Goods and Services Tax

Bail granted in major CGST input tax credit fraud case, with Article 21 speedy trial rights emphasized.
Case-Laws
GST
HC considered petitions for bail in an alleged CGST-related economic offence involving creation of fictitious firms, fake invoices and wrongful availment/passing of input tax credit of approximately Rs.160.58 crores. Noting that the evidence is largely documentary/electronic, that the petitioners have been in custody since 05.03.2025, and that trial is likely to be protr

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IGST refund restored; mere suspicion of excess ITC cannot replace Sections 73/74 notice u/r 92(3)
Case-Laws
GST
HC quashed the impugned order denying refund of IGST to the petitioner-assessee and directed grant of refund. It held that mere suspicion of excess ITC availment cannot justify withholding refund through a notice under Rule 92(3) CGST Rules when no discrepancy in the refund claim is established. Relying on SC principles, HC held that initiation of recovery proceedings for exce

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Appeal within limitation u/s 107(4) CGST as communication date is Day Zero; remand for fresh hearing
Case-Laws
GST
HC held that the First Appellate Authority erred in treating the appeal as time-barred. The order-in-original dated 24.01.2024 was communicated on 01.02.2024, and the appeal filed on 01.06.2024 was within the permissible extended period of one month under Section 107(4) CGST Act, 2017, treating the date of communication as Day Zero. Relying on the Delhi HC view, the court h

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Instant premix tea with assorted teas held mixed supply, not composite, u/s2(30) and s.2(74) CGST
Case-Laws
GST
AAR held that supply of instant premix tea sachets bundled with various teas as an introductory offer does not qualify as a composite supply under s.2(30) CGST Act, as the items are not naturally bundled, premix tea is not ancillary or integral to the other teas, and its removal does not affect the nature of the supply. The transaction satisfies all conditions of “mixed supply

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Punjab's new Industrial Policy in Jan will give 'run for money' to other states: Industries Minister Arora
GST
Dated:- 11-12-2025
PTI
New Delhi, Dec 11 (PTI) Punjab will come out with a new industrial policy next month, focusing on ease of doing business and ensuring project clearances in 5 to 45 days across different categories, state Industries Minister Sanjeev Arora said on Thursday.
He also said the government will soon announce a new Private Industrial Park Policy, allowing the private sector to set up industrial parks.
“We are going to announce a new industrial policy by January, and work is on. Whatever we come up with, one would never have seen such a policy before. We will give a run for their money to all other state

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orea, along with Chief Minister Bhagwant Mann, where they met industrialists and entrepreneurs and NRIs in cities like Tokyo, Osaka and Seoul.
Arora said the new industrial policy will have a robust new scheme of giving clearances to new projects within 5 to 45 days.
He further said under the new policy, green projects or real estate sector projects will be accorded approval in five days, while proposals requiring some change in policy and further approvals will get cleared in 15 or 18 days in separate categories.
Arora said the state government had set up 24 sectoral committees of industrialists and businessmen across the state to examine various issues and submit their recommendations on the new industrial policy. All such panels have

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on-linked incentive scheme, refund of state GST (SGST) and stamp duty exemption in buying of land,” the minister said.
The minister, who also holds the Power and NRI portfolios, said total investment projects to the tune of Rs 1.5 lakh crore have come into Punjab from 2022 to 2025, which is equivalent to 25 billion US Dollars, and this will lead to employment generation of 5 lakh jobs.
Disclosing details of various industrial houses seeking to invest in the state, he said Vardhaman Steel is seeking to invest Rs 2,500 crore, Nahar Industries Rs 1,500 crore, a Rs 500 crore R&D Centre by Amber Enterprises, Happy Forgings Rs 500 crore, IOL Chemicals and Pharmaceuticals Rs 1,400 crore, Trident group Rs 2,000 crore, Veera Beverages Rs 100 crore

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Section 16(2)(aa) CGST Act upheld, ITC tied to supplier compliance but safeguarded for bona fide buyers with documentation
Case-Laws
GST
HC upheld the constitutional validity of Section 16(2)(aa) of the CGST Act and corresponding State provision, holding that stricter conditions for availing ITC, linked to the supplier's GST compliance, are a legitimate measure to curb fraudulent claims and enhance transparency. However, the provision was read down to protect bona fide recipients: ITC c

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Regular bail granted to GST fraud accused over fake invoices and bogus input tax credit, citing prolonged custody
Case-Laws
GST
HC allowed the applicant's plea for regular bail in a GST fraud case involving alleged issuance of fake invoices and E-way bills and passing of bogus input tax credit. Noting that the complaint had already been filed, the applicant's continued incarceration since 08.08.2025, and the likelihood of further delay in conclusion of trial, HC held that further custod

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Bail Denied in GST Fraud; Court Cites Active Role in Interstate Fake ITC Racket Under CGST Sections 132(1),(5)
Case-Laws
GST
HC rejected the petitioner's application for bail in a GST fraud case involving alleged creation of fictitious firms and issuance of fake invoices to pass on bogus ITC without actual supply of goods or services, constituting cognizable and non-bailable offences under s.132(1) and 132(5) of the CGST Act. On a prima facie evaluation, HC held the petitioner was not a

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Writ under Article 226 against CGST Section 6 show-cause notice rejected; disputes go to adjudicating authority
Case-Laws
GST
HC dismissed the writ petition challenging the SCN issued by Central GST authorities. It held that the applicability of Section 6 of the CGST Act, the interplay between State and Central proceedings, the effect of earlier State GST orders (including audit orders), and the petitioner's precise status as a “government authority” are all contentious factual and lega

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GST registration cancellation for Covid non-filing set aside, matter remanded; registration restored on paying all dues
Case-Laws
GST
HC set aside cancellation of petitioner's GST registration and remanded the matter to the proper officer for reconsideration. Observing that non-filing of returns for six months occurred during the Covid-19 period, coupled with petitioner's heart ailment and financial distress, the Court held the explanation was not mala fide or unreasonable, particularly

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Order quashed for denying proper personal hearing u/s 75(5); matter remanded for fresh adjudication
Case-Laws
GST
HC held that the Adjudicating Authority violated principles of natural justice by passing the Order-in-Original without affording the assessee a proper personal hearing. The portal entries and note did not specify the mandatory particulars of personal hearing, namely date, time and venue, as required during ongoing proceedings under section 75(5), including before passing an

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Rule 86A allows only temporary blocking of existing GST ITC, negative blocking beyond ledger balance held invalid
Case-Laws
GST
HC held that Rule 86A of the GST Rules permits only temporary blocking of input tax credit (ITC) actually available in the Electronic Credit Ledger where the Commissioner has reason to believe it is fraudulently availed or ineligible, and does not authorize “negative blocking” beyond the existing balance. While endorsing that prior notice or SCN is not mandator

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Retrospective GST Registration Cancellation Quashed for Lack of Clear Notice and Reasons, Registration Restored u/s 29 CGST
Case-Laws
GST
HC held that retrospective cancellation of petitioner's GST registration was unsustainable as the SCN did not propose cancellation with retrospective effect and lacked reasons justifying such retroactivity. Relying on settled law requiring clear notice and cogent reasons for retrospective cancellation, the Court found the cancellation order dated 17.0

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ITC Blocking Beyond One Year u/r 86A Held Ultra Vires; Renewed Freeze After 21.11.2024 Quashed
Case-Laws
GST
HC held that continued blocking of petitioner's ITC in the Electronic Credit Ledger beyond one year under Rule 86A of the 2017 Rules is ultra vires and unsustainable. Relying on the SC's interpretation of provisional attachment as a protective, pre-emptive measure and not a mode of recovery, the HC held that the statutory one-year period is sufficient for investigation and cannot

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Writ plea on fraudulent ITC rejected; taxpayer directed to use Section 107 CGST appeal remedy instead
Case-Laws
GST
HC held the writ petition challenging proceedings for fraudulent availment of ITC to be not maintainable in view of the efficacious alternative statutory remedy under Section 107 of the CGST Act. Observing that such matters involve complex factual disputes, voluminous evidence and detailed departmental orders, the Court declined to exercise writ jurisdiction, particularly

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Rule 86A allows only temporary ITC blocking, no negative balance; disputes must proceed u/ss 73 and 74
Case-Laws
GST
HC examined the blocking of petitioner's Electronic Credit Ledger (ECL) under Rule 86A of the GST Rules, 2017. It held that Rule 86A permits only temporary restriction on debiting input tax credit (ITC) where there is reason to believe the ITC is fraudulently availed or ineligible, and does not contemplate “negative blocking” beyond the credit actually available in the EC

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Refund Allowed as IT Services Treated as Export u/ss 2(6) and 13(2) IGST Act
Case-Laws
GST
HC held that services supplied by petitioner to a foreign entity constitute “export of services” under Section 2(6) IGST Act, as consideration was received in convertible foreign exchange and supplier and recipient are separate legal entities, not mere establishments of distinct persons. Applying the principle of substance over form, the Court held that the nature of services and contractual terms

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Imitation zari metallic yarn under HSN 56050020 held taxable at 5% GST under N/N 1/2017, 9/2023, 9/2025
Case-Laws
GST
AAR held that the applicant's supply of imitation zari thread or yarn (metallic yarn/zari badla) manufactured from metallized polyester film/plastic film is classifiable under HSN 56050020. Applying N/N 1/2017-CT (Rate), as amended by N/N 9/2023-CT (Rate), read with relevant GST Council minutes and clarificatory circulars, AAR ruled that such goods fall under Serial No.

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PVC raincoats treated as plastic articles under HSN 3926, taxed at 18% GST per Notification 9/2025-CT(R)
Case-Laws
GST
AAR held that PVC/plastic raincoats manufactured from PVC sheets, whose parts are heat-welded or chemically bonded, are not “textile” garments under Chapter 62, as they are not made from woven fabric. Relying on Chapter Note 1 to Chapter 62 and the SC interpretation of “textile”, the authority concluded that the goods are articles of plastics classifiable under HSN 3926

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Tide Now Supports Over 1 Million Small Businesses in India
GST
Dated:- 8-12-2025
PTI
The platform saw a 100% y-o-y increase in adoption since launch in December 2022 New Delhi, Delhi, India (NewsVoir) • Gen Zs and millennials make up over 85% of Tide’s MSME community — a powerful reminder that young India is steering the country's entrepreneurial momentum • Tier 2, 3, 4 and beyond cities driving growth with over 96% members (MSMEs) on the platform, from towns like Bareilly, Bhopal, Murshidabad, Lucknow and North 24 Parganas Tide, the UK’s leading business management platform, today announced that it has surpassed 1 million members (MSMEs) in India. This rapid growth reflects the deep trust that Indian small businesses — from nano to micro and emerging SMEs — have placed in Tide to simplify how they register, run and grow their businesses. The platform has doubled adoption since its launch in December 2022. India has emerged as Tide’s largest and fastest-grow

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dmin. Over the past year, Tide has delivered product innovation at pace across India with products including: Bill Payments: SMEs in India can pay their utility bills with no extra costs and earn rewards. The product is backed by enhanced security.
Udyam Registration: Enabling MSME registration and access to priority government benefits including low-interest loans, subsidies on electricity certifications, protection against delayed payments, etc.
GST Registration: help obtain a Goods & Services Tax Identification Number (GSTIN), enabling compliance, marketplace selling, input tax credit claims, and vendor trust.
Scheme Discovery: Smart matching of government benefits and subsidies to business eligibility.
Fixed Deposits Intermediation: Helping SMEs to earn competitive returns on their balances in a seamless and paperless experience.
NCMC Card Integration: A single smart Tide card that doubles up as a national mobility card, accepted across multiple transport modes.
Structu

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h 24 Paraganas, Jaipur, Firozabad, Ghaziabad, Shahjahanpur and Kota — with not a single Tier 1 city in the top 10 — Tide is playing a significant role in enabling the digital transformation of India’s most underserved business communities.
Championing entrepreneurs beyond business tools Tide believes progress happens when entrepreneurs are supported not only with products — but with recognition, access and ecosystem change.
Women in Business mission: On track to bring 500,000 women entrepreneurs onto the platform by 2027. Tide’s Bharat Women Aspiration Index brings forth voices from beyond metros to shape better policies for women entrepreneurs across Tier 2, 3, 4, 5 and 6 towns in India.
Udaan Chronicles: Tide’s flagship mentoring roadshow, created to help small business owners in semi-urban and rural India, brings expert-led mentoring directly to entrepreneurs who lack access to formal networks and financial resources.
UK-India collaboration: Enabling SME expansio

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ligns with the Government of India’s efforts to formalise and digitise MSMEs and increase their access to credit, markets and exports.
Among some of the exciting new features to be launched next year, include investments, acquiring, insurance, easy access to formal credit, banking services and advanced payment acceptance solutions. Tide is here to make managing business smoother and more successful.
About Tide Launched in 2017, Tide is the leading business management platform in the UK. Tide helps SMEs save time (and money) in the running of their businesses by not only offering business accounts and related admin services, but also a comprehensive set of highly usable and connected administrative solutions from invoicing to accounting.
Tide has nearly 800,000 SME members in the UK (14% market share) and 1,000,000 SMEs in India. Tide launched in Germany in May 2024 and in France in September 2025. Tide has also been recognised with the Great Place to Work certification three ye

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AAP leader Raghav Chadha calls highway tolls an organised loot
GST
Dated:- 8-12-2025
PTI
New Delhi, Dec 8 (PTI) Aam Aadmi Party (AAP) leader Raghav Chadha on Monday called the country's highway toll collection an “organised loot”, saying mismanagement and excessive charges were placing an “unbearable” burden on commuters.
“Toll is taking a big toll on the people of India,” Chadha said, arguing that “persistent congestion, utter mismanagement and over-profiteering” at toll plazas had turned the experience of road users from “inconvenience to injustice”.
Raising the issue through a zero hour mention in the Rajya Sabha, the MP claimed toll payments had become a form of “harassment”, contending that Indians already face one of t

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ch year, he added.
Chadha cited recent Kerala and Jammu & Kashmir High Court rulings that operators could not collect toll on roads that were not maintained to required standards.
He also highlighted frequent congestion and delays at toll plazas due to lane closures and poor management. “Highways are meant for seamless connectivity, seamless mobility. But who will calculate the cost of congestion at toll plazas?” he said, listing wasted fuel, lost productivity, missed appointments and mental agony as hidden costs borne by commuters.
“If you add all these costs, you will find that they are an invisible cost to the economy,” he said.
Chadha further alleged that toll collection often continued even after the full cost of road construct

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Tax Demand Beyond GST Show Cause Notice Quashed Under Sections 75(7) and 74(9) Invoking Article 226
Case-Laws
GST
HC, exercising writ jurisdiction under Article 226, examined a challenge to a demand order and SCN issued under the GST Act, 2017. It held that, under Section 75(7) read with Section 74(9), the final order cannot demand tax, interest or penalty in excess of, or on grounds different from, those specified in the SCN. In the present case, the impugned order under Section 74(9)

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Goods Transport Agency allowed full ITC on bio-diesel fuel under Section 16; Section 17(5) inapplicable
Case-Laws
GST
AAR held that the applicant, operating as a Goods Transport Agency, is entitled to avail full ITC of GST paid on bio-diesel used as fuel in its goods carriages, as the input is used in the course or furtherance of business under Section 16 of CGST Act. Section 17(5) restrictions were found inapplicable since they relate to passenger vehicles, not goods carriages. AAR fur

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Rail transport of empty containers taxed at 5% GST under Entry 9(i), ITC mandatorily forgone by supplier
Case-Laws
GST
AAR held that transportation of empty containers by rail is not covered by Entry 9(iv) of Notif. No. 11/2017-CT(R) as that entry applies to transport of goods in containers, not to the movement of containers themselves. Empty containers qualify as “goods” and, in absence of a specific entry, their rail transport falls under the residual Entry 9(i). Accordingly, GST is l

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ITC denied on IGST paid via pre-notice consultation, documents not valid under Section 16(2) and Rule 36(1)(d)
Case-Laws
GST
AAR rejected the applicant's claim to avail ITC of IGST paid pursuant to a pre-notice consultation letter under Section 28(1) of the Customs Act. It held that neither the pre-consultation letter nor the duty-paying TR-6 challan qualifies as a valid tax invoice or similar document under Section 16(2) of the CGST Act or Rule 36(1)(d) of the CGST Rules. Interpreting

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