Goods and Services Tax

Petition dismissed, appeal remedy available under CGST Act Section 107.
Case-Laws
GST
The HC held that the petition was not maintainable as the petitioner had an alternative efficacious remedy of appeal u/s 107 of the CGST Act, 2017. The absence of a corresponding state notification did not render the central N/N. 56/2023-Central Tax dated 28.12.2023, issued u/s 168-A of the CGST Act, ultra vires. The petitioner failed to raise any ground worth consideration, and the HC dismissed the pe

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CBIC mandates explaining specific grounds of arrest, obtaining acknowledgment.
News
GST
GST officers must explain 'grounds of arrest' to offenders, obtain written acknowledgement: CBIC modified guidelines. As per Delhi HC order in Kshitij Ghildiyal vs DGGI case, following SC judgments, CBIC mandated explaining specific grounds of arrest to accused, not just general reasons, and obtaining written acknowledgment in arrest memo annexure, distinguishing grounds from reasons as per SC.
T

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Advisory for Waiver Scheme under Section 128A
GST
Dated:- 14-1-2025

1. Taxpayer's attention is invited to the advisory on the above subject issued by GSTN on 29.12.2024. The link for the said advisory is given here:
* https://services.gst.gov.in/services/advisoryandreleases/read/564
2. It is to inform that both Forms GST SPL 01 and GST SPL 02 are available in the GST portal and the taxpayers are advised to file applications under waiver scheme.
3. One of the eligible conditions for filing application under waiver scheme is to withdraw the appeal applications filed against the demand order/notice/statement for which waiver application is to be submitted. In this regard, it is to inform that for the appeal applications (APL

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Generation Date for Draft GSTR 2B for December 2024
GST
Dated:- 14-1-2025

This is to inform you that, in light of the extended due dates for filing GSTR-1 and GSTR-3B returns for the month of December 2024 (Quarter Oct-Dec 2024) as per Notifications No. 01/2025 and 02/2025 dated 10th January 2025, the Draft GSTR-2B for the month of December 2024 (Quarter Oct-Dec 2024) will now be generated on 16th January 2025 in accordance with the rule 60 of CGST Rules, 2017.
We would like to re

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Court Rules Solar Power System Not a Works Contract Under GST Act, Section 2(119); Not Immovable Property.
Case-Laws
GST
The HC held that the supply of a Solar Power Generating System by the petitioner is a composite supply and does not amount to a works contract u/s 2(119) of the GST Act. The solar power plant is not immovable property as the solar modules are not attached to the civil foundation for permanent beneficial enjoyment. The civil foundation is embedded for beneficial enjoym

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Silver Value in Old Batteries to Naval Formations is Taxable for GST; Section 15(1) Inapplicable, Section 9(3) Applies.
Case-Laws
GST
The AAR held that the value of silver supplied free of cost by the Naval formations in the form of old batteries is to be included in the taxable value adopted by the applicant on the batteries manufactured and supplied to the Naval formations for the purpose of payment of GST. The provisions of Section 15(1) of the CGST Act, 2017 to adopt the transaction

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GST officers must explain 'grounds of arrest' to offenders, obtain acknowledgement: CBIC
GST
Dated:- 13-1-2025
PTI
New Delhi, Jan 13 (PTI) GST officers will now have to explain to offenders about the "grounds of arrest" and obtain a written acknowledgement from them, the CBIC said on Monday.
Modifying the guidelines for arrest and bail in relation to offences punishable under the GST Act, the Central Board of Indirect Taxes and Customs (CBIC) said: "The grounds of arrest must be explained to the arrested person and also furnished to him in writing as an Annexure to the Arrest Memo. Acknowledgement of the same should be taken from the arrested person at the time of service of the Arrest Memo." As per the ear

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High Court Quashes GST Assessment Order for Denying Personal Hearing; Case Remitted for Reassessment by January 2025.
Case-Laws
GST
HC quashed assessment order and order in Form GST DRC-07 for violation of principles of natural justice by not granting personal hearing. Matter remitted to Assessing Officer to provide opportunity of personal hearing to assessee on 15.01.2025 or adjourned date. Assessing Officer directed to pass orders within 3 months from HC judgment date or limitation pe

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Input Tax Credit Denied for Motor Vehicles Seating 13 or Fewer, Failing Exceptions in Section 17(5)(a) CGST/TNGST Act.
Case-Laws
GST
The AAR held that input tax credit is not available on motor vehicles with an approved seating capacity of less than or equal to 13 persons (including driver), except for specific categories mentioned u/s 17(5)(a) of CGST/TNGST Act, 2017. The applicant's activity of providing 'Automobile Bench Marking Service' and supplying 'Scrap of Automobiles' does not

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Slack Adjusters for Buses/Trucks Taxed at 28% GST, Trailers at 18% GST, Classified by Application Under HSN Codes.
Case-Laws
GST
Slack adjusters used in braking systems of buses and trucks are classifiable under HSN 87089900 as 'Parts and accessories of motor vehicles' attracting 28% GST. Slack adjusters used in trailers' braking systems are classifiable under HSN 87169010 as 'Parts and accessories of trailers' attracting 18% GST. Irrespective of OEM or aftermarket sales, correct classi

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From January 2025, GSTR-1 and GSTR-1A require dropdown HSN code selection in Table 12 with new validations.
News
GST
In Phase-III implementation for GSTR-1 and GSTR-1A, from January 2025 return period, Table 12 requires selecting HSN codes from dropdown instead of manual entry. Table 12 bifurcates into B2B and B2C tabs to report supplies separately. Validations introduced for supply values and tax amounts, initially in warning mode without blocking GSTR filing.
TMI Updates – Highlig

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Supreme Court Pauses GST Showcause Actions Against Online Gaming, Casinos; Cases Consolidated for Final Ruling.
News
GST
SC stayed showcause notices issued by GST authorities worth over Rs 1 lakh crore to online gaming companies and casinos over alleged tax evasion. A bench of JJ. J B Pardiwala and R Mahadevan said matters required hearing and all proceedings against gaming companies should remain stayed. Govt amended GST law making it mandatory for overseas online gaming firms to regis

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Advisory on Extension of Due Date w.r.t GSTR 1 and GSTR 3B
GST
Dated:- 11-1-2025

Dear Taxpayer,
Due Date for filling of GSTR-1 and GSTR-3B have been extended by two days. For details re

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Court Deems GST Registration Cancellation Unlawful Due to Lack of Notice, Violates Natural Justice Principles.
Case-Laws
GST
Petitioner's registration cancelled for non-filing GST returns for six months without notice – violation of natural justice principles. HC held cancellation order passed on different ground of non-compliance with Rule 21A(2A) without notice to petitioner – grossly violating natural justice. Appellate order not on merits, hence doctrine of merger inapplicable. Canc

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High Court Invalidates Detention of Goods Under GST Act Due to Lack of Evidence on Tax Evasion Intent, Section 129(3.
Case-Laws
GST
The HC held that the detention of petitioner's goods was unjustified as authorities failed to prove intent to evade tax payment, a mandatory requirement u/s 129(3) of the GST Act. The authorities seized the goods alleging they were mustard oil instead of R.B. Oil mentioned in documents, but did not draw samples or obtain expert reports to substantiate their

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High Court Stays Circular on Corporate Guarantee; Not a “Supply” u/s 9 of CGST Act, 2017.
Case-Laws
GST
The HC granted time to the respondents to file a reply challenging the circular dated 27.10.2023 and the petitioner's contention that providing a corporate guarantee by a holding company to its subsidiary does not constitute a “supply” or “supply of service” taxable u/s 9 of the CGST Act, 2017. The HC stayed the operation of the impugned circular dated 27.10.2023 regarding Item No. 2

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Kerala High Court: Goods Can Be Provisionally Released Under GST Act Section 67(6) Even After Section 130 Proceedings Begin.
Case-Laws
GST
The Kerala HC held that provisional release of goods is permissible u/s 67(6) of the GST Act even after initiation of proceedings u/s 130. The adjudication can proceed even if goods are released pending adjudication. Section 130(7) provides an option to pay fine in lieu of confiscation after adjudication, protecting revenue interest. Provisional rele

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Court Rules Export Services to US Parent Co. Not Intermediary; Qualifies as Export Under IGST Act Section 2(6.
Case-Laws
GST
The HC held that the petitioner was providing export of services to its US parent company, not intermediary services. The petitioner assisted the parent in business consultancy by setting up meetings with experts/clients and providing advisory services. The payment terms showed the petitioner earned 8% markup, operating independently. Following Ernst & Young, sinc

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Court Quashes GST Tax and Penalty Order Due to Lack of Notice and Natural Justice Violation; Allows Penalty Adjustment.
Case-Laws
GST
HC quashed impugned order of demand of tax and penalty un

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Custom Transformers for Wind Turbines Not GST-Exempt, GAAR Rules; Aligns with CBIC and Ministry Clarifications.
Case-Laws
GST
The GAAR held that specially designed transformers for WOEG performing dual step-down and step-up functions, supplied by the appellant along with WOEG, cannot be treated as part of WOEG. This is based on CBIC's circular excluding transformers from WOEG parts as per Ministry of New and Renewable Energy's clarification. The appellant's reliance on popular meaning/c

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Transfer of Goods in FTWZ Non-Taxable; No ITC Reversal Needed Under CGST Act Schedule III, Para 8(a).
Case-Laws
GST
The transfer of title of goods by the Applicant to its customers or multiple transfers within the Free Trade Warehousing Zone (FTWZ) gets covered under para 8(a) of Schedule III of the CGST Act, 2017, and remains non-taxable. The Applicant is not required to reverse any ITC of common inputs/input services/capital goods, even when the activity/transaction is covered under p

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Snag in system: Govt extends monthly GST return, payment deadline
GST
Dated:- 10-1-2025
PTI
New Delhi, Jan 10 (PTI) The government on Friday extended the deadline for filing monthly GST sales return form GSTR-1 and GST payment by 2 days after taxpayers reported technical glitches in the GSTN system.
As per a notification by the Central Board of Indirect Taxes and Customs (CBIC), the last date for filing GSTR-1 for December is January 13, while that for taxpayers opting for quarterly payment under the QRMP scheme for the October-December period will be January 15.
Normally, the last date for filing GSTR-1 for monthly return filers is January 11, while for quarterly taxpayers it is January 13.
The deadline for GST payment b

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GSTN seeks extension of GSTR-1 filing deadline as technical snag hits system
GST
Dated:- 10-1-2025
PTI
New Delhi, Jan 10 (PTI) GST Network on Friday said it has sent an incident report to the Central Board of Indirect Taxes and Customs (CBIC) on the technical glitches in the system and requested an extension of the filing date of GST sales return or GSTR-1.
“GST portal is currently experiencing technical issues and is under maintenance. We expect the portal to be operational by 12

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SC stays GST notices worth over Rs 1 lakh crore against online gaming firms for tax fraud
GST
Dated:- 10-1-2025
PTI
New Delhi, Jan 10 (PTI) The Supreme Court on Friday stayed showcause notices issued by GST authorities worth over Rs 1 lakh crore to online gaming companies and casinos over alleged tax evasion.
A bench of Justices J B Pardiwala and R Mahadevan said the matters required hearing and all proceedings against the gaming companies should remain stayed in the meantime.
Additional solicitor general N Venkataraman, representing the GST department, said some showcause notices would come to an end in February.
The matter was posted on March 18.
GST authorities in October 2023 issued showcause notices to online gamin

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Court Invalidates GST Notice Served Only via Web Portal, Citing Non-Compliance with Section 169 of Tamil Nadu GST Act.
Case-Laws
GST
The HC held that service of notice by uploading on web portal alone without resorting to other prescribed modes u/s 169 of Tamil Nadu GST Act 2017 is not valid compliance. Section 169 mandates service by registered post/email, and only on failure can notice be uploaded on portal. Uploading notice solely on portal without attempting other modes is insuffici

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