Goods and Services Tax

Advisory on the Introduction of E-Way Bill (EWB) for Gold in Kerala State
GST
Dated:- 27-1-2025

It is hereby informed that a new option for generating E-Way Bills (EWB) for gold has been introduced in the EWB system, effective from January 20, 2025. This feature has been made available to facilitate taxpayers in Kerala State to generate EWB for goods classified under Chapter 71, excluding Imitation Jewellery, for intrastate movement, in compliance with the notification issued by th

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Input Tax Credit Claims Under GST Rejected Due to Procedural Violations of Sections 107(8) and 107(12), HC Orders Fresh Hearing.
Case-Laws
GST
HC set aside orders from Appellate Authority and Primary Authority regarding disputed Input Tax Credit claims under GST. The court found procedural violations, specifically non-compliance with Sections 107(8) and 107(12) of JGST Act 2017. The Appellate Authority failed to provide mandatory hearing opportunity and issue a reasoned written order st

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High Court Upholds Additional Commissioner's Authority to Adjudicate DGGI Show Cause Notices Under CGST Act Per Notification 31/2018.
Case-Laws
GST
HC dismissed petitions challenging territorial jurisdiction of Additional Commissioner, Kanpur to adjudicate show cause notices (SCNs) issued by DGGI Ahmedabad under CGST Act. Petitioners contested jurisdiction based on Circular 169/2022 and Notification 2/2022, arguing Additional Commissioner lacked All-India jurisdiction. Court held that a

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High Court Grants Bail in GST Fraud Case After 1-Year Custody, Citing Trial Delays and Personal Liberty Concerns.
Case-Laws
GST
HC granted bail to accused in GST fraud case involving unauthorized Input Tax Credit (ITC) passed through fictitious firms. The court considered material factors including filing of complaint, ongoing investigation status, and accused's custody period since November 2022. Given likelihood of prolonged trial duration, court deemed accused eligible for bail relea

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High Court Orders Prompt Processing of GST Refund Claim After State Authorities' Delay, Sets Verification Guidelines.
Case-Laws
GST
HC directed state authorities to process petitioner's GST refund claim promptly following inaction on previous requests. The authorities must verify facts, assess entitlement, and consider the state government's order dated 10.10.2018 along with subsequent relevant orders. Court noted petitioner's argument that GST had been refunded in similar cases. State

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E-Commerce Operators Can Keep Input Tax Credits While Paying GST on Sec 9(5) Services Through Cash Ledger.
Circulars
GST – States
ECOs liable for tax under Sec 9(5) of WBGST Act are not required to reverse input tax credit on inputs and input services proportionately for specified services supplied through their platforms. While ECOs must pay full tax liability for Sec 9(5) supplies through electronic cash ledger only, they can utilize their ITC for tax obligations on their own account

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Government Waives Excess Late Fees for GSTR-9C Reconciliation Statement Filing u/s 47 Until March 2025.
Notifications
GST
The Central Government has waived excess late fees u/s 47 of CGST Act for registered persons who failed to file GSTR-9C reconciliation statements alongside GSTR-9 annual returns for FY 2017-18 through 2022-23. This waiver applies to late fees exceeding the prescribed amount u/s 47, provided the pending GSTR-9C is filed by March 31, 2025. The notification, issued u/s

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Central Government Introduces Rule 16A in CGST Rules for Temporary GST Numbers to Unregistered Taxpayers Making Payments.
Notifications
GST
The Central Government amended the CGST Rules 2017 through Notification 07/2025-CT dated January 23, 2025. Key modifications include insertion of Rule 16A enabling proper officers to grant temporary identification numbers to persons not registered but required to make payments under the Act. The amendment updates Rule 19(1) to include references to

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High Court Stays Tax Recovery Order u/s 107(6), Requires 10% Payment Within Two Weeks Pending Final Hearing.
Case-Laws
GST
HC granted interim stay on appellate order demanding tax recovery. Stay conditional on petitioner paying 10% of disputed tax balance within two weeks, in addition to amounts already deposited u/s 107(6). Court noted absence of constituted Appellate Tribunal as material factor. Petitioner established prima facie case warranting temporary relief. Initial unconditional

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High Court Nullifies Tax Assessment Order Over Natural Justice Violations, Permits Fresh Hearing Under Due Process for ITC Claims.
Case-Laws
GST
HC set aside assessment order due to violation of natural justice principles, specifically addressing non-speaking order deficiency in tax proceedings involving output tax underdeclaration and irregular input tax credit claims. Issues included ITC reversals for non-business transactions, exempted supplies, and credits claimed from cancelled dea

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High Court Orders Fresh Review of Input Tax Credit Denial Under GST Section 16, Following M. Trade Links Precedent.
Case-Laws
GST
HC set aside the denial of input tax credit u/s 16(2)(c) and 16(4) of CGST/SGST Acts. The court directed reconsideration of petitioner's ITC claim in accordance with relevant circulars discussed in M. Trade Links case if factual circumstances are similar. The first respondent was instructed to pass fresh orders within two months from receipt of certified judg

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Advisory on Business Continuity for e-Invoice and e-Waybill Systems
GST
Dated:- 24-1-2025

Dear Taxpayers,
This advisory is issued to highlight the alternate mechanisms and business continuity plans available for both the e-Invoice and e-Waybill systems.
If you have not integrated these alternate mechanisms into your existing systems or are not currently utilising them, GSTN suggest coordinating with your system integrators, IRPs, ERPs, GSPs, or ASPs to enable these redundancies. This would ensure that these mechanisms are fully operational and accessible when needed.
Multi IRPs for e-Invoice Reporting
To provide redundancy and ensure continuity, six Invoice Registration Portals (IRPs) are operational:
1. NIC-IRP 1: https:

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ybill2(https://ewaybill2.gst.gov.in)
Unified Authentication Token at NIC-IRP & e-Waybill Portal
A single authentication token can be generated from any of the NIC-IRP e-Invoice1 & e-Invoice2 and NIC: e-Waybill1& e-Waybill2.
Once generated, this token is valid across all NIC portals, eliminating the need for separate tokens for each platform.
API Interoperability for Seamless Operations
Taxpayers using APIs can take advantage of cross-portal operations by configuring their systems or ensuring this with respective solution provider accordingly:
i. Accessing NIC1 e-Invoice Services via NIC2 APIs: By passing "NIC1" value in "irp" API header for APIs at https://api.einvoice2.gst.gov.in
ii. Accessing NIC2 e-Invoice Serv

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CBIC cautions against fraudsters issuing fake and fraudulent Summons for GST violations
GST
Dated:- 24-1-2025

Taxpayers can verify online any communication from DGGI or any office of CGST by using the 'VERIFY CBIC-DIN' window on the CBIC's website https://esanchar.cbic.gov.in/DIN/DINSearch
In case of suspicion of bogus summons, taxpayers may immediately report to DGGI / CGST formations
It has been recently observed that some individuals with fraudulent intent are creating and sending fake summons to the taxpayers who may or may not be under investigation by the Directorate General of GST Intelligence (DGGI), Central Board of Indirect Taxes and Customs (CBIC).
The fake summons resembles very closely with the original due to

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Implementation of mandatory mentioning of HSN codes in GSTR-1 & GSTR 1A
GST
Dated:- 24-1-2025

After successful implementation of Phase-I & Phase-II now Phase-III regarding Table 12 of GSTR-1 & 1A is being implemented, from return period February 2025. In this phase manual entry of HSN has been replaced by choosing correct HSN from given Drop down. Also, Table-12 has been bifurcated into two tabs namely B2B and B2C, to report these supplies separately. Further, validation regarding

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High Court Overturns GST Penalty u/s 129(1), Rules Incomplete E-way Bill Details Not Proof of Tax Evasion.
Case-Laws
GST
HC set aside penalty orders under GST Act Section 129(1) and allowed refund application. The appellate authority's dismissal was deemed unjustified as there was no clear tax evasion intent. While the e-way bill showed dispatch from Durgapur without full supplier details, the court found this omission insufficient to establish evasion, noting the goods moved in the sam

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Tax Authority Issues Show-Cause Notice for Rs. 16.56 Lakh Short Payment on Commission Income from Jembo Cable Services.
Case-Laws
GST
HC upheld the validity of a show-cause notice (SCN) regarding short payment of tax on commission income of Rs. 16,56,267/-. The authority correctly determined that commission received from M/s. Jembo Cable could not qualify as an exempted service. Court emphasized that SCN represents a preliminary procedural step, ensuring principles of natural justice by

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High Court: Statement Recording Not Mandatory Before Show Cause Notice u/s 122(1A) of CGST Act 2017.
Case-Laws
GST
HC found no statutory requirement mandating obtaining a statement as a prerequisite for issuing show cause notice u/s 122(1A) of CGST Act, 2017. Petitioner granted 4 weeks to file objections to the notice from receipt of order. Respondents directed to consider objections according to law, providing reasonable hearing opportunity before proceeding with assessment/adjudicatio

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High Court Directs Re-examination of GST Input Tax Credit u/s 17(5) Following Supreme Court's Functionality Test Guidelines.
Case-Laws
GST
HC held that challenge to vires of Section 17(5)(c) and 17(5)(d) of CGST Act/Punjab GST Act 2017 is no longer res integra following SC's ruling in Safari Retreats case. While SC upheld constitutional validity of these provisions, it directed High Courts to examine functionality test in individual cases. Present petition partially allowed through rema

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High Court Remands ITC Denial Case for Fresh Review u/s 16(5) of GST Acts, Orders Hearing Within 3 Months.
Case-Laws
GST
HC overturned denial of input tax credit (ITC) u/s 16(4) of CGST/SGST Acts. Court acknowledged petitioner's claim regarding eligibility under newly notified Section 16(5). Original order partially set aside specifically concerning ITC denial. Matter remanded to competent authority for fresh consideration in light of Section 16(5) provisions. Authority directed to prov

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GST Rule 96(10) Amendment Through Notification 54/2018 Applies Prospectively From October 2018, High Court Rules.
Case-Laws
GST
HC determined that Notification No. 54/2018-Central Tax amending Rule 96(10) of CGST Rules operates prospectively from October 9, 2018, not retrospectively from October 23, 2017. The court quashed summons, notices, and recovery proceedings initiated based on retrospective application of the notification. Any quantification of alleged erroneous refunds for perio

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High Court Approves Input Tax Credit Refund for Compensation Cess on Zero-Rated Supplies Under GST Compensation Act.
Case-Laws
GST
HC allowed refund of Input Tax Credit for compensation cess on zero-rated supplies, overturning the Additional Commissioner's rejection. The court distinguished between Composition Levy under CGST Act and Compensation Cess under Compensation Cess Act, clarifying that circulars dated July 26, 2017, and November 18, 2019, explicitly permit refund of unutilized

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GST Registration Cancellation Order Quashed: High Court Rules Lack of Hearing Violates Natural Justice u/s 108.
Case-Laws
GST
HC quashed the order cancelling petitioner's GST registration and the appellate authority's dismissal due to violation of natural justice principles, as no opportunity for hearing was provided and no reasons were assigned. Given that appellate dismissal precluded revisional powers u/s 108 of GST Act, matter was remanded to Assessing Officer at show cause notice s

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High Court Remands GST Case After Authority Failed to Consider Input Tax Credit Claims From Deregistered Suppliers u/s 74(9.
Case-Laws
GST
HC set aside adjudication order u/s 74(9) of WBGST/CGST Act 2017 and remanded for fresh consideration. The adjudicating authority failed to address key submissions regarding input tax credit claims against supplies from deregistered vendors, particularly concerning retrospective cancellation of supplier registrations and proof of goods movement. The

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Court Orders Release of GST-Seized Goods u/s 129(3) After Petitioner Proves Ownership Through Valid Invoice Documentation.
Case-Laws
GST
HC examined validity of detention and seizure notice under GST Act Section 129(3). Referring to government circular dated 31-12-2018 defining ownership of goods through accompanying documents, court found petitioner was legitimate consignee per invoice for goods transported in truck CG 10 AJ 1477. Given established ownership through proper documentatio

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High Court Orders Fresh Notice for ITC Disallowance Under GST Section 17(5) Due to Lack of Specific Clause Citation.
Case-Laws
GST
HC set aside the order disallowing Input Tax Credit (ITC) u/s 17(5) of GST Act. The revenue authorities failed to specify which clause u/s 17(5) was invoked for ITC disallowance. The court directed authorities to issue fresh notice clearly indicating the applicable clause u/s 17(5), provide reasonable hearing opportunity to the assessee, and proceed accordin

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