Goods and Services Tax

GST Circular Struck Down for Retroactively Restricting Refund Applications Under Section 54
Case-Laws
GST
The HC struck down para 2(2) of Circular No. 181/13/2022-GST dated 10.11.2022 as ultra vires Section 54 of the GST Act and violative of Article 14 of the Constitution. The circular had improperly applied restrictions from the 13.7.2022 notification to all refund applications filed after 13.7.2022, even for periods predating the notification. The Court found this created an arbitrary

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Appellate Authority's Rejection of GST Appeal Set Aside; 5-Day Delay Condoned for Small Businessman Under Section 73(9)
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GST
The HC set aside the appellate authority's rejection of petitioner's appeal on limitation grounds. Despite a 5-day delay in filing the appeal against an order under Section 73(9), the Court found the petitioner, a small businessman, had demonstrated bona fides by making the requisite pre-deposit and seeking condonation of delay due to lack of familiarity

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Tax Authority Must Separately Assess Section 74 CGST/SGST Applicability For Each Year And Credit Taxes Already Paid
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GST
The HC disposed of the petition, directing the Competent Authority to consider separately for each year whether invocation of Section 74 of CGST/SGST Acts was warranted, particularly for 2018-19 through 2021-22 where petitioner claimed no justification existed. The Authority must credit any taxes already paid when finalizing proceedings. The Court explicitly

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Remand for Fresh Decision on Including System Use Gas Value in Re-gasification Services Consideration Under Section 15
Case-Laws
GST
The AAAR set aside the impugned ruling dated 11.5.2022 and remanded the matter back to the GAAR for fresh decision. The case concerned whether value attributable to System Use Gas (SUG) stipulated in customer agreements should be included in consideration for re-gasification services under section 15 of the CGST Act. The AAAR noted that its powers under se

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GST Applies to Canteen Charges from Contractual Workers, Not Direct Employees Under Factories Act Section 46
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GST
The AAAR dismissed the appeal, holding that GST is applicable on canteen charges recovered from contractual workers, but not from direct employees. While providing canteen facilities is mandatory under Section 46 of Factories Act, the appellant failed to establish that it assumed responsibility as primary employer due to contractor's failure to fulfill statutory obl

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GST Council reconstitutes GoM on GST revenue analysis, expands ToR
GST
Dated:- 6-3-2025
PTI
New Delhi, Mar 6 (PTI) The GST Council has reconstituted the Group of Ministers on GST revenue analysis which will suggest sector-specific issues that need policy intervention, and the feasibility of a unified enforcement platform to check tax evasion.
The GST Council, in its 55th meeting on December 21, 2024, had decided to reconstitute the Group of Ministers (GoM) on GST revenue analysis with a revised ToR. The GoM was first set up in 2019.
The reconstituted GoM on 'Analysis of Revenue from GST' under Goa Chief Minister Pramod Sawant, would have nine members including from the states of Bihar (Samrat Chaudhary), Chhattisgarh (O P Chou

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mpact of amendments made in GST acts and rules.
Goods and Services Tax (GST) was rolled out on July 1, 2017. Since then the Act and its rules have been amended to make it easier for businesses after approval of the GST Council, chaired by Union Finance Minister and comprising state counterparts.
The GOM would “review and recommend harmonisation of anti-evasion, audit, scrutiny tools developed by various agencies (NIC, GSTN, DGARM, state governments) to create a unified enforcement and compliance platform”.
It would also suggest suitable measures/policy intervention for course correction for revenue augmentation, particularly for states suffering high revenue shortfall.
The expanded ToR of the GoM comes at a time when another GoM, under

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Bank's Challenge to GST Show Cause Notice Rejected as Premature Since Administrative Remedies Not Yet Exhausted
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GST
HC dismissed petition challenging SCN issued by Commissioner CGST. Court found SCN contained detailed justification for invoking IGST Act 2017, CGST Act 2017, and J&K GST Act 2017 against petitioner-Bank. Court held Bank retains right to respond to SCN, raise jurisdictional objections, and demonstrate transactions fall outside scope of relevant GST legislation. C

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Provisional Attachment Under GST Section 83 Automatically Lapses After One Year, Cannot Be Extended Beyond Time Limit
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GST
Provisional attachment order under Section 83 of WBGST/CGST Act 2017 challenged before HC. Court determined that provisional attachment automatically lapses after one year from date of order under Section 83(1). The attachment order dated April 13, 2023, expired through efflux of time and cannot be enforced against petitioner. However, authorities retain ri

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GST Demand Order Quashed: Adjudicating Authority Failed to Consider Binding Departmental Circulars 200/12/2023-GST and 236/30/2024-GST
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GST
HC set aside GST demand order dated 21.11.2024 for non-consideration of binding departmental circulars (No.200/12/2023-GST and No.236/30/2024-GST). Matter remanded to adjudicating authority for fresh consideration specifically accounting for these clarificatory circulars. Petitioner granted leave to file additional application demonstrating

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Petition Dismissed: GST Department Witness Summons Upheld for Evidence Gathering Despite Records Access Challenge
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GST
HC dismissed petition challenging lower court's order allowing respondent to summon GST Department witness. Court held that since GST records were not in respondent's possession, they could rightfully request witness testimony, subject to Rs. 3,000/- costs. The principle of plaintiff's burden of proof was upheld, affirming their discretion to determine necessar

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Government Notices Under Section 168A of CGST Act Challenged Over Limitation Period and Jurisdictional Issues
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GST
HC reviewed challenges to Garnishee Notice, Show Cause Notice, and notifications issued under Section 168A of CGST Act, 2017. Multiple similar petitions were pending across jurisdictions, with Gauhati HC striking down the contested notifications. While Telangana HC ruled favorably based on SC's limitation extension order, that decision faces appeal in SC. Given the

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CGST Summons Valid Despite Ongoing State GST Case: Search Operations Not Barred Under Sections 73-74
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GST
Central GST authorities issued summons following a search operation, despite ongoing State GST proceedings. The HC held that statutory prohibition against parallel proceedings under Sections 73 and 74 specifically pertains to assessment proceedings, not investigative actions. Search-based summons are distinct from assessment proceedings as they aim to gather information pot

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Healthcare Provider's Diamond Plan Service Tax Exemption Denied Due to Insufficient Documentation Under Notification 12/2017-Central Tax
Case-Laws
GST
AAAR rejected appellant's appeal concerning service tax exemption for a 20-year “Diamond Plan” healthcare service package under Sr. No. 74 of Notification No. 12/2017-Central Tax. The appellant provided insufficient documentation, submitting only a basic plan outline and single bill of supply No. 3/2021-22 dated 12.8.2021. The authority d

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Treatment Plant's Water Classified as Demineralized Under GST, Losing Exemption Status Despite Lab Certificate Challenge
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GST
AAAR upheld that treated water from Common Effluent Treatment Plant (CETP) constitutes demineralized water, making it ineligible for GST exemption under Notification No. 02/2017-Integrated Tax (Rate). The appellant's laboratory certificate was rejected as it was introduced at appellate stage, lacked accreditation details, and failed to specify sample col

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Lumpsum EPC Contract Including High Seas Sale Goods Must Be Taxed As Single Transaction Under GST Section 15
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GST
AAAR ruled that in a lumpsum turnkey EPC contract between Company A and Company B, the contract cannot be legally divided into separate parts despite high seas sale (HSS) of goods. The contract was deemed indivisible as the appellant was contractually obligated to provide both goods and services. While HSS transactions are neither supply of goods nor services under

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Failure to Prove Physical Movement of Goods Results in Seizure Under Section 129 of GST Act
Case-Laws
GST
HC upheld seizure of goods under GST Act due to petitioner's failure to establish actual physical movement of goods from West Bengal/Assam to Delhi via Kanpur. Following precedent from SC in Ecom Gill Coffee Trading, burden of proof in original proceedings lies with assessee to demonstrate genuine transactions and physical movement of goods. Petitioner failed to provide essential ev

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Input Tax Credit Claims Under GST Valid Within Extended Timeline Despite Section 16(4) Bar Under Section 16(5)
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GST
HC quashed assessment order concerning Input Tax Credit (ITC) claims under GST regime. The matter involved interpretation of limitation periods under Section 16(4) and 16(5) of CGST Act, 2017. Following precedent in similar cases, Court held that while ITC claims were barred under Section 16(4), they remained valid within the extended limitation period provided un

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Input Tax Credit Claims Valid Under Section 16(5) Despite Exceeding Initial Time Limit Under Section 16(4)
Case-Laws
GST
HC quashed order relating to Input Tax Credit (ITC) claims that were time-barred under Section 16(4) of CGST Act but fell within limitation under Section 16(5). Following precedent from Sri Ganapathi Pandi Industries case, Court determined that while ITC claims exceeded initial limitation period under Section 16(4), they remained valid within extended timeframe provid

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GST Assessment Order Nullified Due to Denial of Personal Hearing Under Section 75(4), Matter Remanded for Fresh Consideration
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GST
HC quashed GST assessment order dated 22.04.2024 for violation of natural justice principles under Section 75(4) of GST Act, 2017. Despite petitioner filing two detailed replies (25.01.2024 and 14.03.2024) to Form GST DRC-01 notice, respondent authority passed final order without granting mandatory personal hearing. The scheduling of hearing dates (

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PVC Raincoats Classified Under HSN 3926 20 As Plastic Articles For 18% GST Based On Material Composition
Case-Laws
GST
AAR ruled PVC raincoats must be classified under HSN 3926 20 (plastic articles) rather than HSN 6201 (textile garments), attracting 18% GST. While raincoats function as garments/apparel in common usage, the primary material composition of polyvinyl chloride (PVC) determines classification. PVC sheets cannot be considered woven fabric or textile materials. The ruling fol

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PVC Raincoats Classified Under HSN 3926 20 for GST Based on Plastic Material Composition Rather Than Apparel Use
Case-Laws
GST
AAR ruled PVC raincoats must be classified under HSN Code 3926 20 (plastic articles) rather than HSN 6201 (textile garments). Despite functioning as apparel, PVC raincoats are primarily composed of polyvinyl chloride, not textile fabric. PVC sheets cannot be considered woven fabric or textile material in common trade practice. Following the principle of generali

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PVC Raincoats Classified Under HSN 3926 20 as Plastic Articles, Not Textile Garments, Subject to 18% GST Rate
Case-Laws
GST
AAR ruled PVC raincoats must be classified under HSN 3926 20 (plastic articles) rather than HSN 6201 (textile garments), attracting 18% GST. Though raincoats function as garments/apparel in common usage, their primary composition of polyvinyl chloride (PVC) determines classification. The authority rejected applicant's argument for textile classification, noting PVC

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Liquidator Must Register for GST When Selling Company Assets During Insolvency Under Section 7 and 24 CGST Act
Case-Laws
GST
Sale of assets by NCLT-appointed liquidator for Company A in liquidation constitutes supply of goods/services under Section 7 of CGST Act 2017. AAR ruled that liquidator must obtain mandatory GST registration per Section 24 of CGST/WBGST Acts, following special procedures outlined in Notifications 11/2020-CT and 39/2020-CT. These notifications specifically address

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GST Department Barred from Coercive Recovery After Time Limit Extension Under Section 168A CGST Act Challenged
Case-Laws
GST
HC granted interim relief against coercive action following show cause notices issued under extended time limits per Section 168A CGST Act notifications. Petitioner challenged validity of notifications dated December 28, 2023 and January 16, 2024 that extended statutory time limits under Sections 73/74. Following precedent from Aspect Integrated IT case, court fou

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Milling Services to Government for PDS Atta Production Qualify as Exempt Composite Supply Under Entry 3A
Case-Laws
GST
AAR determined that milling services provided to State Government qualify as composite supply with milling as principal supply. The services involve crushing wheat into fortified wholemeal atta and packaging. The supply relates to Public Distribution System, a function entrusted to Panchayat under Article 243G. Total supply value was Rs. 260.48, with goods component (fo

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