Goods and Services Tax

State confirms no GST revenue loss from out-of-state corporate billing under destination-based GST rules
News
GST
The state government confirmed that there has been no loss of Goods and Services Tax (GST) revenue due to companies routing sales and billing through corporate offices outside the state. Under the destination-based GST regime effective from July 2017, tax revenue accrues to the state where goods or services are consumed, not where they are manufactured or billed. Consequentl

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State Tax Dept Sends 6,000 GST Notices Using UPI Data, Allows Responses Before Final Demand Under Section 9
News
GST
A state tax department issued approximately 6,000 GST demand notices to traders based on UPI transaction data, alleging non-registration despite turnover thresholds requiring GST registration. The notices are preliminary, allowing recipients to respond with evidence of exemptions or compliance before final demands are made. Traders' associations protested, calling for str

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Karnataka BJP chief slams CM Siddaramaiah over GST notices to small traders, seeks withdrawal
GST
Dated:- 23-7-2025
PTI
Bengaluru, Jul 23 (PTI) Karnataka BJP President B Y Vijayendra on Wednesday accused Chief Minister Siddaramaiah of setting targets for the state's Commercial Tax Department, which is issuing GST notices to small and micro traders and urged the government to withdraw them.
He extended the BJP's support to the agitation announced by a section of small and micro traders, who have objected to receiving GST notices linked to their UPI transactions.
Several traders' associations have called on these businesses to boycott UPI transactions and have announced a statewide strike on July 25.
“The Commercial Tax Depart

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rt for the traders' protest, the state party chief said even small vendors selling milk and curd have been served GST notices.
“There are three slabs under GST, but the Commercial Tax Department is serving 18 per cent tax notices to everyone indiscriminately,” he claimed.
“These notices are being issued without proper verification or analysis, purely because the state lacks funds. This has caused serious anxiety among traders,” he said, urging the chief minister to ensure that “the government withdraws these notices immediately.” On a separate issue, Vijayendra commented on the Supreme Court's dismissal of the Enforcement Directorate's plea against CM Siddaramaiah's wife in the MUDA site allotment case.
While welcoming the court's de

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rs also have the strength to hold counter-protests in front of the KPCC office, if needed.
“If Congress workers want to protest, they should go to Freedom Park, the designated spot. Instead, they're indulging in goondaism in the name of protest-this is unacceptable,” he said, adding that the BJP has also met the city police commissioner and urged action against such behaviour.
Stating that such actions were inappropriate, Vijayendra urged Deputy CM Shivakumar to withdraw from them.
He alleged that the Congress government had yet to allocate the promised Rs 50 crore for development in each legislator's constituency, and claimed the announcement was merely a ploy to silence ruling party MLAs who were publicly questioning the Chief Minister

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GST notices based on UPI transactions: K'taka traders on warpath, official tells action as per law
GST
Dated:- 23-7-2025
PTI
Bengaluru, Jul 23 (PTI) Amid rising concerns among traders in Karnataka over the issuance of nearly 6,000 GST demand notices based on UPI transaction data, a top tax official has termed the action as within the framework of law.
Traders' bodies have called for a strike over the matter.
Speaking to PTI, Meera Suresh Pandit, Joint Commissioner of Commercial Taxes, also clarified that notices are not final tax demands and the recipients have the right to respond with supporting documentation. If the reply is convincing or the goods and services are exempted under the GST Act, notices will be dropped, she added.
Reacting to the issue of notices sent to traders based on UPI transactions, a number of traders associations in the state have given a call to the traders to boycott UPI transactions. They have also called for a strike on July 25.
Responding t

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ates that they may be liable to register under GST,” Pandit said, adding that notices were based only on preliminary data, not final determinations.
The officer said the department is not aware whether the turnover is entirely exempted, partially taxable, or fully taxable. That is why the notice includes a proposal to register and pay applicable taxes, interest, and penalties.
“If the turnover is completely exempted from goods or services like tuition fees, the registration is not required. If the reply is convincing, the notice will be dropped and proceedings will close with a nil demand,” Pandit clarified.
She also addressed doubts prevailing among the trading circles.
“Some innocent traders are being carried away, hoping every notice will be withdrawn. Some are being misled. But if they want relief within legal provisions, I request them to come to the department. We will guide them as per the law,” the Joint Commissioner said.
“Calling for a 'Bandh' will not serve the purpose.

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nd ensure every opportunity is given. When you buy a plot, you go to the sub-registrar's office without being told. Likewise, traders should know applicable tax laws. Ignorance cannot be an excuse. The department is always there to guide,” she said.
Trade activist Sajjanraj Mehta raised concerns over the fairness of recent GST notices.
He stated that while the Commercial Taxes Department is legally within its powers to use such data, the lack of prior warning, context, and education has created confusion.
“Many small traders were unaware that their UPI inflows, often a mix of business and personal transactions, would be treated as undeclared turnover,” Mehta told PTI.
“The fairness issue lies not in enforcement itself, but in the suddenness and lack of clarity,” he added.
Mehta stressed that the department should differentiate between exempt and taxable goods before sending notices.
Issuing notices without accounting for exempt goods like fruits, vegetables, or unbranded food ite

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GST notices based on UPI transaction: Traders on warpath, official calls action proper
GST
Dated:- 23-7-2025
PTI
Bengaluru, Jul 23 (PTI) Amid rising concerns among traders in Karnataka over the issuance of nearly 6,000 GST demand notices based on UPI transaction data, traders' bodies gave a strike call, while a top tax official termed the action to be within the framework of law.
Speaking to the PTI, Meera Suresh Pandit, Joint Commissioner of Commercial Taxes, has also clarified that notices are not final tax demands and the recipients have the right to respond with supporting documentation. If the reply is convincing or the goods and services are exempted under the GST Act, notices will be dropped, she added.
Reacting to the issue of notices sent to traders based on UPI transactions, a number of Traders Associations in Karnataka have given a call to the traders to boycott UPI transactions. They have also called for a strike on July 25.
Responding to the reports of a pro

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UPI, it indicates that they may be liable to register under GST,” Pandit said, adding that notices were based only on preliminary data, not final determinations.
The officer said the department is not aware whether the turnover is entirely exempted, partially taxable, or fully taxable. That is why the notice includes a proposal to register and pay applicable taxes, interest, and penalties.
“If the turnover is completely from exempted goods or services like tuition fees, the registration is not required. If the reply is convincing, the notice will be dropped and proceedings will close with a nil demand,” Pandit clarified.
She also addressed doubts prevailing among the trading circles.
“Some innocent traders are being carried away, hoping every notice will be withdrawn. Some are being misled. But if they want relief within legal provisions, I request them to come to the department. We will guide them as per the law,” the Joint Commissioner said.
“Calling for a 'Bandh' will not serve

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natural justice and ensure every opportunity is given,” she added.
“When you buy a plot, you go to the sub-registrar’s office without being told. Likewise, traders should know applicable tax laws. Ignorance cannot be an excuse. The department is always there to guide,” she said.
However, trade activist Sajjanraj Mehta raised concerns over the fairness of recent GST notices.
He stated that while the Commercial Taxes Department is legally within its powers to use such data, the lack of prior warning, context, and education has confused.
“Many small traders were unaware that their UPI inflows, often a mix of business and personal transactions, would be treated as undeclared turnover,” Mehta told PTI.
“The fairness issue lies not in enforcement itself, but in the suddenness and lack of clarity,” he added.
Mehta stressed that the department should differentiate between exempt and taxable goods before sending notices.
“Issuing notices without accounting for exempt goods like fruits,

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No GST loss to Goa from out-of-state corporate billing: CM Sawant
GST
Dated:- 23-7-2025
PTI
Panaji, Jul 23 (PTI) Chief Minister Pramod Sawant has said Goa has not incurred any loss in the Goods and Services Tax (GST) revenue due to companies routing their sales and billing through corporate offices located outside the state.
In a written reply tabled in the Goa assembly on Tuesday during the ongoing monsoon session, Sawant, who also holds the finance portfolio, said the GST regime rolled out with effect from July 01, 2017 is a destination or consumption-based tax regime.
“Therefore, the tax on goods and/or services gets accrued to the State/UT where it is actually consumed,” Sawant said.
“Therefore, there is no question of

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Court upholds finality of composite SCN order, affirms wide appellate powers under Section 107(11) CGST Act
Case-Laws
GST
The HC dismissed the petition seeking modification of the order adjudicating a composite SCN against the Petitioners and challenging the vires of N/N. 06/2020-Central Tax. The Court held that under Section 2(4) of the CGST Act, the Adjudicating Authority excludes the Appellate Authority, which has full power to consider the matter afresh on appeal under Section 107.

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Appeal dismissed for being three years late; limitation period strictly capped at 30 days under relevant rules
Case-Laws
GST
The HC upheld the dismissal of the appeal filed three years and twenty days beyond the prescribed limitation period, affirming that the appellate authority's power to condone delay is strictly limited to thirty days. The court relied on established precedents interpreting analogous statutory provisions, emphasizing that no residual discretion exists to extend limi

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Composite GST show cause notices for multiple years violate Sections 73 and 74 limitation rules, must be issued yearly separately.
Case-Laws
GST
The HC held that issuance of a composite show cause notice (SCN) covering multiple financial years under the GST Act is impermissible. Each financial year constitutes a separate tax period with distinct limitation periods under Sections 73 and 74. The limitation of three or five years applies individually to each financial year and cannot be ag

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GST registration cancellation upheld under Section 29(2)(c) for non-filing returns; restoration allowed with dues paid
Case-Laws
GST
The HC upheld the cancellation of the petitioner's GST registration under Section 29(2)(c) of the CGST Act, 2017, due to non-filing of returns for six consecutive months. However, acknowledging the serious civil consequences of such cancellation, the court directed that the petitioner may apply for restoration of registration by submitting all pending retu

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HC refuses to hear petition on SCN issued via Form DRC-01A, directs appeal with first Appellate Authority under Income Tax Act
Case-Laws
GST
The HC declined to adjudicate the petition challenging the SCN issued in Form DRC-01A on jurisdictional grounds related to reliance on Form 26AS under the Income Tax Act, 1961. The court held that the petitioner must pursue remedy before the first Appellate Authority, which is directed to admit the appeal if filed within four weeks, waiving any add

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Dredging and De-silting Services Classified as Pure Service with Nil GST Under Entry No. 3 Notification 12/2017
Case-Laws
GST
The AAR held that the applicant's dredging and de-silting services performed using Cutter Suction Dredger in specified river channels for the Government of West Bengal constitute a pure service without any supply of goods. The activity involves excavation and removal of silt without any construction or creation of dumping grounds, thereby excluding it from works

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Appeal Dismissed for Non-Appearance, But Dismissal Set Aside for Lack of Fair Opportunity to Defend
Case-Laws
GST
The HC dismissed the appeal due to the petitioner's non-appearance, attributing it to a refusal to participate. However, the court found that respondent No.2 acted hastily by attempting to dispose of the matter at the initial hearing without affording the petitioner a fair opportunity to present their defense. The HC emphasized the necessity for respondent No.2 and similar o

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Manpower Supply to WTL is Pure Service, No GST Exemption Under Notification 12/2017 Entry 3
Case-Laws
GST
The AAR held that the applicant's supply of personnel to WTL constitutes a pure service and not a composite supply or works contract. NKDA, constituted under the New Town Kolkata Development Authority Act, 2007, qualifies as a local authority; however, the service recipient is WTL, not NKDA, as payment flows from NKDA to WTL and then to the applicant on a back-to-back basis. Consequ

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Single Show Cause Notice for Multiple Years Violates GST Act Sections 2(106), 73, 74, and 128 Rules
Case-Laws
GST
The HC held that issuance of a single show cause notice encompassing multiple financial years contravenes the GST Act, which mandates that show cause notices must correspond to individual tax periods as defined under Section 2(106) and Sections 73/74. The Court emphasized that “bunching” violates principles of natural justice and statutory provisions, as each financial year

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70-Day Delay in Filing Appeal Condoned Under Section 107 of TNGST Act for Medical Reasons
Case-Laws
GST
The HC condoned a 70-day delay in filing an appeal under Section 107 of the TNGST Act against an Adjudication Order dated 07.01.2025, finding the petitioner's reasons-medical treatment of the managing partner and delayed knowledge of the order-genuine. The FORM GST APL-02 dated 23.06.2025 issued by the 1st respondent was quashed, and the appeal was restored on the 1st respondent's fil

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High Court Quashes Penalty for Delayed GSTR-3B Filing Under Section 39, Orders Fresh Adjudication
Case-Laws
GST
The High Court set aside the impugned order which upheld the demand and penalty solely on the ground of delayed filing of GSTR-3B returns for FY 2017-18 to 2020-21 under Section 39 of the GST Act. Without adjudicating on the merits, the matter was remanded to the Superintendent, CGST & Central Excise Range-I, Division Ratlam for fresh adjudication in light of changed circumsta

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Bail Rejected for Tax Fraud Under Sections 132(1)(b), (c), (i) of CGST Act for Fake Invoice Scam
Case-Laws
GST
The DSC rejected the bail application of the accused proprietor of M/S New Global Scrap Traders, charged under Sections 132(1)(b), 132(1)(c), and 132(1)(i) of the CGST Act, 2017, for fraudulent availing and utilization of input tax credit amounting to Rs. 23,47,68,801/- through fake invoices without actual supply of goods. The court found no violation of fundamental rights unde

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Section 129 GST Proceedings Require Proof of Mens Rea; Minor Invoice Errors Insufficient for Penalty
Case-Laws
GST
The HC held that initiation of proceedings under section 129 of the GST Act requires proof of mens rea to evade tax. A minor discrepancy of one digit in the tax invoice and e-way bill did not establish such intent. Relying on precedent emphasizing the necessity of mens rea for penalty imposition, the Court found the impugned orders unsustainable. Consequently, the orders we

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Final Opportunity Ordered for Petitioner to Present Case Before Authority Under Section 30 Deadline Set for Compliance
Case-Laws
GST
The HC set aside the impugned order imposing the penalty, noting that although the petitioner was represented at the personal hearing and lost the right of appeal due to delay, the petitioner must be afforded one final opportunity to present their case before the authority. The petitioner is directed to communicate a certified copy of the HC order to the a

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Non-service of Show Cause Notice and denial of hearing violate natural justice; order set aside under relevant rules
Case-Laws
GST
The HC held that the non-service of the Show Cause Notice (SCN) and denial of personal hearing constituted a violation of natural justice principles. Consequently, the impugned order-in-original demanding recovery for wrongful availment of Input Tax Credit against the Petitioners was set aside. The Court directed the Adjudicating Authority to adjudicate the

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Order set aside for denying personal hearing under Section 75(4) of TNGST Act, remanded for fresh consideration
Case-Laws
GST
The HC held that the impugned order was passed in violation of natural justice principles, as the respondent failed to provide the petitioner a personal hearing despite receiving a detailed 130-page reply. The Court emphasized the mandatory requirement under Section 75(4) of the TNGST Act, 2017, for affording an opportunity of personal hearing before passing such

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Writ of Mandamus orders quick disposal of tax appeal filed on unlawful money recovery under relevant laws
Case-Laws
GST
The HC issued a writ of mandamus directing the respondent to expeditiously consider and dispose of the petitioner's appeal filed on 13.02.2025, challenging the order regarding tax imposition and recovery of money allegedly obtained through unlawful means. The Court emphasized the necessity for the appellate authority to act in a time-bound manner and to decide the matt

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High Court Sets Aside Orders Citing Natural Justice Violation, Remands Case for Fresh Hearing
Case-Laws
GST
The HC allowed the petition by setting aside the impugned orders dated 8 June 2018, 17 February 2019, and 4 November 2019, and remanded the matter to the AAR for fresh consideration. The court found a violation of natural justice principles as the Appellate Authority improperly considered the Chartered Engineer's and Customer's Certificates without affording the Respondents an opp

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Karnataka Commercial Taxes launches helpline for corruption complaints on UPI bribe demands under GST rules
News
GST
The Commercial Taxes Department in Karnataka has established a helpline to address corruption complaints, particularly involving bribe demands related to UPI transactions. The department received reports that some officials and intermediaries solicited bribes from traders under the guise of assistance. It emphasized a zero-tolerance policy and urged traders to report such

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