Goods and Services Tax

Tax Credit Dispute: Appellate Path Opened with Nuanced Pre-Deposit Guidelines for Challenging Ineligible Input Tax Claims
Case-Laws
GST
HC held that the demand for ineligible input tax credit used for discharging outward tax liability involves potential duplication of demands. The court relegated the petitioner to the Appellate Authority, permitting appeal filing by 15th July, 2025, with pre-deposit mandated only for specific demand paragraphs. The court directed that any existing deposits by the petitioner shall be adjusted against the required pre-deposit, effectively providing procedural relief while maintaining tax compliance requirements.
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GST Show Cause Notice Upheld: Procedural Technicality Cannot Override Substantive Legal Communication Under Section 73
Case-Laws
GST
HC rejected the petition challenging a GST show cause notice, holding that an inadvertent misdescription in document title does not invalidate its substantive content. The court found the document clearly identifiable as a valid Section 73 notice through portal description, watermarks, and accompanying context. The ex-parte order was deemed sustainable, emphasizing that procedural errors do not negate the fundamental legal communication. The petitioner's attempt to challenge the notice based on title discrepancy was considered frivolous. Consequently, the court upheld the departmental proceedings and disposed of the petition, affirming the tax authority's right to issue notices despite minor formal inconsistencies.
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Tax Credit Challenge Dismissed: Systematic Fraud Allegations Expose Fictitious Input Tax Credit Claims Under Scrutiny
Case-Laws
GST
HC dismissed the writ petition challenging tax credit demand, finding systematic fraudulent ITC availing by the petitioner. The key supplier M/s Fortune Graphics Limited was untraceable, with its director admitting no actual goods supply occurred. While declining immediate judicial intervention, the HC permitted the petitioner to pursue appellate remedies under Section 107, mandating pre-deposit by 15th July, 2025. The court noted the need for detailed factual scrutiny regarding specific entity's ITC claims, which exceeded writ jurisdiction's scope. The petition was disposed of, allowing potential appellate challenge subject to prescribed legal procedures.
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Legal Challenge Succeeds: Show Cause Notice Invalidated for Violating Natural Justice and Procedural Fairness Principles
Case-Laws
GST
HC quashed the summary of show cause notice and order for procedural violations under AGST Act, 2017. The court found that issuing a summary notice without providing an opportunity of hearing constituted a breach of natural justice principles. Following precedent in a similar case, the HC set aside the impugned orders and granted authorities liberty to initiate de novo proceedings under Section 73, if deemed appropriate. The decision emphasizes procedural fairness and the requirement of proper legal process in tax determination proceedings.
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HC Quashes SCN 09/2023 Due to Notice Service Flaws, Grants Petitioner Fresh Opportunity to Respond
Case-Laws
GST
HC remanded the matter concerning SCN No. 09/2023 due to procedural irregularities in notice service. The court noted that prior to 16th January 2024, show cause notices were uploaded in 'Additional Notices Tab', potentially preventing proper access. Considering the petitioner did not receive adequate opportunity to be heard, the HC directed the adjudicating authority to provide fresh notice. The petitioner was granted time until 15th July 2025 to file reply, with a mandatory personal hearing to be scheduled after submission. The original impugned order was set aside, and the petition was disposed of accordingly.
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Bank Account Attachment Order Lifted After Procedural Review of Tax Dispute Under CGST Act Section 107
Case-Laws
GST
HC adjudicated a tax dispute involving procedural challenges to bank account attachment under CGST Act. The court determined that subsequent appellate proceedings and Supreme Court's prior intervention rendered the original bank account freezing order unsustainable. Given the petitioner's utilization of statutory appellate remedies under Section 107 and the progression of underlying show cause notice proceedings, the court ruled to automatically lift the bank account attachment order dated 28th May, 2024. The petition was consequently disposed of, effectively restoring the petitioner's financial operational capacity.
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Goods Detention Case: Conditional Release Granted with 25% Deposit, Bank Guarantee, and Personal Bond for Remaining Demand
Case-Laws
GST
HC granted relief in goods detention case, directing respondents to release detained conveyance and goods upon petitioner depositing 25% of goods value (Rs. 2,56,965) and furnishing bank guarantee for 75% (Rs. 7,70,895), along with executing a personal bond for remaining demand. The court's decision was based on petitioner's specific submissions and aligned with precedential judicial interpretation, effectively resolving the dispute by imposing conditional release mechanisms that balance statutory compliance and procedural fairness.
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GST Ruling Clarifies Silver Transactions: Barter as Supply, Job Work Exemptions, and HSN Code Guidelines
Case-Laws
GST
The AAR ruled on multiple GST-related queries concerning silver transactions. Key holdings include: barter exchanges constitute 'supply' under GST law, even without monetary transactions. Reverse Charge Mechanism (RCM) does not apply to job work by unregistered individuals. HSN codes were specified for various silver materials: Silver Scrap (7112), Melted Silver Rods (7106). E-way bill requirements were clarified, exempting inter-state and intra-state (Tamilnadu) movements of silver goods under Chapter 71. Procedural queries regarding packaging, insurance values, and payment methods were deemed outside the scope of GST ruling, and thus not addressed. The ruling primarily focused on clarifying GST applicability and documentation requirements for silver-related transactions.
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ITC Claim Blocked: Advance Ruling Denied Due to Ongoing Investigation Under Section 98(2) First Proviso
Case-Laws
GST
AAR rejected the advance ruling application concerning Input Tax Credit (ITC) entitlement for commercial property leasing. The ruling determined that prior investigative proceedings precluding the advance ruling application triggered Section 98(2) first proviso. Specifically, summons issued before the ruling application and taxpayer's submission of ITC details demonstrated existing proceedings on the identical issue. The investigation's commencement, even without a show cause notice, constitutes legal proceedings that prevent subsequent advance ruling. Consequently, the application was formally rejected to safeguard potential adjudication processes and prevent procedural complications in tax assessment.
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Taxpayers Gain Relief: Section 128A Clarifies GST Payment Procedures and Dispute Resolution Mechanisms for Pre-November 2024 Periods
Circulars
GST – States
Legal Circular Analysis: The circular addresses key interpretative issues regarding Section 128A of the Assam GST Act, 2017, specifically clarifying two critical points. First, taxpayers who paid taxes through GSTR-3B before 1st November 2024 remain eligible for benefits under Section 128A, subject to proper officer verification. Second, for notices/orders spanning periods partially covered and outside Section 128A, taxpayers can file specific forms (SPL-01/SPL-02) after paying tax liabilities for covered periods, with appellate authorities empowered to adjudicate remaining periods independently. The guidance aims to provide procedural clarity and administrative flexibility in tax dispute resolution, ensuring uniform implementation across tax jurisdictions.
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Forged GST Challenge Exposed: Fabricated Docs Lead to Criminal Investigation and Petition Dismissal
Case-Laws
GST
HC found SCNs and affidavits to be forged, with fictitious petitioners submitting fabricated documents challenging GST registration cancellation. Court directed DGGI officials to conduct thorough investigation and file complaint with Crime Branch within one week. Registrar General instructed to lodge complaint against petitioners under relevant sections of Bharatiya Nyaya Sanhita and Bharatiya Nagarik Suraksha Sanhita for forgery and fabrication. Non-bailable warrants discharged subject to petitioner's undertaking to cooperate with DGGI investigation. Petition dismissed, with court emphasizing need for comprehensive legal action against fraudulent documentation.
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Procedural Gaps in E-Way Bill Compliance Don't Automatically Trigger Penalties Without Proven Tax Evasion Intent
Case-Laws
GST
HC determined that mere non-completion of part-B of e-way bill does not automatically warrant penalty under Section 129 of U.P. G.S.T. Act, 2017. The court found no evidence of tax evasion attempt by the petitioner. Without a specific finding regarding intentional tax evasion, the penalty levy was deemed unsustainable. Consistent with prior judicial precedents, the court emphasized that procedural non-compliance alone cannot justify punitive action. The impugned order was consequently set aside, and the petition was allowed, effectively quashing the penalty imposed by the tax authorities.
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Bail Granted in Tax Evasion Case: Insufficient Evidence and No Proven Pattern of Deliberate Tax Fraud
Case-Laws
GST
HC granted bail to the respondent in a tax evasion case after 13 days in custody. The court noted the investigation agency has sufficient powers to examine GST department and bank records. The respondent, a Delhi resident, was not shown to be a habitual tax offender. Despite the investigation starting in 2020, no criminal complaint was filed, potentially rendering the respondent eligible for default bail. The court found no evidence of potential misuse of bail liberty. The petition challenging bail was consequently dismissed, affirming the respondent's release.
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High Court Strikes Down Tax Credit Disallowance Orders, Mandates Comprehensive Reevaluation of Electronic Credit Ledger Compartments
Case-Laws
GST
HC allowed the petition challenging Exhibit-P1 and Exhibit-P2 orders related to ITC disallowance. Relying on the precedent in Rejimon Padickapparambil Alex v. UOI, the court held that electronic credit ledger represents a tax fund with distinct compartments for CGST, IGST, and SGST. The impugned orders were set aside, directing the respondent to reconsider the matter in light of the established legal principles, effectively providing relief to the petitioner by mandating a comprehensive reevaluation of the original tax credit determination.
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Services to Intermediary Not Directly Supplied to Government Disqualify Tax Exemption Under Notification 12/2017
Case-Laws
GST
The AAAR determined that the appellant's services do not qualify for tax exemption under Notification No. 12/2017. The key issue centered on service supply conditions, specifically direct service provision to government entities. While the appellant provided manpower services to Webel Technology Limited for a government project, the services were not directly supplied to the government. WTL, as the intermediary, was responsible for payment, thereby disqualifying the services from exemption. Consequently, the appellant failed to meet the requisite conditions for tax exemption, rendering the service supply taxable under the prescribed notification.
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Legal Challenge Upholds Natural Justice: Section 169 Violation Leads to Order Reversal and Procedural Fairness Restoration
Case-Laws
GST
HC allowed the petition in part, finding a violation of natural justice principles. The court set aside orders dated 20.09.2023 and 08.05.2024 for non-compliance with Section 169 of Bihar Goods and Service Act, 2017. The matter was remanded to the concerned authority to issue a fresh summary show-cause notice, providing the petitioner adequate opportunity to respond. The authority was directed to pass a reasoned order and communicate it within six months, recognizing that mere portal uploading of notice is insufficient and requires registered post or alternative communication modes.
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Procedural Lapses and Delay Scrutinized: Writ Petition Dismissed Despite Potential Merits of Underlying Claim
Case-Laws
GST
HC held that despite procedural irregularities in serving show-cause notice and adjudication process, the petitioners failed to provide adequate explanation for delay in filing the writ petition. While the court was not inclined to entertain the petition due to unexplained delay, it ensured the petitioners were not left without legal recourse. The writ petition was disposed of, maintaining principles of natural justice while emphasizing procedural compliance and timely legal intervention.
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Company Wins Challenge Against Tax Order Due to Procedural Defects and Lack of Substantive Reasoning in Decision-Making Process
Case-Laws
GST
HC held that the CTO's order violated principles of natural justice by failing to provide the Company an opportunity to be heard and not addressing its legal submissions. The order lacked substantive reasoning, which is essential for a legally valid quasi-judicial decision. Consequently, the impugned demand order was set aside as it contravened procedural fairness and Section 75(4) of CGST Act, which mandates granting a hearing before adverse action. Petition allowed, order quashed.
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GST Registration Cancellation Upheld, Petitioner Granted Appeal Opportunity with Conditional Reactivation by Pre-Deposit
Case-Laws
GST
HC dismissed the writ petition challenging GST registration cancellation, holding that the order does not warrant judicial interference under writ jurisdiction. The court permitted the petitioner to file an appeal before the Appellate Authority by 10th July, 2025, with requisite pre-deposit. Upon filing the appeal and intimating the GST Department, the registration shall be reactivated within 15 days, subject to no outstanding legal impediments. The procedural avenue for challenging the order remains through statutory appellate mechanisms rather than direct judicial intervention.
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GST inspector held in Haryana's Palwal while accepting bribe: Anti-Corruption Bureau
GST
Dated:- 3-6-2025
PTI
Faridabad (Hry), Jun 2 (PTI) The Anti-Corruption Bureau (ACB) in Faridabad arrested a female GST inspector of the office of the Palwal district excise and taxation commissioner on Monday while she was allegedly accepting a bribe of Rs 5,000 in lieu of issuing a GST number to a complainant, an official said.
According to a statement issued by the ACB, accused Sumitra was also arrested in Panipat in 2022 while accepting a bribe of Rs 2 lakh, along with co-accused ETO Roshan Lal. A senior ACB officer said in the Panipat case, a chargesheet was filed against both the accused in July 2022 and the matter is still sub-judice.

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Gross and Net GST revenue collections for the month of May, 2025
GST
Dated:- 2-6-2025

Please click on the link below to view the gross and net GST revenue collections for the month of May, 2025.
News – Press release – PIB

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Tax Evasion Case: Section 122 Proceedings Can Continue Independently After Section 74 Concludes, Protecting Public Revenue Interests
Case-Laws
GST
HC held that proceedings under Section 122 of CGST Act do not automatically abate upon conclusion of Section 74 proceedings. The court interpreted 'offence' and 'penalty' broadly, recognizing that penalty provisions serve to protect public revenue and deter tax evasion. The statute allows independent penalty proceedings even after main tax proceedings, with the proper officer empowered to adjudicate penalties. The court emphasized strict interpretation of charging sections while maintaining harmonious construction, ultimately rejecting petitioner's arguments and dismissing the petition.
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Bail Granted to Accused in Fake Invoice Case Under CGST Act, Personal Liberty Prevails Over Investigative Constraints
Case-Laws
GST
HC granted regular bail to petitioners accused of operating a fake invoice racket under CGST Act. Despite allegations of tax evasion, the court noted that precise tax liability remains unassessed and documentary evidence would not be compromised by release. Considering petitioners' extended custody since 13.12.2024 and absence of need for further custodial interrogation, bail was allowed subject to furnishing personal bonds with two sureties, balancing investigative requirements with individual liberty principles.
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Tax Credit Fraud Suspect Secures Bail After Court Finds No Witness Tampering Risk and Evaluates Documentary Evidence
Case-Laws
GST
HC granted regular bail in tax credit fraud case, finding custodial detention unwarranted given documentary evidence nature. The court considered economic offence gravity but determined no witness tampering risk exists. Bail was allowed subject to personal bond submission with two sureties, recognizing the allegations' economic nature while balancing investigative requirements. The court referenced precedent emphasizing judicial sensitivity in economic offence bail matters, ultimately prioritizing procedural fairness and proportionate legal intervention without compromising potential prosecution interests.
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Provisional Bank Account Attachment Under Section 83 Invalidated Due to Lack of Substantive Evidence and Procedural Compliance
Case-Laws
GST
HC found the provisional attachment of petitioner's bank account under Section 83 of Maharashtra GST Act, 2017 unsustainable. The attachment was based on proceedings under Section 67 which had already concluded without raising any tax demand or issuing show-cause notice. The Commissioner failed to provide material substantiating the opinion necessitating attachment, thereby violating principles of natural justice. The drastic power of bank account attachment requires objective satisfaction based on concrete evidence, not mere assumptions. Consequently, the HC allowed the petition and set aside the attachment order, emphasizing that provisional attachment cannot be sustained without valid procedural foundations.
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