Goods and Services Tax

Dismissal Order Reversed: Appeal to Proceed After Pre-deposit Payment Within Two Weeks Despite Initial Technical Rejection
Case-Laws
GST
HC set aside the dismissal order regarding petitioner's appeal, which was initially rejected due to non-payment of mandatory pre-deposit. The court found procedural irregularities in the Appellate Authority's issuance of a common order for multiple appellants without establishing identity of cause of action or parties. While some appeals were partially

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Charitable Trust's Marriage Hall Must Pay GST and Penalties After Deliberately Masking Fees as Donations Under Section 74
Case-Laws
GST
HC dismissed petition of charitable trust operating marriage hall challenging GST liability. Trust failed to register under GST Act from July 2017 to January 2020, attempting to evade tax by issuing receipts as donations. Post-inspection registration and tax payment were not voluntary but to avoid penalties. Court upheld that trust's conduct constituted

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High Court Invalidates GST Assessment Order Due to Missing Document ID Number (DIN)
Case-Laws
GST
HC set aside GST assessment proceedings due to absence of Document Identification Number (DIN). Following SC precedent in Pradeep Goyal case and CBIC circular No. 128/47/2019-GST, the court determined that orders without DIN are non-est and invalid. The ruling aligns with previous HC Division Bench decisions in Cluster Enterprises and Sai Manikanta cases which established that non-mention o

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Maharashtra GST Authority Cannot Proceed with Show Cause Notice After Karnataka HC Stay on Same Transaction Under Section 74
Case-Laws
GST
HC determined the maintainability of petition challenging show cause notice under Section 74 of CGST Act regarding taxation of reward amounts received from Hong Kong group company. Court rejected preliminary objection, noting dual taxation attempt by Maharashtra and Karnataka authorities on same Rs. 6092 Crores transaction. Karnataka HC had already s

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High Court Upholds Right to Cross-Examine Witnesses in GST Proceedings Under Section 75(4), Citing Natural Justice Principles
Case-Laws
GST
HC quashed the authority's refusal to allow cross-examination of witnesses whose statements were used in show cause notice under CGST Act. The court emphasized that when third-party statements are relied upon in quasi-judicial proceedings, the fundamental right to cross-examine flows from Section 75(4) of CGST Act and principles of natural justice.

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High Court Allows Revision of GSTR-3B Returns for ITC Claims Under Section 140 CGST Act Due to Technical System Limitations
Case-Laws
GST
HC ruled in favor of petitioner seeking permission to revise GSTR-3B returns for July-November 2017. The case centered on transitional ITC claims under Section 140 of CGST Act 2017. Court acknowledged system limitations, noting TRAN-01 facility was available only from August 25, 2017, despite GST implementation from July 1, 2017. The delay in ITC avai

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GST Tax Demand Order Quashed: High Court Rules Service Notice Irregularities Violated Natural Justice, Grants 2-Week Reply Period
Case-Laws
GST
HC quashed tax demand order under GST Act due to procedural irregularities in notice service. Petitioner claimed no awareness of notices or orders, preventing timely response within limitation period. Court found merit in petitioner's contention that order was not visible under system's “view notices and orders” tab, constituting violation of na

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High Court Grants Bail to GST Official in Bribery Case After 55 Days Custody Under Section 483 BNSS
Case-Laws
GST
HC granted regular bail to petitioner accused of demanding bribes for GST registration. Despite prima facie evidence linking petitioner to the alleged crime under Section 483 of Bharatiya Nagarik Suraksha Sanhita, 2023, the court determined that extended pre-trial detention was unwarranted. Key factors in the decision included: pre-trial custody duration of 1 month 25 days,

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DGGI uncovers Rs 3,200 cr GST fraud, two held
GST
Dated:- 29-1-2025
PTI
Bengaluru, Jan 29 (PTI) The Directorate General of GST Intelligence (DGGI) in Bengaluru has uncovered a massive GST fraud amounting to Rs 3,200 crore and arrested two people in connection with the case.
A third suspect remains at large, Sucheta Sreejesh, Additional Director General of DGGI Bengaluru zone, said in a statement.
The DGGI’s Bengaluru zonal unit conducted searches at more than 30 locations across Bengaluru and Mumbai, uncovering a complex scam.
The accused created bogus companies with no legitimate business operations, engaged in circular trading to inflate turnover, listed these companies on stock exchanges, and facilitated the fraudulent

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increase the share price, sell the shares subsequently and exit the company, duping common public of their money invested in shares of such companies,” the statement said.
The probe also revealed that GST returns for most of these companies were filed from common IP addresses, suggesting that they were all operated by the same accused.
Further searches at the companies' premises uncovered original documents such as invoices and financial records, stored across several locations, indicating that the same individuals were managing the affairs of multiple companies.
“Considering the magnitude of the fraud and its impact on the common public, the Directorate General of GST Intelligence, Bengaluru Zonal Unit has initiated thorough inves

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GST Council Exempts Loan Penalty Charges, Payment Aggregator Settlements Under 2000, and Training by NSDC Partners
Circulars
GST
CBIC clarified multiple GST applicability issues based on 55th GST Council recommendations. Key determinations: No GST payable on penal charges levied by regulated entities for loan contract breaches. GST exemption extended to RBI-regulated Payment Aggregators for settlements up to 2000 per transaction. Research and development services by Government Entities

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Insurance Premium Sharing Between Lead Insurers and Co-insurers Not GST Taxable Under Schedule III CGST Act
Circulars
GST
GST Council's 53rd meeting recommendations led to amendments in Schedule III of CGST Act, clarifying two key insurance transactions. First, co-insurance premium apportionment by lead insurers to co-insurers is neither goods nor services supply, provided lead insurer pays all applicable taxes on full premium. Second, ceding/reinsurance commission deducted from reinsur

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High Court Reverses GST Registration Cancellation u/s 29(2)(c), Allows One Month Window for Restoration Application.
Case-Laws
GST
HC set aside GST registration cancellation order issued u/s 29(2)(c) of CGST Act 2017 for non-filing of returns for six continuous months. Following precedents from coordinate benches and considering Rule 22(4) of CGST Rules 2017, the court directed petitioner to approach concerned authority within one month for revocation of cancellation and restoration of

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High Court Upholds 200% GST Penalty for E-way Bill Fraud Using Unregistered Consignor to Mask Real Service Recipient.
Case-Laws
GST
HC upheld penalty u/s 129(3) of WB GST Act 2017 due to deliberate discrepancies in transportation documents. The E-way bill listed an unregistered person (URP) as consignor from Arunachal Pradesh, while delivery challan showed a GST-registered entity as consignor. This mismatch was deemed intentional to conceal the actual recipient's identity and evade GST

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West Bengal High Court Upholds GST Penalty u/s 129 for Transportation Document Discrepancies and Invalid Input Tax Claims.
Case-Laws
GST
HC upheld penalty u/s 129 of WBGST Act 2017 regarding discrepancies in vehicle transportation documentation. The petitioner failed to establish legitimate purchase chain from Mr. X to Company Y, with Input Tax Credit already claimed by Company Z. Documentation inconsistencies included contradictory e-way bill and invoice details, with no tax payment ev

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High Court Allows Fresh Hearing in GST Dispute After 25% Tax Deposit, Sets Aside Time Limitation Order.
Case-Laws
GST
HC set aside the impugned order regarding time limitation and GSTR-3B/GSTR-2A mismatch dispute. The petitioner's willingness to deposit 25% of disputed tax amount was considered favorably. Court granted relief by directing petitioner to deposit the agreed percentage within four weeks from order receipt, allowing a final opportunity to present objections before the adjudi

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No GST on penal charges levied by banks, NBFCs: CBIC
GST
Dated:- 28-1-2025
PTI
New Delhi, Jan 28 (PTI) Goods and Services Tax (GST) will not be applicable on penal charges levied by banks and non-banking finance companies (NBFCs), the CBIC has said.
The Central Board of Indirect Taxes and Customs (CBIC) through a circular has also clarified that GST will not be levied on transactions of up to Rs 2,000 facilitated by payment aggregators on online platforms.
Clarifying the issue of GST applicability on penal charges levied by banks and NBFCs, the CBIC said penal charges levied by Regulated Entities governed by the RBI are essentially in the nature of charges for breach of terms of contract and hence, do not attract GST.
“As rec

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dded.
With regard to taxation on payment aggregators, the CBIC said it has received representations seeking clarity on the applicability of GST exemption to Payment Aggregators (PAs) in relation to settlement of up to Rs 2,000 in a single transaction, transacted through credit card, debit card, charge card or other payment card services.
Payment Aggregators (PAs) are entities that facilitate e-commerce sites and merchants to accept various payment instruments from their customers without the need for the e-commerce sites and merchants to create a separate payment integration system of their own. In the process, PAs receive payments from customers, pool and transfer them on to the merchants within a specified time period.
The CBIC also qu

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Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Tamil Nadu and Himachal Pradesh
GST
Dated:- 28-1-2025

Dear Taxpayers,
This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process.
1. Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.
2. The a

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oint 3(a), she/he can proceed with the application as per the existing process.
5. However, if the applicant receives the link as mentioned in point 3(b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail.
6. The feature of booking an appointment to visit a designated GSK is now available for the applicants of Tamil Nadu and Himachal Pradesh.
7. After booking the appointment, the applicant gets the confirmation of appointment through e-mail (the appointment confirmation e-mail), she/he will be able to visit the designated GSK as per the chosen schedule.
8. At the time of the visit of GSK, the applicant is required to carry the following details/documents
(a) a copy (hard

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High Court Denies Bail in 10.67 Crore GST Fraud Case Involving Fake Firms and Fabricated Bills u/s 132.
Case-Laws
GST
HC denied bail in GST fraud case where petitioner allegedly availed fraudulent Input Tax Credit worth 10.67 crores through fictitious firms. Evidence included seized fake rubber stamps, fabricated E-bills, and transport company testimony confirming route discrepancies. Court distinguished this case from Prabir Purkayastha and Pankaj Bansal precedents regarding arrest pro

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High Court: UP GST Revision Allowed Without Exhausting Appeals, Section 108 Only Requires Appeal Filing Not Completion.
Case-Laws
GST
HC quashed the revisional order regarding maintainability u/s 108 of U.P. GST Act, 2017. The court clarified that Section 108(2) language “order has been subject to appeal” means an appeal must have been actually filed, not that appeal must be exhausted before seeking revision. The Revisional Authority's approach was contradictory – discussing merits whil

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High Court Rules GST Not Applicable When Transferring Leasehold Rights in Property Between Lessee and Third-Party Assignee.
Case-Laws
GST
HC determined GST is not applicable on assignment of leasehold rights in immovable property. Following precedent from Gujarat Chamber of Commerce case, the court held that transfer of leasehold rights constitutes assignment of benefits arising from immovable property when a lessee transfers rights to third-party assignee. The impugned show cause notic

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Court Rules Personal Hearing Required Before Denying GST Transitional Credit Claims u/s 140(5) of CGST Act.
Case-Laws
GST
HC determined that authorities erred in denying transitional ITC claim under CGST Act s.140(5) without providing personal hearing. While petitioner incorrectly filed Form TRAN-1 by entering service tax credit details in column 5(a) instead of 7(a) for invoices received post June 30, 2017, principles of natural justice required opportunity to demonstrate compliance wi

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High Court Dismisses Input Tax Credit Refund Claim Filed After Two-Year Limitation Period u/s 54.
Case-Laws
GST
HC found the refund claim for unutilized input tax credit time-barred u/s 54. The court interpreted Section 54(1) and 54(3) to establish that while refund claims can be initiated from the end of the relevant tax period, there exists a two-year limitation period from the relevant date. The petitioner's application filed on 21.03.2024 exceeded the statutory deadline of 09.03.202

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High Court Rules Cross-Utilization of IGST Input Tax Credit for CGST and SGST Payments Is Legal and Penalty-Free.
Case-Laws
GST
HC determined that utilizing Input Tax Credit (ITC) available in IGST under CGST and SGST heads does not constitute improper availment warranting penalties. The electronic credit ledger functions as a wallet with separate compartments for IGST, CGST, and SGST. Despite petitioner's pending appeal, HC exercised jurisdiction under Article 226 to set aside the asse

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Court Orders Release: CGST Act Section 69 Does Not Override CrPC 41/41A Safeguards in Arrest Procedures.
Case-Laws
GST
DSC examined judicial remand application under Sec 167 CrPC and Sec 187 BNSS Act. While arrest grounds were properly documented with accused's acknowledgment, the court found procedural deficiencies. Despite prosecution's argument that Sec 69 CGST Act exempted compliance with Sec 41/41A CrPC requirements for arrests, the court relied on SC precedents (Arnesh Kumar and G

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Attention – Hard – Locking of auto-populated liability in GSTR-3B
GST
Dated:- 27-1-2025

1. Please refer to the advisory dated October 17, 2024 , regarding the restricting the editing of auto-populated liability in GSTR-3B from the January 2025 tax period.
2. However, various requests have been received from the trade seeking time for the same. Therefore, the decision of making non-editable of auto-populated liability in GSTR-3B is currently not being implemented from January tax

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