official said, adding that the time, however, is not right at present.
According to the official, during the process of overhaul, every due process is being followed. The Centre has taken the steering role but is protecting constitutional obligations by sharing it with the Group of

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40 billion of non-exempt Indian exports such as gems and jewellery, textiles and footwear.
Prime Minister Narendra Modi, in his Independence Day address to the nation on Friday, emphasised that India should become self-reliant and consume what is made in India.
The tax slabs that the Union Finance Ministry has proposed will go to a group of ministers from different states, and after their concurrence, will be placed before the all-powerful GST Council, which is headed by the Union Finance Minister and comprises representatives of all states and UTs.
The council is expected to meet next month to deliberate on the tax reform proposal.
About 20 per cent of items, including packaged food and beverages, apparel and hotel accommodation, are currently taxed at 12 per cent GST and account for 5-10 per cent of consumption and 5-6 per cent GST revenue.
Moving them to a lower 5 per cent slab may lead to loss of revenue, but the Central government is hopeful that a boost in consumption would

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HIGHLIGHTS
GST
Dated:- 16-8-2025
PTI
New Delhi, Aug 16 (PTI) Following are the top stories at 9 pm: NATION DEL47 MEA-UKRAINE-LD SUMMIT
India welcomes Putin-Trump summit on Ukraine conflict; pitches for early return of peace New Delhi: The world wants to see an early end to the conflict in Ukraine, India said on Saturday, welcoming the summit talks between US President Donald Trump and his Russian counterpart, Vladimir Putin, in Alaska that ended without a ceasefire deal.
DEL32 JK-LD CLOUDBURST-OPERATION
Explosives used to blast giant boulders to speed up rescue efforts in cloudburst-hit J-K village Kishtwar/Jammu: Explosives were used to blast giant boulders hampering the ongoing rescue and relief operations in the disaster-hit Chisoti village in Jammu and Kashmir's Kishtwar district on the third day on Saturday, officials said.
DEL11 SPACE-SHUKLA
Shubhanshu Shukla to return to India on Sunday, to meet PM Modi New Delhi: Astronaut Shubhanshu Shu

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“. By Asim Kamal
DEL16 JK-CLOUDBURST-LD OMAR
People's anger genuine, rescuers focused on saving those trapped: J-K CM at cloudburst-hit village Chasoti (J-K): The anger of people seeking information about their kin missing in the aftermath of a cloudburst is quite understandable, Jammu and Kashmir Chief Minister Omar Abdullah said on Saturday after several locals confronted him in Chasoti and vented their frustration.
DEL27 EC-PRESSER
EC to hold press conference on Sunday amid opposition allegations New Delhi: The Election Commission (EC) will hold a press conference on Sunday amid allegations of “vote theft” levelled by Congress leader Rahul Gandhi and relentless protest by opposition parties over the intensive electoral roll revision in Bihar.
DEL20 WANG-INDIA-VISIT
Chinese Foreign Minister Wang Yi to pay 2-day visit to India from Monday: MEA New Delhi: Chinese Foreign Minister Wang Yi will pay a two-day visit to India beginning Monday to hold border talks w

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I Periyasamy, saying it was an attempt to divert attention from 'vote chori,' a term coined by Congress leader Rahul Gandhi over alleged electoral fraud in the 2024 elections that the BJP-led NDA won.
BUSINESS DEL49 BIZ-GST-LD CONGRESS
Govt slams Congress for stand on GST reforms, says it smacks of hypocrisy New Delhi: The government on Saturday lashed out at the opposition Congress for attempting to take credit for the biggest GST reforms, saying the party was not even present in Parliament when the landmark one-nation, one-tax was passed, and its statements now smack of hypocrisy.
LEGAL LGD1 SC-TAX AUTHORITY
Assessee must comply with summons issued by tax authority: SC New Delhi: The Supreme Court has held that an assessee must comply with a summons and furnish a response to a show cause notice when it is issued by the central or the state tax authority.
LGD4 SC-PRESIDENTIAL REFERENCE-BILLS
Imposing fixed timelines on Guvs, Prez would lead to 'constitutio

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Govt slams Congress for stand on GST reforms, says it smacks of hypocrisy
GST
Dated:- 16-8-2025
PTI
New Delhi, Aug 16 (PTI) The government on Saturday lashed out at the opposition Congress for attempting to take credit for the biggest GST reforms, saying the party was not even present when the landmark one-nation, one-tax was passed, and its statements now smack of hypocrisy.
Recalling the history of Goods and Services Tax (GST) rollout, top government sources said the Congress par

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'Next Gen GST' precursor to eventual single tax slab GST: Sources
GST
Dated:- 16-8-2025
PTI
New Delhi, Aug 16 (PTI) Describing the proposed GST tax reforms as ‘Next Gen GST’, senior government officials on Saturday said that the two-slab tax regime will eventually pave the way for a single sales/services tax rate, hopefully by 2047.
They said the proposed new GST regime, which slashes tax rates and assigns just two slabs of 5 per cent and 18 per cent, will boost the economy and als

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Assessee must comply with summons issued by tax authority: SC
GST
Dated:- 16-8-2025
PTI
New Delhi, Aug 16 (PTI) The Supreme Court has held that an assessee must comply with a summons and furnish a response to a show cause notice when it is issued by the central or the state tax authority.
“Assessee” under the Income Tax Act of 1961 refers to any individual or entity that holds the legal liability of tax payment or any other financial commitments as specified by the Act.
Thus, laying down guidelines to prevent duplication of adjudication by central and state GST authorities, a bench of Justices J B Pardiwala and R Mahadevan said that mere issuance of a summons does not enable either the issuing authority or the recipient to a

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h intimation.
“We say, so as this course of action would obviate needless duplication of proceedings and ensure optimal utilisation of the Department's time, effort, and resources, bearing in mind that action initiated by one authority enures to the benefit of all.
“If the claim of the taxable person regarding the overlap of inquiries is found untenable, and the investigations of the two authorities pertain to different 'subject matters,' an intimation to this effect, along with the reasons and a specification of the distinct subject matters, shall be immediately conveyed in writing to the taxable person,” the bench added.
The apex court said the taxing authorities are well within their rights to conduct an inquiry or investigation un

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Want GST 2.0 to be Good and Simple Tax not Growth Suppressing Tax: Cong
GST
Dated:- 16-8-2025
PTI
New Delhi, Aug 16 (PTI) The Congress Saturday demanded an official discussion paper on GST 2.0 soon for a wider debate on it and said the reform should be towards a “Good and Simple Tax” in letter, spirit, and compliance, and not the “Growth Suppressing Tax” it has become.
The opposition party's assertion came a day after Prime Minister Narendra Modi announced that GST rates will be lowered by Diwali, bringing down prices of everyday use items, as his government looks to reform the eight-year-old regime that has been plagued by litigation and evasion.
Congress general secretary in-charge of communications, Jairam Ramesh, said that

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implification of the rate structure is essential, but must be done in a manner that minimises revenue uncertainty to states and also eliminates the classification disputes that have become so common.
“The GST compensation cess expires on March 31, 2026. This must be extended to offset any revenue uncertainty from the rationalisation of the rate structure.” Ramesh said the widespread concerns of MSMEs the major employment generators in the economy must be addressed meaningfully, he said, adding that apart from major procedural changes in GST, this will involve further increasing the thresholds that must apply to interstate supplies as well.
Sectoral issues that have surfaced, for instance, in textiles, tourism, exporters, handicrafts an

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goods and services be taxed in two slabs standard and merit and a select few items be charged special rates.
This is to replace the current goods and services tax (GST) structure, where sale of goods and rendering of services are taxed in four different brackets 5 per cent, 12 per cent, 18 per cent and 28 per cent with luxury and sin goods attracting a levy on top of the highest rate of 28 per cent.
“This Diwali, I am going to make it a double Diwali for you,” Modi had said in his address to the nation.
Stating that over the past eight years, his government has undertaken major GST reforms, the prime minister said, “We have discussed with states and we are bringing next-generation GST reforms that will reduce the tax burden across th

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Petition Challenging GST Registration Cancellation Dismissed Under Section 29(2)(c) for Non-Compliance
Case-Laws
GST
The HC dismissed the petitioner's application challenging the cancellation of its GST registration. The court found no merit in the claim of non-receipt of the show cause notice, as the petitioner had responded to it, citing internal communication issues. The impugned order was issued after affording the petitioner an opportunity to be heard in compliance with the proviso to Section 29(2) of the CGST/BGST Act. The petitioner failed to file pending returns and pay admitted tax before the order dated 03.07.2020, which constituted a valid ground for cancellation under Section 29(2)(c). The court distinguished precedents cited by the petitioner, noting that in this case, reasons were duly provided and the petitioner was not denied a hearing. Consequently, the court upheld the validity of the cancellation order and dismissed the petitioner's challenge.
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Appeal dismissed challenging budgetary support eligibility; settled law confirmed, previous order set aside under GST rules.
Case-Laws
GST
The Division Bench of the HC upheld the Single Judge's ruling in favor of Respondent No. 3, dismissing the writ petition filed by the appellant challenging eligibility for budgetary support. The Court found the issue to be settled law and declined to revisit the matter. Consequently, the appeal was dismissed, and the order dated 27-06-2022 issued by the Assistant Commissioner, Central GST, Gangtok Division, was set aside. The petition was disposed of accordingly.
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Writ Petition Dismissed for Delay; Section 107 CGST Act Limits Appeal Period; Email Service Starts Limitation Clock
Case-Laws
GST
The HC dismissed the writ petition filed beyond the prescribed limitation period for appeal under Section 107 of the CGST Act, 2017, holding that service by registered email constitutes valid service, triggering the limitation period. The court reaffirmed that statutory limitation periods are absolute and not extendable by applying Section 5 of the Limitation Act or through writ jurisdiction under Article 226. The petitioner failed to demonstrate sufficient cause for delay or explain the non-filing within time. The HC emphasized adherence to the exclusive statutory appellate mechanism, refusing to condone delay or entertain the petition on grounds neither involving gross injustice nor patent illegality. Consequently, allowing the petition would circumvent the statutory appellate process and render the limitation provision ineffective. The petition was rejected in limine.
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Retrospective cancellation of GST registration invalid without clear notice or reasons, effective only from SCN date
Case-Laws
GST
The HC held that the retrospective cancellation of the petitioner's GST registration was not justified as the show cause notice (SCN) did not contemplate such retrospective effect, nor were any reasons provided to support it. Consequently, the cancellation order was to take effect only from the date of the SCN, 4th April 2022. The petition was accordingly disposed of, affirming that the registration could not be annulled retrospectively based solely on the non-availability of the principal place of business at the time of the field visit.
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PM Modi promises big bang GST reform by Diwali, price cuts on everyday items
GST
Dated:- 15-8-2025
PTI
New Delhi, Aug 15 (PTI) Prime Minister Narendra Modi on Friday announced plans for big bang reforms in the GST regime by Diwali, which will bring down prices of everyday items, as his government looks to overhaul the eight-year-old tax structure plagued by compliance issues, evasions and litigation.
The present GST tax rates of nil/zero on essential food items, 5 per cent on daily use products, 12 per cent on standard goods, 18 per cent on electronics and services and 28 per cent on luxury and sin goods will be replaced by by a two tax slabs of 5 per cent and 18 per cent plus a special 40 per cent top bracket for 5-7 demerit goods.
While essential food items, medicines and education will continue to be taxed at zero rate in the proposed revamped goods and services tax (GST) regime, 99 per cent of items in the current 12 per cent slab will move to the 5 per cent bracket.

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troleum products, such as petrol, diesel, natural gas, ATF and crude oil, will continue to remain outside the GST, as they remain a major source of revenue for states.
When GST was implemented from July 1, 2017, it subsumed central levies like excise duty and service tax and state taxes like VAT into one levy. However, petroleum products, for the time being, and alcohol were kept out of it.
“This Diwali, I am going to make it a double Diwali for you,” Modi said in his address.
Stating that over the past eight years, his government has undertaken major GST reforms, the Prime Minister said, “We have discussed with states and we are bringing next-generation GST reforms that will reduce the tax burden across the country”.
“Tax on items for the common man will be reduced substantially. Our MSMEs will benefit hugely. Daily use items will become cheaper, which will also strengthen our economy,” he said.
Soon after the Prime Minister's address, the Union Finance Ministry, in a statement,

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ce the GoM vets it, it would go to the GST Council, headed by the Union Finance Minister and comprising representatives of all states, for a final implementation decision sometime in September.
The revamp may lead to a loss of revenue, which currently stands around Rs 2.10 lakh crore a month, but a boost to consumption and the economy is likely to recoup it in a matter of “a few months”, sources said.
Inverted duty structure in sectors like textiles and fertiliser will be addressed.
Once the revamped regime is implemented, the cess that is charged on luxury and sin goods on top of the highest 28 per cent rate will immediately end. The cess was initially levied to compensate states for the loss of revenue in the first five years of implementation of GST. It continued thereafter as the money borrowed to pay for the compensation had to be repaid. That repayment and revamp will coincide, sources said.
On structural reforms, the finance ministry said the inverted duty structure needs to

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Centre proposes 5%, 18% GST slabs; 40% tax on demerit items
GST
Dated:- 15-8-2025
PTI
New Delhi, Aug 15 (PTI) The central government has proposed two tax rates of 5 per cent and 18 per cent in the revamped Goods and Services Tax (GST), slated to replace the current indirect tax regime by Diwali this year, highly placed sources said.
The Centre has sent its proposal, which removes 12 and 28 per cent slabs, to the panel of state finance ministers on GST rate rationalisation. They will now discuss it and place it before the GST Council. The council is expected to meet next month.
While nil or zero per cent GST is charged on essential food items, 5 per cent is charged on daily use items, 12 per cent on standard goods, 18 per cent

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ategory and attract the highest tax rate.
As many as 8 sectors textiles, fertiliser, renewable energy, automotive, handicrafts, agriculture, health and insurance will benefit the most from the GST rate overhaul as per the Centre's proposal for ushering in the next generation GST reform.
The revamped GST is expected to give a big boost to consumption, offsetting the revenue loss that may occur from the rate revision, they said.
“There will be a gap in revenues because of the rejig, but the revenue will be offset in the next few months,” a government source said, adding that the new slab structure would be implemented by the early third quarter.
Under the present GST structure, which came into being after central and state levies were s

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GST revamp to see rates of 5%, 18%; 40% tax on 7 items
GST
Dated:- 15-8-2025
PTI
New Delhi, Aug 15 (PTI) The central government has proposed just two tax rates of 5 per cent and 18 per cent in the revamped Goods and Services Tax (GST), slated to replace the current indirect tax regime by Diwali this year, highly placed sources said.
While the presently nil or zero per cent GST tax is charged on essential food items, 5 per cent is charged on daily use items, 12 per cent on standard goods, 18 per cent electronics and services and 28 per cent on luxury and sin goods, the revamped GST regime will have two slabs plus a special rate of 40 per cent for luxury and sin goods, they said.
When the revamped structure is approved by the GS

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