Goods and Services Tax

Stipend Disbursement and Item Sales at Cost Not Exempt as “Pure Agent” Services Under GST Rule 33
Case-Laws
GST
The AAR ruled that Logskim's stipend disbursement to trainees does not qualify as a “pure agent” service under Rule 33 of CGST Rules, as they merely act as a conduit without procuring supplies or making payments to third parties. The authority found that Logskim failed to meet key conditions of Rule 33, particularly clauses (i) and (iii). Similarly, the sale of uniforms, shoes, and insurance premiums to industry partners, even at cost without markup, is taxable since “reimbursement at actuals” alone doesn't establish pure agent status. The AAR concluded that both the stipend amounts received and passed to trainees and the sale of items to industry partners are chargeable to tax under CGST/TNGST Acts, 2017.
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Solar Power Generation to Grid Constitutes “Supply” Under GST, but Electricity Remains Exempt with Limited ITC Availability
Case-Laws
GST
The AAR ruled that the applicant's generation and supply of electricity from their 10.2 MW solar power plant to TANGEDCO through grid constitutes a “supply” under GST provisions. As electricity attracts nil rate of tax under HSN 27160000 (Sl. No. 104 of N/N. 02/2017-CT(Rate)), it qualifies as an “exempt supply.” While ITC on goods and services used in setting up the solar plant is eligible (subject to not claiming depreciation on the tax component under Income Tax Act), the applicant cannot avail ITC on goods and services exclusively used for the generation, supply, running, or maintenance of the solar power plant as these relate to exempt supplies under Section 17(2) and 17(3) of CGST/TNGST Act read with Rule 43(1)(a).
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Need of hour radically-simplified, less-punitive GST 2.0: Congress
GST
Dated:- 9-3-2025
PTI
New Delhi, Mar 9 (PTI) With Finance Minister Nirmala Sitharaman asserting that the GST rates will come down further, the Congress on Sunday said any changes in the tax must be more comprehensive than a mere rate reduction and stressed the need for a radically-simplified and less-punitive GST 2.0.
Congress general secretary in-charge communications Jairam Ramesh said his party had envisaged a GST 2.0 a truly “Good and Simple Tax” in its manifesto for the 2024 Lok Sabha polls and it remains committed to that vision.
“The ball is now in the Union government's court will they take this historic opportunity?” Ramesh asked in a statement.
“The Finance Minister has declared that GST rates will be reduced soon. The Indian National Congress reiterates that any changes in GST must be more comprehensive than a mere rate reduction,” he said.
Reducing the tax on caramel popcorn, without fu

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lexity of the current GST regime reflects a lack of seriousness on the government's part to enforce a truly “Good and Simple Tax”, Ramesh said.
“Second, a key issue in recent months has been the slowdown in GST net collections due to high refunds. Data from December 2024 showed that net GST collections, after adjusting for refunds, slumped to 3.3 per cent growth partly due to the 45.3 per cent increase in refunds to taxpayers,” he said.
While some part of this increase in refunds is certainly credible, a significant component of these refunds is likely fraudulent, he claimed.
“The complexity of the GST system especially when combined with a software system that is ridden with loopholes has allowed for large-scale fraud,” the Congress leader alleged.
Input Tax Credit (ITC) fraud is particularly common, with more than Rs 35,132 crore worth of fraud identified, amidst a recovery rate of just 12 per cent, he noted.
Weak supply-chain tracking means that buyers can claim ITC without r

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ndirect taxes like the GST, Ramesh said.
This is the appropriate year for a GST 2.0 since the GST compensation cess is likely to meet its revenue targets later this financial year, the Congress leader asserted.
The finance ministry, therefore, has a fiscal cushion to anchor the simplified GST, he added.
“The Indian National Congress had envisaged a GST 2.0 a truly Good and Simple Tax in its Nyay Patra for the 2024 Lok Sabha elections, and remains committed to this vision. The ball is now in the Union government's court will they take this historic opportunity?” Ramesh asked.
His statement comes a day after Sitharaman said on Saturday that the GST rates will come down further and the work on rationalising the tax rates and slabs has “almost reached a finale”.
She said the revenue neutral rate (RNR) came down from 15.8 per cent at the time of the launch of GST on July 1, 2017 to 11.4 per cent in 2023.
“It will come down even further,” the minister added.
The GST Council, headed

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GST rates will come down further: Sitharaman
GST
Dated:- 8-3-2025
PTI
Mumbai, Mar 8 (PTI) Finance Minister Nirmala Sitharaman on Saturday said the GST rates will come down further and the work on rationalising tax rates and slabs has “almost reached a finale”.
She said that the revenue neutral rate (RNR) has come down from 15.8 per cent at the time of the launch of GST on July 1, 2017, to 11.4 per cent in 2023.
“It will come down even further down,” the minister added.
The GST Council, headed by Sitharaman and comprising her state counterparts, in September 2021, set up a group of ministers (GoM) to rationalise GST rates and suggest changes in slabs. The GoM comprises finance ministers of 6 states.
Responding to a question a

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E-way Bill Generation After Interception Confirms Tax Evasion Intent Under UP GST Rules Following 14th Amendment
Case-Laws
GST
The HC dismissed a challenge to detention and penalty order, affirming that carrying an e-way bill is mandatory for goods movement after the 14th Amendment to UP GST Rules effective April 1, 2018. The Court relied on precedents establishing that absence of an e-way bill creates a rebuttable presumption of tax evasion. In this case, the petitioner generated the e-way bill three hours after interception, was not conducting business at the registered address, had registration cancelled suo moto, and misrepresented goods (declaring items taxable at 5% when they were actually taxable at 18%). These facts demonstrated clear intent to evade tax, justifying the detention and penalty.
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Assessment Order Invalid Due to Missing Signature and DIN Number Under CGST Act Sections 160 & 169
Case-Laws
GST
The HC set aside the assessment order in Form GST DRC-01 due to two fatal defects: absence of the assessing officer's signature and missing DIN number. Following precedent in A.V. Bhanoji Row, the court affirmed that a signature on assessment orders cannot be dispensed with, and Sections 160 & 169 of CGST Act, 2017 do not rectify such deficiencies. The court also relied on SC's ruling in Pradeep Goyal that orders lacking DIN numbers are non-est and invalid, pursuant to CBIC circular requirements. The petition was disposed of with the impugned assessment order being invalidated on procedural grounds.
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GST Registration Cancellation Overturned: Appellate Authority Cannot Exceed Scope of Show Cause Notice
Case-Laws
GST
The HC set aside the cancellation of petitioner's GST registration, finding the appellate authority had impermissibly traveled beyond the scope of the show cause notice. While the original cancellation was based on the business premises being closed, the appeal was dismissed due to an unexamined “red alert notice” that was never mentioned in prior proceedings. This constituted a violation of natural justice principles. The court noted the petitioner had already rectified the original issue by updating their business address, which was verified as operational during inspection. The HC revoked the registration cancellation and directed the petitioner to file GST returns within 30 days, emphasizing that authorities cannot exceed show cause notice parameters when canceling registrations.
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Preparing Construction Plans for Government Departments: Are They “Pure Services” Exempt Under GST?
Case-Laws
GST
The AAAR set aside the impugned ruling dated 30.5.2024 and remanded the matter back to the GAAR for fresh decision. The case concerned whether services of preparing plans, estimates, and Draft Tender Plans for building work provided to the R&B department of Gujarat Government constituted “pure services” related to Panchayat or Municipality functions under Articles 243G or 243W of the Constitution. The AAAR determined it had authority to confirm or modify rulings under section 101 of the CGST Act, 2017, drawing parallels to similar provisions in the Central Excise Act and Finance Act, with support from Gujarat HC precedent in Commissioner of Central Excise vs Medico Labs.
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Goods and Services Tax Registration Cancellation Notice Quashed for Failing to Provide Specific Reasons Beyond Mere Conclusions
Case-Laws
GST
The HC set aside both the show cause notice (SCN) dated 01.11.2024 and the consequential final order dated 16.01.2025 cancelling the petitioner's registration. The Court determined that the SCN was legally deficient as it merely stated conclusions about regulatory violations without providing factual details or substantive reasons supporting those allegations. This contravened established principles of natural justice articulated in a previous HC ruling (W.P.No.20080 of 2024). The Court emphasized the critical distinction between “reasons” and “conclusions,” finding that departmental authorities had improperly substituted conclusions for actual reasoning. As the SCN formed the foundation for the final cancellation order, both were deemed unsustainable under judicial scrutiny.
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GST Circular Struck Down for Retroactively Restricting Refund Applications Under Section 54
Case-Laws
GST
The HC struck down para 2(2) of Circular No. 181/13/2022-GST dated 10.11.2022 as ultra vires Section 54 of the GST Act and violative of Article 14 of the Constitution. The circular had improperly applied restrictions from the 13.7.2022 notification to all refund applications filed after 13.7.2022, even for periods predating the notification. The Court found this created an arbitrary and discriminatory classification among assessees based solely on filing date, despite applications being within the statutory limitation period. Following its precedent in Ascent Meditech, the HC ruled that such artificial classification was impermissible, particularly as the notification itself had prospective effect commencing July 18, 2022. Petition allowed.
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Appellate Authority's Rejection of GST Appeal Set Aside; 5-Day Delay Condoned for Small Businessman Under Section 73(9)
Case-Laws
GST
The HC set aside the appellate authority's rejection of petitioner's appeal on limitation grounds. Despite a 5-day delay in filing the appeal against an order under Section 73(9), the Court found the petitioner, a small businessman, had demonstrated bona fides by making the requisite pre-deposit and seeking condonation of delay due to lack of familiarity with the GST portal. The Court held that the appellate authority erred in its strict interpretation of the condonation provision and directed it to hear and decide the appeal on merits within 8 weeks after providing the petitioner an opportunity of hearing. The petition was accordingly disposed of.
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Tax Authority Must Separately Assess Section 74 CGST/SGST Applicability For Each Year And Credit Taxes Already Paid
Case-Laws
GST
The HC disposed of the petition, directing the Competent Authority to consider separately for each year whether invocation of Section 74 of CGST/SGST Acts was warranted, particularly for 2018-19 through 2021-22 where petitioner claimed no justification existed. The Authority must credit any taxes already paid when finalizing proceedings. The Court explicitly mandated that petitioner be afforded an opportunity for personal hearing before the Adjudicating Authority renders its decision. The consolidated show cause notice covering 2017-18 through 2021-22 cannot stand in its current form and requires individualized assessment of each tax year's circumstances.
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Remand for Fresh Decision on Including System Use Gas Value in Re-gasification Services Consideration Under Section 15
Case-Laws
GST
The AAAR set aside the impugned ruling dated 11.5.2022 and remanded the matter back to the GAAR for fresh decision. The case concerned whether value attributable to System Use Gas (SUG) stipulated in customer agreements should be included in consideration for re-gasification services under section 15 of the CGST Act. The AAAR noted that its powers under section 101 of CGST Act are similar to those under section 35A of Central Excise Act and section 85(5) of Finance Act, relying on Gujarat HC precedent in Commissioner of Central Excise v. Medico Labs, holding that established jurisprudence may be considered pari materia when determining the scope of AAAR powers.
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GST Applies to Canteen Charges from Contractual Workers, Not Direct Employees Under Factories Act Section 46
Case-Laws
GST
The AAAR dismissed the appeal, holding that GST is applicable on canteen charges recovered from contractual workers, but not from direct employees. While providing canteen facilities is mandatory under Section 46 of Factories Act, the appellant failed to establish that it assumed responsibility as primary employer due to contractor's failure to fulfill statutory obligations. Evidence indicated contractors were paid gross amounts including canteen allowances. Input tax credit (ITC) remains available only for canteen services provided to direct employees under the Factories Act mandate, not for contractual workers. The AAAR rejected the appellant's reliance on Circular No. 172/4/2022-GST, as the contractual arrangement did not qualify under the specified exemptions.
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GST Council reconstitutes GoM on GST revenue analysis, expands ToR
GST
Dated:- 6-3-2025
PTI
New Delhi, Mar 6 (PTI) The GST Council has reconstituted the Group of Ministers on GST revenue analysis which will suggest sector-specific issues that need policy intervention, and the feasibility of a unified enforcement platform to check tax evasion.
The GST Council, in its 55th meeting on December 21, 2024, had decided to reconstitute the Group of Ministers (GoM) on GST revenue analysis with a revised ToR. The GoM was first set up in 2019.
The reconstituted GoM on 'Analysis of Revenue from GST' under Goa Chief Minister Pramod Sawant, would have nine members including from the states of Bihar (Samrat Chaudhary), Chhattisgarh (O P Chou

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mpact of amendments made in GST acts and rules.
Goods and Services Tax (GST) was rolled out on July 1, 2017. Since then the Act and its rules have been amended to make it easier for businesses after approval of the GST Council, chaired by Union Finance Minister and comprising state counterparts.
The GOM would “review and recommend harmonisation of anti-evasion, audit, scrutiny tools developed by various agencies (NIC, GSTN, DGARM, state governments) to create a unified enforcement and compliance platform”.
It would also suggest suitable measures/policy intervention for course correction for revenue augmentation, particularly for states suffering high revenue shortfall.
The expanded ToR of the GoM comes at a time when another GoM, under

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Bank's Challenge to GST Show Cause Notice Rejected as Premature Since Administrative Remedies Not Yet Exhausted
Case-Laws
GST
HC dismissed petition challenging SCN issued by Commissioner CGST. Court found SCN contained detailed justification for invoking IGST Act 2017, CGST Act 2017, and J&K GST Act 2017 against petitioner-Bank. Court held Bank retains right to respond to SCN, raise jurisdictional objections, and demonstrate transactions fall outside scope of relevant GST legislation. Court determined premature intervention unnecessary as adequate administrative remedy exists through response to SCN. Bank can present defense regarding transaction's taxability under respective GST laws during response proceedings. Petition dismissed allowing statutory process to proceed.
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Provisional Attachment Under GST Section 83 Automatically Lapses After One Year, Cannot Be Extended Beyond Time Limit
Case-Laws
GST
Provisional attachment order under Section 83 of WBGST/CGST Act 2017 challenged before HC. Court determined that provisional attachment automatically lapses after one year from date of order under Section 83(1). The attachment order dated April 13, 2023, expired through efflux of time and cannot be enforced against petitioner. However, authorities retain right to proceed against petitioner based on independent cause of action or enforce demand through other legal means. Court's ruling specifically addresses temporal limitation of provisional attachment while preserving revenue authorities' broader enforcement powers under applicable law. Petition disposed of accordingly.
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GST Demand Order Quashed: Adjudicating Authority Failed to Consider Binding Departmental Circulars 200/12/2023-GST and 236/30/2024-GST
Case-Laws
GST
HC set aside GST demand order dated 21.11.2024 for non-consideration of binding departmental circulars (No.200/12/2023-GST and No.236/30/2024-GST). Matter remanded to adjudicating authority for fresh consideration specifically accounting for these clarificatory circulars. Petitioner granted leave to file additional application demonstrating applicability of circular benefits to their case. The court determined that appellate remedy would be futile since the fundamental issue was non-consideration of binding administrative guidelines. Authority directed to pass fresh order after evaluating circular benefits as claimed by petitioner.
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Petition Dismissed: GST Department Witness Summons Upheld for Evidence Gathering Despite Records Access Challenge
Case-Laws
GST
HC dismissed petition challenging lower court's order allowing respondent to summon GST Department witness. Court held that since GST records were not in respondent's possession, they could rightfully request witness testimony, subject to Rs. 3,000/- costs. The principle of plaintiff's burden of proof was upheld, affirming their discretion to determine necessary witnesses and documentation. While irrelevant evidence would be disregarded, the Court maintained that plaintiffs cannot be denied their right to present their case as they deem appropriate during the evidentiary stage. The ruling emphasizes procedural fairness in evidence gathering despite potential relevancy concerns.
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Government Notices Under Section 168A of CGST Act Challenged Over Limitation Period and Jurisdictional Issues
Case-Laws
GST
HC reviewed challenges to Garnishee Notice, Show Cause Notice, and notifications issued under Section 168A of CGST Act, 2017. Multiple similar petitions were pending across jurisdictions, with Gauhati HC striking down the contested notifications. While Telangana HC ruled favorably based on SC's limitation extension order, that decision faces appeal in SC. Given the complex jurisdictional landscape and pending matters before SC, HC determined petitioner established grounds for both admission and interim relief. The substantive questions regarding validity of notifications and limitation period remain subject to final determination by SC. Petition disposed of with interim protection granted.
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CGST Summons Valid Despite Ongoing State GST Case: Search Operations Not Barred Under Sections 73-74
Case-Laws
GST
Central GST authorities issued summons following a search operation, despite ongoing State GST proceedings. The HC held that statutory prohibition against parallel proceedings under Sections 73 and 74 specifically pertains to assessment proceedings, not investigative actions. Search-based summons are distinct from assessment proceedings as they aim to gather information potentially unavailable during original assessment. The Court distinguished between assessment proceedings and investigative measures, noting that Section 6(2)(b) applies to interrelated events in a particular chain. Since the search occurred after previous assessments, it constitutes a separate proceeding. The summons were deemed valid as investigative tools that may lead to future proceedings. Petition challenging the validity of CGST summons dismissed.
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Healthcare Provider's Diamond Plan Service Tax Exemption Denied Due to Insufficient Documentation Under Notification 12/2017-Central Tax
Case-Laws
GST
AAAR rejected appellant's appeal concerning service tax exemption for a 20-year “Diamond Plan” healthcare service package under Sr. No. 74 of Notification No. 12/2017-Central Tax. The appellant provided insufficient documentation, submitting only a basic plan outline and single bill of supply No. 3/2021-22 dated 12.8.2021. The authority determined these documents were inadequate to properly evaluate the exemption claim for the lump-sum healthcare services agreement. Without comprehensive documentation demonstrating the nature and scope of services, the appeal was dismissed on procedural grounds.
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Treatment Plant's Water Classified as Demineralized Under GST, Losing Exemption Status Despite Lab Certificate Challenge
Case-Laws
GST
AAAR upheld that treated water from Common Effluent Treatment Plant (CETP) constitutes demineralized water, making it ineligible for GST exemption under Notification No. 02/2017-Integrated Tax (Rate). The appellant's laboratory certificate was rejected as it was introduced at appellate stage, lacked accreditation details, and failed to specify sample collection methodology. While circulars exempt drinking water for public purposes (if unsealed) and treated sewage water under heading 2201, the subject water was classified differently. The AAAR maintained that the appellant failed to effectively challenge the original ruling's classification of the treated water as demineralized, thereby sustaining GST liability. Appeal dismissed.
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Lumpsum EPC Contract Including High Seas Sale Goods Must Be Taxed As Single Transaction Under GST Section 15
Case-Laws
GST
AAAR ruled that in a lumpsum turnkey EPC contract between Company A and Company B, the contract cannot be legally divided into separate parts despite high seas sale (HSS) of goods. The contract was deemed indivisible as the appellant was contractually obligated to provide both goods and services. While HSS transactions are neither supply of goods nor services under Schedule III of CGST Act, the value of imported goods sold on HSS basis must be included in the transaction value for GST calculation under Section 15. The AAAR rejected appellant's reliance on BSNL and Gannon Dunkerley precedents, affirming that the contract's integrated nature requires inclusion of HSS goods value in overall GST computation. Appeal dismissed.
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Failure to Prove Physical Movement of Goods Results in Seizure Under Section 129 of GST Act
Case-Laws
GST
HC upheld seizure of goods under GST Act due to petitioner's failure to establish actual physical movement of goods from West Bengal/Assam to Delhi via Kanpur. Following precedent from SC in Ecom Gill Coffee Trading, burden of proof in original proceedings lies with assessee to demonstrate genuine transactions and physical movement of goods. Petitioner failed to provide essential evidence like truck numbers or toll receipts documenting the journey. Court affirmed that under-valuation with intent to evade tax justifies seizure under Section 129 of GST Act. Seizure was deemed lawful as petitioner failed to declare true value of goods and provide supporting documentation. Petition dismissed as no grounds found for interference with impugned order.
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