Goods and Services Tax

LNG Pipeline Construction Denied Input Tax Credit Due to Infrastructure Classification Under CGST Section 17
Case-Laws
GST
The AAR ruled that the Tie-in pipeline, which transfers re-gasified LNG from FSRU to the National Grid, does not qualify as “plant and machinery” under Section 17 of the CGST Act. Despite using various technical systems and devices, the pipeline remains a structure laid outside factory premises. Consequently, the applicant is precluded from claiming Input Tax Credit (ITC) for GST paid on goods and services used in constructing the pipeline, as per Section 17(5)(c) and 17(5)(d) of the CGST Act, 2017, as amended by the Finance Act 2025.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST Registration Cancellation Order Invalidated Due to Procedural Lapses in Notice and Hearing Principles
Case-Laws
GST
HC ruled that GST registration cancellation order violated principles of natural justice by: (1) issuing show cause notice for one ground but cancelling registration on an undisclosed separate ground, (2) failing to provide petitioner opportunity of being heard, and (3) passing quasi-judicial order without applying mind to constitutional protections under Articles 14 and 19. The impugned order was deemed unsustainable in law. HC remanded matter to adjudicating authority with directive to issue fresh notice specifying proposed registration cancellation reasons within one week, thereby allowing the petition and safeguarding petitioner's procedural rights.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Municipal Services Deemed Labour, Not Core Constitutional Functions, Disqualifying Tax Exemption Under Notification 12/2017
Case-Laws
GST
The AAR determined that the applicant's services to municipal councils, including property survey, numbering, measurement, and data digitalization, constitute pure labour services not directly related to constitutional functions under Articles 243G or 243W. While facilitating property tax assessment is essential for municipal operations, these specific services do not fall within the mandated municipal functions enumerated in the Twelfth Schedule. Consequently, the applicant is not eligible for the tax exemption under Notification No. 12/2017-CT (Rate), and standard tax provisions will apply to the services provided.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Diagnostic Medical Equipment Classified Differently: Infantometer at 12% GST, Stadiometer at 18% Based on Specific Design and Use
Case-Laws
GST
AAR ruled on classification of diagnostic medical equipment. For infantometer, the authority determined it qualifies as a diagnostic medical instrument under Heading 9018, primarily used by pediatricians to measure infant length and assess growth/malnutrition, thus attracting 12% GST. Conversely, stadiometer was classified under Heading 9017 as a general measuring instrument for height, not exclusively medical in nature, and therefore subject to 18% GST. The key distinguishing factor was the specific design, intended use, and professional context of each measuring device, with infantometer serving a diagnostic purpose while stadiometer remained a general measuring tool.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Infrastructure Service Payments: Interest in Deferred Installments Now Taxable Under GST Section 15(2)(d)
Case-Laws
GST
AAR held that interest receivable on deferred payment in Equated Yearly Installment under Annuity Model is subject to GST. Pursuant to Section 15(2)(d) of CGST Act, the interest component shall be includible in taxable value. The classification and GST rate for such interest shall mirror the original taxable supply of road construction and maintenance services. The ruling confirms that interest payments are integral to the total consideration and therefore taxable, ensuring comprehensive tax coverage for infrastructure project payments.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Testing and Commissioning of Rail Tracks Classified as Pure Construction Service Under GST, Taxed at 18% Rate
Case-Laws
GST
AAR determined that the testing and commissioning service for rail tracks does not qualify as a composite works contract under Sl. No. 3(vi)(a) of Notification 11/2017-Central Tax (Rate). The service constitutes a pure construction service under Chapter heading 9954, classified specifically under Sr. No. 3(xii) of the notification. Consequently, the service is chargeable to GST at 18%, as the materials were supplied by a separate entity and the applicant merely provided erection and commissioning services without transferring property in goods.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Specialized Fruit Protection Bags Classified as Sacks Under Tariff Heading 48194000 with Unique Protective Coating Properties
Case-Laws
GST
AAR ruled that fruit protection bags manufactured from coated kraft paper with specialized protective properties are classifiable under Tariff Heading 48194000 for sacks and bags, not under Tariff Heading 4805. The bags, sealed on three sides and designed to fully enclose fruits, possess characteristics beyond standard paper products. The chemical coating and specific functional design distinguish them from uncoated paper, rendering them a specialized packaging item. Consequently, the product is subject to 18% taxation under the identified tariff classification.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Maharashtra State Electricity Transmission Company Limited Wins GST Exemption for Penalty Recoveries and Financial Adjustments Under Rule 2(102)
Case-Laws
GST
AAR held that various financial transactions by MSETCL, including liquidated damages, forfeiture of security deposits, penalty recoveries, and write-back of unclaimed balances, do not constitute taxable supply under GST. The recoveries are primarily punitive measures to discourage non-serious contractors or accounting adjustments without consideration for services. Consequently, these transactions fall outside GST's purview, as they lack the essential elements of a supply, specifically the consideration for goods or services. The ruling emphasizes that such financial mechanisms are procedural safeguards rather than taxable commercial exchanges.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Legal Battle Over ITC Time Limits: Section 16(4) Bars Delayed Credit Claims for Import Taxes Beyond Specified Timeframe
Case-Laws
GST
AAR held that Section 16(4) of CGST Act, 2017 imposes a time limitation on Input Tax Credit (ITC) availment, which applies uniformly to all ITC types, including IGST paid on imports. The ruling emphasizes that the term 'invoice' encompasses documents evidencing tax payment like Bill of Entry. Consequently, the applicant is precluded from claiming IGST paid via Bill of Entry in subsequent GSTR-3B beyond the prescribed time limit. The decision underscores the legislative intent to ensure fiscal discipline, prevent indefinite credit carry-forward, and maintain systematic reconciliation of tax credits within the prescribed statutory timelines.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Shot Blasting Service on Customer Castings Classified as Job Work Under Section 2(68) CGST Act, Attracting 12% GST Rate
Case-Laws
GST
AAR determined that shot blasting service performed by the applicant on customer's castings within customer's premises constitutes a job work service under SAC 9988. The service meets definitional criteria of job work as per section 2(68) of CGST Act, 2017, involving processing of goods belonging to a registered person. Ownership of goods remains unchanged during processing. Consequently, the service is classified under Sr. No. 26(id) of Notification No. 11/2017-CT(R) and attracts 12% GST rate, validating the applicant's service classification and tax treatment.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Baby Car Seats Classified Under HSN 94018000, Distinct from Vehicle Seats and Baby Carriages, Affirming Specific Safety Classification
Case-Laws
GST
AAR held that baby car seats are correctly classified under HSN code 94018000, not under 87150010 or 87089900. The seats are specialized safety attachments for infants in motor vehicles, distinct from primary vehicle seats or baby carriages. They are additional attachments affixed to existing vehicle seats, designed specifically for safe infant transportation. The seats do not qualify as motor vehicle seats under 94012000 or baby carriages under 87150010. Consequently, entry 210A of Notification No. 5/2024 Central Tax (Rate) does not apply to these products. The ruling affirms the applicant's existing classification and tax treatment of baby car seats.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Arunachal DyCM calls for GST drive to boost compliance, revenue
GST
Dated:- 12-6-2025
PTI
Itanagar, Jun 12 (PTI) Arunachal Pradesh Deputy Chief Minister Chowna Mein on Thursday directed the Tax, Excise & Narcotics department to step up efforts in bringing all eligible businesses, particularly hotels, restaurants, and resorts, within the GST threshold under mandatory registration.
Chairing a departmental review meeting here, Mein, who also heads the department, emphasised the need for awareness campaigns and outreach programmes in collaboration with Arunachal Chamber of Commerce & Industries (ACCI) to educate stakeholders about the benefits and necessity of GST compliance.
The meeting reviewed the state's GST collection perform

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the current financial year, marking an increase of nearly 151 per cent.
GST collections also saw significant growth from Rs 227.94 crore in 2017-18 to Rs 1,825.87 crore in 2024-25, reflecting improved compliance and an expanded tax base, officials said.
In the excise sector, the department collected Rs 299.36 crore in 2024-25, marking a 46.62 per cent increase over the previous fiscal, they added.
To further assist taxpayers, the department has operationalised 16 GST seva kendras (GSKs) at key locations. These centres are equipped with biometric verification systems for Aadhaar-based authentication and physical premise checks to prevent fraudulent registrations.
Mein reiterated the state government's commitment to modernising tax admini

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Advisory on filing of Amnesty applications under Section 128A of the CGST Ac
GST
Dated:- 12-6-2025

1. As on 08.06.2025, a total of 3,02,658 waiver applications have been filed through SPL-01/ 02. However, it has come to notice that certain taxpayers are facing difficulties in filing amnesty applications under Section 128A on the GST portal. In view of the approaching last date for submission, various trade bodies have submitted representations requesting an alternate

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

CBI apprehends Superintendent, CGST, Amroha and a Tax Advocate while accepting illegal gratification of Rs. One Lakh
GST
Dated:- 12-6-2025

The Central Bureau of Investigation (CBI) has apprehended two accused including Superintendent of CGST, Amroha and a Tax Advocate while accepting illegal gratification of Rs. 1,00,000/- (as the 1st installment of demanded undue advantage of Rs. 4 Lakh) from the complainant.
A case was registered by CBI on 09.06.2025 on the basis of a complaint against the two said accused. The Complainant controls the business affairs of his family concern private company. The allegation in the complaint was that the accused Superintendent had issued penalty notice to the complainant's family concern privat

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Ex Parte Order Under GST Act Section 107 Overturned Due to Procedural Flaws and Insufficient Reasoning
Case-Laws
GST
HC set aside the ex parte order passed under Section 107 of GST Act, finding procedural irregularities despite multiple hearing opportunities being provided to the petitioner. Although the petitioner's non-appearance through tax consultant was not fully justified, the appellate authority's order lacked substantive reasoning and did not comply with statutory requirements. The matter was remanded for fresh adjudication, ensuring principles of natural justice are followed and the case is re-examined on merits. Writ petition disposed of with directions for de novo proceedings before the appellate authority.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST Registration Cancellation Overturned: Taxpayers Granted Opportunity to Rectify Statutory Return Non-Compliance and Revive Registration
Case-Laws
GST
HC allowed the petition challenging GST registration cancellation, following precedent in Tvl. Suguna Cutpiece Center's case. The court held that petitioners must be provided an opportunity to rectify statutory return non-compliance and revive their GST registration, thereby preventing automatic cancellation. This approach aims to balance regulatory compliance with enabling taxpayers to correct procedural deficiencies and minimize potential revenue loss to the government. The petition was consequently disposed of with directions for potential registration revival.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax Assessment Order Quashed: Deputy Commissioner Must Provide Fair Hearing and Reasoned Decision Under Section 75(3)
Case-Laws
GST
HC quashed the original tax assessment order and directed the Deputy Commissioner to provide a hearing and issue a reasoned order considering the taxpayer's reply. The court held that the show cause notice remained valid and proceedings could continue beyond three months. The statutory provision under Section 75(3) allows issuance of remand orders within two years from the original order's communication. The challenge to the Section 74(5) notice was deemed without merit, resulting in the petition's dismissal with no substantial legal grounds supporting the taxpayer's contention.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Unique Reference Number (RFN) Now Validates GST Portal Communications, Eliminating Need for Additional Document Identification Numbers
Circulars
GST
CBIC clarified that for communications generated through the common GST portal with a verifiable Reference Number (RFN), quoting of Document Identification Number (DIN) is unnecessary. The circular modifies previous guidelines by recognizing RFN as a valid unique identifier for electronic communications. This decision aims to streamline administrative processes and reduce redundant documentation requirements for tax-related communications, ensuring compliance with Section 169(1)(d) of CGST Act, 2017 while maintaining transparency and accountability in official correspondence.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

CBI arrests Superintendent, CGST, Amroha and a Tax Advocate in a bribery case; Recovers Rs 3 lakh cash and property papers etc. from the residence of accused public servant
GST
Dated:- 11-6-2025

The Central Bureau of Investigation (CBI) today i.e. 10.06.2025 arrested two accused including Superintendent of CGST, Amroha and a Tax Advocatein an on-going investigation into a bribery case.
A case was registered by CBI on 09.06.2025 on the basis of a complaint against the two said accused. The Complainant controls the business affairs of his family concern private company. The allegation in the complaint was that the accused Superintendent had issued penalty notice to the complainant's family concern private company on account of n

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST Registration Cancellation Can Be Remedied: Taxpayers Allowed to File Pending Returns and Restore Status Under Section 29(2)(c)
Case-Laws
GST
HC ruled that GST registration cancellation under Section 29(2)(c) of CGST Act, 2017 for non-filing of returns for over six months can be remedied. The petitioner is permitted to approach the designated authority within two months, submit pending returns, pay tax dues, interest, and late fees. If all statutory requirements are fulfilled, the authority must expeditiously consider restoring the GST registration in accordance with legal provisions. The court's directive provides an opportunity for procedural rectification and reinstatement of the petitioner's tax registration status.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Legal Challenge Upheld: GST Order Invalidated for Procedural Unfairness and Incomplete Evidence Evaluation Under Section 73
Case-Laws
GST
HC set aside the Order-in-Original and Summary Order under Section 73 of GST Act due to violation of principles of natural justice. The adjudicating authority failed to consider the petitioner's reply to show-cause notice and supporting documents filed on 20.12.2024 before passing the order on 20.02.2025. The matter was remitted for fresh adjudication, emphasizing that administrative authorities must comprehensively examine all submitted evidence before rendering a decision. The court underscored the fundamental requirement of procedural fairness in administrative proceedings, mandating a thorough review of all representations and documentary evidence.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Bidder Cannot Challenge Tender Terms Post-Execution After Voluntarily Participating in Bidding Process with Tax-Inclusive Rates
Case-Laws
GST
HC dismissed the writ petition challenging tender conditions related to GST inclusion. The court held that the tender document clearly stipulated rates should be inclusive of taxes, and after GST regime introduction, 'sales tax' must be interpreted as GST. The petitioner cannot challenge tender terms post-contract execution after voluntarily participating in the bidding process. The court emphasized that tender conditions, once accepted and acted upon, are binding and cannot be unilaterally varied by a bidder. The appeal was dismissed, upholding the principle that bidders cannot seek additional payments when tender documents explicitly require tax-inclusive rates.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Procedural Fairness Prevails: SCN Communication Defect Nullifies Proceedings, Mandates Fresh Review Under Natural Justice Principles
Case-Laws
GST
HC held that the SCN issued on 29th September 2023 was not properly brought to the petitioner's notice, violating principles of natural justice. Given the lack of opportunity to be heard and no reply filed, the court remanded the matter back to the concerned Adjudicating Authority. The decision requires the department to ensure proper communication of show cause notices and provide adequate opportunity for the petitioner to respond, effectively setting aside potential proceedings and mandating a fresh review of the case.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Writ Petition Succeeds: BPCL Machines Released After Court Finds No Tax Evasion in Stock Transfer Proceedings
Case-Laws
GST
HC allowed the writ petition challenging detention and confiscation of 4 MPD machines intended for stock transfer between BPCL locations. The court found no tax evasion, noting e-way bill was generated prior to detention order and goods were not for trade. Relying on precedent cases, the court quashed the detention orders dated 10.7.2023 and 29.1.2021, determining the seizure was technically improper under GST Act provisions and violated procedural guidelines.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Procedural Violations Invalidate Notice: Natural Justice Principles Require Fair Hearing and Opportunity to Respond
Case-Laws
GST
HC held that the impugned notifications and show cause notice (SCN) were procedurally defective due to violation of natural justice principles. Citing precedent in a similar case involving Neelgiri Machinery, the court determined that the petitioner was not provided adequate opportunity for personal hearing. Despite portal modifications after 16th January 2024, the court found substantial procedural irregularities. Consequently, the court set aside the original order and remanded the matter back to the concerned adjudicating authority for fresh consideration, ensuring the petitioner receives proper opportunity to present their case.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =