Goods and Services Tax

Petitioner's binding undertaking to keep Rs.10,00,000 bank funds intact leads to disposal, preventing disproportionate operational prejudice
Case-Laws
GST
The HC accepted the Petitioner's undertaking that the cumulative funds in the attached bank accounts (approximately Rs. 10,00,000) will not be withdrawn or otherwise dealt with and treated counsel's statement as a binding undertaking to the Court; the undertaking must be strictly complied with. The Court observed that continued attachment would cause disproportionate prejudice by preventing receipt and use of remittances for operational needs (e.g., employee payments) without benefit to the Respondent. Having recorded and accepted the undertaking, the HC disposed of the petition on that basis, subject to enforcement of the undertaking and any future application for variation or recall.
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Rule 96(10) CGST Rules repeal lapses pending proceedings except past closed transactions, alternate remedies need not be exhausted
Case-Laws
GST
The HC held the petition maintainable and allowed relief, ruling that Rule 96(10) of the CGST Rules, having been repealed by notification dated 8 October 2024 and lacking a savings clause, caused all pending proceedings based on that Rule to lapse insofar as they do not pertain to past and closed transactions. Although alternate statutory remedies ordinarily preclude writ jurisdiction, the court found the present grievance substantially covered by an earlier HC decision and concluded it would be futile to require exhaustion of alternate remedies. The court therefore granted relief, including quashing of proceedings initiated under the repealed provision, and allowed the petition.
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Quash of Recovery Notice dated 15.09.2025 under s.79(1)(c)(i): arrears largely paid, fresh notice permitted if bona fide dues remain
Case-Laws
GST
The HC quashed the impugned Recovery Notice dated 15.09.2025 issued by the 1st Respondent under s.79(1)(c)(i) of the respective GST enactments, holding that the alleged arrears had been largely discharged by the Petitioner through payments between 21.10.2023 and 11.03.2024 (and subsequently), leaving no subsisting liability as asserted in the notice; the Court noted earlier orders quantifying liabilities and a small additional interest demand for a prior period. The 1st Respondent was granted liberty to issue a fresh recovery notice under s.79(1)(c)(i) if bona fide other arrears remain outstanding. Petition stands disposed of.
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Show cause notice under Form GST REG-17 u/r 22(1) quashed for lacking date and time and violating natural justice
Case-Laws
GST
The HC held that the impugned show cause notice for cancellation of registration lacked the requisite ingredients of a proper SCN as mandated by Form GST REG-17 u/r 22(1), resulting in a serious violation of the principles of natural justice since no definite date or time was specified, preventing the petitioner from making an effective defence. Consequently, the SCN dated 17.03.2025, the order of cancellation dated 28.03.2025 and the order rejecting the revocation application dated 11.06.2025 were set aside. Liberty was reserved to the respondents to institute fresh cancellation proceedings, if lawful grounds exist, in accordance with applicable statutory procedure.
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From Oct 1, 2025, GST refund processing uses system risk scores; low-risk claims get 90% provisional sanction
Circulars
GST
From 01.10.2025, refund claims for zero-rated supplies-and provisionally for inverted duty structure claims as an interim measure-will be processed using system risk scores: “low-risk” claims will receive 90% provisional sanction, while non-low-risk claims undergo detailed scrutiny. A proper officer may, with reasons recorded, refuse provisional sanction and inspect the claim. Certain notified categories remain ineligible for provisional refunds and statutory conditions (including non-prosecution requirements) apply. If provisional amounts exceed final admissible refunds, recovery proceedings via show-cause notice will follow. The measures are subject to monitoring by jurisdictional tax leadership and apply to claims filed on or after 01.10.2025.
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GST 2.0: 0% GST on Term Insurance: What the Latest Reforms Mean for You
GST
Dated:- 6-10-2025
PTI
For years, term insurance premiums were taxed at 18% GST. Due to this, the premiums were costly, and a lot of people in India avoided term insurance plans due to the tax. However, after the GST 2.0 (w.e.f 22 September 2025, there will be 0% GST charged on term insurance. This makes term insurance premiums much more affordable than ever. However, how does this benefit you, and what should you do?
In this post, we'll discuss everything you need to know about this change, why it matters, and how it will affect you.
What is Term Insurance?
Term insurance is one of the most basic forms of life insurance. You pay a fixed premium fo

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as tax.
Under GST 2.0, this 18% GST has been removed by the government. Now, you only have to pay the premium amount mentioned by the insurer. No extra GST. So a plan that previously cost you ?11,800 now costs you only ?10,000.
Why is This Important?
For Indian families, even minor costs can mean a lot. The GST previously had rendered term insurance plans much less attractive than other financial instruments. However, the GST 2.0 has lowered the price of term insurance, and now it is more attractive and cheaper.
Here's why it counts:
• Lower premium cost: With no GST, premiums are cheaper and more affordable.
• Much more accessible for people: More individuals can purchase term insurance as there is less entry cost.
• Promote

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term planning
Now that your policy is less expensive, you can use the amount saved to invest in other objectives such as retirement, education, or medical expenses.
3. More coverage for the same budget
Now you have the option to choose a greater sum assured at the same price. Rather than paying tax, you can invest the money in increasing your cover.
What Should You Do Now?
If you have not purchased a term insurance plan till now, now is the best time to do so. The policies are more affordable, and the sooner you get them, the lower your premium will be.
However, if you already have a term plan, you will automatically get lower premiums when the time comes for your next premium. Individuals can also opt to boost their cover now a

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Set aside order rejecting appeal as time-barred for 23 days; remit for fresh adjudication under Rule 108(3)
Case-Laws
GST
The HC set aside the impugned order rejecting the appeal as time-barred by 23 days and remitted the matter to the appellate authority for fresh adjudication within a reasonable time. The court found the appellate authority erred in adopting a hyper-technical approach where the appellant, owing to bona fide confusion and portal/upload irregularities (including non-upload of the order summary and issuance of appeal number on physical filing), could not be deemed to have wilfully delayed filing; medical infirmity of the appellant was noted. The HC directed the appellate authority to entertain the appeal in accordance with Rule 108(3) provisos and applicable law and to decide afresh.
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Petitioner allowed to file appeal within 30 days on condition of 50% tax pre-deposit; appeal to be heard on merits
Case-Laws
GST
The HC granted the petitioner liberty to file an appeal before the Additional Commissioner (Appeals II), Chennai, within 30 days of receipt of this order on the condition that the petitioner deposits 50% of the disputed tax in cash as a pre-deposit. Upon such filing and pre-deposit, the Additional Commissioner (Appeals II) is directed to admit and dispose of the appeal on merits after hearing the petitioner, without reference to limitation. If the petitioner fails to comply with the pre-deposit and filing condition, the respondent is at liberty to proceed against the petitioner in accordance with law. Petition disposed of.
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Assessment order quashed for breach of natural justice; assessing officer must consider adjournment request before final assessment
Case-Laws
GST
The HC quashed the impugned assessment order dated 21.02.2025 and remanded the matter to the respondent for fresh consideration, finding multiple infirmities including breach of natural justice. The court held that the assessing officer failed to consider the petitioner's request for extension/adjournment before passing the assessment, thereby vitiating the proceedings; while an adjournment is not an absolute right, the officer is obliged to examine and either grant or refuse such application on the merits. Because the respondent proceeded without intimating whether the petitioner's request was considered, the assessment is set aside and the petition is disposed of by way of remand for fresh adjudication.
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Appellate order set aside for breach of natural justice; matter remanded for de novo hearing and fresh adjudication
Case-Laws
GST
The HC set aside an impugned appellate order dated 28 September 2024 for breach of natural justice, holding that the appellant was not afforded an opportunity to be heard and was unable to adduce documents or have pleaded grounds of appeal considered. The HC remanded the matter to the State-Tax Additional Commissioner (Appeal), Santhal Pargana Division, Dumka, directing a de novo adjudication after affording the parties a full and fair hearing and considering materials produced. The HC emphasized that quasi-judicial authorities must observe principles of fairness and provide hearing where decisions may cause civil consequences. Petition disposed of by remand.
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Appellate Authority to decide factual GST exemption status; petitioner allowed to file appeal under Section 107 CGST Act
Case-Laws
GST
The HC held that the question whether the recipients of the petitioner's manpower services fall within the exemptions under the impugned notifications must be determined on facts and by reference to the status of each recipient, and is for the Appellate Authority to decide. Noting that the petitioner has not collected GST from its clients and given the factual nature of the dispute, the HC permitted the petitioner to file an appeal under Section 107 of the CGST Act by 10 July 2025. The Appellate Authority is directed to consider the factual issues and to determine the quantum of any pre-deposit payable. Petition disposed.
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Appellant cannot avoid reversal of input tax credit on mutual fund subscriptions and redemptions under section 17(3) deeming provision
Case-Laws
GST
AAAR affirmed that the appellant is not entitled to avoid reversal of input tax credit (ITC) on common inputs and input services relating to mutual fund subscription and redemption, holding that the deeming provision in section 17(3) incorporates “transactions in securities” into the value of exempt supplies for ITC reversal. The authority rejected the contention that “securities” exclusion from goods/services removes them from exempt/non-taxable supply treatment and construed the Rule reference to “sale value” consistently with “transactions in securities,” encompassing redemptions. The AAAR also found no substantiation that subscription/redemption activities were in the course or furtherance of the appellant's business. The appeal is dismissed.
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AAAR upholds ITC on wires, cables and electrical equipment deemed plant and machinery; rejects challenge under sections 17(5) and 18(6)
Case-Laws
GST
AAAR affirmed the appellate authority's determination and dismissed the departmental appeal, holding that input tax credit (ITC) on capital goods comprising wires, cables and electrical equipment used to connect the DISCOM power supply to the respondent's factory is admissible. The Authority found no legally tenable ground in the Revenue's challenge that such items are excluded as 'plant and machinery' under section 17(5) or that section 18(6) procedures were infringed; the Revenue's contention of subsequent transfer to the transmission utility was unsubstantiated. In light of Board clarifications treating analogous infrastructure items as eligible, the GAAR findings were upheld and the appeal by the Assistant Commissioner was rejected.
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Amit Shah pitches for swadeshi goods during Diwali, says collective effort can make India ‘mahan’
GST
Dated:- 4-10-2025
PTI
Panaji, Oct 4 (PTI) Union Home Minister Amit Shah on Saturday urged people to celebrate Diwali with swadeshi spirit by promoting Indian products and shunning foreign goods, asserting that such a collective resolve by 140 crore citizens would make India “mahan” (supreme).
He was addressing a public meeting near Panaji after inaugurating various development projects, including the ambitious ‘Mhaje Ghar’ scheme of the Goa government to give ownership rights to people.
Chief Minister Pramod Sawant, Union minister and North Goa MP Shripad Naik and Rajya Sabha member Sadanand Shet Tanavade also attended the eve

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Haryana CM urges traders to pass GST benefits to consumers and promote indigenous products
GST
Dated:- 4-10-2025
PTI
Chandigarh, Oct 4 (PTI) Haryana Chief Minister Nayab Singh Saini on Saturday urged traders across the state to ensure that full benefits of the reduced GST rates are passed on to consumers.
He said that under the leadership of Prime Minister Narendra Modi, GST reforms have provided significant benefits to the people of India.
Saini called upon traders to actively participate in promoting the 'GST Bachat Utsav'.
He highlighted that this initiative will not only boost trade but also enable consumers to purchase essential items at lower prices.
Affordable prices, growing trade, and a strong economy are the co

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Saini urged traders to focus on the production and promotion of indigenous products.
He said that the prime minister is advancing the vision of a self-reliant India and emphasising the use of domestic products. GST reforms will play a crucial role in realising this vision.
By prioritising local goods, businesses can strengthen both the domestic industry and the state and nation's economy, he said.
Highlighting Haryana's consistent performance in GST collection, Saini said that the state's net SGST collection increased from Rs 18,910 crore in 2018-19 to Rs 39,743 crore in 2024-25.
This remarkable achievement reflects Haryana's strong economy and the support of its traders, he said.
Haryana has consistently remained the leading sta

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Section 6(1) CGST deems State/UT GST officers proper officers unless notification imposes conditions and permits intelligence-based Central action below Rs1cr
Case-Laws
GST
The HC dismissed the petitions and upheld the impugned proceedings. It held that Section 6(1) CGST creates automatic cross-empowerment: officers appointed under State/UT GST Acts are deemed proper officers for CGST unless the Government, on Council recommendation, issues a notification imposing conditions. No separate notification is required to confer basic jurisdiction; notifications only operate to subject that empowerment to conditions. Intelligence-based enforcement proceedings (including issuance of SCNs by Central officers) may be initiated even where amount involved is below Rs.1 crore, whereas audit/scrutiny-based proceedings remain with the tax authority to which the assessee is assigned. The permissibility of “bunching” SCNs across years was left open for adjudication; petitions lacked merit.
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Seizure of crane quashed; interstate movement for contract work not supply, no IGST; Section 24 seizure invalid
Case-Laws
GST
HC quashed the seizure and ancillary orders and allowed the writ petition, holding that the interstate movement of the crane for execution of a works contract did not constitute a supply of goods or services and thus attracted no IGST. The court held Board circulars to be binding on authorities and, in absence of intent to evade tax, Section 24 principles did not permit seizure. Consequently the impugned seizure was invalid and the authorities are directed to release the goods forthwith upon production of a certified copy of the order. Costs not addressed.
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Dismissal Upheld: Consolidated Show-Cause Notices Valid for Multiple Years Where Input Tax Credit Fraud Alleged; Section 107 CGST
Case-Laws
GST
HC dismissed the petition and upheld that issuance of a consolidated show cause notice for multiple years is permissible where the primary allegation is fraudulent availment of input tax credit. The court recognized that the impugned order is appealable under Section 107, CGST Act, 2017, and disposed of the petition while granting the Petitioner liberty to file an appeal by 30 September 2025 subject to requisite pre-deposit(s). If the appeal is instituted within the stipulated period, the Appellate Authority is directed not to reject it on limitation grounds but to adjudicate the challenge on its merits. The petition is disposed.
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Advance ruling: product classed under tariff item 38089340 as plant growth regulator, attracts 18% integrated tax
Case-Laws
GST
AAAR affirmed that the product is classifiable under tariff item 38089340 as a plant growth regulator and attracts integrated tax at 18% (9% CGST + 9% SGST) under the referenced notification. The authority held that the appellant bears the onus of full disclosure in an advance ruling application and cannot rely on proprietary nondisclosure by its supplier to avoid that duty; alleged non-party status to prior disputes was immaterial, and submitted laboratory certificates undermined that claim. Challenges that the product is a fertilizer or a vegetable-origin enzyme were rejected for lack of probative evidence. The appellant's appeal is dismissed.
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Writ allowed; composite DRC-07 assessment quashed, remanded for fresh hearings and separate SCNs for each tax period
Case-Laws
GST
The HC allowed the writ petition, holding that the impugned composite assessment order in Form GST DRC-07 dated 09.01.2025 and the corresponding summaries dated 17.01.2025 issued against the petitioner are set aside and the matters remanded to the 1st respondent for fresh adjudication after affording due opportunity of hearing. The Court clarified that electronically issued show-cause notices and summaries require digital authentication but, where an RFN indicates affixation of a digital signature, challenge on absence of physical/digital signature is negated. Further, issuing a common SCN or common order for multiple assessment periods is impermissible; separate SCNs, orders and summaries must be issued for each tax period.
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Relief denied as GST dispute deemed contractual and non-justiciable here; pursue contractual or appellate remedies under CGST.
Case-Laws
GST
The HC dismissed the writ petition, holding the reliefs sought to be non-justiciable in this forum. The court found the disputed GST payment arose from contractual relations between the petitioner and the Department, thus constituting a contractual dispute unsuitable for resolution by writ. The petitioner remains free to pursue a refund or challenge the deduction through the appropriate contractual and appellate remedies; however, the tax authorities cannot be ordered to refund amounts lawfully assessed and collected as penalty/tax pursuant to statutory proceedings under the CGST framework. Consequently, there was no basis to direct restitution, interest, or departmental punishment in this writ, and the petition was dismissed.
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J&K govt rolls out GST 2.0 reforms, adopts 7-step consumer benefit protocol
GST
Dated:- 4-10-2025
PTI
Jammu, Oct 3 (PTI) Jammu and Kashmir government on Friday rolled out GST 2.0 reforms in the Union territory, bringing in major changes to rationalise the tax structure and ensure consumer welfare in line with the national reforms drive.
Effective September 22, GST has adopted a two-tier structure, with rates of 5 per cent and 18 per cent. The earlier tax slabs of 5, 12, 18, and 28 per cent have now been clubbed into the two rates mentioned above, resulting in a reduced price of 99 per cent of daily use items.
“The Government has commenced the implementation of next-generation GST reforms 2.0, effective from September 22, alig

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sperson said.
Citizen support will be extended via GST Suvidha Kendras and helplines set up in every district, the official said, adding that the Suvidha Kendras will help taxpayers with GST 2.0 compliance, including return filing, code remapping, and grievance redressal.
The second step is awareness and capacity building, involving organising webinars, publishing brochures, and launching campaigns on radio and social media to spread knowledge about the changes and their benefits, the order said.
The third step, which covers monitoring and documentation, is aimed at collecting invoices and voluntary price declarations to document compliance and ensure that the reduced tax rates are accurately reflected in the market.
The fourth step

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Will approach courts if needed to secure stateÂ’s share of central grants: CM Siddaramaiah
GST
Dated:- 3-10-2025
PTI
Mysuru (Karnataka), Oct 3 (PTI) Karnataka Chief Minister Siddaramaiah on Friday said he would approach the courts if necessary to secure the stateÂ’s rightful share of central funds.
Speaking to reporters here, he also slammed the Centre for celebrating rationalisation of Goods and Services Taxes (GST), saying there was little to celebrate after eight years of introduction of GST in the country.
Commenting on the Centre refund of Rs 3,200 crore, Siddaramaiah said, “UP is getting 17 to 18 per cent of the central grant while we are getting only 3.5 per cent. Is this justified? We are asking them (Centre) to rectif

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rore for peripheral ring road around Bengaluru and Rs 5,400 crore for upper Bhadra scheme were also denied to us. Isn’t this intentional?” he asked.
Siddaramaiah added that Karnataka was supposed to receive Rs 11,490 crore along with an additional Rs 5,000 crore, which has not been released.
Asked whether the state would take legal action, he said, “If needed, we will go to court to get the money.” Regarding the ‘GST Utsav’ being organised by the BJP leaders, Siddaramaiah said the central government introduced the GST in 2017 and fixed the tax rates but after eight years, it rationalised the taxes.
“After rationalisation, will the Centre refund whatever tax it had collected in the last eight years? What is there to pat in the back?” h

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Tax authority withdraws circular prescribing evidence procedure under Section 15(3)(b)(ii) CGST Act; suppliers no longer required to comply
Circulars
GST
The tax authority withdraws its prior circular dated 26 June 2024 that had prescribed a procedure for suppliers to provide evidence of compliance with Section 15(3)(b)(ii) of the CGST Act concerning reversal of input tax credit for discounts; the withdrawn procedure is no longer required. Field formations are directed to publicize the withdrawal via trade notices and to report any implementation difficulties to the authority.
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Monetary Policy Statement, 2025-26 Resolution of the Monetary Policy Committee September 29 to October 1, 2025
GST
Dated:- 3-10-2025

Monetary Policy Decisions
The Monetary Policy Committee (MPC) held its 57th meeting from September 29 to October 1, 2025, under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Shri Indranil Bhattacharyya attended the meeting.
2. After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, the MPC voted unanimously to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.50 per cent; consequently, the standing deposit facility (SDF) rate remains at 5.25 per cent while the marginal standing facility (MSF) rate and the Bank Rate remains at 5.75 per cent. The MPC also decided to continue with the neutral stance.
Growth and Inflation Outlook
3. Th

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ndicators suggest that economic activity continues to remain resilient. Rural demand remains strong, riding on a good monsoon and robust agriculture activity, while urban demand is showing a gradual revival. Revenue expenditure of the Union and State Governments registered robust growth during the fiscal year so far (April-July). Investment activity, as suggested by healthy growth in construction indicators i.e., cement production and steel consumption in July-August, is holding up well even though production and import of capital goods witnessed some moderation. Recovery in manufacturing sector continues while services activity is sustaining its momentum.
5. Looking ahead, an above normal monsoon, good progress of kharif sowing and adequate reservoir levels have further brightened prospects of agriculture and rural demand. Buoyancy in services sector coupled with steady employment conditions are supportive of demand, which is expected to get a further boost from the rationalisation o

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fore rising to 2.1 per cent in August – its first increase after nine months. Benign inflation conditions during 2025-26 so far have been primarily driven by a sharp decline in food inflation from its peak of October 2024. Inflation within the fuel group moved in a narrow range of 2.4-2.7 per cent during June-August. Core inflation remained largely contained at 4.2 per cent in August. Excluding precious metals, core inflation was at 3.0 per cent in August.
7. In terms of the inflation outlook for H2: 2025-26, healthy progress of the south-west monsoon, higher kharif sowing, adequate reservoir levels and comfortable buffer stock of foodgrains should keep food prices benign. The recently implemented GST rate rationalisation would lead to a reduction in prices of several items in the CPI basket. Overall, the inflation outcome is likely to be softer than what was projected in the August MPC resolution, primarily on account of the GST rate cuts and benign food prices. Despite the anticipat

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9. Growth outlook remains resilient supported by domestic drivers, despite weak external demand. It is likely to get further support from a favourable monsoon, lower inflation, monetary easing and the salubrious impact of recent GST reforms. However, growth continues to be below our aspirations. Even though the growth projection for the financial year 2025-26 is being revised upwards, the forward-looking projections for Q3 and beyond are expected to be slightly lower than projected earlier, primarily due to tariff-related developments, despite being partially offset by the impetus provided by the rationalisation of GST rates.
10. To summarize, there has been a significant moderation in inflation. Moreover, the prevailing global uncertainties and tariff related developments are likely to decelerate growth in H2:2025-26 and beyond. The current macroeconomic conditions and the outlook has opened up policy space for further supporting growth. However, the MPC noted that the impact of the

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