Goods and Services Tax

Input Tax Credit Claims Under GST Valid Within Extended Timeline Despite Section 16(4) Bar Under Section 16(5)
Case-Laws
GST
HC quashed assessment order concerning Input Tax Credit (ITC) claims under GST regime. The matter involved interpretation of limitation periods under Section 16(4) and 16(5) of CGST Act, 2017. Following precedent in similar cases, Court held that while ITC claims were barred under Section 16(4), they remained valid within the extended limitation period provided under Section 16(5). The ruling effectively preserved petitioner's right to claim ITC within the extended statutory timeframe despite exceeding initial limitation period. Writ petition allowed with directive to reassess ITC claims in accordance with Section 16(5) parameters.
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Input Tax Credit Claims Valid Under Section 16(5) Despite Exceeding Initial Time Limit Under Section 16(4)
Case-Laws
GST
HC quashed order relating to Input Tax Credit (ITC) claims that were time-barred under Section 16(4) of CGST Act but fell within limitation under Section 16(5). Following precedent from Sri Ganapathi Pandi Industries case, Court determined that while ITC claims exceeded initial limitation period under Section 16(4), they remained valid within extended timeframe provided by Section 16(5). Consequently, original tax assessment order, penalties, and interest charges were set aside to extent they denied ITC claims falling within Section 16(5) period. Writ petition allowed, affirming taxpayer's right to claim ITC within extended statutory timeframe despite exceeding initial limitation period.
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GST Assessment Order Nullified Due to Denial of Personal Hearing Under Section 75(4), Matter Remanded for Fresh Consideration
Case-Laws
GST
HC quashed GST assessment order dated 22.04.2024 for violation of natural justice principles under Section 75(4) of GST Act, 2017. Despite petitioner filing two detailed replies (25.01.2024 and 14.03.2024) to Form GST DRC-01 notice, respondent authority passed final order without granting mandatory personal hearing. The scheduling of hearing dates (03.01.2024 and 11.03.2024) prior to reply submission deadlines (25.01.2024 and 14.03.2024 respectively) was procedurally improper. Matter remanded back to respondent authority for fresh consideration after providing proper hearing opportunity to petitioner in accordance with statutory provisions.
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PVC Raincoats Classified Under HSN 3926 20 As Plastic Articles For 18% GST Based On Material Composition
Case-Laws
GST
AAR ruled PVC raincoats must be classified under HSN 3926 20 (plastic articles) rather than HSN 6201 (textile garments), attracting 18% GST. While raincoats function as garments/apparel in common usage, the primary material composition of polyvinyl chloride (PVC) determines classification. PVC sheets cannot be considered woven fabric or textile materials. The ruling follows the principle of generalia specialibus non derogant, where specific provisions prevail over general ones. Despite being worn as apparel, the plastic composition makes it classifiable under “Articles of apparel and clothing accessories” in the plastics chapter, subject to Schedule-III tax rate regardless of price point.
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PVC Raincoats Classified Under HSN 3926 20 for GST Based on Plastic Material Composition Rather Than Apparel Use
Case-Laws
GST
AAR ruled PVC raincoats must be classified under HSN Code 3926 20 (plastic articles) rather than HSN 6201 (textile garments). Despite functioning as apparel, PVC raincoats are primarily composed of polyvinyl chloride, not textile fabric. PVC sheets cannot be considered woven fabric or textile material in common trade practice. Following the principle of generalia specialibus non derogant, the specific composition of the item prevails over its general use as apparel. The ruling confirmed PVC raincoats attract 18% GST under Schedule-III Entry 111 of relevant GST notifications, regardless of price point. The classification is based on material composition rather than utility.
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PVC Raincoats Classified Under HSN 3926 20 as Plastic Articles, Not Textile Garments, Subject to 18% GST Rate
Case-Laws
GST
AAR ruled PVC raincoats must be classified under HSN 3926 20 (plastic articles) rather than HSN 6201 (textile garments), attracting 18% GST. Though raincoats function as garments/apparel in common usage, their primary composition of polyvinyl chloride (PVC) determines classification. The authority rejected applicant's argument for textile classification, noting PVC sheets cannot be considered woven fabric or textile material. Following the principle of generalia specialibus non derogant, the specific material composition prevails over general garment usage. The ruling confirmed applicability of Schedule-III Entry 111 of GST notifications, regardless of the raincoat's price point, maintaining 18% rate uniformly.
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Liquidator Must Register for GST When Selling Company Assets During Insolvency Under Section 7 and 24 CGST Act
Case-Laws
GST
Sale of assets by NCLT-appointed liquidator for Company A in liquidation constitutes supply of goods/services under Section 7 of CGST Act 2017. AAR ruled that liquidator must obtain mandatory GST registration per Section 24 of CGST/WBGST Acts, following special procedures outlined in Notifications 11/2020-CT and 39/2020-CT. These notifications specifically address corporate debtors under IBC 2016 whose affairs are managed by IRP/RP during insolvency resolution. Decision aligns with previous AAR ruling that liquidator-conducted asset sales qualify as taxable supply requiring GST registration. The registration requirement applies from liquidator's appointment until completion of corporate insolvency process.
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GST Department Barred from Coercive Recovery After Time Limit Extension Under Section 168A CGST Act Challenged
Case-Laws
GST
HC granted interim relief against coercive action following show cause notices issued under extended time limits per Section 168A CGST Act notifications. Petitioner challenged validity of notifications dated December 28, 2023 and January 16, 2024 that extended statutory time limits under Sections 73/74. Following precedent from Aspect Integrated IT case, court found strong prima facie case meriting stay, particularly regarding notification validity and consequent order legitimacy. Parties retain liberty to reapply based on Supreme Court's eventual determination of the matter. Order digitally authenticated by court registry.
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Milling Services to Government for PDS Atta Production Qualify as Exempt Composite Supply Under Entry 3A
Case-Laws
GST
AAR determined that milling services provided to State Government qualify as composite supply with milling as principal supply. The services involve crushing wheat into fortified wholemeal atta and packaging. The supply relates to Public Distribution System, a function entrusted to Panchayat under Article 243G. Total supply value was Rs. 260.48, with goods component (fortification and packing) at Rs. 60.00, constituting 23.03% of total value. Since goods value is below 25% threshold and service relates to Panchayat^OC”Os constitutional function, the composite supply qualifies for exemption under Sl. No. 3A of Notification 12/2017-Central Tax (Rate), as amended.
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Central GST Show Cause Notice Quashed as State GST Audit Already Initiated Under Section 70 for Same Tax Issues
Case-Laws
GST
State GST authorities initiated audit proceedings where petitioner acknowledged tax shortfall based on audit findings. Subsequently, Central GST issued show cause notice on same matter. HC quashed the impugned order, holding that audit constitutes “proceedings” as per G.K. Trading Company precedent. The court determined that Central authorities' summons under section 70 was issued after state audit commenced, constituting parallel proceedings on identical subject matter. Following Liberty Oil Mills interpretation of “investigation” as evidence collection process, HC found dual proceedings impermissible. Since both state and central actions concerned same tax issues, and state proceedings began first through audit, the petition was allowed and central proceedings were invalidated.
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Input Tax Credit Claims Under Section 16(5) CGST Act Valid Despite Time Limits When Filed Before November 2021
Case-Laws
GST
HC quashed order denying Input Tax Credit (ITC) claim under CGST Act. Following precedent in Sri Ganapathi Pandi Industries case, Court held that despite limitation under Section 16(4), petitioner entitled to claim ITC for FYs 2017-18 to 2020-21 due to retrospective amendment introducing Section 16(5) effective from 01.07.2017. Department restrained from initiating proceedings against petitioner based on limitation grounds where claims filed before 30.11.2021. Amendment's retrospective application overrides original time limitation restrictions, enabling taxpayers to avail previously time-barred ITC claims within new prescribed timeframe. Petition allowed with costs.
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Registration Cancellation Invalid: GST Officials Failed to Verify Business Closure Before Canceling Active Taxpayer's Registration Under Section 29
Case-Laws
GST
HC overturned GST registration cancellation where authorities had cancelled registration upon finding business premises closed during inspection. Petitioner demonstrated regular tax payments and returns filing, explaining temporary 10-day closure due to proprietor's overseas travel during Diwali holidays. Court found this explanation genuine and directed GST Network to restore registration within one week. Petitioner ordered to file pending returns with applicable taxes, interest, and late fees within 4 weeks of restoration. Court emphasized that registration cancellation was premature without proper verification of business cessation, particularly given petitioner's consistent compliance history and valid explanation for temporary closure.
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Works Contract Services for Railway Infrastructure Development Qualifies for 12% GST Rate Under Concessional Notification
Case-Laws
GST
HC held that works contract services for railway infrastructure development executed between petitioner and RVNL qualifies for concessional GST rate of 12% under relevant notifications. The term “railway” in notification extends beyond Indian Railways to include works pertaining to railway infrastructure broadly. The contract involving track doubling, construction of bridges, platforms, maintenance facilities and associated infrastructure constitutes “original work pertaining to railway.” Court rejected narrow interpretation based on Indian Railways Act definition, noting exemption provisions should not be restricted by importing external conditions. Impugned orders demanding 18% GST were set aside as they contradicted existing advance rulings and would create legal inconsistency. Petition allowed confirming 12% tax rate applicability.
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Statutory Body's GST Assessment Upheld: Previous Tax Exemptions Don't Create Estoppel Against Current GST Provisions Under Section 107
Case-Laws
GST
HC dismissed writ petition challenging GST assessment of statutory body under Kerala Khadi & Village Industries Board Act. Court held that despite previous VAT and service tax exemptions, GST Act provides no explicit exemption or zero-rated status for petitioner's products. Prior statutory exemptions cannot create estoppel against current GST provisions. Petitioner directed to pursue statutory remedy through appeal before Appellate Authority under Section 107 of CGST Act. Court preserved petitioner's right to pursue available statutory remedies against the assessment order while dismissing the writ petition.
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Pure Agent Status Confirmed: No GST on Electricity Cost Recovery When Landlords Pass Through Actual Charges Under Rule 33(a)
Case-Laws
GST
AAR ruled that reimbursement of electricity charges collected on actual basis from sub-lessees is not subject to GST. The applicant, acting as a pure agent under Rule 33(a), merely recovers the exact electricity costs charged by electricity boards/DISCOMs from sub-lessees. Evidence showed the applicant's invoices matched the original electricity bills, demonstrating a pass-through arrangement. Following recent GST clarifications, property owners and managers collecting actual electricity costs are deemed pure agents for this supply. The reimbursement amount is excluded from the value of supply, and consequently, no GST liability arises on such electricity charge recoveries.
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Supply of Veterinary Unit Staff on Contract Basis Not Exempt from GST as Healthcare Service Under 12/2017-CT
Case-Laws
GST
AAR ruled that supply of Mobile Veterinary Unit (MVU) personnel on contractual basis for implementing veterinary healthcare schemes does not qualify for GST exemption under N/N. 12/2017-Central Tax (Rate). The authority distinguished between direct veterinary services and manpower supply, noting that the applicant merely provides contractual staff to the implementing agency rather than operating as a veterinary clinic. The ruling established that two separate supplies occur: first between applicant and implementing agency, then between agency and government department. Since the applicant's service constitutes manpower supply rather than direct veterinary healthcare, it falls outside the scope of exemptions under notification entries 3, 3A, 5, 6, and 46.
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Input Tax Credit Appeal Delay Condoned After Appellant Deposits 10% Pre-requisite Amount Under Section 107(6b) CGST Act
Case-Laws
GST
HC determined the appeal delay was justifiable in a GST input tax credit dispute. The appellant had deposited pre-requisite amounts before formal appeal dismissal. Manual filing was permissible in December 2022 with no prohibition notifications. Electronic filing was impossible until the order's upload on GST portal on 17.01.2023. The appellant complied with Section 107(6b) of CGST Act by depositing Rs.82,000 in GST Electronic Cash Ledger and submitting via speed post. The Court condoned the delay, noting substantial compliance with statutory requirements including 10% pre-deposit of tax liability. The procedural delay was deemed insufficient grounds for dismissal given the appellant's efforts to meet statutory obligations. Petition allowed.
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Government Must Reimburse 6% GST Rate Difference After Rate Hike From 12% to 18% Within Three Months
Case-Laws
GST
HC ruled on GST reimbursement dispute between petitioner and government entity. Acknowledging State GST Department's confirmation of rate increase from 12% to 18%, court directed respondent to reimburse petitioner for differential GST amount of 6% for period January 1-24, 2022. Payment must be made within three months of certified order copy receipt. Non-compliance will attract 6% per annum interest from entitlement date. Court disposed petition despite alternative remedy availability under Arbitration Act, considering direct involvement of GST authorities and rate enhancement confirmation.
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Industrial Policy Benefits Must Be Extended Within 3 Months As Per Modified Clauses 9(a) and 9(b)
Case-Laws
GST
HC directed respondents to extend industrial promotion policy benefits to petitioner within 3 months. While respondents acknowledged petitioner's construction investment per appellate authority's order dated 05/01/2022, they denied benefits under Clauses 9(a) and 9(b) of 22/06/2018 policy, citing ineligibility under 2014 policy. Court noted that post-GST implementation, State issued circular dated 22/06/2018 modifying previous policy. Finding respondents' denial unjustified, HC mandated compliance with appellate authority's order, requiring extension of benefits as per modified policy provisions.
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Municipal Property Tax Reimbursements from Lessees Must Include GST on Total Value Under Section 15 of GST Act
Case-Laws
GST
Municipal property tax reimbursements by lessee/occupier are subject to GST as part of the taxable value of supply under Sec 15 of GST Act. AAR ruled that municipal taxes levied under Kolkata Municipal Corporation Act 1980, being distinct from CGST/WBGST/UTGST/GST Compensation Acts, must be included in the supply value for GST calculation. The authority determined that the total taxable value comprises both the municipal property tax component and the base supply value, with GST applicable on the aggregate amount. This interpretation aligns with the valuation principles established under GST legislation for comprehensive tax assessment on reimbursement transactions.
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GST collection rises by 20pc to Rs 9,925 cr in Feb
GST
Dated:- 3-3-2025
PTI
Chandigarh, Mar 3 (PTI) Gross GST revenue in Haryana rose by 20 per cent to Rs 9,925 crore in February 2025 from Rs 8,269 crore in the same month of last year, an official release said.
The Excise and Taxation Department, Haryana, has achieved significant growth in the collection of Goods and Services Tax (GST), the release said.
In February 2025, Gross GST revenue of Rs 1,83,646 crore was collected in the country, which is 9.1 per cent more than the GST revenue of the same month last year, it said.
“At the same time, the gross GST collection in Haryana in February 2025 is Rs 9,925 crore, while in February 2024, it was Rs 8,269 crore, which shows an i

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Advisory: Enhancements in Biometric Functionality – Allowing Directors to Opt for Biometric Authentication in Their Home State
GST
Dated:- 3-3-2025

Dear Taxpayers,
You may be aware that new GST registration applicants who opt for Aadhaar authentication are required to undergo the process either through OTP verification or Biometric Authentication at a designated GST Suvidha Kendra (GSK), based on system-driven data analysis. To facilitate a seamless process, GSTN provides a slot booking facility, with the link shared in the intimation email sent to the applicant.
As per the existing system, applicants selected for Biometric Authentication must visit the designated GSK mapped to their jurisdiction. However, GSTN has now introd

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any GSK in their Home State through this email.
2. To avail of this option, such Promoter/Director must follow the instructions provided in the intimation email and select a GSK within their home state.
3. The selection of a GSK in the Home State is a one-time facility and cannot be changed once selected. Promoters/Directors are advised to choose their GSK carefully.
4. This facility is currently available in 33 States/UTs where Biometric Authentication has been enabled. It will soon be extended to the remaining three states: Uttar Pradesh, Assam, and Sikkim. Such Promoters/Directors whose Home State is other than Uttar Pradesh, Assam, or Sikkim can opt for any GSK in their Home State.
5. Upon selection of a Home-State GSK, the Promote

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Gross and Net GST revenue collections for the month of Feb, 2025
GST
Dated:- 3-3-2025

Please click on the link below to view the gross and net GST revenue collections for the month of Feb

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GST Show-Cause Notices Without Physical or Digital Signatures of Proper Officer Declared Invalid Under Rule 142
Case-Laws
GST
HC ruled that GST show-cause notices and final orders lacking physical or digital signatures of the Proper Officer are legally invalid. The court emphasized that Rule 142 of GST Rules mandates prescribed Forms requiring signatures, making it a statutory requirement rather than optional. The presence of signature fields in DRC-01 and DRC-07 forms establishes this as a mandatory element. Section 160 of GST Act regarding procedural defects does not protect unsigned notices. The court aligned with precedents from other High Courts and IT Act provisions requiring proper authentication of electronic records. Consequently, the impugned notices and orders without Proper Officer signatures were held invalid and the petition was allowed.
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Bank Account Provisional Attachment Under GST Section 83 Upheld After Hearing Objections and Passing Reasoned Order
Case-Laws
GST
HC dismissed writ petition challenging provisional bank account attachment. Petitioner was granted hearing opportunity per earlier court directive and filed objections, which authorities rejected on October 30, 2024. Show cause notice under Sec. 74 was adjudicated with final order issued. Provisional attachment justified under Sec. 83 for one year until July 7, 2025. Court held petitioner has statutory alternative remedy to file appeal against Sec. 74 order. Petition dismissed with liberty to approach appellate authority according to law. Principles of natural justice not violated as reasoned order was passed after hearing petitioner's objections.
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