Goods and Services Tax

Tax Dispute Resolved: Petitioner Granted Opportunity to Respond and Challenge Ex-Parte Order Under Section 74(9)
Case-Laws
GST
HC allowed the petition challenging tax demand, setting aside the ex-parte order dated 05.10.2023 under Section 74(9) of CGST/KGST Act. The court remitted the matter back to the first respondent, directing the petitioner to appear on 28.04.2025 and providing an opportunity to submit replies and documents. The order emphasizes a justice-oriented approach, allowing the petitioner to contest the proceedings and provide explanations for previous non-compliance. If the petitioner fails to appear on the specified date, the current order will be automatically recalled, and the petition will be restored.
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Manufacturers Win Right to Claim Input Tax Credit Refund for Zero-Rated Exports Despite Previous Circular Restrictions
Case-Laws
GST
HC allows petitioner's claim for refund of unutilized Input Tax Credit (ITC) on compensation cess paid for coal used in manufacturing zero-rated export goods. The court held that when IGST is paid on zero-rated supplies, the petitioner is entitled to refund of input tax credit of compensation cess, notwithstanding restrictions in Circular No.125/44/2019. The respondents are directed to process and sanction the refund applications for the unutilized ITC, effectively quashing the previous adverse order and restoring the original refund sanctioning order.
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GST Registration Applicants Can Now Resolve Documentation Challenges Through Comprehensive Grievance Redressal Mechanism
Circulars
GST – States
The public notice outlines a comprehensive Grievance Redressal Mechanism for GST registration applications in the Bengaluru Zone. Key provisions include detailed guidelines for documenting principal place of business, specifying acceptable proof of ownership or occupancy, and establishing clear documentation requirements for different business constitutions. Applicants with registration challenges can submit grievances via email to cgst-blr@gov.in or visit the GST Seva Kendra. The mechanism aims to streamline registration processes, reduce unnecessary documentation requests, and provide a structured approach for resolving registration-related issues, ensuring transparent and efficient GST registration processing for applicants in Karnataka.
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Petitioner Faces Serious Consequences for Submitting Fabricated Show Cause Notices Undermining Judicial Integrity
Case-Laws
GST
HC recalled its previous order after discovering fabricated show cause notices (SCNs) submitted by the petitioner. The court issued non-bailable warrants for the petitioner's production, directing counsel to identify individuals responsible for submitting fraudulent documentation. The court prima facie determined that the SCN was deliberately manipulated to obtain a favorable judicial order, mandating the petitioner's appearance and requiring counsel to file an explanatory affidavit regarding the origin of the falsified documents. The writ petition was restored to its original docket number, with strict judicial scrutiny of the procedural irregularities.
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GST Registration Cancellation Halted: Fabricated Show Cause Notice Exposes Critical Procedural Irregularities in Administrative Action
Case-Laws
GST
HC recalled the order due to fabrication of show cause notice (SCN), involving material fact deletion and retrospective GST registration cancellation. The court directed: (1) final order stands recalled, (2) proprietor must appear in subsequent hearing, (3) registry to list related writ petitions together, and (4) counsel to intimate petitioners in connected cases. The department challenged the original order, revealing multiple instances of potential SCN manipulation, leading to comprehensive judicial review and procedural rectification.
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CBIC celebrates ‘Sundays on Cycle’ – A fitness and GST awareness initiative in run up to completion of 8 years of GST
GST
Dated:- 19-5-2025

In the run-up to completion of eight years of GST, the Central Board of Indirect Taxes and Customs (CBIC), in coordination with the FIT INDIA Movement, organised a nationwide cyclothon titled “Sundays on Cycle” under the aegis of FIT INDIA movement launched by the Prime Minister, Shri Narendra Modi. The flagship event was organised at Major Dhyan Chand National Stadium, New Delhi, early morning, with more than 100 CGST commssionerates also participating across the country.
Flagging the cyclothon at New Delhi, Shri Shashank Priya, Member (GST), CBIC, highlighted the transformational impact

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ding senior officers from CBIC – Shri Rajesh Sodhi, Principal Chief Commissioner, CGST Delhi Zone; Shri C.P. Goyal, Pr. Director General of GST (DGGST), CBIC, and Shri Mahesh Kumar Rustagi, Director General of Taxpayer Services (DGTS), CBIC; representatives from various ministries and departments, and members of the general public.
At the venue, a dedicated GST Help Desk “Know About GST” was set up to engage with participants and to answer queries about GST. To enhance accessibility and outreach, a wide array of informational brochures on key GST topics were distributed, and digital kiosks equipped with QR codes were strategically placed across the venue allowing participants to scan and download GST resource materials directly to their mo

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Tax Reimbursement Clarified: Quarterly Calculation Method Approved for Manufacturing Units Under J&K GST Scheme
Case-Laws
GST
HC allowed the appeal, setting aside the previous order and judgment regarding budgetary support claims. The court held that claims for reimbursement under the Jammu & Kashmir GST scheme shall be calculated and filed on a quarterly basis, covering periods of January-March, April-June, July-September, and October-December. The departmental clarification dated 26-04-2022 was deemed valid, rejecting the respondents' argument that a subsequent DPIIT clarification should supersede the HC's directive. The ruling enables manufacturing units to seek tax reimbursement by aggregating tax liabilities and input tax credits on a quarterly basis, providing a clear mechanism for budgetary support claims.
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Tax Dispute Resolution: Firm Wins Right to Challenge Liability and Seek 24-Month Installment Payment Plan Under Section 80
Case-Laws
GST
HC granted the petitioner firm leave to file a fresh application for depositing the demanded tax amount in 24 equal monthly installments under Section 80 of CGST Act. The Court directed the Commissioner to consider the application, provide a personal hearing, and issue a merit-based order within one month. The petitioner was permitted to raise grounds challenging the self-assessed tax liability in the new application. The original petition was disposed of, providing the firm an opportunity to seek relief through a revised installment payment request.
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Tax Notices Invalidated: Administrative Failure to Provide Meaningful Hearing Leads to Order Reversal Under Natural Justice Principles
Case-Laws
GST
HC set aside the impugned order challenging tax notices due to procedural irregularities, specifically the lack of meaningful opportunity for the petitioner to be heard. The court found the administrative order was passed mechanically without properly considering the petitioner's reply or providing substantive personal hearing. Consequently, the court directed that the petitioner be afforded a proper opportunity to contest the matter on merits, thereby nullifying the existing show cause notices and subsequent orders.
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High Court Overturns Tax Assessment Order, Mandates Fresh Hearing and Fair Review of Procedural Compliance
Case-Laws
GST
HC allowed the appeal u/s 107 of CGST/WBGST Act, 2017, remanding the matter back to appellate authority for adjudication on merits. The court found procedural irregularities in the original order, specifically the lack of personal hearing and premature dismissal. The bank account attachment order was set aside, noting the petitioner had already paid pre-deposit and a substantial portion of disputed tax. The appellate tribunal's non-constitution was also considered. The order mandates a fresh review of the original tax dispute, ensuring procedural fairness and adherence to statutory provisions.
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GST Show Cause Notice Challenge Dismissed, Petitioner Granted Extended Appeal Window Until July 10, 2025
Case-Laws
GST
HC dismissed the petition challenging SCN under GST law, granting the petitioner time until 10th July, 2025 to file an appeal before the appellate authority under Section 107 of CGST Act, 2017. The court's observations shall not impact the appellate authority's decision, and the validity of the notification remains unresolved, subject to the Supreme Court's pending judgment in the referenced case. The petition was disposed of with liberty to pursue appellate remedies.
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Judicial Intervention Secures 5% Tax Rate for PPSB Bed Sheets, Mandates Refund Processing Within 12 Weeks
Case-Laws
GST
HC ruled in favor of the petitioner regarding PPSB bed sheets classification, finding the Appellate Authority erroneously misinterpreted statutory provisions. The court determined that PPSB bed sheets should be taxed at 5% under Chapter 6304, not 12% under Chapter 5603. The HC directed respondents to process the petitioner's refund applications within 12 weeks, including applicable statutory interest, and modified the previous orders that incorrectly classified the bed sheets. The writ petitions were disposed of, effectively overturning the Appellate Authority's previous decisions.
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Anticipatory Bail Granted in GST Evasion Case: No Evidence of Intentional Investigation Obstruction, Bond Imposed
Case-Laws
GST
DSC granted anticipatory bail in GST evasion matter involving fake invoices and input tax credit manipulation. Court found no evidence of applicant evading investigation, noting voluntary appearance and cooperation with Department. Bail granted subject to Rs. 2,00,000 bond with blood relative surety, contingent on potential arrest under Section 69 of GST Act. Department's arguments challenging applicant's credibility were rejected due to lack of concrete material demonstrating flight risk or intentional non-cooperation. Applicant permitted pre-arrest bail with standard judicial safeguards.
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CGST Delhi South Commissionerate awarded BIS IS 15700:2018 Certification for Excellence in Public Service Delivery
GST
Dated:- 17-5-2025

The Central Goods and Services Tax (CGST) Delhi South Commissionerate has been awarded the Bureau of Indian Standards (BIS) IS 15700:2018 certification, recognising its commitment to excellence in public service delivery.
This certification acknowledges the Delhi South Commissionerate's adherence to the highest standards of service quality, tr

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Taxpayer Wins Partial Relief: 10% Tax Deposit Secures Interim Stay Under CGST Section 112(8)
Case-Laws
GST
HC granted conditional interim relief in tax dispute, directing petitioner to deposit 10% of remaining disputed tax amount within four weeks. Unconditional stay of demand issued for four weeks, with continued interim order contingent upon petitioner's compliance with deposit requirement. Order allows partial stay under Section 112(8) of CGST/WBGST Act, 2017, providing temporary relief pending final adjudication of writ petition.
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Tax Authority Fails to Follow Proper Procedure, Best Judgment Assessment Under GST Nullified for Lack of Mandatory Notice
Case-Laws
GST
HC nullified best judgment assessment under GST due to procedural irregularities. The court found the assessment order invalid as the tax authority failed to issue mandatory notice under Section 46 and did not provide an opportunity of hearing, thereby violating principles of natural justice. The assessment order lacked substantive material and reasoning required for Section 62 invocation. Consequently, both assessment orders dated 27.08.2019 and 29.01.2025 were quashed, emphasizing the necessity of procedural compliance in tax assessment proceedings.
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Legal Challenge Upheld: CGST Section 107 Appeal Permitted with Pre-Deposit, Limitation Period Extended to July 10th
Case-Laws
GST
HC allowed the appellate remedy under Section 107 of CGST Act, 2017, permitting the Petitioner to file an appeal by 10th July, 2025 with pre-deposit. The appeal, if filed within the stipulated timeframe, will not be dismissed on limitation grounds and will be heard on merits. The court explicitly left open the issue regarding the validity of the impugned notifications, making the order subject to the Supreme Court's decision in the pending SLP. The petitioner was granted a belated opportunity to challenge the order while preserving the right to contest notification validity in future proceedings.
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Insurance Salvage Claims Dispute: GST Demand Partially Challenged with Procedural Irregularities Identified and Coercive Recovery Restrained
Case-Laws
GST
HC partially allowed the petition challenging GST demand related to insurance salvage claims. The court found procedural irregularities in the demand calculation, specifically noting an erroneous conversion of demand from Rs. 7.21 crores to Rs. 144 crores. The HC restrained coercive recovery actions and directed respondents to seek clarification regarding appellate jurisdiction across multiple states. The court mandated departments to review and potentially rectify the demand order, providing interim relief to the petitioner pending further judicial review.
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Attention – Advisory on reporting values in Table 3.2 of GSTR-3B
GST
Dated:- 16-5-2025

This is to inform taxpayers of the following developments concerning Table 3.2 of Form GSTR-3B:
1.As per the earlier advisory dated April 11, 2025, it was communicated that the auto-populated values in Table 3.2 of Form GSTR-3B would be made non-editable starting from the April 2025 tax period (i.e., for the return to be filed in May 2025).
2.However,&nbsp

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Legal Challenge Succeeds: Procedural Flaws Invalidate Registration Cancellation Proceedings Under Natural Justice Principles
Case-Laws
GST
HC allowed the appeal, finding the registration cancellation proceedings fundamentally flawed. The show cause notice (SCN) was deemed legally non-existent due to lack of specific allegations and absence of reasoned grounds, constituting a violation of principles of natural justice. The court held that the jurisdictional defect was inherent and could not be rectified subsequently, rendering all subsequent proceedings invalid. The original authority's order cancelling registration was quashed, effectively reinstating the appellant's legal status based on procedural impropriety in the administrative action.
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Tax Credit Dispute: Authorities Must Provide Fair Hearing Before Disallowing Input Tax Claims Under Proper Procedural Safeguards
Case-Laws
GST
HC set aside ex parte assessment order disallowing Input Tax Credit (ITC) for Superior Kerosene Oil distribution under Public Distribution System. The court found the order unsustainable due to lack of proper verification and failure to provide the petitioner an opportunity to substantiate ITC claim. The ex parte order violated principles of natural justice by not allowing the petitioner to produce books of accounts and evidence supporting the tax credit claim. The court emphasized that while the burden of proving ITC claim rests with the taxpayer, the assessee must be given a fair chance to present evidence before passing an adverse order.
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Taxpayer Wins Challenge Against Tax Notice Due to Procedural Irregularities in Natural Justice Violation
Case-Laws
GST
HC invalidated the impugned SCN and demand notice under N/N. 9/2023-Central Tax, finding a violation of natural justice principles. The court set aside the order due to lack of personal hearing and mandated that the department re-issue the show cause notice, provide proper hearing notice via email, and allow the petitioner to submit replies within thirty days. The decision follows precedent from a similar case, emphasizing procedural fairness in tax adjudication proceedings. The matter is remanded for fresh consideration with full opportunity of hearing.
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Free Silver Supply by Naval Formations Counts as Non-Monetary Consideration Under CGST Act Sections 15(2)(b) and 15(4)
Case-Laws
GST
AAAR determined that free silver supplied by Naval Formations as used batteries constitutes non-monetary additional consideration for battery supply. The taxable value must include the value of free silver under Section 15(2)(b) and Section 15(4) of CGST Act. The free material has direct economic nexus with the underlying supply and represents a substantial part of raw material input. The transaction value cannot be solely determined under Section 15(1), as the supply involves significant non-monetary components. Consequently, the free silver's value must be incorporated into the total taxable value for GST calculation purposes, encompassing both monetary and non-monetary consideration elements.
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Panchayat's Weekly Market Fee Collection Through Contractors Deemed Non-Taxable Public Service Under Article 243G
Case-Laws
GST
The AAR determined that leasing weekly market space to tender contractors for collecting entry fees from vendors/farmers constitutes a function entrusted to Panchayat under Article 243G. The activity is considered a public authority service and falls outside the GST taxable framework. The ruling clarifies that such activities, even when performed through contractors, remain exempt from taxation under Notification No. 14/2017-CT (Rate). The key principle is that the essential constitutional function remains unchanged regardless of administrative execution method. The back-to-back contract arrangement does not alter the fundamental nature of the service, and thus remains non-taxable, effectively preserving the constitutional intent of local government service provision.
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Input Tax Credit Denied for Imported Warranty Parts When Foreign Supplier Pays Tax Under Section 16 CGST Act
Case-Laws
GST
AAR ruled that the applicant cannot claim Input Tax Credit (ITC) for IGST on imported warranty parts where the foreign supplier (M/s. MUEGGE GmbH) paid the tax. Despite importing parts in the applicant's name for warranty services, the ITC cannot be availed since the tax was discharged by the foreign supplier, and the invoice for warranty service did not include spare parts cost. The ruling interprets section 16 of CGST Act, 2017, denying ITC eligibility based on the specific transactional arrangement between the parties.
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