Goods and Services Tax

ICAI – SUGGESTIONS ON PRACTICAL ISSUES IN GST
GST
Dated:- 29-8-2025

SUGGESTIONS ON PRACTICAL ISSUES IN GST
A. Adjudication & Enforcement
1. Defined time for replying to intimation in Form DRC-01A
Issue
As per rule 142 of the CGST Rules, the proper officer may before service of notice under sections 73(1), 74(1) or 74A(1) communicate the details of tax, interest and penalty as ascertained by the said officer in Part A of Form GSTR-DRC-01A. However, there is no time limit defined for replying to the intimation communicated in Form GSTR-DRC-01A before service of notice. Practically, officers give minimal time (1-2 days) to reply to the intimation which causes hardship to the taxpayers.
Suggestion
Reasonable time of at least 7 working days be given to reply to the communication sent to the taxpayer.
Justification
Granting taxpayers adequate time to respond to notices is essential for natural justice, transparency, and effective GST compliance, enabling them to review a

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ing disputes and proceedings. They reduce the need for physical travel, saving time and resources for both taxpayers and tax authorities, especially in cases involving inter-State jurisdictions or remote locations. It also ensures continuity of adjudication even during unforeseen disruptions such as public emergencies, natural calamities or pandemics. Additionally, they promote procedural convenience, allow for easier scheduling and can be recorded for transparency and future reference.
3. Effective service of notices and communications
Issue
Section 169 of the CGST Act provides six options for serving any decision, order, summons, notice or other communication. Taxpayers often miss important notice, as they are only uploaded on the portal with no parallel communication through physical mail or real-time alerts. This particularly affects small-scale traders, senior citizens, rural business operators, and other digitally marginalized segments who may not log into the portal regularly

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ensures timely communication, upholds natural justice, and forms the foundation of fair adjudication. Failure to serve notices effectively breaches statutory requirements, violates the taxpayer's right to be heard, and risks orders being struck down by courts. Judicial precedents under GST and earlier tax laws have repeatedly quashed orders where service was deficient or adequate hearing was denied.
4. Physical document demands in GST personal hearings
Issue
Despite the entire GST ecosystem being designed as a digital and paperless system, many officers, particularly of state tax, continue to insist on the physical submission of documents during personal hearings (PH). Even though all filings-returns, challans, invoices, appeals, and replies-are uploaded and available on the portal, taxpayers are often asked to bring printed copies of these documents during hearings before adjudicating authorities.
Suggestion
CBIC may appropriately instruct central tax officers and guide the stat

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linked to yet another unique identifier. This fragmented system architecture hampers the ability of taxpayers and even departmental officers to track the full life cycle of a proceeding.
Moreover, the portal currently lacks a draft-saving feature for key forms and submissions, such as ASMT-11 (reply to scrutiny notice) and APL-01 (appeal form). If the session time goes out, the browser crashes or the internet connection fails, the user is forced to restart the filing process, leading to time loss and frustration.
Further, there is absence of version control and document submission history. In cases where multiple correspondences are exchanged, it becomes difficult to establish which version of the reply or supporting documents was acted upon, leading to confusion or disputes during adjudication or appeal. There is no clear thread as visible on the portal.
Suggestions
(i) To address these inefficiencies, it is suggested that GSTN may implement a structured “Case Life cycle Manageme

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e proceedings. All future notices or replies related to the same subject matter may be automatically mapped to this parent case ID.
(ii) In addition, the GST portal may include “Save Draft” functionality for all major forms and submissions, including ASMT-11, DRC replies and APL-01. This feature may autosave content at regular intervals and store the user's progress in a secure backend cache, enabling recovery in the event of a session timeout or technical disruption.
Justification
These enhancements will improve user experience, reduce errors and missed deadlines, and streamline compliance. A unified, user-friendly interface will aid taxpayers and officers alike, cut redundant correspondence, resolve technical issues, and provide clear case histories essential for fair appellate adjudication.
6. Concerns in levying personal penalties under Section 122(3) of the CGST Act, 2017
Issue
Section 122(3) of the CGST Act, 2017 provides for imposition of personal penalties on directors, p

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ng of orders against unregistered person. As a result, individuals who are personally penalized have no access to their orders via the portal and are unable to file an appeal under section 107 of the CGST Act, 2017, as the portal requires an order to be linked to a valid GSTIN. In effect, directors or officers find themselves subject to financial penalties without being afforded the statutory right of appeal, violating the principles of natural justice.
Suggestions
(i) A Unregistered Person (URP) login system be created for unregistered individuals similar to a Registered Person Login ID, for the limited purpose of issuing notices, uploading orders, and enabling replies or appeals.
(ii) The tax officers may issue and upload separate DRC-07 against such unregistered individuals on their URP dashboard to ensure that the order is distinctly addressable, traceable, and accessible to the person concerned.
Justification
Establishing of a mechanism to adjudicate and appeal penalties ag

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rception of conveyance for inspection of goods in movement, and detention, release and confiscation of such goods and conveyance, must be followed.
Justification
The reiteration of such Circulars from CBIC to the officers will ensure uniformity in enforcement, uphold due process, enhance predictability, and support a business-friendly GST regime.
B. Input Tax Credit
8. Operational enhancement of ITC distribution mechanism
Issue
Under rule 39 of the CGST Rules, 2017, the distribution of input tax credit (ITC) through an input service distributor (ISD) is done based on the turnover of recipients during the “relevant period.”
The rule defines the “relevant period” as:
(a) The financial year preceding the year during which credit is to be distributed; or
(b) If turnover is not available for all or some of the units in the preceding financial year, the last quarter for which turnover details of all recipients are available, prior to the month during which credit is distributed.

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t have any turnover in their States or Union territories in the last quarter previous to the month during which the credit is to be distributed, the month during which credit is to be distributed.”
Thus, in absence of turnover for preceding financial year and last quarter, the current month's turnover be allowed as the basis for distribution.
Justification
Allowing use of the current month's turnover for ISD credit distribution ensures practical compliance, aligns with rule 39's objective of fair credit allocation, and helps prevent disputes and non-compliance.
9. Enhancement of Form GSTR-2B functionality
Issue 1: Removal of Rate Column in Form GSTR-2B
The removal of the tax rate column from Form GSTR-2B has impacted the reconciliation process for taxpayers. The rate-wise breakup is essential to verify the correctness of tax charged on inward supplies and to cross-check with purchase records.
Issue 2: Non-Availability of Quarterly view of Form GSTR-2B
For taxpayers filing r

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and confirming ITC claims. It would reduce manual work. Similarly, restoring an automated quarterly summary would speed reconciliation, and aid financial planning, especially for businesses undergoing periodic audits.
10. Restoration of reversed ITC after withdrawal of GST cancellation application
Issue
Taxpayers are required to reverse the available ITC when applying for GST registration cancellation. However, if they later withdraw the cancellation application and continue their business, the reversed ITC is not auto-restored in the electronic credit ledger, despite the GSTIN being reactivated. This results in financial loss to taxpayers and leads to unjust enrichment of the Government, as rightful ITC remains uncredited.
Suggestions
(i) CBIC may issue a circular prescribing the procedure to be followed in such cases, including timelines and documentation, to ensure seamless re-credit of ITC to the taxpayer's electronic credit ledger upon restoration of the GSTIN.
(ii) A

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location be made available on the portal during the registration process.
Justification
Implementing these improvements would streamline the registration process, minimize delays and ensure correct jurisdiction assignments from the outset.
12. Amendment in GST registration through multiple applications
Issue
The current restriction on submitting a second application for GST registration amendment before the approval of the first amendment creates unnecessary delays in the amendment process.
Suggestion
The system be updated to allow multiple amendment applications to be submitted simultaneously or in quick succession.
Justification
Implementing this change would ensure that businesses can make timely corrections to their registration details, thereby reducing operational disruptions and minimizing compliance risks. The system could incorporate safeguards to ensure that the amendments are properly reviewed before final approval, while still allowing for greater flexibility and

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erence Number (ARN). This feature would help users identify and correct any typographical errors, data entry mistakes, or incorrect document uploads before submission, thereby reducing the incidence of rejections and notices.
(b) Post-Submission Stage – Error Rectification Window: A 24-hour rectification window may be provided from the time of ARN generation, during which applicants can make limited edits or corrections to the submitted Form GST REG-01. This buffer period would serve as a safeguard against unintentional errors and allow applicants to address minor mistakes without waiting for a rejection or notice from the tax authorities.
Justification
A preview feature would allow applicants to verify details and documents before final submission, while a limited 24-hour correction window post-ARN generation would enable timely rectification of minor mistakes without awaiting formal notices. These measures would reduce administrative burden, improve registration accuracy, and enha

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number.
(iii) Cancellation approvals may require vetting by senior officers-not below the rank of Assistant Commissioner.
Justification
A reasoned and transparent cancellation process is critical to uphold taxpayer rights and maintain legal compliance. Specific orders will provide clarity, reduce unnecessary appeals, and prevent avoidable disruptions to business continuity. Alert mechanisms and visibility into procedural safeguards will facilitate timely response.
15. GST compliance during business reorganization: Non-migration of proceedings
Issue
A significant procedural difficulty arises in cases of merger or demerger when the old GST registration is cancelled, but the proceedings associated such as notices, demands, or appeals-continue to remain tagged under the old GSTIN. Even though the law provides for the transfer of liabilities in such reorganizations, the GST portal does not provide a mechanism for transferring ongoing matters to the new GSTIN. This disconnect poses se

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ity may be activated upon submission of legally recognized documentation, such as Form GST ITC-02 (used for transferring unutilized input tax credit) or a certified order of merger or demerger (approved by a competent court, tribunal, or regulatory authority).
(iii) A dedicated section may be created within the new GSTIN's dashboard titled “Legacy Proceedings” or “Transferred Proceedings”, where all migrated items may be categorized chronologically and by type (e.g., ASMT-10, DRC-01, Audit Memo, Appeal ID).
Justification
A seamless transition of pending proceedings to the new GSTIN is essential for legal continuity and natural justice.
16. Concerns in GST registration via SPICe+/AGILE-Pro-S integration on MCA portal
Issue
During the process of company incorporation through the SPICe+ form on the MCA portal, there is an option to apply for GST registration through AGILE-Pro- S form. However, even after the successful submission and incorporation of the company, the TRN for the

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ong with status-tracking features, will enhance transparency, accountability, and operational efficiency.
17. Online cancellation of TDS registration
Issue
Taxpayers holding TDS registration under GST are unable to apply for its cancellation through the GST portal, as no such option exists online.
As per Rule 12(3) of the CGST Rules, 2017, a person registered as a tax deductor under a section 51 of the CGST Act who is no longer liable to deduct TDS is required to submit a written request for cancellation to the proper officer. Upon satisfaction, the officer may cancel the registration and issue Form GST REG-08. However, in practice, taxpayers face significant challenges in cancelling TDS registrations as manual applications submitted to jurisdictional officers remain unprocessed.
Suggestions
(i) An online facility for cancellation of TDS registration, similar to the cancellation of regular GST registration, be enabled on the GST portal.
(ii) To support the above facilitation m

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ts and inverted duty structure (IDS)-experience significant delays beyond the prescribed timelines. Procedural bottlenecks such as multiple document verifications, offline validations, and manual interventions reduce transparency and consistency, resulting in blocked working capital, disrupted cash flows, and impaired international competitiveness for exporters and MSMEs. Additionally, the issuance of deficiency memos beyond the 15-day period adds to uncertainty and delays.
Suggestions
(i) A robust, system-driven refund processing framework be implemented with provisional refunds being automatically sanctioned within 7 days in low-risk cases through back-end automation. The balance be refunded within the statutory 60-day period, leveraging AI-based scrutiny for faster and more accurate validation.
(ii) An automated mechanism to compute and credit interest under section 56 for delays beyond 60 days be integrated into the portal, ensuring timely payments without requiring separate t

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in such cases, leaving taxpayers' funds blocked without service delivery. This creates financial hardship and procedural uncertainty.
Suggestion
A new refund category titled “Refund of excess deposit against rejected casual registration or non-resident taxable person” be introduced, enabling taxpayers to claim the advance tax paid where registration was denied.
Justification
Introducing a transparent, automated refund pathway will prevent undue financial burden, reduce procedural deadlocks, and enhance taxpayer trust. Such reform aligns with the intent of Section 54 and supports ease of doing business by ensuring timely return of unutilized deposits.
20. Refund to SEZ
Issue
The GST law is currently silent on the refund of ITC received by a special economic zone (SEZ) unit from an input service distributor (ISD). With the implementation of mandatory ISD mechanism effective from 01.04.2025, ISD is required to distribute available ITC to all units, including SEZ units. However, SE

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iling returns for the previous month such as Form GSTR-1 and Form GSTR-3B.
For example, during the month of April, the dashboard currently displays April by default, whereas taxpayers are generally filing returns for March. This results in an unnecessary step of manually switching to the previous month each time.
Suggestion
The GST portal's Return Dashboard default be set to the previous month instead of the current month.
Justification
By defaulting to the previous month, the portal will better align with user behaviour, minimizing the steps required to navigate to the correct return period.
22. Generation of advance EVC for return filing
Issue
Many taxpayers prefer to authenticate return filings using EVC (Electronic Verification Code) instead of DSC. However, the EVC can only be generated at the time of submission, often resulting in delays-especially when the authorized signatory is not immediately available to share the OTP. This becomes even more problematic during pe

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able and exempt supply. Hence, composition suppliers other than manufacturers and restaurant service supplier who have both taxable and exempt turnover are not able to report correct tax liability.
Suggestion
A separate line item be inserted in Form CMP-08 for segregating taxable and exempt supply for the suppliers other than manufacturers and restaurant service supplier.
Justification
This will allow composition suppliers other than manufacturers and restaurant service supplier who have both taxable and exempt turnover to report correct tax liability.
F.-Way Bill
24. E-Way Bill to Include 'Ultimate Recipient' in “Bill to – Ship to” transactions
Issue
In “Bill to – Ship to” transactions under GST, the e-way bill system does not provide a dedicated field to capture the GSTIN and name of the actual place of delivery (i.e., the 'Dispatch To' party), which often differs from the 'Ship To' or 'Consignee' details. This structural limitation leads to compliance ambiguity, especially i

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Opposition states demand compensation for revenue loss due to Centre's GST reform proposal
GST
Dated:- 29-8-2025
PTI
New Delhi, Aug 29 (PTI) Opposition-ruled states on Friday said the Centre's proposal for GST rate rejig could result in a revenue loss of about Rs 1.5 crore to Rs 2 lakh crore and demanded compensation for the losses incurred by them.
Finance ministers from eight states Himachal Pradesh, Jharkhand, Karnataka, Kerala, Punjab, Tamil Nadu, Telangana and West Bengal decided to present their proposal to the GST Council at the next meeting on September 3 and 4.
Their proposal for balancing rate rationalisation and revenue neutrality suggests levying an additional duty on sin and luxury goods in addition to the pro

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of taxation decreased to 11 per cent.
The current proposal by the Centre to reduce GST rates and prune slabs will bring down the net rate of taxation to 10 per cent.
“States' revenue interest should be protected. If there is a serious loss to state government revenues, people will be impacted, development work will be impacted and insufficient revenue will hurt state autonomy as well,” Byre Gowda said.
The Centre has proposed that the GST be made a 2-tier tax structure of 5 and 18 per cent, as against the current 4-slab structure of 5, 12, 18 and 28 per cent, plus a compensation Cess.
As per the Centre's proposal, goods and services will be classified as merit and standard and taxed at 5 and 18 per cent. A 40 per cent slab has been

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Section 93 requires notice to legal representative before tax determination; SCN against deceased proprietor void ab initio
Case-Laws
GST
The HC held that a SCN and subsequent determination issued against a deceased proprietor were void ab initio because s.93 of the GST Act contemplates liability of a legal representative only where the business is continued or discontinued and does not authorize determination against a dead person or recovery from heirs without procedural compliance. The court ruled that the legal representative must be issued a SCN and afforded an opportunity to respond before any determination of tax, interest or penalty can be made. Absent issuance of notice to and participation by the legal representative, the impugned determination could not stand. The contested order was set aside and the petition allowed.
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Writ dismissed as premature; petitioner must file detailed reply with documents within 30 days before tax authority examines issues
Case-Laws
GST
HC dismissed the writ petition as premature, finding the petitioner's challenge to the departmental show-cause notice unsuited to judicial adjudication absent an administrative reply and supporting documentary evidence. The court held that factual and taxability issues concerning the overseas construction contract and place-of-supply determinations are for the Assessing Officer to examine after receipt of a detailed response; accordingly the petitioner was granted liberty to file a comprehensive reply with all supporting documents in relation to the impugned show-cause notice dated 22.07.2024. The petition is dismissed, with the petitioner directed to submit its reply within 30 days of receipt of the order.
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Petition dismissed: appeal barred as filed beyond maximum condonable period; Article 226 cannot override statutory limitation rules
Case-Laws
GST
The HC dismissed the petition challenging the order refusing to entertain an appeal, holding the appeal was instituted beyond the maximum condonable period and no non-communication of the Order-in-Original was established. The court found the reasons for delay insufficient and concluded the appeal exceeded the statutory extended limitation period, precluding further condonation. Exercising jurisdiction under Article 226 could not subvert the legislative scheme embodied in the statutory limitation framework (including the prescribed condonable period), and the petitioner's arguable merits could not cure the jurisdictional bar. Consequently, the petition was dismissed and the impugned order declining to admit the appeal was upheld.
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Show-cause notice with one-day hearing violated natural justice; party given 30 days and personal hearing for fresh order
Case-Laws
GST
The HC held that issuance of a show-cause notice with one day's hearing notice and post-hearing/email communications violated the principles of natural justice. The writ petition was disposed of while declining to strike down the SCN on jurisdictional grounds. The Petitioner is directed to file a substantive reply to the SCN within 30 days (deadline: 30 September 2025). The Department shall grant the Petitioner a personal hearing, and the Adjudicating Authority must thereafter pass a detailed, reasoned order. No other relief granted; procedural non-compliance remedied by affording adequate time and hearing before further adjudication.
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Petition held maintainable despite alternative remedies; EOW ordered to investigate alleged impersonation and misuse of petitioner's GST number
Case-Laws
GST
The HC found the petition maintainable notwithstanding the availability of alternative remedies and directed investigation into alleged impersonation and misuse of the Petitioner's GST number by a third party. The court held that the complaint falls within the investigatory jurisdiction of the Economic Offences Wing (EOW) and ordered the Delhi Police (EOW) to inquire into the allegations and take such action as permissible under law. The EOW is directed to file a status report on the progress of the investigation before the HC. Matter is listed for further hearing on 12 November 2025.
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Refund deposit with interest and reconsider alleged wrongful blocking of ITC; representation to be decided by 15 Oct 2025
Case-Laws
GST
HC directed refund of the deposit with interest and consideration of alleged wrongful negative blocking of ITC where the amount was collected against the Petitioner's will and purportedly contravened applicable CBIC guidance. The Court found an undue delay in adjudicating the Petitioner's representation and ordered the Petitioner to appear before the Additional Director General, DGGI, Gurugram Zonal Unit on 09 Sept 2025 at 11:30 AM. The authority is directed to hear the Petitioner and decide the representation by a reasoned order by 15 Oct 2025. All statutory and other rights and remedies of the parties are expressly kept open. Petition disposed of.
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Anticipatory bail granted in GST fraud probe over fake invoices, falsified e-way bills and wrongful input tax credit claims
Case-Laws
GST
The HC granted anticipatory bail to the applicants in a GST-related prosecution alleging fraudulent invoicing, falsified e-way bills and wrongful Input Tax Credit claims, holding custodial interrogation unwarranted at this stage. The court found the investigation rested predominantly on documentary and digital records-including GST returns, invoices, e-way bills, toll data and seized financial records-which have already been taken into custody by authorities, and the prosecution failed to demonstrate any specific necessity for detention to secure evidence. Applying the principle that grant of anticipatory bail depends on case facts, the HC allowed anticipatory bail subject to conditions, observing that investigation can proceed effectively without custodial interrogation.
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Consolidation of single SCN across years upheld where alleged fraudulent ITC of Rs 41 crore; appeal allowed under Section 107
Case-Laws
GST
The HC dismissed the petition and upheld that consolidation of a single SCN for multiple years is permissible where Input Tax Credit in excess of Rs. 41 crores is alleged to have been fraudulently availed; the primary allegation against the Petitioner mirrors that precedent. The court recorded that the impugned order is appealable under Section 107 of the CGST Act, 2017, and granted the Petitioner liberty to file an appeal by 30 September 2025 upon making the requisite pre-deposits. If the appeal is instituted within the stipulated period, the Appellate Authority is directed not to reject it on limitation grounds but to decide the matter on its merits.
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Section 74(10) requires impugned order within limitation; DRC-07 post-order summary under Rule 142 permitted; appeal under Section 107 allowed
Case-Laws
GST
The HC dismissed the writ petition, holding that Section 74(10) requires the impugned order to be issued within the limitation period but not the subsequent DRC-07, which is a post-order electronic summary under Rule 142; deemed service under Section 169 (including electronic communication) suffices for issuance. The court recognised Section 74's extended period applies only where fraud, wilful misstatement or suppression is established and found the investigation prima facie disclosed alleged fraudulent ITC availment. The Petitioner was granted leave to file an appeal under Section 107 by 30 September 2025 with the requisite pre-deposit; if so filed timely, the Appellate Authority shall determine it on merits, not on limitation.
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Rooms rented below Rs.7,500/day qualify as taxable hotel accommodation under SAC 9963, not renting service (SAC 9972)
Case-Laws
GST
The AAR held that the applicant's provision of rooms to the respondent (a central bank) constitutes “hotel accommodation” for GST purposes where the room tariff is below Rs.7,500 per day per unit, and thus is a taxable supply under GST. The Authority distinguished “hotel accommodation service” (SAC 9963) from “renting service” (SAC 9972), finding them to fall under separate entries of the rate notification (serial no. 7(i)/(vi) and serial no. 15(7) respectively). The AAR further held that the GST characterization of hotel accommodation is independent of the Income Tax Act and must be governed solely by the GST law and applicable rate notifications.
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Hotel not a specified premises for FY 2025-26 as per Rs.7,500 per-room threshold; walk-in restaurant services taxable at ordinary rate
Case-Laws
GST
The AAR held that the applicant's hotel will not qualify as a “specified premises” for FY 2025-26 because, for FY 2024-25, the per-room combined charge under the American or Continental Plan did not exceed Rs.7,500 per day; accordingly restaurant services to walk-in guests remain taxable under the ordinary rate applicable to standalone restaurant supply. The Authority further held that if in any subsequent financial year a unit of accommodation is charged at above Rs.7,500 (inclusive of food under the applicable plan, even if itemised), the premises will be treated as “specified premises” for the next financial year and restaurant services to walk-in guests will attract 9% CGST + 9% SGST.
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PVC raincoats classified as plastic articles under HSN 392620, taxable under Entry No. 111 Schedule III (Notif. No.01/2017) 18% GST
Case-Laws
GST
AAR held that PVC sheeting does not constitute “fibres, filaments or yarns” and therefore articles manufactured from PVC sheetings are not textile goods within Chapter 62. PVC raincoats are excluded from headings 62012010, 62013010 and 62019010 and instead fall within Chapter 39 as articles of plastics, specifically heading 392620. The Authority found the Explanatory Notes to Chapter 39 dispositive and concluded the headings are mutually exclusive. Consequently, PVC raincoats are classifiable under HSN 392620 and taxable under Entry No. 111 of Schedule III (Notification No. 01/2017 – Central Tax), attracting an 18% GST rate on supply.
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Advisory –System Enhancement for Order-Based Refunds
GST
Dated:- 28-8-2025

1. As per the available functionality, taxpayers could claim refunds under the category “On account of Assessment/ Enforcement/ Appeal/Revision/ Any Other Order” (ASSORD) only if:
* The cumulative amount of the Demand ID showed a negative balance (i.e., refund eligible).
* The status of the Demand ID was “Refund Due”.
This restriction prevented taxpayers from claiming refunds when individual components (minor heads) of a demand showed negative balances and the overall cumulative balance was zero or positive.
2. For the above scenario, several references have been made by the tax payers and tax officers stating that the taxpayers are not able to cla

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Petition dismissed as moot and non-maintainable; Section 70 summons and Section 69 arrest powers examined; revision remedy available
Case-Laws
GST
HC dismissed petition as infructuous and non-maintainable. The Court noted the petitioner had been summoned under Section 70 of the CGST/GGST Acts, subjected to prolonged questioning and retention followed by arrest, and that Sections 70 and 69 confer summon and arrest powers respectively, with Section 70 inquiries treated as judicial proceedings. Despite factual findings about extensive questioning and a COVID test during the relevant period, the claimed relief became moot during pendency, and the petitioner had not exhausted the efficacious statutory remedy of revision. In view of mootness and availability of an alternative remedy, the petition was disposed of.
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Penalty under s.125 GST quashed for denial of hearing; case remanded for fresh adjudication and fair hearing
Case-Laws
GST
The HC held that the impugned penalty levy under s.125, GST Act, was vitiated for denial of audi alteram partem; noting that an appeal had been dismissed as time-barred, the court nevertheless quashed the orders dated 18.12.2024 and 28.07.2025 for failure to afford an opportunity of hearing. The petition is allowed by way of remand: the matter is returned to the competent authority to rehear and pass a fresh adjudicatory order in accordance with law and principles of natural justice. Directions ensure fresh proceedings conform to statutory limitation rules and afford the Applicant a full opportunity to be heard before any fresh penalty is imposed.
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Approved resolution plan conclusively bars subsequent claims; Section 74(9) CGST assessment quashed to protect insolvency process
Case-Laws
GST
HC held that, pursuant to the Supreme Court precedent, approval of a Resolution Plan by the NCLT conclusively bars subsequent claims by other creditors as such claims would disrupt the resolution process. Applying that principle, the Court found no justification to sustain a post-approval tax assessment and accordingly quashed the impugned assessment order dated 29.04.2025 issued under Section 74(9) of the CGST/UPGST Act, 2017 against the Petitioner. The petition was allowed and the assessment order set aside, leaving the approved Resolution Plan and the insolvency resolution framework undisturbed; no further dues may be created against the Petitioner arising from the specified assessment.
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Electronic credit ledger payment counts as valid pre-deposit under Section 107(6)(b), appeal reinstated after wrongful rejection
Case-Laws
GST
The HC allowed the petition, quashing the appellate authority's order that rejected the petitioner's appeal for failure to pay the required pre-deposit in cash, and restored the appeal on file. The court held that payment from the electronic credit ledger satisfies the pre-deposit requirement under Section 107(6)(b) of the CGST Act and that electronic transfer must be treated as valid tender for pre-deposit purposes. Having found the appellate authority's refusal unsustainable in light of a directly analogous HC decision, the court set aside the impugned order and directed reinstatement of the petitioner's appeal, granting the petition.
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Writ allowed; penalty under Section 129(1)(b) CGST quashed for relying on unverified third-party statement without notice
Case-Laws
GST
The HC allowed the writ petition, setting aside the impugned order and quashing the penalty imposed under Section 129(1)(b) of the CGST Act as unsustainable. The court held the revenue accepted an unverified, uncorroborated statement from a third party as conclusive without issuing notice to or verifying representations of the appellants, and failed to conduct requisite verification of the genuineness of goods in transit and documents prior to issuance of the show-cause notice. Subsequent cancellation of the third party's registration, even if assumed, did not validate the departmental action. In consequence, the penalty and enforcement action against the appellants were declared illegal and were set aside.
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Order quashed; allow rectification of Form GSTR-1 clerical error reflecting sister concern turnover; accept and process manual filing
Case-Laws
GST
The HC found that the petitioner committed an inadvertent clerical error in Form GSTR-1 by reflecting the turnover of a sister concern, causing discrepancies with Form GSTR-3B and resultant disallowance of excess ITC claims. The impugned order dated 12.02.2025 in GST APL-04 issued by the respondent is quashed and set aside. The petitioner is granted relief to rectify the error and is permitted to file a rectified Form GSTR-1 within four weeks, which the respondent must accept manually and process in accordance with law. Petition allowed and statutory consequences to follow as per applicable GST provisions.
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Writ dismissed as withdrawn where s.73(9) challenge delayed statutory deposit; petitioners ordered to pay Rs.100,000 costs
Case-Laws
GST
HC dismissed as withdrawn a writ challenging an order passed by the proper officer under s.73(9) of the WBGST/CGST Act, 2017, where the departmental appellate tribunal had not been constituted. The Court noted that, at the time of filing, a departmental circular dated 11 July 2024 was already extant and the petitioners had delayed payment of the amount determined by tax authorities. The petitioners sought withdrawal of the writ; the HC declined to permit invocation of extraordinary jurisdiction to further delay the statutory revenue deposit and ordered dismissal of the petition as withdrawn, subject to payment of costs of Rs.100,000 to the GST authorities.
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Diagnostic test kits classed under HSN 3002, taxable as instruments; concessional GST 5% under Schedule I Sr. No. 180
Case-Laws
GST
The AAR held that the three diagnostic test kits are properly classifiable under HSN 3002 rather than HSN 3822, applying the principle affirmed by the SC in analogous precedent. Consequently, the applicant's goods do not fall within the residual chemical preparations heading and are taxable as instruments/reagents for diagnostic purposes. The applicant is directed to discharge GST at the concessional rate of 5% under Schedule I, Sr. No. 180. The ruling determines classification and tax liability prospectively for the applicant, subject to statutory compliance and any rights of appeal available under the governing indirect tax jurisprudence.
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Kerala CM Vijayan seeks PM ModiÂ’s immediate intervention on 'GST revenue loss'
GST
Dated:- 27-8-2025
PTI
Thiruvananthapuram, Aug 27 (PTI) Kerala Chief Minister Pinarayi Vijayan on Wednesday sought the immediate intervention of Prime Minister Narendra Modi to address the concerns of states that may face revenue loss when the Centre revises the GST rate structure.
Vijayan urged the union government and the prime minister to assess KeralaÂ’s likely revenue loss and provide compensation as part of the proposed GST reforms. He said he had already written to Modi highlighting the stateÂ’s concerns.
“The union government needs to address the concerns of states facing revenue loss while revising GST rates,” he told reporters here.
The

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taxes on essential items.
“The loss of revenue to states will hamper welfare initiatives for the poor and vulnerable. Therefore, states must be compensated,” he said.
In his latest letter to the PM, Vijayan, without specifying the date, also urged that the benefits of lower tax rates be passed on to consumers through reduced prices of commodities and services.
He pointed out that the revenue-mobilising capacity of states is already limited compared to their expenditure obligations in key socio-economic sectors, and that restrictions on open market borrowings further constrain resource mobilisation.
“In these circumstances, sudden revenue loss due to GST rate revision will further weaken states’ finances. Necessary steps should be taken

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AIDCF Calls for GST Relief to Safeguard Cable TV Industry
GST
Dated:- 27-8-2025
PTI
Urges Government to Reduce GST Slab from 18% to 5% in Line with Next-Generation GST Reforms
NEW DELHI, Aug. 27, 2025 /PRNewswire/ The All India Digital Cable Federation (AIDCF), the apex body representing India's Digital Multi-System Operators (MSOs), has appealed to the Government of India for a reduction in the Goods and Services Tax (GST) rate on Cable TV services from the existing 18% slab to 5%. This request has been placed in the context of Hon'ble Prime Minister, Shri Narendra Modi Ji's vision of introducing next-generation GST reforms aimed at simplifying the structure, rationalising rates, and easing the tax burden on citizens.
AIDC

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and unfair competition from unregulated digital platforms operating outside the regulatory and fiscal framework. Rising satellite channel costs have already pushed consumer prices upward making Cable TV increasingly unaffordable for ordinary households.
AIDCF pointed out that reducing the GST slab to 5% will directly benefit consumers by keeping monthly bills affordable, while at the same time supporting the financial health of MSOs and Local Cable Operators (LCOs). The relief in working capital will allow these largely MSME operators to invest in spreading wired broadband, thereby strengthening the government's Digital India mission and ensuring universal access to affordable information and entertainment. The step will also provide a le

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