Goods and Services Tax

Notifications charging compensation cess on MRP struck down as ultra vires Sections 8(2) and 15; valuation must use transaction value
Case-Laws
GST
HC allowed writ petitions and quashed the notifications dated 31-03-2023 and 26-07-2023 that directed compensation cess to be levied on MRP rather than transaction value. The Court held the notifications ultra vires Section 8(2) of the Compensation Act and Section 15 of the CGST Act because Section 15 mandates valuation of taxable supply on transaction value (price actually paid or payable) and the proviso to Section 8(2) requires compensation cess valuation to follow Section 15. Delegated legislation contrary to the parent Act was declared null and void. The quashment does not preclude the legislature from enacting remedial legislation on the matter.
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Respondent acknowledged and remitted Rs.3,55,198 ITC benefit, complying with Section 171(1) CGST Act; investigation closed
Case-Laws
GST
AT held that the Respondent acknowledged and did not challenge the DGAP's quantified differential ITC benefit of Rs. 3,55,198/-, voluntarily remitted the same to the recipient and thereby complied with the obligation under Section 171(1) CGST Act, 2017 to pass on ITC benefits by commensurate price reduction. The Tribunal affirmed the DGAP's computation, noted the remedial (not punitive) character of the anti-profiteering provisions, and concluded that continuation of proceedings served no regulatory purpose once compliance was effected and verified. Investigation is accordingly closed, the Respondent's compliance recorded, and the application disposed of with no further action under the Rules warranted.
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Authority can condone delay under s.107(4) GST Act; remand for fresh hearing with evidence opportunity
Case-Laws
GST
The HC set aside the Appellate Authority's impugned order and remitted the matter for fresh consideration of the applicant's prayer for condonation of delay under s.107(4) of the GST Act, 2017. The Court held that the Appellate Authority possesses jurisdiction to condone delay beyond the statutory period, subject to the presentation of a satisfactory explanation and opportunity to adduce evidence. The HC distinguished precedents under the Central Excise Act as inapplicable, and noted a Division Bench ruling treating the limitation in s.107(4) as directory and that an interim stay by the apex court does not constitute a binding declaration of law. Petition disposed; fresh hearing directed.
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Adjudication under s. 168A set aside; petitioner given until 30 November 2025 to file replies and be heard
Case-Laws
GST
The HC set aside the impugned adjudication orders issued under s. 168A, remanding the matter to the adjudicating authority for fresh proceedings, holding that the Petitioner was deprived of a proper opportunity to be heard and had not filed replies to the show cause notices; consequently the HC directed that the Petitioner be afforded the opportunity to file replies and to be heard on the merits. The HC granted the Petitioner specific time until 30 November 2025 to file replies to the impugned SCNs. The writ petition is disposed of in terms of the foregoing directions, with liberty to the adjudicating authority to proceed thereafter in accordance with law.
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Rule 86A(1) requires written, record-based reasons to block Electronic Credit Ledger ITC; email suspension quashed, petition allowed
Case-Laws
GST
HC held that the respondent's action blocking the petitioner's Electronic Credit Ledger ITC was invalid and set aside; the petition allowed. The Court ruled that Rule 86A(1) U.P.G.S.T. Rules 2017 mandates that any “reasons to believe” for blocking ITC must be recorded in writing and must arise from material on record demonstrating a nexus to the belief. Although the exercise may be ex parte, the statutory requirement to record reasons in writing is mandatory; mere suspicion or change of opinion without material justification is insufficient to interrupt the ITC chain. Accordingly the e-mail blocking the petitioner's ITC was quashed.
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Protested deposit must count as mandatory pre-deposit under Section 107(6) of GST Act; appeal to be decided on merits
Case-Laws
GST
The HC allowed the petition and remanded the matter to the first appellate authority with directions to treat the amount deposited by the petitioner under protest as the mandatory pre-deposit under Section 107(6) of the GST Act. The court held that, absent evidence that the protested deposit had been quantified or adjusted against other liabilities, the protested sum is available for adjustment against the 10% pre-deposit requirement and must be accepted to permit institution of the appeal. The first appellate authority was directed to accept the protested deposit as pre-deposit and decide the appeal on merits by passing a reasoned and speaking order in accordance with law.
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Portal must accept s.107 UPGST appeals despite filing lacuna; GSTN to modify software and appeals to be registered
Case-Laws
GST
HC directed removal of a filing lacuna in the online portal and ordered acceptance of the anonymized petitioner's statutory appeal under s.107 UPGST, holding that procedural mechanisms must not preclude access to the appellate forum. The court mandated GSTN to modify its software to permit online filing where digital records show a 'Nil' disputed liability, while allowing registration of such appeals with a note that maintainability is for the Appellate Authority to decide. As interim relief, the petitioner was permitted to file the appeal physically within two weeks; the Appeal Authority must register, entertain and decide the appeal on merits expeditiously, without objections as to limitation or mode of filing. Petition disposed.
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DRC-01 demand notices set aside for insufficient reasoning; respondent must prove turnover suppression before issuing demand, remand ordered
Case-Laws
GST
The HC set aside the impugned demand notices under DRC-01 and held the reasoning insufficient to sustain a tax demand based solely on alleged suppression in GSTR-1, GSTR-3B and GSTR-9C; the respondents must first adduce cogent evidence of turnover suppression before issuing demand. The Court recognised that disproportionate inward versus outward supplies might stem from excess availing of Input Tax Credit, warranting further enquiry. The matter is remitted to the respondent for fresh adjudication; the petitioner is permitted to file a reply with supporting documents. Petition disposed of by remand with liberty to proceed in accordance with law.
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Petition partly dismissed under Section 161; limited liberty to appeal against penalty under Section 74(9) subject to deposit.
Case-Laws
GST
HC partially dismissed the petition under Section 161 of the respective GST enactments challenging levy of penalty under Section 74(9) for belated payment of admitted SGST/CGST. The petitioner, having discharged the tax on specified dates, was granted limited liberty to file a statutory appeal against the impugned order dated 14.08.2023 within 30 days from receipt of this order, conditional upon deposit of 25% of the disputed tax amount plus interest attributable to the belated payment. Upon production of proof of such payment, the Appellate Authority is directed to entertain and decide the appeal on merits without reverting to the question of limitation. Petition disposed.
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Partial stay allows debit of 50% of assessed GST liability from blocked electronic credit; negative block reduced under Rule 86(2)/86A
Case-Laws
GST
The HC granted a partial stay of the impugned order blocking electronic credit ledger, limiting relief to 50% of the petitioner's assessed tax liability of Rs. 23,75,480 (i.e., Rs. 11,87,740). The negative blocking of Rs. 48,93,551 remains but is reduced effectively to Rs. 37,05,811 pending further consideration; the petitioner is authorized to debit Rs. 11,87,740 from the blocked credit and must replenish the full blocked amount of Rs. 48,93,551 before the next tax payment due date. The negative blocking shall continue until filing of the next monthly return and payment or until an order under Rule 86(2) or Rule 86A supersedes it. Petition disposed.
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Impugned notice quashed; matter remanded for fresh CGST/SGST assessment under Section 73 after GSTR-3B discharge
Case-Laws
GST
The HC allowed the petition and quashed the impugned notice, impugned order and subsequent communication, holding that the petitioner's shortfall in tax for March-April 2020 had been discharged in the GSTR-3B filed and verified by the revenue authority. The court set aside the impugned proceedings and remanded the matter to the concerned authority for fresh consideration under the CGST/SGST regime, particularly with regard to liability assessment and consequences under Section 73, taking into account the factual matrix reflected in the record and the Assistant Commissioner's instructions. Relief was granted by way of remand for reassessment without directing substantive relief on interest or penalty.
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Quashed orders; matter remanded for fresh adjudication after authority failed to address denial of GSTR discrepancy
Case-Laws
GST
The HC quashed and set aside the impugned orders and allowed the petition by way of remand. The court held that the petitioner had specifically denied any discrepancy between Form GSTR-3B and Form GSTR-2A and that the adjudicating authority failed to address that contention and breached the audi alteram partem principle by not affording an effective hearing. The matter is remitted to Respondent No.3 for de novo adjudication on merits, including consideration of the petitioner's contention regarding no difference in demand arising from reversal of input tax credit or increase in output tax liability, after providing the petitioner a fair opportunity of hearing.
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ITC on HVO/renewable diesel allowed only if Sections 16, 17 and 164 CGST conditions and rules are satisfied
Case-Laws
GST
AAR holds that input tax charged on Hydrotreated Vegetable Oil (HVO)/renewable diesel may be claimed as input tax credit by the applicant only if all statutory conditions and restrictions under Section 16 read with Section 17 of the CGST Act, 2017 are satisfied; availability is case-specific and subject to applicable rules framed under Section 164. The Authority affirms that imposition of uniform statutory restrictions on ITC is constitutionally valid and that ITC is not an absolute right. The taxpayer bears the evidentiary burden to establish admissibility of credit through prescribed records and payments. The AAR declines to adjudicate on technical or legal classification of HVO as fuel, as that question falls outside its remit.
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Relief denied; petitioner must file appeal under Section 112 within Tribunal's specified window and deposit 10% penalty
Case-Laws
GST
The HC refused relief and dismissed the writ by declining to interfere with the appellate authority's order, relegating the anonymized petitioner to avail the statutory remedy of appeal under Section 112 before the Appellate Tribunal within the window specified by the Tribunal's order (appeals from orders dated 26.08.2025 to be filed on or after 01.02.2026 and not later than 30.06.2026). The court directed that the petitioner shall make a pre-deposit of 10% of the penalty within eight weeks; upon such deposit no coercive action shall be taken pending the Tribunal's determination. The disposal was without adjudication on merits and granted liberty to file the appeal in accordance with the prescribed timeline.
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LIC Q2 net profit surges 32 pc to Rs 10,053 crore
GST
Dated:- 6-11-2025
PTI
New Delhi, Nov 6 (PTI) State-owned insurer LIC on Thursday reported a 32 per cent jump in net profit to Rs 10,053 crore for the second quarter ended September 30, aided by a lower commission outgo.
The country's biggest insurer had reported a net profit of Rs 7,621 crore in the year-ago period.
The total income improved to Rs 2,39,614 crore in the latest September quarter compared to Rs 2,29,620 crore in the year-ago period, LIC said in a regulatory filing.
Its net premium income increased to Rs 1,26,479 crore in the second quarter of the current fiscal from Rs 1,19,901 crore in the same period a year ago.
During the quarter, renewal premium moved up

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O and MD R Doraiswamy said.
LIC has ensured that all intended benefits of GST changes are passed onto the customers, he said.
During the quarter, overall market share of LIC slipped below 60 per cent to 59.41 per cent for half year ended September 30, 2025 as compared to 61.07 per cent of first half of last financial year. Asked about the decline in market share, Doraiswamy said the focus of LIC would be on profitability and margin growth.
As far as commission outgo is concerned, it moderated to Rs 5,772 crore in the second quarter from Rs 6,542 crore in the same period a year ago.
The total expenses rose to Rs 2,30,160 crore in the quarter against Rs 2,22,366 crore in the same period a year ago..
The solvency ratio increased to 213 pe

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H1 FY26 was 36.31 per cent as compared to 26.31 per cent for the similar period of previous year.
Total premium during the first half rose to Rs 1,50,715 crore from Rs 1,44,696 crore in the same period a year ago.
“While we expand our overall profitability through diversified product mix and channel mix, we are also working towards optimising costs, and for H1 FY26 our overall expense ratio has decreased by 146 bps to 11.28 per cent,” he said.
As the leader of the life insurance industry in India, he said, “We are aware of our responsibility to enhance both insurance penetration and density and continue to focus our efforts and channel our energies into achieving Insurance for All by 2047,” he said. PTI DP DP MR
News – Press release

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India's service sector growth falls to 5-month low in Oct on competitive pressures, heavy rains: PMI
GST
Dated:- 6-11-2025
PTI
New Delhi, Nov 6 (PTI) India's services sector growth witnessed the slowest pace of expansion in five months in October, as competitive pressures and heavy rains in parts of the country led to a slower increase in output, according to a monthly survey released on Thursday.
The seasonally adjusted HSBC India Services PMI Business Activity Index fell from 60.9 in September to 58.9 in October, indicating the slowest pace of expansion since May.
Notwithstanding the moderation, the October Services PMI index was comfortably above both the neutral mark of 50 and its long-run average of 54.3.
In the Purch

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n services improved further, as signalled by another increase in external sales. The rate of expansion was solid, though the weakest since March, as per the survey.
Meanwhile, monitored firms suggested that the GST reform curbed price pressures. Input costs and output charges rose at the slowest rates in 14 and seven months, respectively.
Going forward, companies were strongly confident of a rise in business activity over the next 12 months.
Amid reports of efforts to support rising new-business intake, meet delivery deadlines, and maintain reliable services, companies recruited additional staff in October.
Meanwhile, the combined output of India's manufacturing and service sectors continued to expand sharply in October, but growth

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Proceedings under s.73(9) quashed for defective service; statutory hearing under s.75(4) held mandatory, fresh adjudication ordered
Case-Laws
GST
The HC held that the impugned proceedings under s.73(9) were vitiated by defective communication of the show-cause notice and by the Proper Officer's failure to afford the statutory hearing mandated by s.75(4); uploading the notice only under an “additional” tab did not constitute valid service under the WBGST/CGST regime, and the petitioner was shown to have had sufficient cause for non-reply. The court declined to sustain any time-bar refusal and granted the petitioner a final opportunity to file a reply to the show-cause notice, directing fresh adjudication after affording the requisite opportunity of hearing; the petition was disposed accordingly.
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Section 107(6) inapplicable when not in force; appeal reinstated and remitted for condonation and merits under Section 107
Case-Laws
GST
The HC set aside the Appellate Authority's dismissal of the petitioner's appeal for delay and alleged non-compliance with a statutory pre-deposit, holding that Section 107(6) of the 2017 Act (pre-deposit requirement) did not apply as it was not in force when the appeal was filed or decided; non-existent preconditions cannot be imported to defeat a substantive right of appeal. The matter is remitted to the Appellate Authority under Section 107 with liberty for the petitioner to move for condonation of delay; the Appellate Authority shall adjudicate the condonation application on the material before it and, if satisfied, decide the appeal on merits. Petition disposed.
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Writ petition dismissed as factual disputes suit appeal; petitioner allowed to file appeal with pre-deposit by 30 November 2025
Case-Laws
GST
The HC declined to exercise writ jurisdiction in a challenge to alleged fraudulent availment of Input Tax Credit, holding the dispute raises factual questions (inspection at the petitioner's registered premise found the petitioner non-existent) more appropriately determined on appeal rather than by writ. The petition was therefore dismissed, but the petitioner was granted liberty to file an appeal by 30 November 2025 subject to making the requisite pre-deposit; the HC directed that the appeal, once filed with the pre-deposit, shall be entertained and adjudicated on merits and shall not be dismissed on the ground of limitation. Petition disposed.
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Officer must choose between Section 129 or Section 130 CGST proceedings; petitioner allowed to file objections and prompt action
Case-Laws
GST
The HC disposed of the writ petition directing the respondent to permit the petitioner to file objections to the issued show-cause notice and to take expeditious action. The court held that the detaining officer may initiate proceedings under either Section 129 or Section 130 of the CGST Act but cannot proceed with both simultaneously; having commenced proceedings under Section 129, the officer must elect either to continue under Section 129 or to close those proceedings and proceed under Section 130. The 3rd respondent was ordered, within two days, to inform the petitioner whether it will continue under Section 129 or close those proceedings and initiate Section 130 proceedings.
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Survey-found excess stock must be assessed under s.73/74, not s.130 read with s.122, orders quashed
Case-Laws
GST
The HC quashed proceedings initiated under s.130 read with s.122 of the GST Act against the petitioner, holding that survey-discovered excess stock must be addressed under the statutory machinery of s.73/74 and not by invoking s.130. The court emphasized that the GST Act is a self-contained code prescribing specific procedures where goods are unrecorded in books, obliging the proper officer to proceed under s.73/74. Reliance on prior higher-court rulings confirming that s.130 is inapplicable to excess stock found during survey reinforced the conclusion. Consequently, the impugned orders based on s.130/ s.122 were held unsustainable and were quashed; the petition was allowed.
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Petition allowed; authorities must immediately issue Form GST MOV-09/DRC-07 under Circular No.41/15/2018-GST to enable appeal
Case-Laws
GST
The petition is allowed and the impugned order is set aside. The HC directs the respondents/proper authority to forthwith issue Form GST MOV-09/DRC-07 on the petitioner's GST common portal in accordance with Circular No.41/15/2018-GST. The Court holds that where tax has been deposited under protest (or even if not expressly under protest) the tax authorities are obliged to pass a penalty order in Form GST MOV-09 to enable the taxpayer to challenge the respondent's action; failure to do so deprives the petitioner of the statutory right of appeal. In absence of any disputed facts, issuance of the penalty order is mandated forthwith.
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Remand for de novo adjudication; recalculate interest only for belated tax payment under s.39 using GSTR-3B timelines
Case-Laws
GST
The HC remanded the matter for de novo adjudication, directing recalculation of interest only on belated tax payment by comparing the delay against monthly tax payment timelines under s.39 and returns filed in GSTR-3B, and by taking into account the debit entry dated 19.12.2022. The petitioner must, within 30 days of receipt of the order, file documentary certificates substantiating entitlement to the claimed balance of input tax credit. Thereafter the respondent shall adjudicate and pass final orders on merits after affording the petitioner an opportunity of hearing. The petition is disposed of.
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Penalty under Section 11AC(1)(c) and Section 122(2)(b) set aside for bona fide late reversal of input tax credit
Case-Laws
GST
The HC allowed the petition, holding that imposition of penalty under Section 11AC(1)(c) of the Central Excise Act read with Section 122(2)(b) of the CGST Act was unjustified. The Court observed that although the petitioner belatedly reversed proportionate input tax credit on obsolete/slow-moving inputs, no undue advantage accrued and the reversal was recorded in the trial balance on 23.10.2019. Having regard to available alternate remedy under section 107 before the appellate authority and relevant jurisprudence distinguishing bona fide reversal from fraud or willful suppression, the penalty was set aside and the impugned adjudication modifying only interest or tax, if any, was directed to be re-considered without imposing the contested penalty.
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Demand to recover already-paid tax held unsustainable; bank attachment lifted, only interest recovery permitted and attachment to reflect that.
Case-Laws
GST
The HC held that the demand in DRC-07 dated 31.12.2023, seeking recovery of tax already discharged, was prima facie unsustainable because Revenue's SCN/DRC-01 dated 12.04.2023 addressed only interest. Consequently, the attachment of the petitioner's bank account with the second respondent bank was declared unsustainable and must be lifted. The HC directed the first respondent to effect recovery solely of the interest component confirmed by the order dated 31.12.2023 directly from the petitioner's account and to raise the order of attachment forthwith to reflect that limited recovery. The petition was accordingly disposed of.
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