Goods and Services Tax

Electronic Credit Ledger Restrictions: Rule 86B Limits Taxpayer's Credit Utilization for High Monthly Turnover Partnerships
Case-Laws
GST
AAR held that Rule 86B restrictions apply to the taxpayer, preventing use of electronic credit ledger beyond 99% of total tax liability. The cumulative income tax paid by the partnership firm and its partners cannot be aggregated to satisfy the exemption threshold. Since no individual partner paid more than Rs. 1 lakh in income tax during the last two

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Free Drug Samples and Logistics Services Disqualified from Input Tax Credit Under CGST Act Section 17(5)(h)
Case-Laws
GST
AAR ruled that the applicant is not entitled to input tax credit (ITC) in three key scenarios: (1) IGST paid on importing sample drugs supplied free to hospitals/clinics, (2) IGST paid by logistics service provider under Delivered Duty Paid model, and (3) CGST paid for Customs House Agent and logistics services. The ruling hinged on Section 17(5)(h) of CGST Act, whic

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GST Liability Challenge Rejected: Petitioner Must First Exhaust Administrative Appeal Mechanism Under Section 107
Case-Laws
GST
HC dismissed the writ petition, declining to adjudicate the GST liability dispute. The court found significant discrepancies in the petitioner's self-declared turnover values across different documents and inconsistent financial reporting. Citing SC precedent, the court held that the petitioner must first exhaust the alternative statutory remedy by filing an ap

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Tax Interest Penalty Invalidated: Electronic Cash Ledger Deposit Halts Levy Under Rule 88 B(1) of CGST Rules
Case-Laws
GST
HC quashed the impugned order dated 30.12.2023 regarding interest levy for delayed GSTR 3B return filing. The court held that interest liability ceases upon tax deposit in the electronic cash ledger, relying on precedent in a similar case. Rule 88 B(1) of C.G. & S.T. Rules, 2017 was deemed clarificatory in nature, rendering retrospective/prospective effect arguments

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Judicial Review Mandates Enhanced Communication Protocols for Efficient Legal Proceedings and Transparent Administrative Processes
Case-Laws
GST
HC adjudicated a procedural matter concerning natural justice principles, specifically addressing communication deficiencies in legal proceedings. The court mandated the Registry to implement communication protocols for efficient case processing within the CGST Department. Key directives included: deputizing two officers from CGST and CX Delhi

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Tax Dispute Resolved: Consolidated Show Cause Notice Upheld, Petitioner Granted Right to Challenge Order Under Section 74
Case-Laws
GST
HC adjudicated a tax dispute involving procedural irregularities in service of show cause notice (SCN). The court found that a consolidated SCN was issued across multiple financial years under Section 74 of the Central Goods and Service Tax Act, 2017, addressing short payment and input tax credit issues. Despite no prior hearing notice to the Petitioner

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Procedural Fairness Prevails: Rectification Order Quashed for Denying Petitioner's Right to Be Heard and Fundamental Hearing Principles
Case-Laws
GST
HC held that the rectification application was improperly processed due to violation of principles of natural justice by denying the petitioner an opportunity of hearing. Relying on prior judicial precedent, the court set aside the original order dated 28th February, 2025 and directed that the rectification application be reconsidered afte

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Legal Challenge Succeeds: Notice Invalidated Due to Procedural Flaws and Violation of Natural Justice Principles
Case-Laws
GST
HC allowed the petition challenging the SCN issued beyond prescribed limitation period. The court found procedural irregularities in the notice, specifically the lack of opportunity for hearing, which violated principles of natural justice. The impugned order was set aside and remanded back to the Adjudicating Authority. The Petitioner was granted permission to

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GST Liability Payment Approved in Instalments, Authorities Directed to Review Petitioner's Financial Constraints Within 3 Weeks
Case-Laws
GST
HC allowed the petitioner's application for GST liability payment in instalments under Section 80 of CGST Act, directing respondent authorities to consider the representation within three weeks. The court recognized the petitioner's financial constraints and mandated a reasoned decision on the instalment request, subject to interest payment under

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Tax Notification 56/2023 Struck Down: Limitation Period Extension Invalidated, Demand Order Nullified Under Section 168A CGST Act
Case-Laws
GST
HC invalidated Notification No. 56/2023-Central Tax, which extended limitation periods under Section 168A of CGST Act for financial years 2018-19 and 2019-20. The court found the notification legally unsustainable, effectively setting aside the time limitation extension and consequently nullifying the subsequent demand order of Rs. 1,20,01,973 r

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Tax Credit Dispute: Appellate Path Opened with Nuanced Pre-Deposit Guidelines for Challenging Ineligible Input Tax Claims
Case-Laws
GST
HC held that the demand for ineligible input tax credit used for discharging outward tax liability involves potential duplication of demands. The court relegated the petitioner to the Appellate Authority, permitting appeal filing by 15th July, 2025, with pre-deposit mandated only for specific demand paragraphs. The court directed that any existing depos

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GST Show Cause Notice Upheld: Procedural Technicality Cannot Override Substantive Legal Communication Under Section 73
Case-Laws
GST
HC rejected the petition challenging a GST show cause notice, holding that an inadvertent misdescription in document title does not invalidate its substantive content. The court found the document clearly identifiable as a valid Section 73 notice through portal description, watermarks, and accompanying context. The ex-parte order was deemed sustainable, em

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Tax Credit Challenge Dismissed: Systematic Fraud Allegations Expose Fictitious Input Tax Credit Claims Under Scrutiny
Case-Laws
GST
HC dismissed the writ petition challenging tax credit demand, finding systematic fraudulent ITC availing by the petitioner. The key supplier M/s Fortune Graphics Limited was untraceable, with its director admitting no actual goods supply occurred. While declining immediate judicial intervention, the HC permitted the petitioner to pursue appellate remedies u

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Legal Challenge Succeeds: Show Cause Notice Invalidated for Violating Natural Justice and Procedural Fairness Principles
Case-Laws
GST
HC quashed the summary of show cause notice and order for procedural violations under AGST Act, 2017. The court found that issuing a summary notice without providing an opportunity of hearing constituted a breach of natural justice principles. Following precedent in a similar case, the HC set aside the impugned orders and granted authorities liberty to i

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HC Quashes SCN 09/2023 Due to Notice Service Flaws, Grants Petitioner Fresh Opportunity to Respond
Case-Laws
GST
HC remanded the matter concerning SCN No. 09/2023 due to procedural irregularities in notice service. The court noted that prior to 16th January 2024, show cause notices were uploaded in 'Additional Notices Tab', potentially preventing proper access. Considering the petitioner did not receive adequate opportunity to be heard, the HC directed the adjudicating authority to prov

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Bank Account Attachment Order Lifted After Procedural Review of Tax Dispute Under CGST Act Section 107
Case-Laws
GST
HC adjudicated a tax dispute involving procedural challenges to bank account attachment under CGST Act. The court determined that subsequent appellate proceedings and Supreme Court's prior intervention rendered the original bank account freezing order unsustainable. Given the petitioner's utilization of statutory appellate remedies under Section 107 and the progression of

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Goods Detention Case: Conditional Release Granted with 25% Deposit, Bank Guarantee, and Personal Bond for Remaining Demand
Case-Laws
GST
HC granted relief in goods detention case, directing respondents to release detained conveyance and goods upon petitioner depositing 25% of goods value (Rs. 2,56,965) and furnishing bank guarantee for 75% (Rs. 7,70,895), along with executing a personal bond for remaining demand. The court's decision was based on petitioner's specific submissions and al

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GST Ruling Clarifies Silver Transactions: Barter as Supply, Job Work Exemptions, and HSN Code Guidelines
Case-Laws
GST
The AAR ruled on multiple GST-related queries concerning silver transactions. Key holdings include: barter exchanges constitute 'supply' under GST law, even without monetary transactions. Reverse Charge Mechanism (RCM) does not apply to job work by unregistered individuals. HSN codes were specified for various silver materials: Silver Scrap (7112), Melted Silver Rods (7

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ITC Claim Blocked: Advance Ruling Denied Due to Ongoing Investigation Under Section 98(2) First Proviso
Case-Laws
GST
AAR rejected the advance ruling application concerning Input Tax Credit (ITC) entitlement for commercial property leasing. The ruling determined that prior investigative proceedings precluding the advance ruling application triggered Section 98(2) first proviso. Specifically, summons issued before the ruling application and taxpayer's submission of ITC details demonstrat

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Taxpayers Gain Relief: Section 128A Clarifies GST Payment Procedures and Dispute Resolution Mechanisms for Pre-November 2024 Periods
Circulars
GST – States
Legal Circular Analysis: The circular addresses key interpretative issues regarding Section 128A of the Assam GST Act, 2017, specifically clarifying two critical points. First, taxpayers who paid taxes through GSTR-3B before 1st November 2024 remain eligible for benefits under Section 128A, subject to proper officer verification. Sec

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Forged GST Challenge Exposed: Fabricated Docs Lead to Criminal Investigation and Petition Dismissal
Case-Laws
GST
HC found SCNs and affidavits to be forged, with fictitious petitioners submitting fabricated documents challenging GST registration cancellation. Court directed DGGI officials to conduct thorough investigation and file complaint with Crime Branch within one week. Registrar General instructed to lodge complaint against petitioners under relevant sections of Bharatiya Nyaya Sa

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Procedural Gaps in E-Way Bill Compliance Don't Automatically Trigger Penalties Without Proven Tax Evasion Intent
Case-Laws
GST
HC determined that mere non-completion of part-B of e-way bill does not automatically warrant penalty under Section 129 of U.P. G.S.T. Act, 2017. The court found no evidence of tax evasion attempt by the petitioner. Without a specific finding regarding intentional tax evasion, the penalty levy was deemed unsustainable. Consistent with prior judicial precedents,

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Bail Granted in Tax Evasion Case: Insufficient Evidence and No Proven Pattern of Deliberate Tax Fraud
Case-Laws
GST
HC granted bail to the respondent in a tax evasion case after 13 days in custody. The court noted the investigation agency has sufficient powers to examine GST department and bank records. The respondent, a Delhi resident, was not shown to be a habitual tax offender. Despite the investigation starting in 2020, no criminal complaint was filed, potentially rendering the resp

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High Court Strikes Down Tax Credit Disallowance Orders, Mandates Comprehensive Reevaluation of Electronic Credit Ledger Compartments
Case-Laws
GST
HC allowed the petition challenging Exhibit-P1 and Exhibit-P2 orders related to ITC disallowance. Relying on the precedent in Rejimon Padickapparambil Alex v. UOI, the court held that electronic credit ledger represents a tax fund with distinct compartments for CGST, IGST, and SGST. The impugned orders were set aside, directing the respondent

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Services to Intermediary Not Directly Supplied to Government Disqualify Tax Exemption Under Notification 12/2017
Case-Laws
GST
The AAAR determined that the appellant's services do not qualify for tax exemption under Notification No. 12/2017. The key issue centered on service supply conditions, specifically direct service provision to government entities. While the appellant provided manpower services to Webel Technology Limited for a government project, the services were not directly su

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