Goods and Services Tax

Trump threatening existence of GST; will his 'good friend in New Delhi' stand up: Cong
GST
Dated:- 19-2-2025
PTI
New Delhi, Feb 19 (PTI) The Congress on Wednesday claimed that the talk of reciprocal tariffs by US President Donald Trump is calling into question a consumption tax like GST, and wondered whether his “good friend in New Delhi” would stand up to it when national sovereignty is at stake.
Congress general secretary in-charge communications Jairam Ramesh said his party has long been calling for a GST 2.0 that will make GST a truly Good and Simple Tax, as it was intended to be.
It has called for the barest minimum of rates and vastly reformed compliance rules, he said in a post on X.
“Now President Trump is threatening

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GST Recovery Order Stayed: Petitioner Must Pay 10% Tax Under Section 107(6) For Extended Protection
Case-Laws
GST
HC granted interim stay on appellate GST demand order for two weeks, considering absence of constituted Appellate Tribunal and prima facie case established by petitioner. Stay extension contingent on petitioner paying 10% of disputed tax balance within two weeks, in addition to deposits under Sec 107(6). Extended stay would remain effective until writ petition disposal or further orders. Court directed filing of affidavit-in-opposition within six weeks with one week for reply. Matter pertains to recovery guidelines under Finance Ministry Circular concerning outstanding dues post first appeal disposal.
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Show Cause Notice under Section 73 CGST Act quashed for failing to address assessee's explanations on GSTR-9 and GSTR-1 mismatch
Case-Laws
GST
HC held that the SCN issued under Section 73 of CGST Act was procedurally deficient as it failed to adequately address the assessee's reply to the final audit report regarding GSTR-9 and GSTR-1 mismatch. The Court emphasized that a valid SCN must specifically detail the authority's prima facie findings and reasoning for rejecting the assessee's explanations. Since the adjudicating authority merely acknowledged but did not analyze the assessee's submissions, the notice was deemed vague and prejudicial to the assessee's right of defense. Matter remanded for issuance of fresh SCN with proper reasoning addressing the assessee's October 21, 2024 reply and supporting documentation.
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GST Registration Cancellation Invalid: Show Cause Notice Lacked Authority Details and Proper Reasoning Under Section 29
Case-Laws
GST
HC held that cancellation of petitioner's GST registration was invalid due to procedural defects and non-application of mind. The initial SCN lacked essential details including name, designation, and signature of the issuing authority. The rejection of revocation application was mechanical, without proper reasoning. Court emphasized that GST registration cancellation, being a drastic measure affecting business operations, requires thorough consideration and cogent reasons. The SCN, cancellation order, and revocation rejection order were set aside as unsustainable. Court restored petitioner's GST registration, noting that such cancellations cannot be executed in a casual manner and must follow principles of natural justice.
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GST Appeal Filed After 7 Months Dismissed: Section 107(4) Limits Delay Condonation to 30 Days Only
Case-Laws
GST
HC affirmed dismissal of GST appeal filed after 7-month delay. Section 107(4) of GST Act explicitly limits appellate authority's power to condone delay to 30 days only. The Act being a complete code, provisions of Limitation Act Section 5 are inapplicable. Petitioner failed to demonstrate any legal basis for condonation beyond the statutory 30-day period. Since appeal exceeded permissible delay by over 3 months and appellate authority lacked jurisdiction to condone extended delays, dismissal of appeal on grounds of limitation was legally sound. Petition challenging the dismissal rejected.
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GST Registration Cancellation Cannot Be Retrospective Without Prior Notice and Proper Reasoning in Show Cause Notice
Case-Laws
GST
HC invalidated retrospective GST registration cancellation due to procedural deficiencies in the show cause notice (SCN). The notice failed to indicate any intention of retrospective cancellation or provide supporting reasons, violating principles of natural justice. The Court determined that the absence of prior notice regarding retrospective action and lack of justification rendered the cancellation order legally unsustainable. Consequently, the Court modified the cancellation to take effect prospectively from the SCN date (28 March 2023) rather than retrospectively. The ruling emphasizes the requirement for proper disclosure and reasoning in administrative orders affecting taxpayer rights under GST framework.
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Tax Assessment Orders Invalidated Due to Authority's Failure to Consider Complete Financial Records and Natural Justice Violations
Case-Laws
GST
HC set aside assessment orders due to procedural deficiencies in tax evaluation. Authority failed to consider complete financial details, particularly regarding tax payments on scrap sales and battery sales, violating natural justice principles. Petitioner presented detailed break-up of tax payments for the first time before HC, which was not previously examined during assessment. Court determined petitioner deserved opportunity to present case with new materials. Matter remanded to original authority for fresh consideration, ensuring proper evaluation of all financial documentation and compliance with procedural fairness requirements.
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Tailing Dam for Mining Waste Storage Not Eligible for Input Tax Credit Under Section 17(5)(c)(d)
Case-Laws
GST
AAR ruled ITC unavailable for goods and services used in increasing height of Tailing Dam for mining waste disposal. The dam, classified as immovable property and civil structure stretching several kilometers on natural foundation, does not qualify as “plant and machinery” under CGST Act Section 17(5)(c) and (d). The dam, serving merely as storage for mining waste, does not directly contribute to mineral extraction or processing. Being constructed on taxpayer's own account for business operations setting, it falls within ITC restriction. The structure's passive storage function, without impact on mineral quality or quantity, prevents it from being considered essential to core business activities, thus disqualifying ITC claims.
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Member Services by Clubs Now Taxable Under GST: Section 7(1)(aa) Makes Club-Member Transactions Supply from July 2017
Case-Laws
GST
Services provided by clubs to members are subject to GST following the retrospective amendment via Finance Act 2021, which inserted Section 7(1)(aa) into CGST Act effective July 1, 2017. This amendment explicitly includes transactions between clubs/associations and their members within the scope of taxable supply, overriding the principle of mutuality established in WB v. Calcutta Club Ltd. The amendment deems clubs and their members as distinct persons, nullifying the previous SC ruling's applicability. The deletion of Para 7 from Schedule II and addition of an explanation clause gives this amendment precedence over any contrary judicial interpretations. Consequently, all club services to members are GST-liable from July 2017 onwards.
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Hand-held Vehicle Battery Replacement Multitools with Voltage Indicators Classified Under Chapter Heading 8204 for GST
Case-Laws
GST
The AAR ruled on classification of hand-held multitools designed for battery replacement in vehicles. The tools primarily consist of integrated spanners with additional components like screwdrivers, hex keys, and battery voltage indicators showing charge levels (25%, 50%, 75%, 100%). While the tools incorporate electrical components (battery indicators) under Chapter 85, their primary function remains mechanical battery replacement. The Authority determined that since spanners constitute the major component, the multitools should be classified under Chapter Heading 8204 despite having integrated electrical features. The additional battery indicator functionality does not alter the tool's core purpose. Consequently, these multitools attract GST at 18% rate under Chapter Heading 8204.
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Transport Vehicle Rental Services Without Consignment Notes Not Exempt Under Entry 18 Notification 12/2017-CT(Rate)
Case-Laws
GST
AAR ruled that transportation services provided by subcontractor X to principal GTA are not exempt under Entry 18 of Notification 12/2017-CT(Rate). Since X does not issue consignment notes, a key requirement to qualify as GTA, their services constitute vehicle rental rather than goods transportation. The principal GTA maintains the direct transportation contract with consignors/consignees and issues consignment notes, while X merely provides vehicles. The services fall under Notification 11/2017-CT(Rate) as transport vehicle rental services and are therefore taxable. The exemption sought was denied as X's activities fall outside the scope of transportation services by a GTA.
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Punjab's GST base expands with targeted drives; over 79k taxpayers added in 2 years
GST
Dated:- 18-2-2025
PTI
Chandigarh, Feb 18 (PTI) Punjab's Finance Minister Harpal Singh Cheema on Tuesday said that the Excise and Taxation Department has carried out targeted GST registration drives to broaden the collection base, resulting in the addition of 46,338 new taxpayers in 2023-24 and another 33,000 in this fiscal till December 2024.
“A state-wide campaign has also been launched to educate taxpayers on filing procedures, ITC claims, and compliance benefits,” he said in an official statement here.
Cheema said that the state GST department initiated another GSTR registration drive in January 2025, visiting approximately 48,000 new

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06 consumers with Rs 2.45 crore for uploading their purchase bills on Mera Bill app.
“To increase tax revenue from registered dealers, the department has ensured proper GST filing and compliance, with 93 per cent of registered taxpayers consistently filing returns on time. The department has also penalised tax evaders, collaborated with IIT Hyderabad to integrate advanced data analytic tools, and implemented adjudication and scrutiny modules to prevent revenue leakages,” said the finance minister.
Cheema emphasised that expanding the GST tax base is crucial for improving revenue, reducing tax evasion, and ensuring a fair taxation system.
Meanwhile on Tuesday, Cheema inaugurated three crucial IT-based financial modules aimed at bolster

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Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Jharkhand and Andaman and Nicobar Islands
GST
Dated:- 18-2-2025

Dear Taxpayers,
This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process.
1.   Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the

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bsp; If the applicant receives the link for OTP-based Aadhaar Authentication as mentioned in point 3(a), she/he can proceed with the application as per the existing process.
5.   However, if the applicant receives the link as mentioned in point 3(b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail.
6.   The feature of booking an appointment to visit a designated GSK is now available for the applicants of Jharkhand and Andaman and Nicobar Islands.
7.   After booking the appointment, the applicant gets the confirmation of appointment through e-mail (the appointment confirmation e-mail), she/he will be able to visit the designated GSK as pe

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Digital Signatures Missing on Tax Notice and Order Makes Proceedings Invalid – Fundamental Authentication Requirements Not Met
Case-Laws
GST
HC quashed an ex parte order and related tax notifications due to absence of digital or scanned signatures on both show cause notice (SCN) and final order. Following established precedent, the court affirmed that unsigned administrative notices and orders lack legal validity. The procedural defect of missing signatures rendered the proceedings unsustainable under law, regardless of substantive merits. The bench emphasized compliance with formal authentication requirements in administrative proceedings. Order set aside and petition disposed of, underscoring the fundamental requirement for proper authentication of official documents in tax administration.
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GST Fraud: Multiple FIRs and Ongoing Investigation Lead to Bail Denial Despite Previous Release in Similar Case
Case-Laws
GST
HC denied bail to applicant charged with wrongful availing of Input Tax Credit. Despite applicant's willingness to repay and previous bail grant in a similar case, multiple FIRs for comparable offenses have been registered. The earlier bail was granted after three months' imprisonment where investigation was complete. In contrast, the current FIR dated 27.11.2024 remains under active investigation. Court distinguished present case from previous bail order (Criminal Misc. Application No.22792/2024) due to ongoing investigation and emergence of multiple similar offenses post-registration of initial FIR. Court declined to exercise judicial discretion, citing these material differences.
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Tax Evasion Show Cause Notices Under Section 74(1) CGST Must Be Issued Separately For Each Financial Year
Case-Laws
GST
HC held that show cause notices under Section 74(1) of CGST Act for alleged tax evasion must be issued separately for each financial year rather than through consolidated notices covering multiple years. The court reasoned that limitation periods vary by year, and consolidation could unfairly restrict an assessee's response time based on the earliest year's limitation. Additionally, consolidated notices leading to cumulative tax determinations across years would conflict with Section 74(9) and 74(10)'s year-specific provisions and could burden assessees with higher pre-deposit requirements for appeals. The proper officer must evaluate tax evasion independently for each assessment year. Appeal dismissed, upholding the Single Judge's ruling requiring separate notices.
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Commissioner's Restrictive Timeline Interpretation Overturned; 30-Day Condonable Period Applies for Late Appeal Filing Under Section 128
Case-Laws
GST
HC determined the Additional Commissioner erred in adopting an overly restrictive interpretation regarding appeal filing timelines. The petitioner's contention that the appeal was timely filed despite delayed order receipt was upheld, as the 30-day condonable period provision could have been legitimately applied to hear the appeal on merits. The court emphasized that procedural technicalities should not override substantive justice. Accordingly, the Additional Commissioner's Order-in-Appeal dated 29 December 2023 was quashed and the petition was allowed, enabling consideration of the appeal on its substantive merits.
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GST Assessment Orders Quashed Under Section 161 Due to Lack of Reasoning and Natural Justice Violation
Case-Laws
GST
HC set aside impugned orders related to GST assessment and rectification petition under Section 161 of GST Act due to lack of reasoned decision-making and violation of natural justice principles. The original orders failed to address petitioner's objections with proper justification. Respondent authority committed to conducting fresh assessment with due process. Court mandated issuance of speaking order after providing reasonable hearing opportunity to petitioner, considering their reply and supporting documentation. Matter remanded for reassessment in compliance with procedural fairness requirements.
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Administrative Order Upheld as Proper Notice and Response Time Were Given to Appellant Under Natural Justice Principles
Case-Laws
GST
HC upheld the original ruling, finding no violation of natural justice principles in the administrative proceedings. The appellant had received proper notice (Ext.P2) and submitted a response (Ext.P4), including a request for extension to provide additional clarifications. The procedural timeline allowed for reply submission by 27.12.2024 with personal hearing scheduled for 06.01.2025. The court determined that adequate opportunity for representation was provided, satisfying natural justice requirements. The appellant's contention regarding denial of hearing opportunity was rejected, and the appeal was dismissed, affirming the learned Single Judge's determination.
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Advisory on Introduction of Form ENR-03 for Enrolment of Unregistered Dealers/Persons in e-Way Bill Portal for generating e-way Bill.
GST
Dated:- 17-2-2025

Dear Stakeholders,
A new feature has been introduced in the E-Way Bill (EWB) system to facilitate the enrolment of unregistered dealers supplying goods, with effect from 11.02.2025. In accordance with Notification No. 12/2024 dated 10th July 2024, Form ENR-03 has been introduced for the enrolment of unregistered dealers.
2.Unregistered dealers engaged in the movement or transportation of goods can now generate e-Way Bills by enrolling themselves on the EWB portal and obtaining a unique Enrolment ID. This ID will serve as an alternative to the Suppl

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;username, check its availability, and set a password before submitting the details.
b)Upon successful submission, a 15-character Enrolment ID will be generated, and an acknowledgment will be displayed.
c)This Enrolment ID can be used for generating e-Way Bills in place of a GSTIN.
4.Generating an e-Way Bill:
a)The enrolled URP can log in to the EWB portal using the registered credentials.
b)By selecting the 'Generate New' option, the Enrolment ID will be auto-populated as the Supplier/Recipient.
c)Other relevant details must be entered before proceeding with e-Way Bill generation.
For further assistance or queries related to this update, taxpayers may contact the GST Helpdesk or refer to the detailed Us

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Tax Demand Stayed For Two Weeks Following Finance Ministry Guidelines On GST Recovery Pending Formation Of Appellate Tribunal
Case-Laws
GST
HC granted temporary stay on tax demand arising from appellate order based on Finance Ministry Circular regarding recovery guidelines pending formation of GST Appellate Tribunal. Prima facie case established by petitioner led to unconditional two-week stay on demand from July 24, 2024 order. Court directed filing of affidavit-in-opposition within six weeks with one week for reply. Decision acknowledges administrative gap due to pending constitution of Appellate Tribunal and applies interim protection mechanism in line with ministerial guidelines on recovery procedures.
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GST Council Clarifies Rates: 5% on Pepper, Tax-Free Raisins, Different Rates for Popcorn Types
Circulars
GST
CBEC issued comprehensive GST rate clarifications following GST Council's 55th meeting recommendations. Pepper of genus Piper attracts 5% GST, with exemption for agriculturist suppliers. Agriculturist-supplied raisins are GST-exempt. Ready-to-eat popcorn with salt/spices attracts 5% GST (non-packaged) or 12% GST (packaged), while caramel popcorn draws 18% GST. AAC blocks with >50% fly ash content fall under HS 6815 attracting 12% GST. SUV compensation cess amendments regarding ground clearance apply from July 26, 2023. Past disputes on popcorn GST rates until February 14, 2025, are regularized on 'as-is-where-is' basis. These clarifications aim to ensure uniform implementation nationwide.
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Small Retailer Gets Final Chance to Restore GST Registration by Filing Returns and Paying Dues Within Four Weeks
Case-Laws
GST
HC set aside GST registration cancellation and appellate authority's order, granting petitioner one final opportunity to remedy default. Following precedent in Subhankar Golder case, court allowed restoration of GST registration conditional upon petitioner filing all pending returns and paying applicable tax, interest, penalties within four weeks. Failure to comply would result in automatic dismissal of petition and immediate reinstatement of registration cancellation. Decision balanced regulatory compliance with business continuity, particularly considering small retailer status. Court emphasized need for tax compliance while providing reasonable opportunity for rectification.
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GST Refund Claim Rejection Invalid: Authority Must Give Reasoned Order Under Section 39(9) for CESS Column Error
Case-Laws
GST
HC quashed deficiency memo dated 21.02.2024 regarding CESS refund claim for AY 2017-18. Petitioner claimed clerical error in placing SGST figures in CESS column. While authority has discretion on refund eligibility under Section 39(9) and 54(1) of Act 2017, rejection requires reasoned order uploaded to portal enabling appeal rights. Court directed authority to reconsider refund application dated 05.02.2024 after providing hearing opportunity, pass reasoned order, and upload promptly to relevant portal. Matter concerns procedural compliance rather than substantive refund determination. Authority must follow due process in handling correction requests within statutory timeframes.
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GST fraud: SC refuses to grant protection from arrest to absconding accused
GST
Dated:- 14-2-2025
PTI
New Delhi, Feb 14 (PTI) The Supreme Court on Friday refused to grant protection from arrest to an “absconding” accused, stranded at Kuala Lumpur in Malaysia, following revocation of his Indian passport in a GST fraud case.
A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar was urged by senior advocate Raju Ramchandran, appearing for Aarushi Aggarwal, that her husband Nishant was more than willing to come to India to join the investigation.
Nishant and few others are accused of creating fake companies by using Aadhaar and PAN cards to cheat the government and get tax benefits illegally under the GST law.

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