Goods and Services Tax

Zero-Rated Supplies Beyond Customs Frontiers Validated Under IGST Act Section 16, Ensuring Tax Neutrality and Refund Processing
Case-Laws
GST
HC determined that supplies by petitioner outside customs frontiers qualify as zero-rated under Section 16 of IGST Act, rendering the transaction GST-exempt. The court found the tax treatment revenue neutral, particularly for the period before 01.04.2021, and declined revenue's challenge. The third-party refund application must be processed within

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Tax Notice Invalidated: Improper Service Violates Natural Justice, Requires Fresh Adjudication Under Procedural Guidelines
Case-Laws
GST
HC held that the SCN was improperly served by uploading it to the Additional notices tab, violating principles of natural justice. Following precedent, the SCN was set aside. The Adjudicating Authority must reissue the SCN and pass a fresh adjudication order, which remains subject to potential Supreme Court review of the underlying notification. The de

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Taxpayers Win: Rule 86A Limits on Input Tax Credit Ledger Automatically Expire After One Year
Case-Laws
GST
HC ruled that blocking of Input Tax Credit (ITC) ledger beyond one year under Rule 86A of CGST Rules, 2017, must be lifted. The statutory interpretation of Rule 86A(3) mandates automatic removal of credit restrictions after the specified time period. The court's decision explicitly notes that lifting the ITC block is independent of any concurrent administrative or legal proceeding

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Audit Compliance Mandate: GST Authorities Must Swiftly Provide Records to C&AG for Comprehensive Financial Scrutiny Under Article 149
Circulars
GST
The CBIC issued Instruction No. 05/2025-GST addressing timely production of records for audit, referencing C&AG Audit Report 7 of 2024. Invoking Article 149 of the Constitution, the instruction mandates field formations to expeditiously provide records and information to C&AG audit teams. Tax authorities must sensitize officers to prompt

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Invoice-wise Reporting Functionality in Form GSTR-7 on portal
GST
Dated:- 7-5-2025

Vide Notification No. 09/2025 – Central Tax dated 11.02.2025, Form GSTR-7 has been amended to capture invoice-wise reporting with effect from 01.04.2025 i.e. the return period for April 2025 onwards.
In this regard it is to inform that development and testing of the same is underway, the implementation of invoice-wise reporting in Form GSTR-7 in GST portal will be deployed on portal soon. Thus, the e

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Tax Dispute Resolution: Petitioner Granted Reply Opportunity and Right to Appeal Amid Pending Notification Validity Challenge
Case-Laws
GST
HC adjudicated a tax dispute involving notification challenges, granting the petitioner an opportunity to file a reply to the Show Cause Notice (SCN) within one month. The court noted that the SCN was uploaded on an additional tab without the petitioner's direct knowledge. The proceedings were deemed subject to the Supreme Court's pending decision o

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Anticipatory Bail Granted in Tax Fraud Case: Conditional Release Emphasizes Cooperation and Investigation Compliance
Case-Laws
GST
HC granted anticipatory bail in a tax fraud case, finding custodial interrogation unwarranted. The court determined that pre-trial incarceration was unnecessary given the petitioner's asset declaration and potential for recovery through legal means. Bail was conditionally granted, requiring the petitioner to join the investigation within seven days, cooperat

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Tax Authority's Section 74(9) Order Upheld: Procedural Validity Confirmed, Jurisdictional Challenge Dismissed
Case-Laws
GST
HC upheld the state tax authority's order under Section 74(9) of BGST Act, finding no jurisdictional error in issuing the demand notice. The court determined that the order was legally valid, as it was passed after proper service of show cause notice, and the petitioner failed to contest the substantive facts. The HC rejected arguments about parallel investigations

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Tax Relief Roadmap: Section 128A Clarifies Eligibility and Compliance for KGST Taxpayers with Flexible Verification Process
Circulars
GST – States
The Karnataka Commercial Taxes Dept issued a circular clarifying the implementation of Section 128A of the KGST Act, 2017. The circular addresses two key issues: (1) taxpayers who paid tax through GSTR-3B before 1st November 2024 remain eligible for benefits under Section 128A, subject to proper officer verification; and (2) for notices/order

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Tax Assessment Orders Invalidated for Exceeding Four-Year Limitation Period Under Rule 14A (5A) for 2014-2017
Case-Laws
GST
HC held that assessment orders for tax years 2014-2015 and 2016-2017 were time-barred under Rule 14A (5A), which mandates assessments must be completed within four years from the date of return filing. The court invalidated assessment orders dated 12.07.2021 and 30.07.2021 as they exceeded the statutory limitation period. For 2015-2016, only assessments related to

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Refund Claim Upheld: Arbitrary Filing Date Restriction Invalidated, Statutory Two-Year Limitation Period Preserved for Input Tax Credit
Case-Laws
GST
HC ruled that the petitioner's refund claim for accumulated ITC was improperly rejected. Applying precedent from Patanjali case, the court held that filing a refund application after 18.07.2022 does not automatically disqualify an applicant from seeking refund within the statutory two-year limitation period. The notification creating an ar

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Challenging Tax Refund Appeals: Commissioner's Appeal Does Not Automatically Suspend Refund Order Under Section 54(11)
Case-Laws
GST
HC held that a Commissioner's mere decision to appeal does not automatically suspend a refund order under Section 54(11). The plain statutory language indicates that the pendency of an appeal does not ipso facto place the principal order in abeyance. Relying on prior judicial precedent, the court mandated that the revenue authority must comply with the app

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Tax Recovery Halted: Statutory Timelines Violated, Premature Action Rejected, Full Refund and Interest Ordered Under CGST Act Sections 78 and 79
Case-Laws
GST
HC held that the recovery of tax dues from the petitioner was premature and in violation of statutory provisions under Sections 78 and 79 of CGST/BGST Act, 2017. The Recovery Officer was mandated to wait three months from the date of service order before initiating recovery proceedings. The impugned orders rejecting Input Tax Cred

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High Court Quashes GST Registration Cancellation Order for Lack of Reasoning and Procedural Fairness Under FORM GST REG-19
Case-Laws
GST
HC allowed the writ petition challenging GST registration cancellation, finding the impugned order non-speaking and passed without application of mind. The court held that the order violates principles of natural justice by failing to record reasons for cancellation as mandated under FORM GST REG-19. Despite delayed filing, the court granted the petiti

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GST Registration Cancellation Order Struck Down for Lack of Reasoned Explanation and Procedural Fairness Under Rule 21
Case-Laws
GST
HC nullified the GST registration cancellation order due to procedural irregularities. The order was found non-speaking and passed without proper application of mind, violating principles of natural justice. The Proper Officer failed to record specific reasons for cancellation, which is mandatory under GST regulations. Cancellation would impose adverse civ

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Petitioner Granted One-Month Reply Window Despite SCN Upload, Adjudication Order Conditionally Permitted Under Pending Supreme Court Review
Case-Laws
GST
HC determined that despite the SCN being uploaded on the additional notices tab, the petitioner was permitted to file a reply within one month. The adjudicating authority shall pass an order after hearing the petitioner, with the caveat that the adjudication order remains subject to the pending SLP in SC challenging the impugned notifi

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Tax Dispute Resolution: Petitioner Granted 30-Day Window to Submit Comprehensive Evidence Supporting Reply to Show Cause Notice
Case-Laws
GST
HC adjudicates tax dispute, granting petitioner 30 days to submit comprehensive documentary evidence supporting reply to show cause notice. The court mandates adjudicating authority to thoroughly review petitioner's original reply and hearing submissions, requiring issuance of a substantive order after considering fresh documentary evidence. The p

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Legal Challenge Succeeds: GST Portal Notice Invalidated Due to Improper Service and Technical Procedural Errors
Case-Laws
GST
HC found a violation of natural justice where respondent issued a show cause notice via GST Portal without direct service, preventing petitioner's reply. Despite initially being disinclined to set aside the impugned order, the court recognized technical errors in GSTR-3B table entries (6A and 6I). Consequently, the HC set aside the order dated 26.12.2024 and rema

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Leasehold Rights Transfer for Industrial Land Exempt from GST Under Section 7(1)(a) of GST Act
Case-Laws
GST
HC ruled that transfer of leasehold rights for industrial land is not subject to GST taxation. The court found that assignment/sale of leasehold rights constitutes transfer of immovable property benefits, which falls outside GST applicability under Section 7(1)(a) of GST Act, read with Schedule II and Schedule III. Relying on precedent in Gujarat Chamber of Commerce case, the cou

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Input Tax Credit Claim Upheld: Section 16(4) Validates Retrospective Credit for Financial Years 2017-2021
Case-Laws
GST
HC allowed the writ petition, setting aside the appeal and assessment orders. The court held that under Section 16(4) of the CGST Act, the petitioner was entitled to claim input tax credit for Financial Years 2017-2018 through 2020-2021, which was previously rejected. The credit was sought within the prescribed timeline of 30.11.2021, specifically on 31.10.2019. The ma

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CBI arrests an Inspector of Central Goods & Service Tax (CGST), Regional GST Office, Prayagraj (UP) for demanding and accepting bribe amount of Rs. 10,000/- from the complainant
GST
Dated:- 6-5-2025

Central Bureau of Investigation (CBI) has arrested an accused Inspector of Central Goods & Service Tax (CGST), Regional GST Office, Prayagraj (UP) for demanding and accepting bribe amount of Rs. 10,000/- from the complainant.
A case was registered by CBI on 03.05.2025 against two accuse

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CBIC Introduces Streamlined GST Registration Grievance Resolution Process with Clear Communication Protocols
Circulars
GST
The CBIC issued Instruction No. 04/2025-GST establishing a comprehensive grievance redressal mechanism for GST registration applications. The mechanism mandates Zonal Principal Chief Commissioners/Chief Commissioners to: (1) publicize dedicated email addresses for applicants to submit grievances, (2) forward state jurisdiction grievances to relevant authorities, (3)

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Small-scale industrialists from Marathwada demand competitive power tariff, GST tribunal
GST
Dated:- 5-5-2025
PTI
Chhatrapati Sambhajinagar, May 5 (PTI) Small-scale industrialists from Marathwada demanded competitive electricity rates for industries in Maharashtra and a GST tribunal in Chhatrapati Sambhajinagar during their interaction with Deputy Chief Minister Ajit Pawar.
A Marathwada Association for Small-Scale Industries and Agriculture (MASSIA) delegation, led by its president

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Procedural Defect Leads to Invalidation of Tax Assessment Order, Mandating Proper Signature and Identification Number
Case-Laws
GST
HC invalidated the assessment order due to absence of assessing officer's signature and DIN number. Following precedential decisions in prior cases involving similar procedural defects, the court set aside the impugned order in Form GST DRC-07 and notice in Form GST DRC-16. The 1st respondent was granted liberty to conduct a fresh assessment, with mandatory

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Judicial Resolution Enables Export Tax Refund Despite Minor GST Number Discrepancy in Shipping Bill Documentation
Case-Laws
GST
HC adjudicated a dispute concerning IGST refund involving an inadvertent GST number error in a Shipping Bill. The court found that despite the initial mismatch in exporter details, documentary evidence supported the petitioner's claim. The HC directed respondent No. 2 to amend the Shipping Bill in the EDI system and respondent No. 3 to make corresponding modifi

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