Goods and Services Tax

Reverse charge on specified waste supplies makes registered recipients liable for IGST on purchases from unregistered suppliers.
Notifications
GST
Reverse-charge liability under the IGST regime will apply to supplies of used cooking oil, plastic waste and scrap, tyre waste and scrap, and electrical and electronic waste and scrap when supplied by an unregistered person to a registered person. The amendment inserts these categories into the specified-supplies table, making the registered recipient liable to pay integrated tax under reverse charge. It takes effect on 1 November 2026.
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GST exemption for intra-State psyllium seed supplies takes effect under the amended rate schedule from November 2026.
Notifications
GST
Psyllium seeds (Isobgul/Isobgol), classified under tariff heading 1211 90 13, are inserted at serial number 87A in the schedule of exemptions for intra-State supplies of goods. The insertion exempts those supplies from the whole of central tax otherwise leviable under section 9 of the CGST Act. The exemption takes effect on 1 November 2026.
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Absolute IGST exemption now covers inter-State supplies of psyllium seeds under the amended goods exemption schedule.
Notifications
GST
Absolute IGST exemption for inter-State supplies is extended to psyllium seeds (Isobgul/Isobgol), classified under tariff item 1211 90 13. The amendment inserts this commodity as entry 87A in the Schedule to Notification No. 10/2025-Integrated Tax (Rate), bringing qualifying inter-State supplies within the existing exemption framework. The amendment takes effect from 1 November 2026.
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UTGST exemption for psyllium seeds takes effect through their inclusion in the absolute exemption schedule.
Notifications
GST
Psyllium seeds (Isobgul/Isobgol), classified under tariff heading 1211 90 13, are inserted as serial number 87A in the schedule to Notification No. 10/2025-Union Territory Tax (Rate). The insertion extends the notification's absolute exemption from Union Territory GST to supplies of those goods, effective from 1 November 2026.
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CGST rate schedules place eligible fertilisers and retreaded tractor tyres in the lower rate schedule.
Notifications
GST
CGST rate schedules are amended to place all pre-packaged and labelled animal, vegetable and organic fertilisers in the 2.5% schedule, expressly including seaweed extract-based bio-stimulants registered under Schedule VI to the Fertiliser Control Order. Retreaded tractor tyres are newly included in the 2.5% schedule. Retreaded or used pneumatic rubber tyres other than retreaded tractor tyres, along with solid or cushion tyres, tyre treads and tyre flaps, remain classified in the 9% schedule. These amendments take effect from 1 November 2026.
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IGST rate schedules place fertilisers and retreaded tractor tyres at 5%, while other specified rubber tyres remain at 18%.
Notifications
GST
IGST rate schedules are amended from 1 November 2026. The 5% schedule now covers all pre-packaged and labelled animal, vegetable or organic fertilisers, including seaweed-extract bio-stimulants registered under Schedule VI of the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985. Retreaded tractor tyres are also inserted in the 5% schedule. The 18% schedule is correspondingly revised to cover retreaded or used pneumatic rubber tyres other than retreaded tractor tyres, along with solid or cushion tyres, tyre treads and tyre flaps of rubber.
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E-commerce warehouse registration enables eligible goods suppliers to register without local physical presence, subject to operator consent and verification.
Notifications
GST
CGST registration is expanded through rule 14B, allowing eligible suppliers of goods through tax-collecting electronic commerce operators to register in States or Union territories where they lack physical presence by declaring an operator's warehouse as their principal place of business. Registration requires operator consent, home-State Aadhaar authentication, document and physical verification, and compliance with a monthly output-tax ceiling; consent withdrawal or loss of home-State registration can trigger cancellation. The amendments also revise registration amendment, cancellation, suspension and system-based revocation processes; establish objections against electronic-credit-ledger debit restrictions; and revise refund documentation, acknowledgement timelines and input-tax-credit refund calculations, including eligible capital-goods credit. Related changes update composition reporting, input service distributor rules, e-way bill coverage, demand forms, and prescribed GST forms.
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E-invoicing scope expands to reverse-charge purchases and imported services, extending compliance obligations for covered GST taxpayers.
Notifications
GST
E-invoicing requirements for registered persons meeting the prescribed aggregate-turnover threshold will cover supplies to registered persons and exports, and extend to supplies received from unregistered persons where the recipient pays tax under reverse charge, as well as imports of services. The expanded scope takes effect on 1 January 2027, bringing specified reverse-charge and imported-service transactions within the e-invoicing framework.
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Fraudulent input tax credit demands require proof of fictitious supplies, absent deliveries, and culpable conduct beyond supplier cancellation alone.
Notes
GST
Input tax credit claimed from non-existent suppliers requires proof of actual receipt of goods or services, not merely invoices, portal registration, and banking payments. Section 155 places the burden of proving entitlement on the claimant, who may need transaction-specific evidence of transport, delivery, stock, consumption, and linkage to taxable activity. Section 74 applies only where wrongful credit is shown to arise from fraud, wilful misstatement, or suppression to evade tax; it cannot rest solely on retrospective supplier-registration cancellation or incomplete evidence. Fictitious suppliers from inception, no proof of physical supply, and fraudulent self-assessment may collectively support a fraud demand. A notice must disclose those foundational facts, identify periods and computation, and cannot confirm liability beyond its stated grounds; where fraud is not established, tax may be determined under Section 73.
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Consolidated GST notices may remain valid period-wise, while school affiliation fees are taxable independent supplies.
Notes
GST
Consolidated GST show cause notices covering multiple tax periods may be sustained where liabilities are separately identified, each period independently complies with limitation and statutory requirements, and no concrete prejudice is shown. Combining non-fraud and fraud-based periods does not remove the distinct conditions, notice timelines, or limitation rules applicable to each route. School affiliation and affiliation-form processing charges constitute independent taxable supplies rather than examination-related exempt services; limited past-period regularisation applies only to affiliation services. Annual registration charges remain taxable, while documentation charges and late entry fees qualify for exemption where directly and inseparably connected with examinations. Confirmed tax is subject to cum-tax recomputation.
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Deemed stay on disputed interest recovery applies after full tax payment while appellate proceedings remain pending.
Case-Laws
GST
Under the statutory appellate pre-deposit scheme, where the entire underlying tax has been paid, no percentage-based pre-deposit of disputed interest is required. Compliance with applicable pre-deposit conditions results in a deemed stay of recovery of the balance demand while the appeal remains pending. Recovery communications for disputed interest, consequential bank notices, and bank restrictions are therefore barred during that period and must be withdrawn. The basis and computation of the interest demand remain open for determination in the pending appellate proceedings.
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GST show-cause notice limitation requires timely portal service; internal generation and later upload cannot cure statutory invalidity.
Case-Laws
GST
Section 73's three-month minimum period for issuing a GST show-cause notice before the deadline for an order is mandatory and preserves a meaningful opportunity to respond. Extension of the outer time limit for the order does not extend the deadline for issuing notice unless the statute provides otherwise. A notice created only in an internal system, awaiting GSTN confirmation and lacking a CRN, is not issued or served where it is neither integrated with the common portal nor otherwise communicated to the taxpayer. Later portal upload cannot retrospectively cure limitation; scrutiny communications and hearing opportunities cannot replace a foundational notice.
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Condonation of delay requires consideration of a taxpayer's explanation; failure to do so restores the GST appeal for merits.
Case-Laws
GST
Condonation of delay in GST appeals requires the appellate authority to consider the taxpayer's specific explanation rather than reject the appeal solely by referring to the statutory limitation provision. Failure to assess a plea that an accountant did not inform the taxpayer of the limitation period undermines the rejection, irrespective of whether that plea ultimately merits condonation. The delayed appeal was restored for decision on merits after condonation, subject to payment of costs within the stipulated period; failure to comply withdraws that benefit.
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Consideration of delay-condonation grounds required before rejecting GST appeals on limitation; merits review follows upon compliance with conditions.
Case-Laws
GST
Failure to consider grounds advanced in a delay-condonation application rendered the rejection of a delayed GST appeal unsustainable, irrespective of whether those grounds would ultimately succeed. The High Court set aside the limitation-based rejection, condoned the delay subject to timely payment of costs, and required the appellate authority to decide the appeal on merits. Protection would lapse upon non-compliance with that condition or unnecessary adjournments. The underlying tax demand was not examined.
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Pre-trial detention in GST fake-invoice prosecutions cannot continue after investigation absent risks to trial integrity.
Case-Laws
GST
Pre-conviction detention in GST prosecutions alleging fake entities and wrongful input tax credit is not punitive; bail serves to secure attendance at trial. Continued custody was considered unwarranted after completion of investigation and filing of the complaint where the Magistrate-triable offence carried a maximum five-year sentence and trial was unlikely to conclude within a reasonable time. The absence of criminal antecedents or material suggesting absconding, witness intimidation, evidence tampering, or subversion of justice supported release. Bail was granted subject to conditions ensuring trial participation and protecting evidence and witnesses.
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Pre-arrest reasons for arrest must be communicated, and later constitutional rulings generally apply to earlier arrests.
Case-Laws
GST
Pre-arrest communication of recorded reasons to believe is required where an authorised officer effects an arrest under section 26 of the Act. As section 26 is in pari materia with comparable arrest provisions, the reasons must be supplied to the arrestee before arrest, enabling anticipatory-bail remedies and judicial review; production before the Magistrate at remand is insufficient. Constitutional-court rulings generally declare existing law and apply retrospectively unless expressly confined to prospective operation. Arrest without communication of the reasons breaches the safeguards under Articles 21 and 22 and is liable to be quashed, with release subject to any other lawful custody.
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Input tax credit cannot be denied solely because a supplier's registration was retrospectively cancelled; eligibility requires evidence review.
Case-Laws
GST
Retrospective cancellation of a supplier's registration alone does not establish that supplies were fictitious or that the recipient was complicit, so input tax credit eligibility requires examination of invoices, e-way bills, transport records and other evidence against statutory conditions. The recipient bears the initial burden of proof, but the department cannot deny credit solely under section 155 or on the supplier's non-existence. Fraud-based demands require foundational facts and cogent material of fraud, wilful misstatement or suppression with intent to evade tax. If those elements fail, section 75(2) permits treatment under section 73 only where the original notice met the applicable section 73 limitation; eligibility must then be determined after hearing and evidence review.
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Transitional CENVAT credit permits full unavailed capital-goods credit, while TRAN-1 invoice omissions require verification of supporting records.
Case-Laws
GST
Section 140(2), read with its Explanation, permits transition of unavailed CENVAT credit on pre-GST capital goods where the credit was admissible under both the existing and GST laws and was not carried forward in the earlier return. No requirement exists that part of the credit must previously have been availed, and a nil prior claim does not restrict otherwise eligible credit to fifty per cent. Where TRAN-1 records one capital-goods invoice but includes an annexure covering multiple invoices, omitted invoice details may be produced for verification. Credit on those invoices depends on verification of their eligibility and supporting records.
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Merchant-export concession requires direct movement; disclosed supplies face non-fraud GST demand while undisclosed supplies retain fraud-based liability.
Case-Laws
GST
Merchant-export concessional GST rate requires direct movement of goods from the supplier to the export port or registered warehouse; movement through third-party distilleries does not satisfy the condition, notwithstanding actual export. For supplies disclosed through departmental intimations, incorrect availment of the concession alone did not establish fraud, wilful misstatement or suppression to evade tax, requiring redetermination as a non-fraud demand under Section 73(1). The fraud-based demand remained applicable to a supply for which no intimation was filed. Interest is compensatory and applies to tax ultimately determined as payable. Tax liability must be recomputed with cum-tax benefit under the CGST valuation rules.
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Section 74 suppression demands require pleaded foundational facts, while undisclosed rental income supports extended-period GST liability.
Case-Laws
GST
GST jurisdiction over renting services follows the supplier's registered business location; the property location determines place of supply and inter-State character but does not displace jurisdiction, sustaining the rental-tax demand. Consolidated notices and adjudication for multiple financial years remain valid. Section 74 demands require pleaded foundational facts establishing fraud, wilful misstatement, or suppression intended to evade tax; absent such facts for return-disclosed freight and credits, those demands and penalties were set aside for determination under Section 75(2) read with Section 73(1). Undeclared rental income constituted suppression, so its tax, interest and equal penalty were upheld. Section 74 does not govern late fee or interest. GSTR-2A non-reflection alone does not bar otherwise eligible ITC; invoice-supported credit claims required merits reconsideration.
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Zero-rated export turnover includes invoices issued in the refund period even where goods are exported later.
Case-Laws
GST
Rule 89(4) determines zero-rated turnover for a relevant refund period by reference to invoices issued for goods cleared for export under bond or letter of undertaking. Goods covered by those invoices may be physically exported after that period, provided actual export is established. The value of invoices issued during the relevant period should not be excluded from accumulated input tax credit refund computation merely because the corresponding shipping bills bear later dates. Refund eligibility therefore depends on issuance of qualifying export invoices during the period and subsequent proof of export, rather than the date of the shipping bill alone.
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Actual receipt of goods governs input tax credit, while duplicate penalties require statutory justification and procedural fairness.
Case-Laws
GST
Input tax credit requires the claimant to establish actual receipt of goods. Invoices, e-way bills, transport documents, stock records and banking-channel payments do not prove receipt where suppliers are found bogus or non-existent and vehicle-related material indicates no physical movement of goods. Payment of tax cannot replace the statutory requirement of actual receipt, supporting denial of credit. Separate penalties for the same wrongful availment require recorded justification and must comply with the bar on multiple penalties for the same act or omission. Penalty enhancement also requires adherence to principles of natural justice; penalty determination must therefore be reconsidered under that statutory restriction.
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Technical e-way bill discrepancies cannot support GST penalties where transactions are reported, tax paid, and evasion intent is absent.
Case-Laws
GST
Technical discrepancies between e-way bill dispatch locations and transporter goods receipts do not justify GST penalty where consignments carry valid e-invoices and e-way bills, transactions are recorded in statutory returns, and applicable tax has been paid. In the absence of substantive irregularity or intent to evade tax, the procedural mismatch was insufficient for penalty under section 129. The penalty orders were quashed, with consequential refund in accordance with law.
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Prospective refund restrictions cannot defeat pre-existing input tax credit claims merely because the refund application was filed later.
Case-Laws
GST
Notification-based restrictions on refunds of unutilized input tax credit for edible oils under an inverted duty structure operate prospectively from 18 July 2022. They do not deny refunds for credit accumulated before that date merely because a fresh application was filed later. A circular cannot retrospectively curtail an accrued input tax credit entitlement without statutory basis. Where a claim concerns the pre-notification period and is filed within the limitation period, rejection based solely on the later filing date is unsustainable. Refund claims require fresh consideration under applicable law and judicial precedents, while interest remains for examination in the refund proceedings.
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Statutory GST appeal limits bar excess delay condonation, while restoring registration prevents departmental challenge to the implemented order.
Case-Laws
GST
Section 107(4) confines the First Appellate Authority's power to condone delay in GST registration-cancellation appeals to its prescribed outer limit; writ-jurisdiction orders based on particular facts, hardship, equity, or substantial justice cannot expand that statutory jurisdiction. Condonation beyond that limit is therefore without jurisdiction. Where the Department has implemented an appellate restoration of GST registration and the taxpayer has continued business on that basis, estoppel and orderly administration prevent the Department from later challenging the implemented order. As no effective relief remains and intervening genuine transactions would be unsettled, the departmental challenge is infructuous and not maintainable.
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