Goods and Services Tax

Tax Authority Can Extend 5-Year Limitation Under Section 73(1) Without Mandatory Pre-Show Cause Consultation in Fraud Cases
Case-Laws
GST
HC held that pre-show cause consultation was not mandatory in tax evasion cases and extended 5-year limitation period under Section 73(1) applied when proceedings involved allegations of fraud or suppression. The Court declined to examine whether fraud existed, ruling this was within the Appellate Authority's domain. While Section 74(1) of CGST Act re

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Power Company Wins IGST and Service Tax Refund After Proving Consumer Benefit Plan Through Tariff Adjustments
Case-Laws
GST
HC held that petitioner was entitled to refund of IGST and Service Tax paid on ocean freight following Mohit Minerals precedent. While addressing unjust enrichment concerns, court found petitioner's commitment to refund consumers through tariff adjustments satisfactory. Petitioner established plan to maintain refund amount in separate account for consumer benefit u

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Precious Metals and Jewelry Under Chapter 71 Remain Exempt from E-Way Bill Requirements Under Rule 138(14)
News
GST
Generation of Electronic Way Bills (E-Way Bills) for goods under Chapter 71 of GST classification, covering precious metals, stones, and jewelry (except HSN 7117 – imitation jewelry), remains exempt from mandatory requirements under CGST Rules, 2017 Rule 138(14). While the NIC portal previously offered an “EWB for Gold” option, this facility has been withdrawn nationwide.

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ADVISORY ON E-WAY BILL GENERATION FOR GOODS UNDER CHAPTER 71
GST
Dated:- 7-2-2025

Subject: Clarification on E-Way Bill Requirement for Goods under Chapter 71
* Rule 138(14) of the Central Goods and Services Tax (CGST) Rules, 2017, read with its Annexure S.Nos. 4 and 5, states that goods covered under Chapter 71 viz., Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal, Jewellery, goldsmiths', and silversmiths' articles, except those classified under HSN 7117(Imitation Jewellery), are exempt from the mandatory requirement of generating an E-Way Bill.
* Pursuant to the introduction of the E-Way Bill (EWB) for goods classified under Chapter 71, excluding HSN 7117

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Foreign Currency Refund Claims Cannot Be Rejected Solely On Receipt Timing Without Examining Complete Documentation Trail
Case-Laws
GST
HC found procedural deficiencies in handling refund claims where foreign currency receipts lacked proper documentation through e-BRC filings. Despite timing discrepancies between payment receipts and refund period, court emphasized adherence to natural justice principles. Original order was set aside with directions to relevant authority to pass fresh o

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Constitutional Validity of GST Circulars Upheld Against Procedural Challenges by Third-Party Petitioner Under CGST Act 2017
Case-Laws
GST
HC upheld the constitutional validity of GST Circulars No. 3/3/2017 and 31/05/2018, dismissing challenges to their procedural legitimacy. The petitioner, lacking direct connection to the investigated firms, failed to establish standing. The court emphasized that challenges to administrative actions, particularly Show Cause Notices (SCNs), require conc

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GST Refund Claim Must Be Processed Promptly After Verification, Following Previous Precedents and Government Orders
Case-Laws
GST
HC directed state authorities to process petitioner's GST refund claim promptly following verification of facts and entitlement. Decision must consider state government's order dated 10.10.2018 and subsequent relevant orders. Court acknowledged petitioner's argument that similar GST refunds were previously granted in comparable cases. State must evaluate clai

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Foreign Affiliate Seconded Employee Services: Rule 28 Sets Invoice Value as Market Value for GST Assessment
Case-Laws
GST
HC determined that under Rule 28's second Proviso, the value declared in invoices for services from seconded employees represents their open market value. When foreign affiliates provide services without raising invoices, per Circular No. 210/4/2024-GST, such services are deemed to have 'nil' value, which becomes the market value under CGST Rules. This interpretation

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Pre-deposit Requirement Cannot Be Waived for Loss-making Unit; Review Petition Dismissed with Rs.10,000 Costs
Case-Laws
GST
HC dismissed the review petition challenging pre-deposit requirements with Rs.10,000/- costs. The petition failed on procedural and substantive grounds. The Advocate's certificate accompanying the review petition did not comply with Rule 23(iii) of Chapter IV of the Bombay HC Rules. The court rejected petitioner's argument that being a loss-making unit warranted wa

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GST Assessment Order Quashed: Improper Service of Show Cause Notice Through Portal Violates Natural Justice
Case-Laws
GST
HC set aside the impugned assessment order due to improper service of show cause notices through GST portal instead of tender or RPAD, violating natural justice principles. While disposing of the petition, court directed petitioner to deposit 25% of disputed taxes within four weeks, with adjustments for any prior recoveries or pre-deposits. Assessing authority must c

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GST Registration Can Be Restored After Filing Returns and Paying Tax, Interest, Late Fees Under Rule 22(4)
Case-Laws
GST
HC ruled that GST registration cancellation proceedings can be dropped if the registered person files pending returns and makes full tax payment with interest and late fees as per Rule 22(4) of CGST Rules 2017. The petitioner was granted two months to approach the authority for registration restoration. Upon submission of application and compliance with Rule 22(4) req

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GST Compensation Cess Refund Claim on Exports Denied Due to Two-Year Filing Limitation Under Section 54
Case-Laws
GST
HC dismissed petition challenging denial of compensation cess refund on exported goods. Court held refund claims must be filed within two years from relevant date as per Section 54 and Explanation 2 of GST Act. For exported goods, relevant date is when goods are loaded for shipping, not date of filing returns. Petitioner's claim was time-barred as application was filed b

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Interest Liability on GST Short Payment Overturned as Petitioner Gets Chance to Show Electronic Cash Ledger Balance
Case-Laws
GST
HC set aside the order regarding interest liability on GST short payment. The petitioner claimed sufficient balance existed in their electronic cash ledger during the relevant period and sought opportunity to present evidence. Court permitted treating the impugned order as a show cause notice, allowing petitioner to submit objections with supporting documenta

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Adani Wilmar faces Rs 42 lakh penalty from Uttar Pradesh GST department
GST
Dated:- 5-2-2025
PTI
New Delhi, Feb 5 (PTI) Edible oils company Adani Wilmar on Wednesday said that Uttar Pradesh's GST department has imposed a penalty of Rs 42 lakh on the company along with tax demand.
In a regulatory filing, Adani Wilmar informed that it has received an “order passed by the Deputy Commissioner, CGST & Central Excise Division, Lucknow-I, levying penalty of Rs 41,99,465 equivalent to the

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Taxpayer's CGST Payments Made Under Duress and Threats of Arrest Invalid Under Section 74(5)
Case-Laws
GST
HC determined that payments made under CGST Act were coerced, not voluntary self-ascertainment under Section 74(5). Evidence showed statements were recorded and deposits made under duress, with implicit threats of arrest. The timing of payments – one made after summons issuance and another during Bengaluru appearance – indicated coercion. Court rejected appellant's argument that re

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Promoter Cannot Deduct GST Loss from Apartment Cancellation Refund Despite 10% Cancellation Charges in Agreement
Case-Laws
GST
HC ruled against the promoter's attempt to deduct GST loss of Rs. 11,40,376/- from the refund amount following apartment cancellation. The court found no contractual provision in the Sale and Construction Agreements for GST deduction upon cancellation. The promoter's initial communication only mentioned 10% cancellation charges, revealing GST loss deduction only

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Input Tax Credit Claims Under Section 73 Must Be Reviewed When GSTN Details Were Actually Present Despite Initial Rejection
Case-Laws
GST
HC examined proceedings under Section 73 of UP GST Act regarding disputed input tax credit claims. The authority initially rejected certificates filed per Government Order dated 27.12.2022, claiming absence of GSTN details. Upon review, HC found GSTN numbers were clearly mentioned in submitted certificates. Given this material discrepancy in assessmen

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Company Wins Challenge Against Blacklisting After Trade Authority Failed to Consider Detailed Representation Before Taking Action
Case-Laws
GST
HC ruled in favor of petitioner challenging placement on Denied Entity List by Director General of Foreign Trade. Court found authority's failure to consider petitioner's 11-page detailed representation dated 25.04.2016 before blacklisting was procedurally improper and legally untenable. Mandamus issued directing authorities to consider represen

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Non-woven Fabric and PPSB Bed Sheets Attract 12% GST Under HSN 75603 and 6304 Classifications
Case-Laws
GST
HC ruled in favor of the appellant regarding classification and taxation of non-woven fabric and PPSB bed sheets under GST. The court confirmed non-woven fabric made from manmade filament is correctly classified under Chapter 56 (HSN 75603) attracting 12% GST instead of 18%. For PPSB bed sheets, the court rejected revenue's attempt to shift burden of proof to appellant and found c

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GST Appeal Relief: Assessee Gets Stay on Recovery After 10% Pre-deposit Under Section 112(9) of CGST Act
Case-Laws
GST
HC addressed maintainability of GST petition where appellant sought stay on tax recovery due to non-constitution of GST Tribunal. Following legislative amendment to Section 112 of CGST Act 2017, pre-deposit requirement was reduced from 20% to 10% for appeals. Despite Tribunal's non-existence, court granted interim relief based on precedent, allowing assessee to deposit

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GST Council to soon take decision on rates, number of slabs: FM Sitharaman
GST
Dated:- 4-2-2025
PTI
New Delhi, Feb 4 (PTI) The GST Council will soon take a decision on having fewer and lower rates as the review work is almost complete, Finance Minister Nirmala Sitharaman said on Tuesday.
Currently, Goods and Services Tax (GST) is a four-tier tax structure with slabs at 5, 12, 18 and 28 per cent. Luxury and demerit goods are taxed at the highest bracket of 28 per cent, while packed food and essential items are in the lowest 5 per cent slab.
The Council, chaired by Sitharaman and comprising her state counterparts, has set up a group of ministers (GoM) to suggest changes in GST rates as well as reduce slabs.
“To be fair to th

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er rates. So work has got to happen on that, and I hope the GST Council will decide on it soon,” Sitharaman said.
Days after presenting the Union Budget 2025-26 that also provides significant income tax relief to the middle class, the minister asserted the country's economic fundamentals are strong and there is no structural slowdown.
Tax relief in the Budget is a reflection of the prime minister's commitment to the taxpayers, Sitharaman said and refuted speculations that the move was aimed at Delhi assembly elections.
She also told the gathering that there is no proposal to “shut down” the old tax regime.
On a question related to capital expenditure, the minister further said the capex has not come down, in fact it has increased to

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Provisional Bank Account Attachment Under GST Section 83 Quashed Due To Insufficient Evidence And Reasoning
Case-Laws
GST
HC invalidated provisional attachment of petitioner's bank account under Section 83 of MGST Act 2017. Court emphasized the draconian nature of provisional attachment powers, requiring strict fulfillment of statutory conditions and proper formation of Commissioner's opinion to protect revenue interests. The Joint Commissioner's order failed to demonstrate adequate mat

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Transition of CENVAT Credits to GST Cannot Be Denied Based on Previous Law's Ineligibility Rules
Case-Laws
GST
HC held that CENVAT credit transition from JVAT Act to JGST Act cannot be denied based on ineligibility under the repealed law. Following precedent in prior case, court determined GST authorities lack jurisdiction to adjudicate eligibility of credits under former regime. Credits' eligibility must be evaluated under provisions of erstwhile Act. The impugned adjudication order an

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Tax Demand Stayed: Interim Relief Granted with 10% Payment Condition Under Section 107(6) for Non-Operational Tribunal Case
Case-Laws
GST
HC granted interim stay on tax demand following appeal disposal, acknowledging non-operational status of Appellate Tribunal. Initial two-week unconditional stay granted, with extension contingent on petitioner's payment of 10% of disputed tax balance, supplementing previous Section 107(6) deposits. Stay continuation linked to either writ petition reso

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Pre-packaged Food Sales Without Service Elements Not Eligible for Restaurant Service GST Rate Under SAC 996331
Case-Laws
GST
The AAAR determined that sale of readily available food and beverages not prepared in restaurant premises, whether consumed on-site or taken away, does not constitute 'restaurant service' under SAC 996331. The ruling established that restaurant service requires a composite supply where food/beverage provision is bundled with service elements. The authority emphasi

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