Goods and Services Tax

Attention : Update on Advisory on Interest Collection and Related Enhancements in GSTR-3B
GST
Dated:- 20-2-2026

In continuation to the advisory posted on the GST Portal on 30th January, 2026 on the above subject, it is hereby informed that the functionality to utilise CGST or SGST ITC for payment of IGST liability, in any order of payment after complete exhaustion of IGST Credit (ref point no 3 of the advisory), shall be available from February-2026 period.

 Advisory on Interest Collection and Related Enhancements in GSTR-3B

It is hereby informed that from January-2026 period onwards, the following enhancement have been made in filing of GSTR-3B:

Update in Interest Computation for GSTR-3B

From January-2026 tax

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x (No. of days delayed / 365) x Applicable Interest Rate

1. System-Computed Interest in Table 5.1:

The interest auto-populated on the basis of the revised computational formula mentioned above, in table 5.1 of GSTR-3B shall be non-editable and taxpayers would not be allowed to amend the auto-populated values downward. It may be noted that the interest auto-populated in GSTR-3B is only the minimum interest that is required to be paid by the taxpayer. However, the taxpayers needed to self-assess their correct interest liability, and amend the auto populated values upward, if required.

2. Auto-Population of Tax Liability Breakup Table in GSTR-3B

The 'tax liability breakup table' in GSTR-3B capture the supplies of previous tax perio

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modify upwards these values based on their own records and computations, if required.

The auto-populated breakup can be viewed at:

Login → GSTR-3B Dashboard → Table 6.1 (Payment of Tax) → Tax Liability Breakup

3. Update in Table 6.1 – Suggestive Cross-Utilization of ITC

From January-2026 period onwards, once the available IGST ITC has been fully exhausted, the GST Portal will allow to pay IGST liability in Table 6.1 of GSTR-3B using available CGST and SGST ITC in any sequence,

4. Collection of Interest in GSTR-10 for Delayed Filing of Last Applicable GSTR-3B

In case of cancelled taxpayers, if the last applicable GSTR-3B return has been filed after the due date, then the interest applicable on such delayed fi

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Nodal Officer designation for GST intelligence under IGST Act section 14A(3) appointed, superseding prior notification and now in force.
Notifications
GST
Central Government designates the Principal Additional Director General/Additional Director General (Intelligence) of the Directorate General of GST Intelligence Headquarters as the nodal officer for implementation of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2025 in relation t

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Suspension pending disciplinary inquiry: prima facie misconduct from chronology, suspension not to continue and inquiry to proceed.
Case-Laws
GST
Suspension pending disciplinary inquiry is evaluated through a prima facie assessment of misconduct based on the chronology of events; the timeline showed an adverse inspection report pre-dating a fraudulent input tax credit claim, supporting initial misconduct findings. The article emphasises that departmental proceedings must be completed wi

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Appellate remand prohibition: remanding GST matters back to adjudicating authority is impermissible, petitioner need not be relegated.
Case-Laws
GST
Appellate remand power under Section 107(11) was challenged and the court found that the appellate authority's practice of remitting matters back to the adjudicating authority is impermissible; consequently the court refused to direct the writ petitioner to pursue relief before the GST appellate forum. The court noted connected orders dated

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Composite GST notices for multiple years can be quashed; fresh year wise notices permitted and pendency excluded from limitation.
Case-Laws
GST
The note examines sustainability of composite notices issued under the CGST/SGST scheme for multiple assessment years, holding that the concept of a “valid return” and the limitation linked to the financial year constrain multi year adjudication. It recognises that officers may investigate instances spanning years but stresses that consolidated

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Limitation for filing appeal paused when certified adjudication order is supplied; appeal to be filed and decided on merits.
Case-Laws
GST
High Court directed petitioner to file an appeal under the Finance Act, 1994 within fifteen days and ordered that if the appeal is filed within that period the appellate authority shall not raise limitation objection because a certified copy of the adjudication order was supplied; petitioner must file the certified copy with the Appellate Authority w

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Manual Filing of Appeal: appellate offices must accept manual appeals when the e filing portal prevents electronic submission.
Case-Laws
GST
Where an appellant cannot upload an appeal on the common electronic portal because the portal refuses filing absent deposit of a separate demand item, the office must accept a manually filed appeal; the core legal point is that a technical or procedural barrier on the e filing system that prevents initiation of an appeal constitutes a valid ground

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Penalty for false import declarations requires specific pointed findings and a fresh, reasoned hearing before penalties impose.
Case-Laws
GST
Sections 112(a), 112(b) and 114AA are characterised as onerous penalty provisions and require the department to make specific, pointed findings establishing serious violations and an intention to evade duty before imposing penalties; mere reliance on a retracted statement and bills of entry without detailing the petitioner's role, the false declar

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Input Tax Credit pass-through ensured: respondent found to have passed on GST benefit; remaining small payment to buyers to be made.
Case-Laws
GST
Respondent passed on the benefit of additional input tax credit to home-buyers, satisfying the anti-profiteering obligation by providing a commensurate reduction in price; the investigative report acknowledged this pass-through except for a residual payment owed to seven buyers, which the respondent agreed to remit. The tribunal accepted the

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Classification by essential character distinguishes shaving cream and shaving foam; cream attracts concessional rate, foam attracts higher rate.
Case-Laws
GST
Classification by essential character determines that both shaving cream and shaving foam fall under HSN heading 3307 but occupy different subheadings: shaving cream is classifiable under tariff item 33071010 while shaving foam falls under 33071090. A conjoint reading of Schedule I and Schedule II entries in the concessional rate

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Tripura tea auction centre likely to be operational by April: official
GST
Dated:- 19-2-2026
PTI
Agartala, Feb 19 (PTI) The proposed tea auction centre in Tripura is likely to be made operational by April, an official said on Thursday.

Chief Minister Manik Saha had laid the foundation stone for the state's first tea auction centre at Gurkhabasti in West Tripura district in March, 2024. At present, the country has seven tea auction centres.

“We have set a target to operationalise the first tea auction centre at Gurkhabasti by April,” Tripura Tea Development Corporation (TTDC) chairman Samir Ranjan Ghosh told PTI.

He said buyers have been seeking a transport subsidy to make the auction centre viable, and paying heed to th

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Habeas Corpus: unlawful remand and failure to provide grounds of arrest justify writ relief and set aside remand.
Case-Laws
GST
Habeas corpus petition found maintainable where remand order was not in accordance with law, rendering the arrest illegal; court applied the “reasons to believe” standard to assess whether arrest relied on credible evidence or mere suspicion and found remand record silent on that inquiry, undermining exercise of arrest powers under the special statute. Failure

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Territorial jurisdiction for writs upheld where account debit freeze occurred within limits; bank directed to restore account operation.
Case-Laws
GST
Territorial jurisdiction under Article 226(2) is satisfied because the principal cause of action-the debit freezing of the petitioner's bank account-arose within the Court's territorial limits, permitting a writ petition challenging that freeze. The court applied the principle that a legal right infringed within territorial limits support

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Assignment of leasehold rights is a transfer of immovable property benefits and not a taxable supply of services under GST.
Case-Laws
GST
Assignment of long term leasehold rights constitutes transfer of benefits arising out of immovable property where the lease is for a 95 year term and the lease permits transfer; such a transaction lacks the essential element of a supply of services in the course or furtherance of business and therefore falls outside the GST levy. The reasoning adopts

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Classification of Goods: Binding precedent requires reclassification of coconut oil; matter remitted for fresh adjudication.
Case-Laws
GST
Classification of coconut oil turns on application of Chapter Notes and the Harmonized System: pure coconut oil sold as edible oil falls under Heading 1513 unless its packaging meets all requirements of Chapter Note 3 to Chapter 33 and corresponding HS explanatory notes, in which case it is classifiable under Heading 3305 as hair oil. A binding highe

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Interest on Late Tax Payment and penalty remain where pre-payment options were not exercised; assessment and demand sustained.
Case-Laws
GST
Ineligible input tax credit claims triggered interest for late tax payment and a penalty for late payment; the statute permits a taxpayer to avoid higher penalty by pre-paying tax with interest and a reduced penalty under specified pre-payment options, and notifying the tax authority in writing. The petitioner did not exercise any pre-payment alter

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Right to travel upheld as subject to proportionality; limited foreign travel permitted where flight risk is not tangible.
Case-Laws
GST
Right to travel under Article 21 is affirmed as an essential aspect of dignity, but subject to proportionality of liberty-restricting conditions; courts must require a tangible and real flight-risk before imposing travel bars, and may exercise inherent jurisdiction to secure the ends of justice by imposing reasonable conditions rather than total prohibi

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Exclusion of the first day in month computation preserves validity of show cause notices within the statutory three month requirement.
Case-Laws
GST
Interpretation of the General Clauses Act rule excluding the first day and including the last day governs computation of “month” for statutory time-limits under the CGST regime: where an order must be passed by a specified calendar date, the terminal day is included and the day on which a process (show cause notice) is issued is excluded wh

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J&K records Rs 24,080.79 cr GST collection in three years, gets Rs 15,795.13 cr IGST share: CM
GST
Dated:- 17-2-2026
PTI
Jammu, Feb 17 (PTI) Jammu and Kashmir recorded a steady rise in GST collections, with total revenue amounting to Rs 24,080.79 crore over the past three financial years, reflecting improved compliance and a widening tax base, the UT government said on Tuesday.

Replying to a written question by National Conference MLA Pirzada Farooq Ahmed in the Assembly, Chief Minister Omar Abdullah said GST collections in J&K stood at Rs 7,272.15 crore in 2022–23, increased to Rs 8,128.44 crore in 2023–24 and further rose to Rs 8,680.20 crore in 2024–25.

The Chief Minister said that the Union Territory also receive

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ystem has eased compliance for taxpayers, strengthened tax administration and expanded the tax base, leading to a significant rise in monthly GST revenues in the Union Territory.

The steady growth in GST collections and IGST receipts indicates improved revenue mobilisation and more efficient tax administration in Jammu and Kashmir, he added.

He said that the implementation of the Goods and Services Tax (GST) in the Union Territory since July 2017 has simplified the indirect tax regime, improved compliance and widened the tax base.

He said that GST replaced the earlier multi-layered tax structure with a unified system, reduced cascading taxes and leveraged technology for registration, return filing, refunds and e-way bill generation

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Natural Justice breach: meaningless or hurried hearings negate fairness and require fresh adjudication after proper opportunity to be heard.
Case-Laws
GST
Principles of natural justice and protection against arbitrary administrative action form the central subject: the note examines undue haste by a tax authority as violative of Article 14, emphasising that hearings must be meaningful and capable of altering outcomes. It addresses rectification under section 161 and adjudication under s

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Electronic service to the taxpayer's provided email discharges the sender's duty; agent negligence does not invalidate service.
Case-Laws
GST
Electronic service to the e-mail address provided by the taxpayer discharged the Department's duty; non-receipt caused by the taxpayer's agent or chartered accountant is not a ground for interference and does not absolve the taxpayer. Uploading notices on the portal's Additional Notices and Orders tab claimed by the taxpayer was treated as an afte

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Show cause notice principle: orders cannot be based on unpleaded grounds, remand required to protect right to be heard.
Case-Laws
GST
Show cause notice is the foundation of subsequent proceedings; an adjudicatory order cannot be sustained if it rests on issues not pleaded in the show cause notice because the noticee had no opportunity to respond. The court recorded that the registry cancellation notice and order alleging fraud, willful misstatement/suppression and circular trading were

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Payment under protest does not constitute acceptance; officer must issue a reasoned order and afford hearing.
Case-Laws
GST
Discusses legal issues arising from detention, seizure and release of goods in transit where the taxpayer deposited an assessed amount under protest. Highlights that payment under protest cannot be treated as acceptance of proposed penalty and that a proper order under the relevant detention provision must be speaking and reasoned. Emphasises requirement to afford

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Definition of advance ruling excludes queries about third party supplies; application rejected as outside Section 95.
Case-Laws
GST
Applicant sought tariff classification and GST rate for a commodity ('sago pulp') allegedly used by other manufacturers; the authority found the queries did not concern the applicant's own supply of goods or services and therefore fell outside the statutory definition of an advance ruling under the CGST/TNGST framework. Because the request related to third

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Fixed establishment triggers state registration where onsite permanence and resources for precast erection create taxable presence.
Case-Laws
GST
Where a taxpayer precasts concrete offsite and brings personnel and machinery to a construction site, the site exhibits sufficient permanence and use of human and technical resources to constitute a fixed establishment; consequence: registration is required in the state of the construction site. Transportation and use of precast materials at t

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