Goods and Services Tax

Taxpayer Wins Challenge to Input Tax Credit Denial, Court Orders Comprehensive Review of Transaction Evidence Under Section 16(2)(b)
Case-Laws
GST
HC allowed the petitioner's challenge to the rejection of ITC claim, finding a procedural error in the original orders. The court determined that physical movement of goods is not the sole criterion for ITC eligibility. The matter was remanded to the Deputy Commissioner to re-examine the case, specifically focusing on verifying the memorandum

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Accused in Fraudulent ITC Case Secures Conditional Bail Following Comprehensive Investigation Review and Preliminary Allegations Assessment
Case-Laws
GST
HC grants bail to accused in fraudulent ITC case after considering investigation completion, potential five-year maximum sentence, and pending trial. The court recognized the applicant's ongoing incarceration and noted that the specific role in creating fake firms remains an evidentiary matter. Bail was conditionally granted, acknowled

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Geo Membrane Water-Proof Lining Classified as Technical Textile Under Tariff Item 59111000 with 12% GST Rate
Case-Laws
GST
AAR held that Geo Membrane for Water Proof Lining-Type-II is classifiable under Tariff Item 59111000, a textile article laminated with plastic used for technical purposes. The product comprises HDPE woven fabrics manufactured with specific weaving patterns to create water-impermeable characteristics. Despite involving plastic components, the item does not fall under

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CBIC issues revised instructions for processing applications for GST registration by CBIC formations
GST
Dated:- 18-4-2025

Revised guidelines to field formations will reduce compliance burden on taxpayers and facilitate transparency
Several grievances have been received by the Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance, regarding difficulties being faced by applicants during the GST registration process, mainly on account of queries raised by officers on the grounds of seeking additional documents.
To resolve these grievances and to smoothen GST registration process, CBIC has issued instructions on 17th April, 2025 (Instruction No. 03/2025-GST) to the officers for proc

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Clubs and Associations Win: Retrospective Tax Amendments Struck Down, Mutuality Principle Preserved Under CGST and KGST Acts
Case-Laws
GST
HC held that amendments to CGST and KGST Acts regarding deemed supply of services by clubs/associations to members are unconstitutional. The court determined that the principle of mutuality survives constitutional interpretation, and the retrospective amendments violate the Rule of Law. The statutory provisions improperly expanded the definition of “

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GST Rate Reduction Not Automatically Applicable: Council Recommendation Insufficient Without Formal Notification
Case-Laws
GST
HC ruled on GST rate applicability for works contract services. The retrospective reduction of GST rate from 18% to 12% recommended by GST Council on 5th August, 2017 was not legally binding until formal notification on 21st September, 2017. The court held that the original GST rate of 18% prescribed in the 8th July, 2017 notification remained valid for tenders

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Bail Granted in Tax Fraud Case: Procedural Lapses Expose Critical Flaws in Arrest Mechanisms Under Criminal Procedure Code
Case-Laws
GST
HC allows bail for accused involved in fake invoice tax fraud, finding procedural irregularities in arrest. The court determined that mandatory provisions under Cr.P.C. and BNSS were not followed, specifically Sections 41/41A and 47/48, which violated constitutional protections under Articles 21 and 22(1). Considering substantial investigation progress

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Systematic Denial of Personal Hearing Violates Natural Justice, Rendering Ex-Parte Proceedings Under Section 75(4) Invalid
Case-Laws
GST
HC held that systematic failure to provide personal hearing violates principles of natural justice under Section 75(4) of GST Act, 2017. The ex-parte assessment and cancellation of GST registration without ensuring personal service of notices constitutes procedural impropriety. The court critically emphasized the recurring administrative malpractice of

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Taxpayers Granted Right to Rectify GST Returns Beyond Standard Timelines, Emphasizing Procedural Flexibility and Substantive Justice
Case-Laws
GST
HC dismissed SLP challenging rectification of GST returns beyond prescribed timelines. The court held that the right to correct clerical or arithmetical errors is inherent in conducting business and should not be denied without substantial justification. Software limitations cannot be a valid reason to prevent error correction, as technologic

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Flavoured Milk Tax Classification Resolved: Tariff Heading 0402 Confirmed, Remanded for Fresh Assessment Under Specified Guidelines
Case-Laws
GST
HC determined that flavoured milk sold by petitioner falls under tariff heading 0402, not CH 2202. The conversion charges for milk to milk powder were remanded for reassessment, with the appellate authority previously indicating a potential 5% tax rate instead of 18%. The original assessment order and appeal order were set aside, directing the

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Legal Challenge Rejected: Section 161 GST Application Dismissed Due to Lack of Substantive Grounds and No Adverse Impact
Case-Laws
GST
HC dismissed petitioner's application under Section 161 of Goods and Services Act, 2017, holding that principles of natural justice are not mandatory when no actual rectification is performed and the applicant suffers no adverse impact. The court determined that the rectification provision requires adherence to natural justice only when specific conditio

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Procedural Defects in Tax Notice Invalidate SCN, HC Grants Stay Based on Jurisdictional and Electronic Filing Irregularities
Case-Laws
GST
HC adjudicated a challenge to a SCN under Section 74 of CGST Act, 2017, primarily contesting non-compliance with Rule 142 of CGST Rules. The petitioners argued that the SCN was issued without jurisdictional validity, as no tax evasion was alleged, and the notice was not electronically uploaded. The court found a prima facie case in the petitioners' f

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GST Rate Fixed at 12% for Real Estate Project Based on Original Promoter's Election, Binding Subsequent Buyers
Case-Laws
GST
The AAR held that the GST rate for the project is governed by the one-time option exercised by the original promoter at 12% with input tax credit. The applicant is bound by this project-specific election and cannot switch to a 5% rate without input tax credit. The ruling emphasizes that the tax treatment is project-based, not promoter-specific. Consequently, the a

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Railway Infrastructure Services Blend Multiple Contract Types, Determined as Mixed Supply Under GST Rule 995419 for Maintenance and Construction Work
Case-Laws
GST
AAR held that services provided by the applicant for reconstruction, maintenance, housekeeping, and security at Kalamboli Goods Shed constitute a mixed supply, primarily classified under works contract services. The services are not considered a composite supply and will be taxed at 18% under Heading 995419. The services invo

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Cancer Diagnostic Research Services Denied GST Exemption Under Notification 12/2017-CT(R) Due to Research Classification
Case-Laws
GST
AAR ruled that the applicant's cancer diagnostic services do not qualify for GST exemption under Notification No. 12/2017-CT(R). The tests were determined to be clinical research and experimental development, primarily focused on acquiring new knowledge in biotechnology and cancer prognostic technologies. Without proper licensing from CDSCO or ICMR, the

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Textile-Based Geo-Membrane Water Proofing Material Classified Under 5911 10 00 as Technical Textile Product
Case-Laws
GST
AAR ruled that Geo-Membrane for Water Proof Lining – Type-II manufactured from HDPE woven fabrics with specific weaving patterns is classifiable under Tariff Heading 5911 10 00. The determination was based on the product's manufacturing process, technical textile characteristics, and compliance with IS Standards. Despite being laminated with plastic and involving tex

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Exporters Can Seek IGST Refund by Submitting Representation and Providing Copy to Respondent Within 2 Weeks
Case-Laws
GST
HC determined that the petitioner seeks refund of IGST paid on export goods, with a representation submitted on 03.10.2022 pending consideration. The court directs the petitioner to submit a copy of the representation to the 2nd respondent within 2 weeks of receiving the order. The petition is disposed of, mandating administrative review of the refund claim and provi

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Taxpayer's Challenge Rejected: Appellate Remedies Mandated for CGST Penalty Dispute Under Section 107
Case-Laws
GST
HC dismissed the writ petition, directing the petitioner to pursue appellate remedies under Section 107 of CGST Act. The court held that factual issues regarding penalty imposition, transaction benefits, and financial year challenges should be adjudicated through the appellate process. The petitioner retains the right to contest the CGST Department's penalty under Section

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Transfer Development Rights Not Taxable Under GST When Developer Exchanges Construction Rights for Built-Up Units
Case-Laws
GST
HC held that the transfer development rights (TDR)/floor space index (FSI) under entry 5-B cannot be interpreted to include development agreements where a developer obtains construction rights in exchange for transferring certain built-up units. The specific development agreement dated 07.4.2022 between the parties did not fall within the scope of the GST notif

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GST Registration Cancellation Can Be Revoked by Filing Pending Returns and Clearing Outstanding Tax Dues Under Section 29(2)(c)
Case-Laws
GST
HC held that GST registration cancellation under Section 29(2)(c) of CGST Act, 2017 for non-filing of returns for six continuous months can be revoked. The court directed the petitioner to approach the empowered officer within two months, submit pending returns, pay tax dues, interest, and late fees. Upon compliance, the officer has discretionary

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Hospitality stakeholders hail GST rebate for hotels in Goa's hinterland
GST
Dated:- 16-4-2025
PTI
Panaji, Apr 16 (PTI) Stakeholders of the hospitality industry in Goa have welcomed the state government's announcement in the Budget to provide a 50 per cent rebate in the Goods and Services Tax and other perks for those investing in hotels in the state's hinterland.
Chief Minister Pramod Sawant, who tabled the state budget during the legislative assembly session last month, had announced incentives for the hospitality industry.
Sawant said that to promote infrastructure in the hotel and medical tourism sector, the state government has proposed a 50 per cent rebate on the state GST, exemption in stamp duty and registration, a waiv

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Advisory on Case Insensitivity in IRN Generation
GST
Dated:- 16-4-2025

Dear Taxpayer,
1. This is to inform you that, effective 1st June 2025, the IRP (Invoice Reporting Portal) would treat invoice/document numbers as case-insensitive for the purpose of IRN generation.
2. To ensure consistency and avoid duplication, invoice numbers reported in any format (e.g., “abc”, “ABC”, or “Abc”) would be automatically converted to uppercase before IRN generation. This change aligns with the t

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Retrospective Tax Amendments Struck Down as Unconstitutional, Protecting Taxpayers from Arbitrary Legislative Overreach
Case-Laws
GST
HC declared amendments to CGST and KGST Acts unconstitutional, finding retrospective modifications ultra vires the Constitution. The court held that legislative amendments improperly expanded the definition of “supply” and “service” by disregarding the principle of mutuality. The retrospective taxation violated fundamental principles of fairness and Rule

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High Court Validates CENVAT Credit Utilization, Affirms Unified Tax Credit Ledger Approach for Electronic Input Tax Reconciliation
Case-Laws
GST
HC allowed petitioner's challenge regarding CENVAT credit utilization, affirming that input tax credit electronic ledger represents a unified wallet with compartments for IGST, CGST, and SGST. The court referenced prior precedent emphasizing that tax credit eligibility should be assessed based on total wallet balance, not individual compartment

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Geometry Compass Box Ruled as Mixed Supply, GST Rate Set at 18% Based on Highest-Taxed Component Under Section 2(74)
Case-Laws
GST
The AAR determined that the Geometry Compass Box constitutes a mixed supply under Section 2(74), not a composite supply. The box contains multiple discrete items (compass, divider, scale, protractor, set squares, pencil, eraser, sharpener) which can be independently purchased. Since individual components are commercially available separately, the combination

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