Goods and Services Tax

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 com

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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 r

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Partnership Firm Wins Appeal Delay Condonation After Authority's Mechanical Rejection Due To Time Limitation Grounds
Case-Laws
GST
HC condoned delay in filing appeal by small partnership firm, setting aside appellate authority's rejection. Court found appellate authority erroneously limited condonation to one-month period beyond prescribed time, contradicting precedent in S.K. Chakraborty case. Considering petitioner's bona fide intent and absence of deliberate delay, HC directed appell

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax Department Must Share Documents Requested by Assessee Before Proceeding with GST Notice Under Form DRC-01A
Case-Laws
GST
HC addressed procedural challenge regarding timing of notice issued before expiry of response period to Form GSTR DRC-01A. While petitioner initially contested DRC-01A validity, scope narrowed to requesting underlying materials from authorities. Court affirmed petitioner's right to request documentation and raise jurisdictional objections in response to DRC-01A. A

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Driver of Meerut CGST officials caught accepting bribe on their behalf
GST
Dated:- 13-2-2025
PTI
New Delhi, Feb 13 (PTI) The CBI on Thursday arrested a man who was allegedly receiving a bribe of Rs 1 lakh on behalf of a Superintendent and an Inspector of Central Goods and Services Tax (CGST), Meerut, from a businessman, officials said.
They stated that the CBI had booked Superintendent Aftab Singh and Inspector Vikas, both of CGST, Meerut, on February 11 for allegedly demanding a br

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Advisory for GST Registration Process (Rule 8 of CGST Rules, 2017)
GST
Dated:- 13-2-2025

Dear Taxpayer,
In line with recent developments in the GST registration process, applicants must adhere to the following steps as per Rule 8 of the CGST Rules, 2017:
1. Applicants Not Opting for Aadhaar Authentication:
* If you choose not to authenticate via Aadhaar, you must visit the designated GST Suvidha Kendra (GSK) for photo capturing and document verification.
* Upon selecting "NO" for Aadhaar authentication, an email will be sent with GSK details and required documents.
* You can schedule an appointment via a link in the email. An appointment confirmation will follow through mail.
* Visit the GSK at the scheduled

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

eady been biometric verified in any State/UT during a previous registration, they will not need to visit the GSK again for photo capturing, biometric authentication, or document verification for any other entity where they act as Promoter/Partner. However, if she/he becomes the PAS of the entity, only document verification at the GSK will be required.
* In case PAS has already been biometric verified in any State/UT during a previous registration, she/he will need to visit the GSK only for document verification.
* If the Promoter/Partner and PAS are the same individual, she/he must visit the GSK for photo capturing, biometric authentication, and document verification. If already biometric verified in the past, only document verification

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST Reassessment Challenge Fails as Section 107A Appeal Provides Adequate Remedy; 30 Days Given for Statutory Appeal
Case-Laws
GST
HC dismissed writ petition challenging GST reassessment order, holding that statutory appeal under Section 107A GST Act provides adequate remedy. Court emphasized established principle that writ jurisdiction cannot be invoked when statutory remedies exist, absent exceptional circumstances. Petitioner's claims of natural justice violations and denial of witne

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Registration Under GST Cannot Be Denied Based On Applicant's Non-Residency Status, Constitutional Right To Trade Must Be Protected
Case-Laws
GST
HC overturned rejection of sales tax registration application, ruling that non-residency in Andhra Pradesh cannot be grounds for denial under APGST Act. The court emphasized fundamental rights under Art. 19 guaranteeing citizens' freedom to conduct business anywhere in India. Despite authorities' concerns, rejection based on applicant's out-of-

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Bank Accounts Remain Frozen After Evidence Shows Rs.12.33 Crore GST Fraud Through Fake Bills Under Section 83
Case-Laws
GST
HC upheld provisional attachment orders under Section 83 of Gujarat GST Act 2017 against petitioner's bank accounts. Evidence revealed petitioner's involvement in issuing fraudulent bills and wrongful input tax credit claims, with estimated liability of Rs.12.33 crores. Court found legitimate grounds for attachment renewal after initial one-year period, distinguish

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Input Tax Credit Denied: Taxpayers Failed to Prove Actual Receipt of Goods Under GST Section 16(2)(b)
Case-Laws
GST
HC upheld denial of input tax credit (ITC) under GST law. Petitioners failed to demonstrate actual receipt of goods and legitimacy of transactions with suppliers. Court emphasized that while Section 7's definition of supply is broad, valid ITC claims must satisfy Section 16(2)(b) requirements. Despite petitioners' argument regarding denied cross-examination of suppliers, H

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Input Tax Credit Utilization From Different GST Heads Not Wrongful Under Section 16(2)(c), Orders Fresh Assessment
Case-Laws
GST
HC ruled in favor of the petitioner regarding input tax credit (ITC) dispute under GST law. The court established that electronic credit ledger functions as a pool of funds with separate compartments for IGST, CGST, and SGST. Although petitioner utilized CGST and SGST credits instead of IGST, this did not constitute wrongful availment under Section 16(2)(c) of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Employers Can Claim GST Refund on Notice Pay Recovery Within Two Years of Circular 178/10/2022 Under Section 54
Case-Laws
GST
HC determined that GST refund claims on notice pay recovery were not time-barred under CGST Act Section 54. Following Circular No. 178/10/2022-GST, notice pay recovery by employers was deemed non-taxable due to absence of service supply. The two-year limitation period for refund claims commenced from the circular's issuance date (03.08.2022), making claims filed

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

DGGI probe detects Rs 1,196 cr fraudulent Input Tax Credit transactions
GST
Dated:- 12-2-2025
PTI
Pune, Feb 12 (PTI) The Directorate General of GST Intelligence (DGGI) has unearthed fraudulent Input Tax Credit (ITC) transactions amounting to Rs 1,196 crore by exposing a network of bogus companies and arrested a person, as per an official release.
DGGI, Pune zonal unit, conducted searches at multiple locations in Pune, Delhi, Noida and Muzaffarnagar. The investigation showed that the accused had set up shell entities that generated fake invoices and e-way bills.
“These e-way bills had no RFID movements associated with them, confirming the absence of the actual supply of goods. The fraudulent network facilitated the availing and

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Central Government Sets Phased Implementation Dates for CGST Amendment Rules Under Section 164 Starting February 2025
Notifications
GST
The Central Government, exercising powers under Section 164 of CGST Act 2017, has notified the implementation dates for specific provisions of CGST (Amendment) Rules 2024. Rules 2, 24, 27, and 32 will come into effect from February 11, 2025, while Rules 8, 37, and clause (ii) of Rule 38 will be implemented from April 1, 2025. This notification, issued b

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST evasion racket busted in Thane; 1 held
GST
Dated:- 12-2-2025
PTI
Thane, Feb 12 (PTI) Authorities have busted a Goods and Services Tax (GST) evasion racket involving a fraudulent input tax credit (ITC) scam of Rs 26.92 crore and arrested its “mastermind” in Maharashtra's Thane district, officials said.
The accused, Kapadiya Mahamad Sultan, orchestrated the fraud by setting up 18 fictitious entities which were used to generate fake invoices and claim ITC without any actual supply of goods or services, CGST Joint Commissioner Amit Kumar Singh said in a release issued on Tuesday.
Sultan, resident of Mira Road area in Thane, was arrested on Monday, the official said.
Investigations suggested that Sultan exploited the Aadhaar

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST Registration Cancellation Invalid: Show Cause Notice Under Rule 21(b) Lacked Specific Violations and Reasoned Order
Case-Laws
GST
HC determined the cancellation of GST registration invalid due to procedural deficiencies. The show cause notice (SCN) merely cited Rule 21(b) of CGST Rules 2017 without specifying material violations, preventing adequate response from the registrant. Despite the registrant's explanation of bank-verified invoices, the assessing authority failed to provide

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Provisional Attachment Order Under Section 83 CGST Act Invalidated Due To Lack Of Reasoning And Necessity
Case-Laws
GST
HC quashed provisional attachment order under Section 83 of CGST Act, finding it legally deficient on multiple grounds. The order lacked tangible material justifying attachment necessity, failed to disclose substantive reasons beyond mere statutory reproduction, and showed no application of mind regarding jurisdictional elements. While Section 83 permits immediate acti

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Assessment Order Under Section 73 of GST Act Quashed as Time-Barred, Exceeding Three-Year Limitation Period
Case-Laws
GST
HC quashed demand order and show cause notice issued under Section 73 of UP GST Act 2017. For FY 2017-18, annual return filing deadline was extended to 05.02.2020. Per Section 73(10), three-year limitation period for passing assessment order would expire on 05.02.2023. Assessment order dated 02.12.2023 was time-barred as it exceeded statutory limitation period. Court

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax Authority's GST Demand Order Invalid Due to Missing Show Cause Notice Under Section 73 AGST Act
Case-Laws
GST
HC quashed the impugned order dated 30.12.2023 due to procedural non-compliance with Section 73 of AGST Act, 2017. The authority failed to issue a proper Show Cause Notice as mandated under Section 73(1), instead only serving a Summary Notice in Form GST DRC-01. The court emphasized that compliance with subsections (1) to (8) and (10) to (11) of Section 73, along with Rule 1

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Input Tax Credit Claim Valid Under Amended Section 16; Reversal Orders Quashed and Credit Amounts Restored
Case-Laws
GST
HC held that petitioner's claim for input tax credit (ITC) was valid under amended Section 16 provisions. Following precedent established in Sri Ganapathi Pandi Industries case, the court affirmed taxpayer's entitlement to avail ITC for the disputed financial periods. The reversal of ITC along with associated penalties and interest was set aside. The court's ruling re

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST Registration Cancellation Cannot Be Retrospective Without Prior Notice And Reasons In Show Cause Notice
Case-Laws
GST
HC invalidated the retrospective cancellation of GST registration due to procedural deficiencies in the show cause notice (SCN). The original SCN failed to disclose the intent for retrospective cancellation or provide supporting reasons, violating principles of natural justice. The Court determined that absence of prior notice regarding retrospective action rendered

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax Assessment Order Quashed: Section 169 Violation for Improper Notice Delivery and Denial of Fair Hearing Opportunity
Case-Laws
GST
HC quashed assessment order for 2018-19 due to violation of natural justice principles under Section 169. Authority failed to serve proper notice seeking explanation regarding alleged defects. Following precedent established in prior cases, Court affirmed mandatory requirement of notice delivery either in person, registered post, or registered email. Only

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Port Authority's Land Lease for Commercial Complex Not Exempt Under Entry 41, Must Pay GST on Services
Case-Laws
GST
AAAR ruled that long-term land lease services by Port Authority to Company A for establishing a commercial office complex does not qualify for GST exemption under Entry 41 of Notification 12/2017-CT(Rate). The authority determined that constructing an office complex for corporate use and rental purposes constitutes neither industrial nor financial activity. The definition

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

FM dispels concern of rise in GST rate, says there is not even one such item
GST
Dated:- 11-2-2025
PTI
New Delhi, Feb 11 (PTI) Finance Minister Nirmala Sitharaman on Tuesday dispelled concerns over a rise in Goods and Services Tax (GST), saying that there is not even one item on which the rate has been increased after the implementation of GST regime.
Intervening during Question Hour in Rajya Sabha, Sitharaman stated that GST rates have been brought down and the average GST rate has come down to 11.3 per cent from 15.8 per cent (at the time of GST implementation).
“That is the level of rate of reduction in the GST Council. Therefore I appeal to all the members here, kindly spare some time, meet your respective finance minist

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

lso pointed out that the GST Council is a constitutional body.
She also said, “I would to take this opportunity to dispel this thought after GST implementation, rates have gone up. Not at all.” She asked that is there an obstruction by the union government members, MOS and myself, to (where we have said) say no no, don't reduce the rate, we want to burden the consumer.
“Is there be an instance? One such instance,” she said.
She also explained in the written reply on the oral question tabled in the House that as per Article 279A (4) of the Constitution of India, the GST Council shall make recommendations to the Union and the States, on rates, including floor rates with bands of goods and service tax.
Thus, the GST rates are notifie

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =