Goods and Services Tax

Systematic Denial of Personal Hearing Violates Natural Justice, Rendering Ex-Parte Proceedings Under Section 75(4) Invalid
Case-Laws
GST
HC held that systematic failure to provide personal hearing violates principles of natural justice under Section 75(4) of GST Act, 2017. The ex-parte assessment and cancellation of GST registration without ensuring personal service of notices constitutes procedural impropriety. The court critically emphasized the recurring administrative malpractice of uploading notices on portal without guaranteeing actual service. Consequently, the matter was remanded to the Joint Commissioner SGST, Corporate Circle-1, Ghaziabad to pass a fresh order after affording petitioner a proper opportunity of personal hearing, thereby allowing the petition and rectifying the procedural defect.
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Taxpayers Granted Right to Rectify GST Returns Beyond Standard Timelines, Emphasizing Procedural Flexibility and Substantive Justice
Case-Laws
GST
HC dismissed SLP challenging rectification of GST returns beyond prescribed timelines. The court held that the right to correct clerical or arithmetical errors is inherent in conducting business and should not be denied without substantial justification. Software limitations cannot be a valid reason to prevent error correction, as technological systems can be reconfigured to facilitate compliance. The ruling emphasizes taxpayers' procedural flexibility in addressing inadvertent mistakes in tax documentation, affirming the principle of substantive justice over rigid procedural constraints.
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Flavoured Milk Tax Classification Resolved: Tariff Heading 0402 Confirmed, Remanded for Fresh Assessment Under Specified Guidelines
Case-Laws
GST
HC determined that flavoured milk sold by petitioner falls under tariff heading 0402, not CH 2202. The conversion charges for milk to milk powder were remanded for reassessment, with the appellate authority previously indicating a potential 5% tax rate instead of 18%. The original assessment order and appeal order were set aside, directing the Assessing Officer to conduct a fresh assessment, specifically levying tax on flavoured milk under the specified tariff heading. The petition was subsequently disposed of, effectively returning the matter for reconsideration with specific guidance on tax classification and rate.
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Legal Challenge Rejected: Section 161 GST Application Dismissed Due to Lack of Substantive Grounds and No Adverse Impact
Case-Laws
GST
HC dismissed petitioner's application under Section 161 of Goods and Services Act, 2017, holding that principles of natural justice are not mandatory when no actual rectification is performed and the applicant suffers no adverse impact. The court determined that the rectification provision requires adherence to natural justice only when specific conditions are met: (i) rectification is being carried out and (ii) such rectification potentially adversely affects the assessee. In this instance, the application was deemed vague and without substantive grounds, thus justifying rejection without a personal hearing.
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Procedural Defects in Tax Notice Invalidate SCN, HC Grants Stay Based on Jurisdictional and Electronic Filing Irregularities
Case-Laws
GST
HC adjudicated a challenge to a SCN under Section 74 of CGST Act, 2017, primarily contesting non-compliance with Rule 142 of CGST Rules. The petitioners argued that the SCN was issued without jurisdictional validity, as no tax evasion was alleged, and the notice was not electronically uploaded. The court found a prima facie case in the petitioners' favor, noting that the subsequent final order issued on 21.01.2025 was potentially non-est due to procedural irregularities. Applying the legal maxim “sublato fundamento cadit opus”, the HC admitted the petitions and stayed the operation of the impugned order pending final adjudication, emphasizing that procedural non-compliance could invalidate subsequent proceedings.
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GST Rate Fixed at 12% for Real Estate Project Based on Original Promoter's Election, Binding Subsequent Buyers
Case-Laws
GST
The AAR held that the GST rate for the project is governed by the one-time option exercised by the original promoter at 12% with input tax credit. The applicant is bound by this project-specific election and cannot switch to a 5% rate without input tax credit. The ruling emphasizes that the tax treatment is project-based, not promoter-specific. Consequently, the applicant must discharge GST at 18% (9% CGST + 9% SGST) with input tax credit, applying a one-third deduction for land value. The option applies uniformly to existing and new buyers, preventing differential tax rates within the same project.
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Railway Infrastructure Services Blend Multiple Contract Types, Determined as Mixed Supply Under GST Rule 995419 for Maintenance and Construction Work
Case-Laws
GST
AAR held that services provided by the applicant for reconstruction, maintenance, housekeeping, and security at Kalamboli Goods Shed constitute a mixed supply, primarily classified under works contract services. The services are not considered a composite supply and will be taxed at 18% under Heading 995419. The services involve cement concreting, platform construction, drainage, and water supply systems. The ruling explicitly notes that the input tax credit (ITC) entitlement for Central Railway cannot be determined within the scope of this advance ruling, leaving that aspect unresolved. The key determination is the tax classification and rate applicable to the mixed service contract.
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Cancer Diagnostic Research Services Denied GST Exemption Under Notification 12/2017-CT(R) Due to Research Classification
Case-Laws
GST
AAR ruled that the applicant's cancer diagnostic services do not qualify for GST exemption under Notification No. 12/2017-CT(R). The tests were determined to be clinical research and experimental development, primarily focused on acquiring new knowledge in biotechnology and cancer prognostic technologies. Without proper licensing from CDSCO or ICMR, the services were classified under Service Accounting Code 9981 for research services, rendering them ineligible for tax exemption. The determination hinged on the nature of the service being research-oriented rather than a direct diagnostic healthcare service.
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Textile-Based Geo-Membrane Water Proofing Material Classified Under 5911 10 00 as Technical Textile Product
Case-Laws
GST
AAR ruled that Geo-Membrane for Water Proof Lining – Type-II manufactured from HDPE woven fabrics with specific weaving patterns is classifiable under Tariff Heading 5911 10 00. The determination was based on the product's manufacturing process, technical textile characteristics, and compliance with IS Standards. Despite being laminated with plastic and involving textile components, the product's technical use and Chapter 5911 specifications dictate its classification, prioritizing Section Notes and Chapter Notes over commercial understanding or trade interpretation.
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Exporters Can Seek IGST Refund by Submitting Representation and Providing Copy to Respondent Within 2 Weeks
Case-Laws
GST
HC determined that the petitioner seeks refund of IGST paid on export goods, with a representation submitted on 03.10.2022 pending consideration. The court directs the petitioner to submit a copy of the representation to the 2nd respondent within 2 weeks of receiving the order. The petition is disposed of, mandating administrative review of the refund claim and providing procedural guidance for further action on the IGST refund request.
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Taxpayer's Challenge Rejected: Appellate Remedies Mandated for CGST Penalty Dispute Under Section 107
Case-Laws
GST
HC dismissed the writ petition, directing the petitioner to pursue appellate remedies under Section 107 of CGST Act. The court held that factual issues regarding penalty imposition, transaction benefits, and financial year challenges should be adjudicated through the appellate process. The petitioner retains the right to contest the CGST Department's penalty under Section 122(1A) through appropriate appellate channels, with the appellate authority deemed most suitable to comprehensively examine the matter.
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Transfer Development Rights Not Taxable Under GST When Developer Exchanges Construction Rights for Built-Up Units
Case-Laws
GST
HC held that the transfer development rights (TDR)/floor space index (FSI) under entry 5-B cannot be interpreted to include development agreements where a developer obtains construction rights in exchange for transferring certain built-up units. The specific development agreement dated 07.4.2022 between the parties did not fall within the scope of the GST notification dated 28.6.2017 as amended. Consequently, the show cause notice and subsequent order were quashed, effectively invalidating the tax demand and allowing the petitioner's challenge against the taxation assessment.
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GST Registration Cancellation Can Be Revoked by Filing Pending Returns and Clearing Outstanding Tax Dues Under Section 29(2)(c)
Case-Laws
GST
HC held that GST registration cancellation under Section 29(2)(c) of CGST Act, 2017 for non-filing of returns for six continuous months can be revoked. The court directed the petitioner to approach the empowered officer within two months, submit pending returns, pay tax dues, interest, and late fees. Upon compliance, the officer has discretionary authority to drop proceedings and restore GST registration, effectively providing an opportunity to rectify the administrative non-compliance and reinstate the registration.
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Hospitality stakeholders hail GST rebate for hotels in Goa's hinterland
GST
Dated:- 16-4-2025
PTI
Panaji, Apr 16 (PTI) Stakeholders of the hospitality industry in Goa have welcomed the state government's announcement in the Budget to provide a 50 per cent rebate in the Goods and Services Tax and other perks for those investing in hotels in the state's hinterland.
Chief Minister Pramod Sawant, who tabled the state budget during the legislative assembly session last month, had announced incentives for the hospitality industry.
Sawant said that to promote infrastructure in the hotel and medical tourism sector, the state government has proposed a 50 per cent rebate on the state GST, exemption in stamp duty and registration, a waiv

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Advisory on Case Insensitivity in IRN Generation
GST
Dated:- 16-4-2025

Dear Taxpayer,
1. This is to inform you that, effective 1st June 2025, the IRP (Invoice Reporting Portal) would treat invoice/document numbers as case-insensitive for the purpose of IRN generation.
2. To ensure consistency and avoid duplication, invoice numbers reported in any format (e.g., “abc”, “ABC”, or “Abc”) would be automatically converted to uppercase before IRN generation. This change aligns with the t

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Landmark Ruling: Retrospective Tax Amendments Struck Down as Unconstitutional, Protecting Taxpayers from Arbitrary Legislative Overreach
Case-Laws
GST
HC declared amendments to CGST and KGST Acts unconstitutional, finding retrospective modifications ultra vires the Constitution. The court held that legislative amendments improperly expanded the definition of “supply” and “service” by disregarding the principle of mutuality. The retrospective taxation violated fundamental principles of fairness and Rule of Law, as it imposed unexpected tax burdens on entities without prior notice or opportunity to adjust. The amendments were deemed void, emphasizing constitutional limitations on legislative power to redefine taxation principles retroactively. The judgment reinforced constitutional protections against arbitrary legislative interventions in taxation frameworks.
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High Court Validates CENVAT Credit Utilization, Affirms Unified Tax Credit Ledger Approach for Electronic Input Tax Reconciliation
Case-Laws
GST
HC allowed petitioner's challenge regarding CENVAT credit utilization, affirming that input tax credit electronic ledger represents a unified wallet with compartments for IGST, CGST, and SGST. The court referenced prior precedent emphasizing that tax credit eligibility should be assessed based on total wallet balance, not individual compartments. The 3rd respondent was directed to issue fresh orders within two months, consistent with the judicial interpretation, effectively resolving the inadvertent tax credit mismatch between GSTR 3B and GSTR 2A forms.
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Geometry Compass Box Ruled as Mixed Supply, GST Rate Set at 18% Based on Highest-Taxed Component Under Section 2(74)
Case-Laws
GST
The AAR determined that the Geometry Compass Box constitutes a mixed supply under Section 2(74), not a composite supply. The box contains multiple discrete items (compass, divider, scale, protractor, set squares, pencil, eraser, sharpener) which can be independently purchased. Since individual components are commercially available separately, the combination does not qualify as naturally bundled goods. Consequently, the HSN classification falls under Chapter Sub Heading 90178010, with an applicable GST rate of 18%, based on the highest tax-rated item within the package.
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E-way Bill Compliance: Complete Documentation Mandatory for Goods Transport, Partial Filling Signals Potential Tax Evasion
Case-Laws
GST
HC ruled that carrying a complete e-way bill is mandatory for goods transportation. The petitioner was found transporting goods without fully completing the e-way bill (Part B), which was generated only after vehicle interception. The court held that merely downloading Part A of the e-way bill does not absolve tax liability. The petitioner's conduct suggested an intention to evade tax, as the e-way bill inconsistently reflected transportation details. Following precedents in Akhilesh Traders and Jhansi Enterprises, the court established that incomplete documentation creates a rebuttable presumption of tax evasion. The petition was consequently dismissed, reinforcing the strict requirement of comprehensive e-way bill documentation post-April 2018.
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Land Development Agreement Not Subject to GST, Revenue Sharing Arrangement Upheld with Interim Relief Granted to Petitioner
Case-Laws
GST
HC adjudicated a dispute concerning a development agreement's revenue sharing arrangement between parties. The court determined that the transaction did not constitute a taxable transfer under GST law. Even if a transfer was presumed, it would involve immovable property, which falls outside GST taxation scope. The court found a prima facie case for interim relief exists. Respondents were mandated to file an affidavit in reply within two weeks and serve a copy on petitioner's counsel. The petition was subsequently disposed of, effectively granting preliminary relief to the petitioner.
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Tax Recovery Notice Upheld: Procedural Challenges Rejected Despite GST Tribunal and Pre-Deposit Concerns
Case-Laws
GST
HC dismissed the writ petition challenging tax recovery proceedings. The petition contested the validity of recovery notice issued on 13.02.2025 for tax, interest, and penalty, alleging procedural irregularities including non-constitution of GST Tribunal and non-compliance with pre-deposit requirements under Section 112(8). Upon filing of a reply affidavit by the Excise & Taxation Officer, the court rendered the petition infructuous, effectively maintaining the original tax demand without substantive adjudication of the underlying legal challenges.
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Legal Challenge Halts GST Demand as Appellate Tribunal Remains Unformed, Ensuring Statutory Appeal Rights Under Section 112
Case-Laws
GST
HC granted an unconditional stay of GST demand due to the absence of a constituted Appellate Tribunal under Section 112 of the GST Act. The court recognized the petitioners' statutory right to appeal and noted the Tribunal's non-existence. An interim stay was issued on the demand in Form GST APL-04, with directions for affidavit-in-opposition to be filed within eight weeks and potential reply within four weeks thereafter. The stay was granted for four weeks, acknowledging the petitioners' prima facie case.
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Employer-Provided Canteen and Transport Services Deemed Taxable Supply Under GST with Limited Input Tax Credit Restrictions
Case-Laws
GST
AAR ruled that recoveries from employees for canteen and transportation services constitute taxable supply under GST. The services are considered incidental to business activities, with tax liability limited to amounts recovered from employees. Input tax credit is disallowed for both canteen and transportation services under Section 17(5) of CGST Act. Transportation services do not qualify for exemption under Notification No. 12/2017-Central Tax (Rate). The remaining service value, not recovered from employees, is treated as employer-provided perquisite and remains non-taxable. The ruling emphasizes that while services are supplied by the employer to employees, only the recovered portion attracts GST.
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Employer Canteen and Transport Services Taxable Under GST, Recoveries Subject to Levy and Input Tax Credit Restrictions
Case-Laws
GST
Legal Summary: The AAR ruled on GST applicability for employee canteen and transportation services. The employer's provision of these services constitutes a taxable supply under Section 7(1) of CGST Act, 2017, with GST levied on the recoveries made from employees. Transportation services do not qualify for exemption under Notification No. 12/2017 and are classified as rented vehicle services. Input Tax Credit (ITC) is denied for transportation services, as they are considered personal consumption under Section 17(5)(g). The taxable value comprises only the amount recovered from employees, with the employer's remaining contribution treated as a non-taxable perquisite in lieu of employee services.
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Landmark GST Voucher Ruling: Clarifies Tax Treatment, Distribution Models, and Unredeemed Instrument Taxation Principles
Circulars
GST – States
Legal Summary: The AP State Tax Authority issued a comprehensive clarification on GST treatment of vouchers, addressing four key issues. The ruling determines that voucher transactions are neither a supply of goods nor services, whether the vouchers are RBI-recognized pre-paid instruments or actionable claims. Transactions involving voucher distribution through principal-to-principal models do not attract GST, while agency-based distributions may incur GST on commissions. Additional services related to voucher distribution remain taxable. Critically, unredeemed vouchers (breakage) are not considered taxable, as they do not constitute a supply of goods or services when no redemption occurs. The guidance aims to provide uniformity in GST implementation across field formations.
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