Goods and Services Tax

GST refunds for cancelled air tickets remain available when passenger reimbursements defeat unjust enrichment and credit-note adjustment is unavailable.
Case-Laws
GST
GST refunds on cancelled air tickets may be available where ticket, passenger, invoice, refund voucher, credit note and BSP records establish that the airline refunded both fare and tax and retained no amount. On those facts, unjust enrichment does not bar the refund. Where credit notes cannot be adjusted because no output tax liability remains after cancellations, refund may be claimed in FORM GST RFD-01 as excess payment of tax. For B2C passenger-ticket transactions, input tax credit reversal is not applicable where no recipient credit is involved; a later proviso requiring reversal of credit attributable to credit notes does not apply to earlier periods. Refund claims should consequently be processed with applicable interest.
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GST short-payment interest and penalty apply when tax and interest remain unpaid within the show-cause notice period.
Case-Laws
GST
Delayed payment of a GST shortfall attracts statutory interest. Payment of tax after the prescribed period does not remove that liability. Where tax and interest remain unpaid within 30 days of a show-cause notice, the statutory penalty for short-payment demands applies. The discretionary penalty principle concerning failure to register as a dealer is distinguishable; interest and penalty were sustained.
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Input tax credit verification governs GSTR-2A mismatches, while unutilised reversals and sales-return credit notes avoid additional tax consequences.
Case-Laws
GST
Input tax credit claimed in Form GSTR-3B is not denied merely because it is absent from Form GSTR-2A, which operated as a facilitative mechanism during the relevant period; the claimant must nevertheless prove statutory credit conditions, including supplier tax payment. Section 35(6) applies only to goods not accounted for, so verified reconciliation of e-way bills with invoices and ledger entries prevents a demand based on deemed outward supplies. Interest on wrongly availed credit arises only on utilisation, determined where the electronic credit ledger balance falls below that credit; pre-notice tax payment without interest bars notice and penalty. Sales-return credit notes can reduce taxable value and output tax liability subject to statutory conditions, and non-reporting in Form GSTR-1 is a compliance lapse rather than an independent tax liability.
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GST refund limitation exclusions preserve unregistered purchasers' claims after cancelled flat bookings, with no unjust-enrichment bar.
Case-Laws
GST
GST refund limitation for an unregistered flat purchaser following cancellation of a construction-linked booking must exclude the period prescribed in Notification No. 13/2022-Central Tax when computing the two-year period under section 54(1). The refund application was therefore within time. Where the developer deposited GST but refunded only the non-tax consideration, the purchaser may claim refund if the GST incidence was borne by the purchaser and the requirements of Statement 8 and Rule 89(2) are met. As the ultimate consumer, the purchaser is not barred by unjust enrichment. Refund was admissible with applicable interest after sixty days from the refund application.
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GST interest computation requires month-wise ledger verification, while pre-notice voluntary payment protects against penalty for inadvertent turnover reporting omissions.
Case-Laws
GST
GST interest remains payable despite voluntary tax payment before a show cause notice, but must be calculated month by month by identifying the tax liability, due date, actual payment date, and amount payable through the Electronic Cash Ledger under section 50 read with rule 88B. Interest calculated on the entire liability without verification of the electronic cash and credit ledgers requires fresh computation. Where omitted B2C turnover was accounted for, disclosed in the annual return, and fully paid before notice, section 73(5) applies; penalty under section 73(6) is unsustainable. The interest demand was remitted for recomputation and the penalty was set aside.
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Expired e-way bills trigger GST detention penalties without proving tax-evasion intent when no timely extension or evidence supports delay.
Case-Laws
GST
Section 129(1) treats transportation of goods in contravention of GST requirements as sufficient for detention and penalty; proof of an intention to evade tax is not required because the penalty arises from breach of a civil obligation. Expired e-way bills may therefore attract penalty even for interstate stock transfers where a claimed vehicle breakdown lacks supporting evidence and no timely extension or amendment is sought. Invoices or the stock-transfer character of the movement do not replace a valid e-way bill, and exceptions requiring a valid e-way bill do not apply after expiry. Procedural objections concerning hearing, notices, or forms do not alter the position where a full opportunity to provide explanations and evidence is available before the final fact-finding authority.
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Actual transport movement determines goods-detention liability; acknowledged notice service stands, while release payments await fresh adjudication.
Case-Laws
GST
Section 129 liability for detained goods must be determined from the actual transport movement, including the route, destination and timing; a later e-way bill cannot retrospectively cure a contravention, and later invoices alone cannot establish onward movement. Conflicting interception accounts, incomplete carrier records and unavailable primary material require fresh, reasoned adjudication of the diversion defence. Acknowledged receipt of and response to FORM GST MOV-07 bars a later service objection, but does not remove the duty to consider the defence and grant statutory hearing. Payment to secure release does not conclude liability and must be adjusted or refunded following the fresh determination.
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Post-interception transport documents require credible linkage to goods; unsupported transit claims cannot defeat undeclared-goods penalties.
Case-Laws
GST
Post-interception invoices and bilties require reliable corroboration to establish that physically verified undeclared goods were covered by valid transport documents. Delayed documents were insufficient where they could not be linked to the goods, transaction parties did not acknowledge dealings or establish their identity and business credentials, and discrepancies remained unexplained; the penalty for transporting undeclared goods was therefore sustained. A transit-State defence based on asserted movement to an out-of-State destination also requires credible proof of the destination and underlying transactions. Mere passage through the transit State did not invalidate proceedings, and a precedent involving materially different facts was inapplicable.
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E-way bill accuracy in diverted transit sales determines Section 129 penalties despite no independent proof of tax evasion.
Case-Laws
GST
Section 129(1) of the CGST Act imposes civil penalty for substantive contraventions of transit movement-document requirements without requiring independent proof of intent to evade tax. Authorities must nevertheless assess the taxpayer's explanation and distinguish material discrepancies from minor or technical errors. A sale during transit may occur without prior physical receipt by an intermediary, but the continuing movement must be supported by a valid e-way bill accurately stating the actual origin and destination. E-way bills that do not cover the diverted route, falsely identify the dispatch point, or have expired may constitute substantive non-compliance. Payment through DRC-03 to secure release of goods does not conclusively admit liability or waive statutory appeal rights and may be credited against any liability.
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Expired e-way bill transport attracts GST detention penalties without proof of any tax-evasion intent being required.
Case-Laws
GST
Section 129(1) of the GST Act applies where goods in transit are transported or stored contrary to the Act or Rules; proof of intent to evade tax is not a condition for detention or penalty because the provision addresses breach of a civil obligation and does not require mens rea. Transportation under e-way bills that had expired remained non-compliant where the asserted vehicle breakdown lacked supporting evidence and no extension or amendment was sought. Stock-transfer documentation and e-invoices did not cure the e-way bill lapse, while circular-based exceptions applied only to consignments accompanied by valid e-way bills. Penalties were sustained.
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Meaningful hearing in detention penalty proceedings requires reasoned adjudication; payment for release does not waive statutory challenge.
Case-Laws
GST
Penalty adjudication under section 129(3) requires a meaningful hearing under section 129(4) and a reasoned order addressing the taxpayer's explanation and consignment documents. Determining penalty the day after a notice allowed seven days to respond, using FORM GST MOV-09 containing unselected alternatives and drafting placeholders, fails those requirements. Payment through FORM GST DRC-03 to obtain release of detained goods neither cures incomplete adjudication nor waives the statutory challenge. Where FORM GST MOV-07 states an intelligible allegation, fresh adjudication should proceed within the existing notice's scope, with merits of the proposed penalty remaining open.
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Compensation Cess ITC refunds require independent inverted-tax-structure eligibility; domestic leather supplies did not justify cash refunds.
Case-Laws
GST
Accumulated Compensation Cess ITC on coal used to manufacture leather products supplied domestically is refundable only where the statutory conditions for an inverted tax structure refund are independently met. Eligibility to avail the credit, including the absence of a blocked-credit restriction, does not itself establish entitlement to a cash refund. Although Compensation Cess credit is usable only against cess liabilities, its inability to be utilised against other liabilities creates no separate refund right. Clarifications and precedents concerning zero-rated or export supplies do not support domestic-supply refund claims. The order granting refund was set aside and the original refund rejections were restored.
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Request-driven road restoration attracts reverse-charge GST, not governmental-function treatment or compensatory-damages status for business recipients.
Case-Laws
GST
Request-driven road restoration performed by the PWD for a business's pipeline operations is treated as a distinct service, with work-linked charges constituting consideration rather than compensatory damages. Although routine road maintenance serves a governmental function, targeted restoration for a commercial entity is not treated as a governmental-function non-supply or public-utility exempt service. Taxable Government services supplied to registered business entities fall under reverse charge; revenue neutrality or alleged dual tax incidence does not displace that liability without proof of forward-charge payment. Electronic GST notices and orders issued through the authenticated portal remain valid without a physical DIN where the notice identifies the case and no prejudice or natural-justice breach arises.
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Road restoration charges for commercial pipeline works are taxable Government services, with reverse charge liability and no public-function exemption.
Case-Laws
GST
Road restoration charges paid to a Public Works Department for repairing roads excavated for a commercial gas pipeline constitute consideration for a taxable service because the planned arrangement involved reciprocal obligations, not compensation for a wrongful act. Non-supply treatment and public-function exemptions do not apply where restoration is a targeted, fee-based service supplied to facilitate a business activity. The registered recipient remains liable under reverse charge for taxable Government services absent evidence of supplier tax payment; alleged revenue neutrality does not displace that liability. Electronic GST adjudication remains valid without a physical Document Identification Number where portal authentication establishes source and integrity and the notice adequately permits a response. The refund rejection was sustained and the appeal dismissed.
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Introduction of e-Invoicing Facility for Recipient Generated Self Invoices under Reverse Charge Mechanism for Domestic Supplies from Unregistered Persons (RCMDOM) and Import of Services (RCMIMP)
GST
Dated:- 16-10-2026

Dear Taxpayers,

The GST Council, in its 57th meeting has recommended extending e-invoicing to domestic supplies received from an unregistered person where the tax is payable under reverse charge mechanism, as well as to the import of services, for taxpayers having aggregate annual turnover of Rs. 5 crore and above. Accordingly, the e-Invoicing system is being enhanced to facilitate the reporting of recipient generated self-invoices under the Reverse Charge Mechanism (RCM). Accordingly, two new supply types, namely RCMDOM (Reverse Charge Mechanism on Domestic) and RCMIMP (Reverse Charge Mechanism on Import of Services), are being introduced to enable reporting of self-invoices for specified domestic supplies received from unregistered persons under RCM and

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levant statutory provisions and notifications to be issued by the government in this regard. The scope, applicability and effective date of the requirement would be governed by the applicable notifications and provisions of GST law.

3. Reporting of Recipient Generated Self-Invoices

Under the existing B2B e-Invoice framework, invoices are ordinarily reported by registered suppliers. The proposed enhancement would extend the facility to eligible and active registered recipients for reporting self-invoices issued in respect of specified RCM transactions. For such transactions, taxpayers would be required to select the appropriate supply type code, RCMDOM or RCMIMP, while reporting the self-invoice through an authorised IRP. Upon successful submission and validation of the prescribed invoice particulars, an Invoice Reference Number (IRN) would be generated in accordance with the applicable e-Invoice specifications.

4. Implementation and Availability in Sandbox

The necessary sys

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ith the technical specifications and release note issued by NIC IRP-1.The functionality is presently available for sandbox testing and integration. The date of production rollout and commencement of the associated reporting requirements would be communicated in due time.

5. Further Guidelines, Webinar and Preparatory Activities

NIC IRP-1 would issue a detailed release note covering the technical specifications, business validations, validation codes and other operational requirements relating to RCMDOM and RCMIMP. Taxpayers and integration partners are advised to refer to the release note for detailed implementation requirements.

GSTN along with IRPs would also organise a webinar to explain the new functionality and address relevant implementation aspects. The details of the webinar would be communicated separately.

Taxpayers, GSPs, ASPs, ERPs and other stakeholders are requested to sensitise their wider ecosystem partners about these changes and undertake the necessary sys

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Deemed withdrawal of GST best-judgment assessments follows delayed GSTR-3B filing when the requisite late fee is paid.
Case-Laws
GST
Section 62(2) of the GST law provides for deemed withdrawal of a best-judgment assessment when the requisite GSTR-3B return is filed. Delayed filing does not prevent that statutory benefit where the applicable late fee is also paid, following the amendment permitting condonation of delay in return filing. Once the assessment is deemed withdrawn, the tax demand and related dues under that assessment cannot be recovered, and recovery proceedings cannot be initiated or continued on its basis.
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Statutory GST liability prevails over works-contract terms, leaving VAT-to-GST reimbursement claims for resolution against employers.
Case-Laws
GST
GST liability on works contracts remains governed exclusively by the applicable GST enactments, notwithstanding contractual arrangements between contractors and employers. Claims for reimbursement of the incremental tax burden arising from the VAT-to-GST transition are contractual claims against the concerned employer, rather than grounds to modify statutory assessment, recovery, return-filing, interest, or penalty processes. Challenges to assessment orders and statutory representations concerning recovery must proceed through available statutory remedies.
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GST Payment Timing: Cash Ledger credit ends interest accrual, while late post-notice payment attracts mandatory penalty.
Case-Laws
GST
Tax paid before adjudication cannot be recovered again through a demand where the Government had already received the short-paid amount; the tax demand was therefore set aside. For delayed GST payment, interest accrues only until cash is credited to the Government account and Electronic Cash Ledger through Form GST PMT-06, not until the later ledger debit on return filing. Interest paid on a residual tax shortfall cannot be set off against separate interest liabilities for delayed monthly payments. Penalty immunity applies only where tax and interest are paid within thirty days of the show-cause notice; payment after that period attracts the prescribed minimum penalty.
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Retrospective GST interest liability confines delayed-payment interest to cash-ledger tax, requiring reassessment of credit-ledger interest refunds.
Case-Laws
GST
Retrospective operation of the substituted proviso to section 50(1) confines GST interest on delayed tax payment to the tax discharged through the electronic cash ledger, excluding the component paid by utilising input tax credit. Refund claims for interest paid on the credit-ledger component require verification of statutory conditions, payment and eligible quantum. Refund limitation cannot be introduced as a decisive appellate ground without notice and an effective opportunity to address the relevant date, computation and applicable exclusions. Limitation must be recomputed under section 54 after applying the notified exclusion of the specified COVID-19 period, followed by a hearing and consequential determination.
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ISD-distributed input tax credit refunds remain available to SEZ units for their own zero-rated exports, subject to verification.
Case-Laws
GST
SEZ units may seek refund of eligible unutilised input tax credit distributed through an Input Service Distributor where the credit is attributable to their own zero-rated exports without payment of integrated tax. The supplier-specific procedure for direct SEZ supplies does not automatically bar such claims. Refund eligibility remains subject to verification, statutory conditions and quantification. A proposed exclusion for alleged prior supplier refund requires cogent documentary evidence, disclosure to the claimant and a reasonable opportunity to respond; supplier applications or unexplained back-office records alone do not establish double refund.
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Anti-profiteering obligations apply to regulated Rail Neer transfer prices, requiring GST benefits to reach recipients despite price controls.
Case-Laws
GST
Section 171 requires suppliers of Rail Neer to pass GST rate-reduction benefits through commensurate reductions in transfer prices, even where maximum retail prices are railway-regulated and supplies are subsidised or complimentary. No exclusion applies to public-sector or governmental suppliers. Profiteering may be computed through a fair, case-specific comparison between pre-GST average base prices and post-GST transaction prices; no uniform formula or advance disclosure of the exact methodology is required where the supplier participated in the investigation. Investigation duration depends on circumstances rather than a one-year limit. Interest applies only prospectively from the interest provision's effective date, while penalty for continuing contraventions remains subject to statutory waiver upon timely deposit.
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Bill-to/Ship-to E-Way Bills permit direct dispatch where the person causing movement generates compliant transport documentation.
Case-Laws
GST
Bill-to/Ship-to transactions permit an intermediate purchaser to instruct the original supplier to dispatch goods directly to the ultimate recipient, provided the supplies are genuine, documented and properly accounted for. Rule 138(2) allows the consignor or consignee causing movement to generate the e-way bill. Where e-invoices and e-way bills are generated before interception by the party arranging transport, the supplier's separate non-generation does not justify detention of goods. Compliance with these requirements makes detention and penalty for e-way bill non-compliance unsustainable.
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Road restoration charges constitute taxable Government services, triggering reverse charge and defeating claims of governmental-function exemption.
Case-Laws
GST
Road restoration charges paid by a business entity for permission to cut public roads for a pipeline constitute consideration for a taxable restoration service, not compensatory or liquidated damages. Targeted, request-driven restoration for commercial operations does not qualify for non-supply treatment or exemption available for governmental road functions, which concern community-wide maintenance. Where Government supplies that taxable service to a registered business entity, reverse charge applies to the recipient absent proof of tax paid under forward charge; revenue-neutrality claims do not override that liability. Electronically conducted GST adjudication remains valid where portal records authenticate the proceedings and the notice gives sufficient grounds without prejudice, despite no physical DIN.
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Cumulative GST appellate pre-deposit permits prior deposits against the same demand, eliminating duplicate payment where statutory thresholds are met.
Case-Laws
GST
GST appellate pre-deposit is cumulative, calculated against the tax still disputed in the Tribunal appeal, rather than requiring a separate fresh payment after the first appeal. A deposit already held against the same demand may be apportioned between both appellate stages, including amounts paid through FORM GST DRC-03, because pre-deposit forms part of disputed tax rather than an independent levy. Requiring refund and redeposit of the same sum would be anomalous. Deposits connected with separate proceedings cannot be double counted. Where the existing deposit meets the aggregate requirement, it may be appropriated and electronically mapped to the disputed demand, with no further deposit required.
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GST assessment without verified turnover required fresh manual rectification review, while coercive recovery remained barred pending reconsideration.
Case-Laws
GST
GST assessment was unsustainable where actual turnover had not been ascertained, an adjournment request was declined, and the taxpayer could not electronically file rectification because departmental creation of a temporary identification prevented portal access. Although personal-hearing notices were issued, the assessment followed soon after the final reminder, and no other works during the relevant period were asserted. The High Court directed the assessing authority to consider a fresh manual rectification application after hearing the taxpayer and barred coercive recovery until that decision.
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