Goods and Services Tax

India's GDP to grow 7.6 pc in FY26 after revamp of calculation framework
GST
Dated:- 27-2-2026
PTI
New Delhi, Feb 27 (PTI) India's economic growth estimate was raised to 7.6 per cent for the current fiscal on Friday following a revamp of the GDP calculation framework, underscoring the resilience of the world's fastest-growing major economy amid global trade disruptions.

The growth forecast for the fiscal year ending March, released by the National Statistics Office under a new series of national accounts, compares to the previous estimate of 7.4 per cent under the old data series, and 7.1 per cent in the previous 2024-25 fiscal year.

The calculation revamp, which included a change of base year to 2022-23 and improved capture of faster-growing segments of the economy, however, led to a moderation in real GDP growth in October-December (the third quarter of the current 2025-26 fiscal year) to 7.8 per cent from 8.4 per cent in Q2.

The methodological overhaul, aimed

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ural demand, kept the momentum in the economy.

Earlier this month, New Delhi reached an interim agreement with Washington that reduces effective tariffs to 18 per cent from 50 per cent, before the US Supreme Court struck down President Donald Trump's global tariffs.

India's Chief Economic Advisor V Anantha Nageswaran said the economic growth projection for the next fiscal has been revised upwards by 20 basis points to 7-7.4 per cent following the release of the new GDP series.

The Economic Survey presented in Parliament in January projected a growth rate of 6.8-7.2 per cent for the fiscal year 2026-27.

“The economy is more likely to achieve a number closer to 7.4 per cent rather than 7 per cent,” he said, adding that based on current indicators, nominal GDP growth would be close to 11 per cent and the size of the economy would comfortably cross the USD 4 trillion-mark.

Nageswaran also asserted that the Indian economy continues to maintain strong growth momentum, sup

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for FY2027, as against the 4.3 per cent assumed in the budget, assuming a nominal GDP growth of ~10 per cent in the fiscal.” Projecting a GDP growth of 7 per cent in the 2026-27 fiscal, Icra said there is a higher likelihood of a prolonged pause on the interest rate by RBI, amid expectations of a base-led uptick in the CPI inflation in the near term.

The Ministry of Statistics and Programme Implementation (MoSPI) on Friday released the New Series of Annual and Quarterly National Accounts Estimates with base year 2022–23, which replaces the previous series with a base year of 2011–12. This is the 9th base revision of the GDP series.

According to the new series, the gross domestic product (GDP) in the October-December quarter of 2025-26 grew by 7.8 per cent, up from 7.4 per cent in the year-ago period, mainly driven by the manufacturing and services sectors.

Further, the GDP growth for the second quarter has been revised upwards to 8.4 per cent from 8.2 per cent in the

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per cent and 7.1 per cent, respectively, during 2023–24 and 2024–25. Nominal GDP has registered 11 per cent and 9.7 per cent growth rates during 2023–24 and 2024–25, respectively.

“Manufacturing sector has been the major driver in contributing to the resilient performance of the economy in consecutive three financial years after rebasing. This sector has attained double-digit growth rates in 2023-24 and 2025-26,” MoSPI said.

'Trade, Repair, Hotels, Transport, Communication and Services related to Broadcasting, Storage' sector has attained a growth rate of 10.1 per cent at constant prices in 2025-26.

On the consumption side, both the Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) have exhibited more than 7 per cent growth rate in 2025-26.

The new series uses new data sources like Goods and Services Tax (GST) data, Public Finance Management System (PFMS), E-vahan, which are more comprehensive and available at a shorter time l

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New GDP series projects higher growth rate at 7.6 pc in FY26, 7.8 pc in Oct-Dec
GST
Dated:- 27-2-2026
PTI
New Delhi, Feb 27 (PTI) India's GDP growth estimate has been raised to 7.6 per cent for the current fiscal from 7.4 per cent after the government revised the calculation methodology, including change in base year and adding data from GST and e-Vahan portal, to better reflect economic activities.

The Ministry of Statistics and Programme Implementation (MoSPI) on Friday released the New Series of Annual and Quarterly National Accounts Estimates with base year 2022–23, which replaces the previous series with a base year of 2011–12. This is the 9th base revision of the GDP series.

According to the new series, the gro

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aid, while releasing the new series.

The series provides the 'Second Advance Estimates of Annual GDP for FY 2025–26' and 'Quarterly Estimates of GDP from Q1 (April-June) of FY 2022-23 to Q3 (October-December) of FY 2025-26'.

Nominal GDP has witnessed a growth of 8.6 per cent during 2025-26.

These growth rates are revised upward from their respective First Advance Estimates computed using previous base year (2011-12), MoSPI said.

It further said that the economy has exhibited sustained performance, recording real GDP growth rates of 7.2 per cent and 7.1 per cent, respectively, during 2023–24 and 2024–25. Nominal GDP has registered 11 per cent and 9.7 per cent growth rates during 2023–24 and 2024–25, respectively.

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ich are more comprehensive and available at a shorter time lag, and have been explored for augmenting the existing data sources for compilation and corroboration of estimates.

Further, MoSPI said that in the new series, double deflation will be used in the manufacturing and agriculture industries and single extrapolation elsewhere.

As such, single deflation has been completely done away with. Besides, deflators will be used at a more granular level.

In the old series, the household sector was estimated either through inter-survey growths or through some proxy indicators.

In the new series, level estimates of the household sector will be compiled through regular surveys – Annual Survey of Unincorporated Sector Enterprise (A

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Improper Electronic Service of Notices: court held portal upload insufficient, allowing vires challenge and stay on recovery and attachment.
Case-Laws
GST
Validity of notifications issued under the impugned scheme was challenged on grounds that portal uploading under 'Additional Notices and Orders' did not constitute proper service and that non-compliance with statutory procedural requirements vitally affected the order's validity; the writ was entertained on those vires and natural jus

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Non-application of mind by an appellate authority: order set aside and remanded for fresh merits consideration of documents and submissions.
Case-Laws
GST
Appellate authority failed to apply independent mind by paraphrasing the adjudicating authority and neglecting the petitioner's explanations and documents on record; the HC found the appellate order uninformed and susceptible to judicial reproach. The court held that the appellate order does not reveal consideration of submissions or

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Opportunity to be Heard under Section 75(4): adjudication set aside for breach of natural justice; remanded for fresh hearing.
Case-Laws
GST
Grant of an opportunity of hearing under Section 75(4) and principles of natural justice were determinative: absence of proof that petitioners received the online notice meant no opportunity to be heard, rendering the adjudication contrary to the statutory hearing requirement and natural justice. Consequently the High Court set aside the adjudicati

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Electronic upload of Form GST DRC-07 is mandatory and treated as notice for recovery; recovery stays until upload.
Case-Laws
GST
Rule 142(5)-(6) obligation requires electronic uploading of a summary of assessment orders in Form GST DRC-07, and such uploading is treated as the statutory Notice for recovery; therefore the summary serves to inform the demand and preserves the taxpayer's right to appeal. Compliance with this prescribed electronic summary is mandatory for prosecuting recover

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Tribunal Functionality obligations: HC directs affidavit by Joint Secretary-level officer and one-week compliance for IT enablement.
Case-Laws
GST
Constitution of a Tribunal requires active steps to render it functional; the HC emphasised the duty to enable tribunals for adjudicatory work including virtual/e court capability and IT infrastructure, and to complete appointments of Members. The court directed an affidavit by an officer not below Joint Secretary verifying steps taken, and g

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Principles of Natural Justice require quashing non-speaking tax orders and fresh adjudication with personal hearing and reasoned order.
Case-Laws
GST
Non-speaking assessment orders that do not address taxpayer submissions violate the principles of natural justice; the impugned orders confirming liability and referring to interest and penalty without reasoned findings were quashed and set aside. The respondents are directed to issue fresh show-cause notices, grant a personal hearing, and

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Maintainability of advance ruling applications may be reviewed and remanded when fresh documentary evidence requires verification for fresh decision.
Case-Laws
GST
Application maintainability was questioned where the applicant initially failed to produce purchase and sales invoices and product brochure; the appellate power to confirm or modify an advance ruling exists but no merits determination was possible on the record. The applicant subsequently furnished invoices and offered furthe

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Dictionary Meaning applied to 'instrument, appliance or apparatus' leads to chemical classification and GST liability.
Case-Laws
GST
AAR applies dictionary meanings for undefined statutory terms and holds that the dry citrate powder is a chemical (salt/ester of citric acid) classifiable under HSN 29181590 based on composition; the product does not satisfy the statutory notion of an instrument, appliance or apparatus so medical-device licensing is not determinative for tariff classificat

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Intermediary services vs Principal-to-Principal: direct supplies to foreign recipients are exports with place of supply at recipient location.
Case-Laws
GST
Intermediary services are distinguished from principal-to-principal supplies: where a supplier contracts directly with and is paid by a foreign university the supplier is not an intermediary but provides marketing services on a principal-to-principal basis, making those services export of services and placing the supply at the recip

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Central Board of Indirect Taxes and Customs (CBIC) and Permanent Mission of India organise Special Trade Facilitation Sessions at World Trade Organisation in Geneva.
GST
Dated:- 26-2-2026

Indian Delegation led by Member Customs showcases India's digital Customs reforms and TFA implementation ahead of India's Trade Policy Review in July 2026

India has notified 100% WTO Trade Facilitation Agreement commitments and advances 'TFA Plus' measures under National Trade Facilitation Action Plan 3.0

India highlights indigenously developed digital Customs ecosystem including Single Window Interface, Risk Management System and Authorised Economic Operator Programme

Digital Customs reforms reduce compliance burden for MSMEs and strengthen India's integration into global value chains

CBIC's Ease of Doing Business reforms for 2026 focus on trusted importer framework, courier export liberalisation and simplified e-commerce export procedures

Wide participation from delegates

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s experience and best practices.

Having achieved compliance with WTO TFA commitments, India has moved towards “TFA Plus” measures under the National Trade Facilitation Action Plan (NTFAP 3.0), aiming to go beyond the minimum requirements and align with evolving global best practices. During the session on Trade Facilitation, Indian Customs delegation highlighted it's 'whole-of-government approach' in Customs reforms, and pioneering efforts in creating a faceless, contactless and paperless Customs ecosystem through extensive digitalization and process re-engineering.

India has notified 100% of its TFA commitments within the stipulated timelines. The progress reflects India's sustained commitment to:

• Enhancing transparency

• Improving inter-agency coordination, and

• Simplifying cross-border trade procedures

The CBIC showcased its advanced and indigenously developed systems as following:

• Comprehensive Customs Automated Syst

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CO as Regional Training Centre for Asia-Pacific and Regional Customs Laboratory respectively. It was stated that, since 2022, NACIN has conducted 65 trainings and more than 1,800 international participants from around 30 countries were benefited by these initiatives. Several of them were done in collaboration with various international organisations such as WCO, ADB and others. Similarly, CRCL trained more than 300 international participants. India expressed its willingness to partner with countries especially developing countries to strengthen their capacity for implementing trade facilitation Agreement commitments. The participants appreciated the state-of-the-art infrastructure of these institutions and the training offered by the premier institutions of India. 

The Special Secretary and Member (Customs), Shri Surjit Bhujabal, remarked that India's digitisation and modernisation of customs procedures over the past decade have contributed meaningfully to trade growth, and dee

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enabling factory-to-ship clearance. Key reforms also include removing the Rs.10 lakh value cap on courier exports, allowing exporters to ship goods of any value via courier, benefiting MSMEs and e-commerce exporters; the Return to Origin (RTO) for returning unclaimed or uncleared international courier shipments to foreign senders, and a simplified, risk-based customs framework for handling e-commerce export returns.

The Ambassador and Permanent Representative to the WTO Geneva, Dr Senthil Pandian, stated that India has pursued trade facilitation reforms as a core pillar of its trade policy. According to the UNESCAP Global Survey 2023, India achieved an overall trade facilitation implementation score of over 93 percent, placing it among the leading performers in the Asia-Pacific region and the highest in South Asia. India secured full implementation scores in areas such as Transparency, Formalities, Institutional Arrangements and Cooperation, and Paperle

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Central Board of Indirect Taxes and Customs (CBIC) to host National Symposium on Customs Reforms and International Customs Day 2026 with the theme of ‘Customs protecting society through vigilance and commitment’
GST
Dated:- 26-2-2026

Union Minister of State for Finance Shri Pankaj Chaudhary to preside over International Customs Day 2026 in New Delhi tomorrow

The Central Board of Indirect Taxes and Customs (CBIC) is hosting the National Symposium on Customs Reforms, 2026, and International Customs Day, 2026, in New Delhi, tomorrow.

Union Minister of State for Finance Shri Pankaj Chaudhary will preside over the International Customs Day 2026 along with Shri Arvind Shrivastava, Secretary, Department of Revenue; Shri Vivek Chaturvedi, Chairman, CBIC; and officials of Department of Revenue, Ministry of Finance, and CBIC, will also remain present.

The International Customs Day 2026 will witness screening of a short film on Customs Reforms; an aud

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cements. The session will comprehensively cover trust-based customs processes and digital governance, including recent legal changes and import procedural reforms. It will also highlight the evolution of the digital ecosystem through initiatives such as SWIFT 2.0 and the Customs Integrated System (CIS). In addition, the discussions will focus on emerging export opportunities, including courier reforms, fisheries enablement and export procedure reforms. Special emphasis will also be placed on ease of living measures, particularly reforms relating to baggage rules and personal imports.

The Symposium will highlight India's ongoing transformation in Customs administration, focusing on trust-based processes, digital governance, trade facilitation and ease of living for citizens.

The event will bring together senior government officials, policymakers, trade representatives, industry stakeholders and officers from across the country to deliberate on key reforms shaping the future of Ind

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ner, Commissioner of Customs, Airport and ACC, Bangaluru

9

Roy Varghese

Deputy Commissioner, Custom House, Cochin

10

Prabhjot Kaur

OSD, Customs & EB, CBIC, New Delhi

11

Veenu Kavaria

Deputy Director, DRI, Mumbai Zonal Unit

12

Sakshi Garg

Under Secretary, GST Policy Wing, CBIC, New Delhi

13

Rajender Kumar Gupta

Assistant Commissioner, O/O the Chief Commr., Customs Delhi Zone, New Delhi

14

Ananya Kumar Singh

Technical Officer, TRU-I, CBIC, New Delhi

15

Rajan Keswani

Superintendent, Customs IV Section, Customs Policy Wing

16

Veena Rao

Superintendent, Custom, Canine Centre, Attari

17

Bhawani Singh Shekhawat

Superintendent, Custom, Prev. Jaipur

18

Rajbinder Singh

Superintendent, DRI Regional Unit Mangaluru

19

Khaimuansang

Intelligence Officer, DRI, Aizawl Regional Unit

20

Vinod  Badola

Tax Assistant, DRI, Head Quarter, New Delhi

****

NB/KMN

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News –

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Documentary and electronic evidence do not ordinarily justify custodial detention, so bail granted subject to bonds and sureties.
Case-Laws
GST
Grant of regular bail in economic-offence proceedings where alleged offences carry maximum imprisonment up to five years: court reasons that documentary and electronic evidence, to be led through official witnesses, do not necessitate custodial detention or risk of tampering, particularly when no custodial interrogation is sought; balancing need

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Right to fair hearing requires furnishing verification reports and a fresh hearing before concluding on transitional input tax credit.
Case-Laws
GST
Failure to furnish verification reports and to grant an opportunity to address them breaches the principles of natural justice; where verification reports influenced an adjudicatory order, the affected party must receive copies and a fresh hearing before conclusions are drawn. The note emphasises that adjudicators must conduct complete veri

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Detention of goods: appellate authority must reassess lab report admissibility and address all reply and appeal contentions on remand.
Case-Laws
GST
Detention of goods under statutory seizure proceedings was challenged on the grounds that the analytical laboratory report's reliability and admissibility and the petitioner's reply and appeal contentions were not addressed; the appellate order recorded conclusions without reasons. The principle applied requires the adjudicating/appellate a

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Reconciliation Requirement: remand for fresh adjudication subject to pre-deposit and conditional lifting of bank attachment.
Case-Laws
GST
High Court found the petitioner's statutory replies to Form GST DRC-01 notices inadequate, holding that mere production of voluminous documents does not negate alleged excess input tax claims. The Court required tabulation and reconciliation of bank statement entries with monthly GSTR-3B returns and annual GSTR-9/9C filings, and granted one opportuni

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Reverse Charge Mechanism and ITC reversal require fresh adjudication to assess repeal impact and conditional relief.
Case-Laws
GST
Remand required for fresh adjudication of tax demands arising from admitted reverse charge mechanism liability and disputed input tax credit (ITC) reversal; the commentary stresses that although Section 42 (ITC reversal) was later deleted by Finance Act, 2022, the effect of that repeal on past liabilities and entitlement to retrospective benefit must be cons

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Interest on Wrongful Input Tax Credit is mandatory where excess transitional credit was retained and later reversed, and related objections were rejected.
Case-Laws
GST
Petitioner admitted wrongful availment and retention of excess transitional input tax credit and later reversed it; interest liability for wrongful availment is mandatory under the applicable GST interest provisions and was computed for the period of retention. The adjudicating and appellate authorities considered and re

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Blocking of electronic credit ledger requires written reasons, a show cause process and a hearing before a speaking order is issued.
Case-Laws
GST
Blocking of the electronic credit ledger must be accompanied by written reasons and followed by opportunity to be heard; the respondent may issue a show cause notice after receipt of an investigation report and must communicate recorded reasons to the taxpayer. The taxpayer may file a reply with additional documentary evidence within one week

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Overlap of tax assessments requires remand for fresh adjudication; taxpayers must particularize and substantiate pre GST transactions.
Case-Laws
GST
Order sets aside impugned adjudication and remits the matter for fresh merit determination, directing the respondent to take into account the State Authority's order for the same tax period. Petitioner must particularize each pre GST transaction alleged to have been subject to Service Tax/VAT, substantiate claims with annexures (mere filing

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Tariff classification: paddle wheel aerators treated as residual machines, not agricultural machinery, affecting GST treatment.
Case-Laws
GST
Paddle wheel aerators used in aquaculture do not fall within the specific agricultural machinery heading (HSN 8436) because that entry is limited to machineries used in agriculture, horticulture, forestry, poultry and bee keeping; ejusdem generis and noscitur a sociis principles and the popular meaning of “agriculture” were applied, and notificati

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Advance Payment as Consideration: GST liability arises on receipt of advance unless an earlier invoice is issued.
Case-Laws
GST
Mobilisation advances under a works contract are treated as consideration for supply, and works contracts are treated as services; accordingly the advance is a payment for the supply. Time of supply for such services follows the provisions applicable to services, permitting an invoice for an advance to be issued before provision of service. Absent issuance of a

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Characterisation of supply by place of preparation: retail prepared food is restaurant service (no ITC); B2B ice cream is goods with ITC.
Case-Laws
GST
Characterisation of supply turns on where the food is prepared: foods prepared in a retail outlet that offers dine in are treated as restaurant services (including take away) and attract GST at 5% without eligibility to claim input tax credit; identical ice cream sold in B2B transactions is treated as supply of goods (no service element)

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Mixed supply characterization for bundled printing consumables – treated as mixed, continuous supply; time and value follow invoice/per-click terms.
Case-Laws
GST
The ruling determines that bundled sale of printing inks and various consumables is not a composite supply because the bundle is not 'naturally bundled' nor does any single good qualify as the 'principal supply'; instead the package is a mixed supply and taxable accordingly. The supply is a continuous supply with periodic invo

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