Goods and Services Tax

Developer's Services to Housing Society Trigger GST Liability Based on Market Value of Comparable Property Transactions
Case-Laws
GST
AAR held that construction services rendered by developer to society members in exchange for development rights constitute a taxable supply under GST. The taxable value shall be determined by the market value of similar flats sold to independent buyers. GST liability is payable by the promoter on unsold flats at the time of completion certificate, with tax rates capped at 1% for affordable residential apartments and 5% for other residential apartments. Monetary considerations paid to existing members are not separately taxable, as they form part of the overall development rights consideration. The GST is calculated based on the value of area given free of cost, including amenities and parking, with tax becoming due on completion certificate or first occupation, whichever is earlier.
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Infosys gets huge relief on GST as DGGI closes Rs 32,400 cr pre-show cause notice
GST
Dated:- 7-6-2025
PTI
New Delhi, Jun 7 (PTI) In a major relief for Infosys, the Director General of GST Intelligence has closed pre-show cause notice proceedings against the company for financial years 2018-19 to 2021-22 involving a staggering Rs 32,403 crore in GST dues.
The latest move effectively ends nearly a year-long GST saga for India's second-largest IT services firm.
Mid-last year, the goods and services tax (GST) authorities had slapped Rs 32,403 crore notice on Infosys for services availed by the company from its overseas branches for five years starting 2017.
The GST demand, in fact, exceeds Infosys's annual profits (net profit

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ved and responded to a pre-show cause notice issued by DGGI for the period July 2017 to March 2022 on the issue of non-payment of IGST under Reverse Charge Mechanism.
“The GST amount as per the pre-show cause notice for this period was Rs 32,403 crore. The company had on August 3, 2024 received a communication from DGGI closing the pre-show cause notice proceedings for the financial year 2017-2018. With the receipt of today's communication from DGGI, this matter stands closed,” Infosys said.
In July last year, Infosys had informed that Karnataka State GST authorities issued a pre-show cause notice for payment of GST of Rs 32,403 crores for the period July 2017 to March 2022 towards the expenses incurred by overseas branch offices of Inf

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nfosys has paid all its GST dues and is fully in compliance with the central and state regulations on this matter,” the company had contended.
The document sent to Infosys by GST authorities at that point had reportedly said, “In lieu of receipt of supplies from overseas branch offices, the company has paid consideration to the branch offices in the form of overseas branch expense. Hence, M/s Infosys Ltd, Bengaluru is liable to pay IGST under reverse charge mechanism on supplies received from branches located outside India to the tune of Rs 32,403.46 crores for the period 2017-18 (July 2017 onwards) to 2021-22.” The Directorate General of GST Intelligence in Bengaluru had been of the opinion that Infosys did not pay the Integrated-GST (

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Citing CAG data, Jagan claims Andhra's fiscal performance indicates 'distress'
GST
Dated:- 7-6-2025
PTI
Amaravati, June 7 (PTI) YSRCP chief YS Jagan Mohan Reddy on Saturday cited the CAG's data for the month of April and claimed Andhra Pradesh's fiscal performance indicates 'distress'.
The former chief minister noted that the figures released by CAG for the month of the April 2025 convey the 'real picture'.
“The State GST revenues for the first month of this financial year (April 2025) demonstrated contraction to the tune of 24.20 percent, when compared to the April 2024,” he said in a post on 'X'.
Though the TDP-led NDA government on May 1 proclaimed that net GST collection of the state government for the month of April 2025

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said this is a regular process and net GST revenues would be arrived at after accounting for all these adjustments, and added that it was the case in the previous years as well.
“The May 1 press release says that net GST collection is Rs 3,354 crore for April 2025. Now, they (govt) say that Rs 796 crore is adjusted. One can clearly understand that this is nothing but a cover up after truth about the GST revenue is brought to light by the CAG,” said Reddy.
Further, the opposition leader observed that quite contrary to what the NDA alliance government had suggested, the figures released by CAG indicate that the 'trend of economic sluggishness' is more pronounced in April with the tax revenues dropping by 12.21 percent and non-tax revenues

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Barring of GST Return on expiry of three years
GST
Dated:- 7-6-2025

As per the Finance Act,2023 (8 of 2023), dt. 31-03-2023, implemented w.e.f 01-10-2023 vide Notification No. 28/2023 – Central Tax dated 31th July, 2023, the taxpayers shall not be allowed file their GST returns after the expiry of a period of three years from the due date of furnishing the said return under Section 37 ( Outward Supply), Section 39 (payment of liability), Section 44 ( Annual Return) and Section 52 (T

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Advisory regarding non-editable of auto-populated liability in GSTR-3B
GST
Dated:- 7-6-2025

1. GST Portal provides a pre-filled GSTR-3B, where the tax liability gets auto-populated based on the outward supplies declared in GSTR-1/ GSTR-1A/ IFF. As of now taxpayers can edit such auto populated values in form GSTR 3B itself.
2. With introduction of form GSTR 1A, taxpayer now has a facility to amend their incorrectly declared outward supplies in GSTR-1/IFF through GSTR-1A, allowing th

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GST Notification Limits Preferential Tax Rate to Select Towers A, B, C in Residential Project Under Specific Conditions
Case-Laws
GST
The AAR determined that the applicant's residential project did not fully qualify as an “ongoing project” under the GST notification. Only towers A, B, and C were eligible for the 12% GST rate (net 8% after land deduction) with input tax credit, subject to specified conditions. Projects initiated after 01.04.2019 were ineligible for the previous tax structure, requiring developers to choose between 1% (affordable housing) or 5% (without input tax credit) tax rates. The ruling partially allowed the applicant's original tax treatment, limiting the preferential GST rate to specific towers while excluding the remaining project components.
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Tamil Nadu Housing Board Cannot Retroactively Charge Additional GST After Advertising Inclusive Prices in Property Sales
Case-Laws
GST
HC ruled that TNHB cannot claim additional GST from petitioners after advertising and executing agreements with an inclusive price. The court held that TNHB, being in a dominant drafting position, cannot retroactively demand extra payment. Petitioners who paid the full advertised price are entitled to sale deeds without further GST charges. Those who paid an additional 5% will receive a refund. TNHB must reconcile its tax obligations internally without involving purchasers, and execute sale deeds at the originally quoted inclusive price. The petition was allowed, protecting purchasers from supplementary financial demands post-agreement.
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Fraudulent ITC Claim Rejected: Petitioner Directed to Pursue Appellate Remedy with Mandatory Pre-Deposit Under Section 107
Case-Laws
GST
HC dismissed the writ petition involving fraudulent Input Tax Credit (ITC) availment. The Court held that adequate notice was provided to the Petitioner and, given the fraudulent nature of the case and potential impact on the GST regime, writ jurisdiction would not be exercised. The Petitioner was granted permission to file an appellate remedy by 15th July, 2025, with mandatory pre-deposit under Section 107 of CGST Act, 2017, ensuring the appeal would be adjudicated on merits without limitation bar. The petition was disposed of, directing the Petitioner to pursue alternative legal remedies.
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Fraudulent ITC Claim Rejected: Petitioner Directed to Pursue Appellate Remedies Under Section 107 of CGST Act
Case-Laws
GST
HC dismissed the writ petition involving fraudulent Input Tax Credit (ITC) availment, declining to exercise judicial review. The court emphasized the significant impact on GST regime and exchequer, directing the petitioner to pursue appellate remedies under Section 107 of CGST Act, 2017. The petitioner was granted liberty to file an appeal by 15th July, 2025, with mandatory pre-deposit, ensuring the appeal would be adjudicated on merits if filed within the prescribed timeframe. The petition was disposed of, reinforcing procedural constraints in tax-related fraudulent claims.
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GST Proceedings Quashed: Procedural Lapses and Failure to Communicate Order Invalidate Administrative Action
Case-Laws
GST
HC quashed GST proceedings initiated against petitioner due to procedural irregularities in order issuance. The court found a violation of natural justice principles as the respondents failed to upload the GST DRC-07 order on the portal or communicate it to the petitioner on the date of its passing. The absence of proper communication and upload of the order rendered the proceedings invalid. The court held that it is the respondents' duty to ensure timely and proper communication of administrative orders, which was not fulfilled in this instance. Consequently, the petition was allowed, effectively nullifying the GST assessment proceedings.
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Jurisdictional Defect Invalidates Tax Notice: Procedural Fairness Mandates Fresh Examination of ITC Reversal
Case-Laws
GST
HC held that the impugned notice and order were quashed due to lack of jurisdictional propriety. The respondent-Authority failed to provide adequate intimation regarding ITC reversal, and the petitioner demonstrated genuine unawareness of procedural requirements. The Court remanded the matter back to the Adjudicating Authority to conduct a de novo examination of ITC reversal for 2017-18, directing a fresh order within twelve weeks. While the Appellate Authority had dismissed the appeal on delay grounds, the HC recognized procedural constraints and procedural fairness, effectively setting aside the original order and providing an opportunity for proper administrative review.
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Manual CGST Rule 97A Refund Applications Valid Despite Electronic Filing Requirement
Case-Laws
GST
HC held that manual refund applications under CGST Rules are maintainable. The court invalidated the tax authority's rejection of a 100% EOU's input tax credit refund application solely on grounds of manual filing. Relying on Rule 97A's non-obstante clause, the court determined that manual applications are valid, and electronic filing is not the exclusive method. The impugned order dated 10.08.2022 was set aside, effectively allowing the petitioner's refund application and establishing that procedural rejection without substantive examination is impermissible.
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Tax Proceedings Require Separate Annual Orders, Court Mandates Individual Determinations for Each Financial Year from 2017 to 2024
Case-Laws
GST
HC directs second respondent to issue separate orders for each financial year in tax proceedings. The court mandates individual determinations for FY 2017-2018 through 2023-2024, finding composite orders legally improper. Petitioner is granted one month to file reply for FY 2022-2023 and 2023-2024. The court references precedent establishing requirement of distinct orders under tax regulations. Writ petition disposed of with directive for second respondent to pass appropriate separate orders in compliance with legal principles, ensuring procedural fairness and individual assessment for each financial year.
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Logistics Services Classified as Rental Without Ownership Transfer Under GST Notification 11/2017 at 18% Rate
Case-Laws
GST
AAR determined that the applicant's Vehicle Leasing and Logistics Management Services do not involve transfer of vehicle ownership. The services encompass comprehensive logistics support including vehicle management, maintenance, replacement, loading/unloading, and transportation. The services are classified under HSN/SAC 997319 as residual entry for leasing or rental services of goods without operator, attracting a GST rate of 18%. The classification is based on the integrated nature of services beyond mere vehicle leasing, with tax applicability determined under Notification No. 11/2017 CT (Rate).
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Labor Contract for Housing Project Fails GST Exemption Test, Triggering 18% Tax Rate Under Notification 12/2017
Case-Laws
GST
The AAR determined that the taxpayer's labor contract service for constructing 380 flats does not qualify as a pure labor service under Pradhan Mantri Awas Yojana. Despite being a sub-contract with a builder, the agreement involves supplying machines and materials beyond labor, rendering it ineligible for GST exemption under Notification No. 12/2017. Consequently, the service falls under HSN code 9954(xii), attracting a standard GST rate of 18% as a residuary construction service category, based on a comprehensive analysis of the contractual terms and applicable tax notifications.
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Electronic Credit Ledger Restrictions: Rule 86B Limits Taxpayer's Credit Utilization for High Monthly Turnover Partnerships
Case-Laws
GST
AAR held that Rule 86B restrictions apply to the taxpayer, preventing use of electronic credit ledger beyond 99% of total tax liability. The cumulative income tax paid by the partnership firm and its partners cannot be aggregated to satisfy the exemption threshold. Since no individual partner paid more than Rs. 1 lakh in income tax during the last two financial years, the exemption under Rule 86B is not applicable. The taxpayer must discharge tax liability using electronic credit ledger up to 99% of the total tax liability for monthly turnover exceeding Rs. 50 lakh.
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Free Drug Samples and Logistics Services Disqualified from Input Tax Credit Under CGST Act Section 17(5)(h)
Case-Laws
GST
AAR ruled that the applicant is not entitled to input tax credit (ITC) in three key scenarios: (1) IGST paid on importing sample drugs supplied free to hospitals/clinics, (2) IGST paid by logistics service provider under Delivered Duty Paid model, and (3) CGST paid for Customs House Agent and logistics services. The ruling hinged on Section 17(5)(h) of CGST Act, which prohibits ITC for goods disposed as free samples or gifts. The sample drugs were imported for clinical trials without commercial consideration, thus categorized as free samples, rendering ITC impermissible across all associated tax payments and services.
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GST Liability Challenge Rejected: Petitioner Must First Exhaust Administrative Appeal Mechanism Under Section 107
Case-Laws
GST
HC dismissed the writ petition, declining to adjudicate the GST liability dispute. The court found significant discrepancies in the petitioner's self-declared turnover values across different documents and inconsistent financial reporting. Citing SC precedent, the court held that the petitioner must first exhaust the alternative statutory remedy by filing an appeal before the Commissioner (Appeals) under Section 107 of the GST Act. The petition was disposed of without examining the substantive merits, directing the petitioner to pursue the prescribed administrative appellate mechanism.
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Tax Interest Penalty Invalidated: Electronic Cash Ledger Deposit Halts Levy Under Rule 88 B(1) of CGST Rules
Case-Laws
GST
HC quashed the impugned order dated 30.12.2023 regarding interest levy for delayed GSTR 3B return filing. The court held that interest liability ceases upon tax deposit in the electronic cash ledger, relying on precedent in a similar case. Rule 88 B(1) of C.G. & S.T. Rules, 2017 was deemed clarificatory in nature, rendering retrospective/prospective effect arguments moot. The court left open the possibility of respondent taking action for other potential penalties or non-payments. The petition was disposed of, with interest levy specifically quashed while maintaining other potential enforcement mechanisms.
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Judicial Review Mandates Enhanced Communication Protocols for Efficient Legal Proceedings and Transparent Administrative Processes
Case-Laws
GST
HC adjudicated a procedural matter concerning natural justice principles, specifically addressing communication deficiencies in legal proceedings. The court mandated the Registry to implement communication protocols for efficient case processing within the CGST Department. Key directives included: deputizing two officers from CGST and CX Delhi Zone for immediate instructions, publishing email addresses of Commissionerates in cause lists, and requiring specific Commissionerate names in writ petitions. The court emphasized improved communication mechanisms to enhance legal service delivery and transparency. Petition was disposed of with procedural recommendations for future case management.
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Tax Dispute Resolved: Consolidated Show Cause Notice Upheld, Petitioner Granted Right to Challenge Order Under Section 74
Case-Laws
GST
HC adjudicated a tax dispute involving procedural irregularities in service of show cause notice (SCN). The court found that a consolidated SCN was issued across multiple financial years under Section 74 of the Central Goods and Service Tax Act, 2017, addressing short payment and input tax credit issues. Despite no prior hearing notice to the Petitioner, the court held that the Petitioner retains the right to submit arguments and challenge the impugned order. The petition was disposed of, allowing the Petitioner procedural opportunities to present their case in subsequent proceedings.
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Procedural Fairness Prevails: Rectification Order Quashed for Denying Petitioner's Right to Be Heard and Fundamental Hearing Principles
Case-Laws
GST
HC held that the rectification application was improperly processed due to violation of principles of natural justice by denying the petitioner an opportunity of hearing. Relying on prior judicial precedent, the court set aside the original order dated 28th February, 2025 and directed that the rectification application be reconsidered after providing a proper hearing to the petitioner in accordance with established legal principles. The petition was consequently disposed of with instructions for procedural compliance.
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Legal Challenge Succeeds: Notice Invalidated Due to Procedural Flaws and Violation of Natural Justice Principles
Case-Laws
GST
HC allowed the petition challenging the SCN issued beyond prescribed limitation period. The court found procedural irregularities in the notice, specifically the lack of opportunity for hearing, which violated principles of natural justice. The impugned order was set aside and remanded back to the Adjudicating Authority. The Petitioner was granted permission to file a reply by 15th July, 2025, with a mandatory personal hearing to be provided thereafter. The challenge to the extension of limitation through Notification 56/2023 remains pending before the Supreme Court, which influenced the HC's decision to provide procedural fairness.
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GST Liability Payment Approved in Instalments, Authorities Directed to Review Petitioner's Financial Constraints Within 3 Weeks
Case-Laws
GST
HC allowed the petitioner's application for GST liability payment in instalments under Section 80 of CGST Act, directing respondent authorities to consider the representation within three weeks. The court recognized the petitioner's financial constraints and mandated a reasoned decision on the instalment request, subject to interest payment under Section 50. The outstanding tax liability of Rs. 4,74,00,293.26 shall be evaluated for potential phased payment, with the petitioner required to submit a certified order copy to authorities within one week of the judgment.
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Tax Notification 56/2023 Struck Down: Limitation Period Extension Invalidated, Demand Order Nullified Under Section 168A CGST Act
Case-Laws
GST
HC invalidated Notification No. 56/2023-Central Tax, which extended limitation periods under Section 168A of CGST Act for financial years 2018-19 and 2019-20. The court found the notification legally unsustainable, effectively setting aside the time limitation extension and consequently nullifying the subsequent demand order of Rs. 1,20,01,973 raised against the petitioner. The ruling emphasizes judicial scrutiny of administrative tax notifications and their compliance with statutory provisions, ultimately protecting the registered assessee's procedural rights by quashing the impugned notification.
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