Goods and Services Tax

Medicines and Consumables for Inpatients Deemed Integral Healthcare Service, Fully Exempt from GST Under Notification 12/2017
Case-Laws
GST
AAR determined that medicines and consumables supplied to in-patients as part of healthcare services constitute a composite supply exempt from GST. The services, including medical, pharmaceutical, and paramedical interventions from admission to discharge, are classified under inpatient services. The hospital, as a clinical establishment providing he

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DGGI officers bust inter-state nexus involving 3 biz; Rs 13-cr GST evasion detected
GST
Dated:- 15-5-2025
PTI
New Delhi, May 15 (PTI) GST Intelligence officers have busted an inter-state nexus by three business entities that were involved in fake billing and GST evasion of Rs 13.41 crore, the finance ministry said on Thursday.
The Directorate General of GST Intelligence (DGGI), Ludhiana, investigated three business entities based in Mandi Gobindgarh M/s Aar Dee Enterprises, M/s Aa

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GST Registration Cancellation Quashed Due to Vague Show-Cause Notice Violating Principles of Natural Justice
Case-Laws
GST
HC allowed the writ petition challenging GST registration cancellation. The show-cause notice was found vague and defective, violating principles of natural justice by failing to provide a meaningful opportunity to respond. The cancellation order dated 17.04.2025 was deemed mechanically passed without proper application of mind, thus rendering it invalid. The court

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Tax Levy Challenge Rejected: Complex Fund Expense Dispute Requires Detailed Scrutiny Beyond Writ Jurisdiction
Case-Laws
GST
The HC dismissed the writ petition challenging tax levy on fund expenses, finding that the complex factual determination regarding establishment charges and service fee classification requires detailed scrutiny beyond writ jurisdiction. The court held that the petitioner's inconsistent positions regarding establishment charges necessitate a comprehensive examinatio

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Tax Order Upheld: Petitioner's Failure to Respond and Engage Leads to Dismissal Under Section 107 of CGST Act
Case-Laws
GST
HC dismissed the petition challenging tax order, finding the petitioner failed to exercise due diligence in responding to show cause notices and personal hearing opportunities. Despite receiving multiple notices dated 22nd July, 2022 and 3rd August, 2024, the petitioner neither filed replies nor attended hearings. The court held that the administrative authority pr

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Ex-parte Order Invalidated: Procedural Fairness Demands Personal Hearing and Proper Notice in Tax Dispute Resolution
Case-Laws
GST
HC held that ex-parte order violated principles of natural justice by failing to serve show cause notice to the petitioner, thereby denying opportunity of being heard. Strict interpretation of tax statutes mandates procedural compliance, particularly regarding personal hearing requirements. The court emphasized that penal statutes affecting individual rights

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Sada Tambaku Mixed with Lime Deemed Manufactured Tobacco Product, Triggering Higher Tax Rates and Classification
Case-Laws
GST
The AAR determined that 'sada tambaku pre-mixed with lime' constitutes a manufactured tobacco product through a mixing process that creates a new product with distinct characteristics. The goods are classifiable under HSN 24039910, attracting GST at 28% and compensation cess at 0.56R per unit for products with declared retail sale price or 160% for other product

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Metal Cutting Blades for Chaff Cutters Classified Under Chapter 8208, Attracting 18% GST Based on Specific Heading Rule
Case-Laws
GST
AAR ruled that metal cutting blades for chaff cutters shall be classified under Chapter Heading 8208 40 00, attracting 18% GST. Applying Rule 1 of Interpretative Rules, the specific heading for cutting blades for agricultural machines takes precedence over general machinery headings. Note 1(k) of Section XVI excludes articles of Chapter 82, rendering Note

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Groundnut Heat-Drying Process Transforms Product, Disqualifies from Original HSN 1202 Classification Based on Compositional Changes
Case-Laws
GST
AAR determined that heating groundnuts with shell to reduce moisture content constitutes a roasting process, rendering the product ineligible for classification under HSN 1202. The ruling hinged on the lack of detailed documentation regarding the heating process, potential temperature controls, and infrastructure. The authority found that heat

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Procedural Defects Cannot Override Substantive Rights: Appeal Allowed with Opportunity to Rectify Technical Errors Under Section 107
Case-Laws
GST
HC allowed the appeal, finding that procedural irregularities in filing should not defeat the petitioner's substantive rights. The court held that technical defects do not warrant automatic rejection of an appeal, particularly where the delay is within the condonable period under Section 107 of the GST Act. The petitioner was granted an oppor

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Advisory on Appeal withdrawal with respect to Waiver scheme
GST
Dated:- 14-5-2025

In the GST system, when Withdrawal application (APL 01W) for appeal is filed before issuance of final acknowledgment (APL 02) by the Appellate authority, then the system automatically withdraws the Appeal application (APL 01). In such cases, the status of the appeal application will automatically change from “Appeal submitted” to “Appeal withdrawn”.
However, if withdrawal application is filed after is

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Zero-Rated Exports: Merchant Exporters Win Relief from Compensation Cess, Ensuring Smooth Working Capital Flow Under GST
Case-Laws
GST
HC held that supplies to merchant exporters qualify as zero-rated export under IGST Act. While petitioners are technically liable to pay 160% Compensation Cess in absence of specific exemption notification, the court recognized this creates unnecessary working capital blockage. The levy is essentially revenue neutral since merchant exporters can claim fu

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Fraudulent Tax Credit Claims Rejected: Partial Cooperation Insufficient to Secure Pre-Arrest Bail
Case-Laws
GST
HC denied pre-arrest bail application involving fraudulent Input Tax Credit (ITC) claims. Despite petitioner's partial cooperation with investigating authorities and appearing after interim bail, the court rejected the anticipatory bail. The court noted the prima facie evidence of ineligible ITC amounting to Rs. 3.42 Crores, which is below the Rs. 5 Crores threshold. The appli

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Tax Fraud Writ Dismissed: High Court Upholds Rs. 56.2 Crore ITC Penalty Order Against 527 Firms for Contradictory Claims
Case-Laws
GST
HC dismissed writ petition challenging tax penalty order involving alleged fraudulent Input Tax Credit (ITC) of Rs. 56.2 crores across 527 firms. The Court found no violation of natural justice, noting the petitioner's contradictory statements and lack of arbitrary administrative action. The impugned order was deemed appropriate, with the Court declining

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Tax Authority's Power Affirmed: SGST Jurisdiction Validated Under Section 6(2)(b) for Comprehensive Tax Proceedings Review
Case-Laws
GST
HC determined the jurisdictional authority of SGST to initiate and adjudicate tax proceedings. The court held that under Section 6(2)(b) of CGST Act, the DGST Department must reconsider the prior appellate order and reassess the show cause notice and subsequent impugned order. The impugned order was set aside, with instructions to place the Commissione

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Tax Authorities Cannot Double-Levy When Self-Assessed Returns Already Filed Under Section 37 of GST Act
Case-Laws
GST
HC held that Section 75(12) of WBGST & CGST Act, 2017 cannot be invoked when self-assessed tax under Section 37 is already included in returns under Section 39. The court quashed the demand notice raised by tax authorities, finding that alternative legal provisions under Sections 65, 66, 67, 73, or 74 should have been pursued if discrepancies were identified. The consequ

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Taxpayer Wins Appeal: GST Return Filing Reinstated with Opportunity to Rectify Outstanding Tax Compliance
Case-Laws
GST
HC allows petitioner's appeal challenging registration cancellation, remanding matter to respondent at show-cause notice stage. Petitioner directed to file belated GST returns from April 2020 onwards, paying outstanding tax, interest, and penalties. Respondent-Authority must consider submitted returns, with discretion to pursue appropriate legal proceedings excluding n

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GST Registration Dispute: Voluntary Compliance and Remedial Actions Prevail, Section 29(2)(c) Interpretation Highlights Procedural Flexibility
Case-Laws
GST
HC adjudicated a GST registration cancellation dispute, finding that while the petitioner initially failed to comply with statutory filing requirements under section 29(2)(c), subsequent remedial actions were significant. The court recognized the petitioner's voluntary compliance by paying outstanding GST, interest, and penalties, a

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GST Registration Restored: Procedural Flaws Invalidate Cancellation Order Despite Non-Compliance with Statutory Filing Requirements
Case-Laws
GST
HC quashed GST registration cancellation order due to procedural irregularities. Despite petitioner's non-compliance with GST Act by failing to file returns for six consecutive months, the court found a violation of natural justice principles. The petitioner demonstrated willingness to rectify defaults by paying outstanding GST, interest, and

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Tax Authority Ordered to Reconsider ITC Reversal Notice After Procedural Fairness Violation and Improper Double Recovery Attempt
Case-Laws
GST
HC held that the tax authority improperly issued a show-cause notice demanding reversal of Input Tax Credit (ITC) without considering the petitioner's prior voluntary reversal. The non-speaking order violated principles of natural justice by seeking double recovery of tax. The court remanded the matter, directing the authority to issue a fresh or

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Tax Appeal Dismissed: Case Remanded for Fresh Hearing with Full Opportunity to Present Evidence and Challenge Original Order
Case-Laws
GST
HC dismissed the appeal involving tax computation for the period 1st April 2018 to 31st March 2019, where the original order was passed ex parte due to non-response to show cause notice. Despite time limitation challenges, the court determined that remanding the matter to the appellate authority would be most appropriate. The HC noted the electronic

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Accused Granted Bail Due to Procedural Lapses in Arrest, Violation of Constitutional Rights Highlighted in Detailed Order
Case-Laws
GST
HC granted bail to the petitioner after finding procedural irregularities in arrest. The court observed non-compliance with Sections 41/41A of Cr.P.C. and Sections 47/48 of BNSS, specifically the failure to communicate grounds of arrest and “reasons to believe” to the accused. Noting substantial investigation progress and unnecessary custodial interroga

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Procedural Fairness Prevails: GST Appeal Overturned Due to Lack of Adequate Hearing Opportunity Under Section 107
Case-Laws
GST
HC held that principles of natural justice were violated as petitioner was not provided adequate opportunity of hearing. The appeal's rejection under Section 107 of GST Act was deemed improper due to procedural unfairness. The appellate authority's order dated 19.03.2024 and tax determination order dated 08.02.2021 were set aside. Petitioner was directed to sub

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Job Work Classification Dispute Escalates: Technical Disagreement on GST Treatment Triggers Formal Appellate Review Under Section 98(5)
Case-Laws
GST
The AAR encountered conflicting interpretations regarding the classification of job work under Section 2(68) of the CGST Act and the nature of service supply under Section 7(1A) read with Schedule-II. Due to fundamental disagreements between authority members on the tariff classification and applicable GST rate, the matter was formally ref

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Clarification on Late Fee for Delayed GSTR-9C: Comprehensive Calculation Under Section 47 with Waiver Provision for FY 2022-23
Circulars
GST – States
The GoK Commercial Taxes Dept clarified the late fee applicability for delayed FORM GSTR-9C submission. For annual returns where reconciliation statement (FORM GSTR-9C) is mandatory, late fee under KGST Act Section 47 will be leviable for the entire period from the original due date until complete annual return submission. Late fee is calc

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