Goods and Services Tax

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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Taxpayer Wins Input Tax Credit Refund Claim, Invalidates Restrictive Administrative Circular Under Section 54(1)
Case-Laws
GST
HC held that the taxpayer's refund application for unutilized Input Tax Credit (ITC) filed on 07.11.2022 for periods prior to 18.07.2022 is maintainable, as it was within the statutory limitation period under Section 54(1). Following the precedent in Patanjali Foods case, the court quashed the department's rejection order, which improperly relied on Circular No.181/13/2022-GST. The refund claim was deemed valid, rejecting the administrative circular's attempt to create arbitrary classification of refund applications, thereby ensuring taxpayer's legal right to claim refund within prescribed timelines.
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Improper Online GST Notice Service Violates Natural Justice, Invalidates Ex Parte Order Under Procedural Fairness Principles
Case-Laws
GST
HC held that service of notice via online GST portal under 'View Additional Notice/Orders' column is insufficient and violates principles of natural justice. The court invalidated the ex parte order due to improper notice service. Recommended alternative service methods including registered post with acknowledgement, hand delivery, or courier to taxpayer's last known address. The impugned order was set aside and the matter remanded to the respondent for fresh consideration, ensuring the petitioner receives proper legal notification and opportunity to be heard.
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Supplier's Tax Non-Compliance Blocks Input Tax Credit Claim Under Section 16(2)(c) Statutory Conditions
Case-Laws
GST
HC dismisses input tax credit (ITC) claim, holding that the petitioner cannot claim ITC when the supplier failed to deposit mandatory tax under Section 16(2)(c). Despite various precedents cited, the court emphasized the clear statutory requirement of actual tax payment by the supplier to the government. The provision mandates that ITC eligibility is contingent upon the supplier's tax compliance, and in this case, Shree Radhey International neither deposited the tax nor maintained valid registration. The court rejected the petitioner's arguments and upheld the taxing authorities' decision, thereby dismissing the petition without any further interference.
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Delay in CGST Appeal Filing Rejected: Procedural Compliance Trumps Technical Objections
Case-Laws
GST
HC dismissed the review petition regarding condonation of delay in filing an appeal under CGST Act. The court found the impugned order valid, as it was uploaded on the GSTN portal after verification by the State Tax Officer. The petition was deemed unmerited both on procedural grounds and substantive legal merits, with no apparent error in the original order. The court's ruling upheld the administrative process and rejected the appellant's challenge to the order's validity.
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Circular 199/11/2023 Mandates Comprehensive GST Assessment Review with Fresh Hearing and Potential Tax Liability Nullification
Case-Laws
GST
HC held that the Adjudicating Authority must reconsider the GST assessment by applying Circular No. 199/11/2023-GST and recent precedent. The court found the original order did not properly consider the circular's provisions regarding cross-charged expenses. The Adjudicating Authority is directed to provide a fresh hearing to the petitioner and issue a new order consistent with the circular's guidelines, potentially nullifying the tax liability. The court referenced the Metal One Corporation judgment, which suggested no tax liability where no invoices were generated. Petition disposed of with directions for re-evaluation.
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Taxpayer Wins GST Refund Claim, Department Ordered to Reimburse with Interest Under Rules 89 and 90
Case-Laws
GST
HC allowed the petitioner's refund claim under GST regime, holding the department liable to refund the amount deposited in Electronic Cash Ledger. The court mandated interest calculation from 11th June 2018, recognizing procedural delays by the tax authorities. The department's failure to adhere to prescribed timelines under CGST Rules, specifically Rule 89 and Rule 90, resulted in the petitioner's entitlement to refund with applicable interest. The petition was disposed of with directions for immediate refund and interest computation.
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Two Public Officials Caught in Rs. 500,000 Bribery Scheme, Evidence Reveals Direct Involvement in Tax Liability Corruption
Case-Laws
GST
HC rejected bail application for two accused involving bribery of public servant. The court found active participation of the accused in demanding and receiving bribe of Rs. 500,000 for settling tax liability. Evidence included seized mobile phone with voice recordings substantiating bribe allegations. The court determined the accused entered into criminal conspiracy, violating Section 61(2) of BNS, 2023 and Sections 7 and 7A of Prevention of Corruption Act. Mere solicitation or attempt to obtain bribe constitutes an offense, and actual exchange is not essential for prosecution. Bail application was consequently denied based on substantial evidence of criminal involvement.
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GST Adjudication Order Overturned: Principles of Natural Justice Violated, Petitioner Granted Fair Hearing Opportunity
Case-Laws
GST
HC allowed the petition challenging GST adjudication proceedings, finding violation of principles of natural justice. The ex-parte order was set aside due to petitioner's inability to respond to show cause notice under bona fide circumstances. The matter was remitted back to the tax authority to provide fair opportunity of hearing, requiring reconsideration from the stage of reply submission. The court emphasized mandatory adherence to principles of natural justice in tax proceedings, rendering the original order unsustainable and directing fresh adjudication in accordance with law.
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Independent Service Provider Wins GST Refund Claim, Export Services Exempted Under Section 54 CGST Act
Case-Laws
GST
HC determined that the petitioner is an independent service provider, not an intermediary under IGST Act. Services rendered to overseas recipients constitute export of services exempt from GST liability. The court quashed the appellate authority's order dated 01.09.2023, restored the original order dated 28.07.2022 granting refund for April and May 2022, and held that refund claims under Section 54 of CGST Act are maintainable and not time-barred. The petition was consequently allowed, affirming the petitioner's right to claim GST refund.
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Legal Challenge Succeeds: GST Section 130 Order Quashed Based on Precedent Interpreting Excess Stock Assessment Rules
Case-Laws
GST
HC allowed the writ petition, quashing the impugned orders dated 27.7.2022, 3.1.2023, and 27.11.2024 passed under Section 130 of the GST Act. The court relied on its prior precedent in Dinesh Kumar Pradeep Kumar, which established that when excess stock is found, proceedings under Sections 73 and 74 of UPGST Act are applicable, and Section 130 proceedings cannot be initiated. The case was decided without exchanging pleadings, directly applying the existing judicial interpretation of the statutory provisions.
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Punjab registers 25 pc growth in GST collections in May
GST
Dated:- 1-6-2025
PTI
Chandigarh, Jun 1 (PTI) Punjab registered a 25.31 per cent on-year growth in net goods and service tax (GST) collections in May to Rs 2,006.31 crore driven by strong tax administration and enhanced compliance.
Finance Minister Harpal Singh Cheema said Punjab's net GST revenue rose to Rs 2,006.31 crore in May, up from Rs 1,601.14 crore in May 2024, showing an increase of Rs 405.17 crore.
This marks the highest-ever GST collection for the month of May in Punjab's history, said Cheema in an official statement.
This year's performance clearly indicates a robust and accelerating growth trend in Punjab's fiscal health, he said and attributed the gro

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GST collections above Rs 2 trillion for second straight month, at Rs 2.01 lakh cr in May
GST
Dated:- 1-6-2025
PTI
New Delhi, Jun 1 (PTI) Gross GST collections remained above the Rs 2 trillion mark for the second month in a row, rising 16.4 per cent in May to over Rs 2.01 lakh crore.
Goods and Services Tax (GST) collection had touched a record high of Rs 2.37 lakh crore in April. In May, 2024, the mop up was Rs 1,72,739 crore.
In May, 2025, gross revenues from domestic transactions rose 13.7 per cent to about Rs 1.50 lakh crore, while GST revenue from imports grew 25.2 per cent to Rs 51,266 crore. Total gross GST revenues stood at Rs 2,01,050 crore in May, 2025.
Gross Central GST revenues stood at Rs 35,434 crore, State GST

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adhya Pradesh, Haryana, Punjab and Rajasthan have shown median increases of 10 per cent.
“Hence, the average growth across the country does not appear to be uniformly reflected across states possibly due to sectoral or seasonal factors which require a deeper data based analysis,” Mani said.
Price Waterhouse & Co LLP Partner Pratik Jain said 16 per cent growth in GST collections in the month shows a renewed upward momentum after a few months of growth in the range of 11 to 12 per cent.
“If the growth continues in this range for the next couple of months, it might provide the cushion for the government to look at rate rationalization on which a lot of work has already been done,” Jain said.
EY India Tax Partner Saurabh Agarwal said lo

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Gross GST collections rise 16.4 pc to over Rs 2.01 lakh cr in May
GST
Dated:- 1-6-2025
PTI
New Delhi, Jun 1 (PTI) Gross GST collections rose 16.4 per cent to over Rs 2.01 lakh crore in May, as per government data released on Sunday.
This comes after a record high Goods and Services Tax (GST) collection in April, when the revenues touched an all-time high of Rs 2.37 lakh crore.
In May, gross revenues from domestic transactions rose 13.7 per cent to about Rs 1.50 lakh crore, while GST revenue from imports grew 25.2 per cent to Rs 51,266 crore.
In May, the gross Central GST revenues stood at Rs 35,434 crore, State GST revenues at Rs 43,902 crore and Integrated GST at about Rs 1.09 lakh crore. Revenues from Cess was at Rs 12,8

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Genuine Medical Hardship Leads to GST Registration Restoration with Mandatory Compliance and Timely Return Submissions
Case-Laws
GST
HC allows restoration of GST registration after considering petitioner's genuine medical impediment for non-filing of returns. The court directs petitioner to file all pending returns, pay tax dues, interest, and belated filing fees within 4 weeks from registration restoration. The cancellation order is revoked subject to compliance with prescribed conditions, providing an opportunity for the petitioner to rectify procedural non-compliance arising from health-related challenges.
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Contractual Services Qualify as Export, Affirming Independent Contractor Status and ITC Refund Eligibility Under IGST Act
Case-Laws
GST
HC analyzed the classification of services under IGST Act, determining the petitioner's activities do not constitute intermediary services. The court found the service provider operates as an independent contractor, rendering services on its own account, not as an agent. Based on contractual analysis and precedent, the court held the services qualify as export of services. The refund claim was not time-barred, and the petitioner is entitled to unutilized ITC refund. The impugned orders demanding service tax were quashed, with the petition allowed partially, affirming the principal-to-principal nature of the contractual relationship and the extra-territorial supply of services.
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Conciliation Agreement Determines Limitation Period for Tax Refund Claims Under Section 54 of CGST Act
Case-Laws
GST
HC held that the conciliation agreement dated 09.10.2020 constitutes the relevant date for calculating limitation period under Section 54 of CGST Act. The settlement agreement, recognized under Arbitration & Conciliation Act, is equivalent to a civil court decree. Consequently, DMRC's refund applications filed on 17.01.2021 and 21.03.2021 were deemed timely. The court directed processing of refund with applicable interest within one month, setting aside the impugned orders and disposing of the petition accordingly.
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Taxpayer Wins Challenge Against Arbitrary Tax Demand Exceeding Original Show-Cause Notice Under Section 75(7)
Case-Laws
GST
HC allowed the petition, finding a violation of Section 75(7) of GST Act. The tax authority issued a show-cause notice for Rs. 45,66,398 but subsequently raised a demand of Rs. 68,07,953, which exceeded the original notice amount. The court held that this contravened statutory provisions regarding tax determination. The petitioner's claim of being unaware of the notice due to its placement in an 'Additional Notices and Orders' tab was considered valid. The court emphasized that the demand must not surpass the amount specified in the original notice, rendering the impugned order unsustainable. The judgment upheld principles of natural justice and statutory compliance.
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Fraudulent ITC Claim Rejected: Taxpayer Directed to Pursue Appellate Remedy Under Section 107 with Pre-Deposit Option
Case-Laws
GST
HC dismissed the writ petition challenging penalty for fraudulent Input Tax Credit (ITC) availment under CGST Act, Section 122(1)(vii). The court held that writ jurisdiction should not be ordinarily exercised in cases involving ITC fraud, citing precedent. The petitioner was directed to pursue appellate remedies under Section 107 of CGST Act and permitted to file appeal by 15th July, 2025 with pre-deposit. The court emphasized that the appeal would be adjudicated on merits and not dismissed on limitation grounds, thereby preserving the petitioner's substantive rights while maintaining procedural integrity.
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Tax Demand Upheld: Procedural Gaps Noted, Petitioner Directed to Pursue Appellate Remedies Under Section 107 of CGST Act
Case-Laws
GST
HC dismisses petition challenging tax demand, finding procedural irregularities in the original order but declining to remand the matter. The court held that the Adjudicating Authority did not fully comply with previous judicial directions and natural justice principles. However, the petitioner is directed to pursue appellate remedies under Section 107 of CGST Act, 2017, with the Appellate Authority empowered to comprehensively examine the input tax credit (ITC) claim and determine the validity of the original demand order. The petitioner remains bound by the appellate determination, subject to available legal recourse.
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