Goods and Services Tax

GST show-cause notice and DRC-07 portal tax-demand summary upheld; signer competent, jurisdiction objection rejected, appeal allowed by 31-01-2026
Case-Laws
GST
Challenge to the validity of the SCN on the ground that it was issued by an incompetent officer was rejected because, though the portal reflected the Superintendent, the SCN was actually signed by the competent Joint Director; consequently, the SCN was not invalidated. Objection to appellate forum/jurisdiction was rejected as the correct appellate authority was the Commissioner (Appeals), and the impugned DRC-07 was only a portal summary uploaded by the jurisdictional commissionerate based on the highest tax-demand principle in multi-notice adjudications; consequently, the petitioner was relegated to the statutory appeal, with a direction that an appeal filed by 31-01-2026 with pre-deposit shall not be dismissed as time-barred and must be decided on merits. – HC
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Show-cause notice uploaded under “Additional Notices” tab led to ex parte order; adjudication set aside, remanded for rehearing
Case-Laws
GST
Ex parte adjudication was assailed on the ground that the show cause notice and order were uploaded only under an “Additional Notices” tab and were not effectively served, resulting in denial of a reasonable opportunity of hearing and breach of natural justice. Applying the approach adopted in a comparable case, the adjudication was held to warrant interference because no reply had been filed due to lack of proper notice; consequently, the impugned order was set aside and the matter remanded to the adjudicating authority for fresh consideration, subject to conditions due to the petitioner's belated approach, while the challenge to the impugned notifications remained pending. – HC
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Tax refund withheld despite appellate approval; authorities told to release sanctioned refund within 10 days absent stay order.
Case-Laws
GST
Tax authorities withheld a refund despite an appellate order allowing it, citing that further appeals were contemplated. Applying the rule that administrative authorities must implement appellate orders unless stayed or set aside, the court held that mere intention to appeal cannot justify non-compliance, as such withholding undermines the rule of law. Since the appellate order remained operative, the authority was bound to give effect to it. The authority was directed to refund the sanctioned amount within 10 days of uploading of the order; the petition was allowed. – HC
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Inverted duty structure GST refund claims after 13.07.2022: Circular 181 para 2(2) invalid; rejection quashed, remand ordered. (3)
Case-Laws
GST
Refund under the inverted duty structure was denied by applying paragraph 2(2) of a circular restricting eligibility for refund applications filed after 13.07.2022. Relying on a coordinate bench ruling, the court held that paragraph 2(2) of Circular No. 181/13/2022-GST was ultra vires Section 54(3) of the CGST/GGST Act and violative of Article 14, and therefore could not govern refund adjudication; consequently, the impugned refund rejection and appellate order were quashed, the matter was remanded, and the proper officer was directed to reprocess the refund in accordance with law within 12 weeks. – HC
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Omission of CGST Rules 89(4B) and 96(10) makes pending export refund show-cause notices and orders lapse, petition disposed
Case-Laws
GST
On repeal/omission of CGST Rules 89(4B) and 96(10) by Notification dated 08 October 2024, and in the absence of any saving clause or applicability of Section 6 of the General Clauses Act, pending proceedings founded on the omitted provisions are not preserved; undisposed show cause notices, and orders (whether passed after 08 October 2024 or passed earlier but not yet final due to appeal/challenge and not “transactions past and closed”) stand lapsed, leading to disposal of the petition. The revenue was left at liberty to initiate action on any other issue, with all contentions, including competence, kept open. – HC
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Greater FDI in insurance to promote competition, increase penetration: FM
GST
Dated:- 16-12-2025
PTI
New Delhi, Dec 16 (PTI) Finance Minister Nirmala Sitharaman on Tuesday said that raising the FDI limit to 100 per cent in the insurance sector will help attract more capital, improve competition and increase insurance penetration by making policies more affordable.
Replying to the debate on the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, in the Lok Sabha, Finance Minister Nirmala Sitharaman said the proposed removal of the upper cap on FDI in the insurance sector would ensure capital flow in the sector.
This will ensure that the country benefits from better technology and world-class risk assessment models, as well as the best insurance products available anywhere in the world, she said, adding that FDI will attract more players and make insurance policies more affordable.
“Monopoly doesn't give us that advantage, and therefore, the more the compe

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o 100 per cent.
It also paves the way for the merger of a non-insurance company with an insurance firm.
The finance minister said that the government led by Prime Minister Narendra Modi raised the FDI limit for insurance companies from 26 per cent to 49 per cent in 2015 and from 49 per cent to 74 per cent in 2021 to attract global capital and technical know-how.
Similarly, the FDI limit for insurance intermediaries was raised to 100 per cent in 2019 to enable them to provide better advisory services to citizens.
To make insurance more affordable, Sitharaman said the 56th GST Council Meeting held in September unanimously agreed to remove GST on individual life and health insurance premiums.
There is now a nil GST rate, which was earlier 18 per cent on all individual life insurance policies and individual health insurance policies and this is a significant tax relief that directly reduces the cost of premiums for policyholders, encouraging more people to insure themselves and t

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corporate structure.
In addition, the bill seeks to provide greater autonomy to Life Insurance Corporation of India (LIC).
“We are providing autonomy to LIC to open zonal offices and aligning compliance for its foreign offices with the laws and regulations which prevail in the respective jurisdictions,” she said.
The Bill also proposed rationalising the penalties imposed by the regulator and increasing the penalty limit to Rs 10 crore.
“Earlier, the fine of one crore, which we are now proposing to increase to Rs 10 crore, was only applicable to the insurance companies and not for the intermediaries. Now we are bringing both on board, and both will be at Rs 10 crore penalty, so that they will be some deterrent from compliance oversights as a result of which many of the policyholders suffer,” she said.
With regard to the term of office of the Chairperson and other whole-time members, the Bill provides for a five-year term or until they attain the age of 65 years, whichever is e

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Opposition MPs in RS demand funds for infrastructure, education, central schemes
GST
Dated:- 16-12-2025
PTI
New Delhi, Dec 16 (PTI) Opposition MPs in the Rajya Sabha on Tuesday raised demands for release of pending dues to states for various ongoing central schemes as they sought more funds for development of infrastructure, education and other welfare activities.
Participating in the debate on supplementary demands for grants, S Niranjan Reddy, YSRCP MP from Andhra Pradesh, said that out of the additional expenditure of Rs 1.32 lakh crore sought by the government, the net outgo (actual fresh cash to be withdrawn from the Consolidated Fund of India) amounts to Rs 41,455 crore.
According to him, a large portion of this fund ha

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while the government has reduced GST on fertilisers, insecticides and pesticides still attract high GST rates, increasing the burden on farmers..
Prakash Chik Baraik, AITC MP from West Bengal, praised Chief Minister Mamata BanerjeeÂ’s leadership but accused the Centre of not releasing funds worth Rs 2 lakh crore due to the state for several centrally-funded projects.
CPI (M) MP from Kerala, AA Rahim also accused the Centre of discriminating against the state in the release of funds for relief measures for flood and landslide victims. Rahim further criticised the Union Government for increasing GST on the sale of lottery tickets in the state.
Another MP from Kerala, Sandosh Kumar P, representing the CPI in the Rajya Sabha, demanded the

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rms, Make in India and Startup India.
Tiwari said the Indian economy is performing extremely well under the Modi government, citing that 25 crore people have been lifted out of poverty, 54 universities and 12 IITs have featured in global rankings, grains are being exported to 131 countries, and India has become the worldÂ’s largest producer of milk, among several other positive developments.
G C Chandrashekhar of the Congress highlighted the “extra additional allocation of Rs 1.32 lakh crore”, claiming that unfortunately, the central government's allocation for popular programmes is not even implemented 50 per cent due to non-release of the funds. He also raised the issue of fertiliser subsidies and imports.
“India's urea plants are ol

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Writ against GST demand dismissed; taxpayer directed to appeal u/s 107 CGST Act with extended deadline
Case-Laws
GST
HC held the writ petition challenging the GST demand order and SCN as not maintainable in view of the efficacious statutory appellate remedy under Section 107 CGST Act. The Court found the plea of non-access to the SCN and order via “additional notices' tab” not bona fide, noting the substantial delay, absence of explanation for non-response to SCN, and non-attendance of personal hearing. However, recognising that the petitioner had no opportunity to contest the matter on merits, HC relegated the petitioner to the appellate forum, extending time for filing appeal in line with precedent, subject to requisite pre-deposit.
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Refund rejection communication u/s107(11) KGST & CGST held appealable; appellate dismissal set aside, remanded
Case-Laws
GST
HC held that the refund rejection communication issued under s.107(11) of the KGST & CGST Acts constituted a proper, appealable refund rejection order. The First Appellate Authority erred in summarily dismissing the appeal as not maintainable on the incorrect premise that no refund rejection order existed and without recording any findings on merits or considering the relevant statutory provisions. HC set aside the impugned appellate order and remanded the matter to the First Appellate Authority for fresh consideration on merits in accordance with law, thereby allowing the petition by way of remand.
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AAR: Municipal service contracts to local authorities u/s2(69) CGST, composite supplies, exemption only via Entry 3A
Case-Laws
GST
AAR held that services provided by the applicant to designated Municipal Corporations and Municipalities are rendered to “local authorities” under s.2(69) CGST Act, as these bodies are “Municipalities” under Arts. 243P and 243Q of the Constitution. The activities are in relation to functions entrusted under Arts. 243G and 243W, read with the Eleventh and Twelfth Schedules. However, since certain contracts involve supply of spare parts and other goods, the transactions constitute composite supplies with maintenance as the principal supply. Exemption under Entry 3 (pure services) of N/N. 12/2017 is inapplicable; exemption, if any, is available only under Entry 3A where the value of goods does not exceed 25% of the total supply.
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Security and scavenging services to state medical colleges exempt from GST as pure services under Entry 3 N/N 12/2017-CT
Case-Laws
GST
AAR held that security and scavenging services provided by the applicant to Government of West Bengal medical colleges and hospitals are exempt from GST under Entry 3 of N/N 12/2017-CT (Rate) dated 28.06.2017. The authority found the services to be “pure services” (no supply of goods), supplied to the State Government, and in relation to functions entrusted to Panchayats/Municipalities under Entries 23 of the Eleventh Schedule and 6 of the Twelfth Schedule (health, sanitation, public health, conservancy, solid waste management). All three statutory conditions being satisfied, the services were held squarely covered by the exemption notification.
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Section 8 company under Companies Act 2013 treated as body corporate; sponsorship services taxable under GST on forward charge
Case-Laws
GST
The AAR held that the applicant, a not-for-profit entity incorporated under the Companies Act, 1882 and presently governed by s. 8 of the Companies Act, 2013, qualifies as a “company” and hence a “body corporate” under the Companies Act, 2013. It is neither a co-operative society nor a body corporate notified for exclusion. Consequently, for sponsorship services supplied by the applicant to recipients in the taxable territory, the applicant falls within the expression “body corporate” in the relevant GST notifications. Such sponsorship services do not fall under reverse charge; GST liability is to be discharged by the applicant on a forward charge basis.
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AAR clarifies medicaments under pharmacopoeia formulas taxed at 5% GST under HSN 30039014, 30049014, Notification 1/2017
Case-Laws
GST
AAR held that the applicant's products qualify as “medicaments” under the GST Tariff when manufactured exclusively as per formulae in the specified authoritative pharmacopoeias. Medicaments consisting of two or more constituents, mixed for therapeutic or prophylactic use and not put up in measured doses or retail packing, are classifiable under HSN 30039014 and fall under Entry 233 of Schedule I to Notification No. 1/2017-CT (Rate). All other such medicaments, whether mixed or unmixed and put up in measured doses or retail packing, are classifiable under HSN 30049014 under Entry 234. In both classifications, GST rate applicable is 5%.
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Carbonated drinks in restaurants are composite restaurant service under Clause 6(b) Schedule II, Entry 7, taxed 18% GST
Case-Laws
GST
AAR held that supply of carbonated drinks (aerated water) by the applicant's restaurant, whether served alone or along with food, constitutes “restaurant service” and a composite supply under Clause 6(b) of Schedule II. The beverages are value-added, served in restaurant glassware with accompaniments, and consumed using the restaurant's facilities, thus qualifying as supply of “any drink (other than alcoholic liquor for human consumption)” as part of restaurant service. The principal supply is restaurant service, taxable as a service under Entry 7 of Notification 11/2017-Central Tax (Rate). As the restaurant is in a “specified premises,” the applicable GST rate is 18% on such supplies.
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AAR: JJM digitalisation and monitoring services treated as pure services, GST exempt under Notification 12/2017-CT, serial 3
Case-Laws
GST
AAR held that the applicant's activities for the State PHE Directorate under the JJM-comprising digitalisation and monitoring of water supply schemes, GIS-based data management, development and enhancement of software/applications (including Jal Mitra and UTWID generation), technical consultancy, documentation, and orientation programmes-constitute “pure services” with no supply of goods. These services are directly in relation to supply of safe drinking water, a function covered under serial no. 11 of the Eleventh Schedule to Art. 243G and serial no. 5 of the Twelfth Schedule to Art. 243W. Accordingly, the services are classifiable under serial no. 3 of Notification No. 12/2017-CT (Rate) and are exempt from GST.
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AAR exempts going concern transfer and JJM-related pure services under Sl. 2 and 3, Notification 12/2017-CT(R)
Case-Laws
GST
AAR held that transfer of assets and liabilities from the transferor to the transferee constitutes a “service by way of transfer of a going concern as a whole or an independent part thereof” and is therefore an exempt supply under Sl. No. 2 of N/N 12/2017-CT(R). It further ruled that the work orders relating to digital asset management, GIS/WebGIS-based monitoring and stakeholder orientation for the State PHE Directorate are “pure services” to a Government department in relation to functions under JJM, eligible for exemption under Sl. No. 3 of N/N 12/2017-CT(R). Post-transfer invoices in continuation of such work orders retain the same taxability.
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GTA services via e-commerce portal to unregistered customers exempt under Sl. No. 21A, Notification 12/2017-CT (Rate)
Case-Laws
GST
AAR held that the applicant's proposed activities constitute “goods transport agency” (GTA) services because it will transport goods by road and issue consignment notes transferring lien and responsibility for safe delivery. Issuance of a consignment note was treated as a sine qua non for GTA status, consistent with the pre-GST service tax regime. The end customer, who pays the transport charges, is the “recipient of service” under GST. Consequently, GTA services provided by the applicant to unregistered end customers through an electronic commerce operator's portal fall within Sl. No. 21A of Notification No. 12/2017-CT (Rate), as amended, and are exempt, including strictly incidental/ancillary services to such transport.
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Tax demands before 04.09.2019 barred against successful resolution applicant due to IBC clean slate after CIRP
Case-Laws
GST
HC, dealing with tax demands post-CIRP under IBC, held that in view of prior coordinate bench rulings in the petitioner's own matters and the language of NCLT orders, the relevant date of final approval of the resolution plan is 04.09.2019, when the new management assumed control on a “clean slate” basis. Consequently, the impugned order raising demands for the period prior to 04.09.2019 was set aside as unsustainable against the successful resolution applicant. The respondent authority was granted liberty to issue a fresh show cause notice for any period after 04.09.2019, to be adjudicated in accordance with law. The petition was disposed of on these terms.
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Clarifying CGST Sections 129 and 130: Confiscation Threshold, Tax Evasion Intent, and Limits After Section 67(6) Omission
Case-Laws
GST
HC upheld the independence and mutual exclusivity of Sections 129 and 130 CGST, holding that confiscation under Section 130 can be invoked at the threshold if, upon interception and seizure during transit, the proper officer forms an opinion of intention to evade tax based on attendant circumstances. Section 129 applies where no such intention is found, and goods must then be dealt with strictly under that provision. Authorities cannot rely on Section 67(6) post-omission. All MOV-10 notices and MOV-11 orders are to be re-examined in light of these principles; where inconsistent, they must be withdrawn and goods released under Section 129. Petitions were disposed of accordingly.
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Interim Protection Granted Against Composite Section 74 CGST Demand-Cum-Show Cause Notices Covering Multiple Tax Periods
Case-Laws
GST
HC entertained a challenge to a composite demand-cum-show cause notice issued under Section 74 of the CGST Act, 2017 covering multiple tax periods. Observing that a coordinate bench had earlier granted a reasoned interim order in similar matters, and that no contrary view had been taken by any other bench, the HC applied the rule of consistency and noted that three other HCs had decided the issue in favour of assessees. Finding a prima facie case, the HC granted interim protection in the present and connected petitions where no interim relief had yet been granted. Application disposed.
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Contractor entitled to reimbursement of extra tax from KVAT to GST transition on ongoing works, with returns relaxed
Case-Laws
GST
HC held that the petitioner-contractor is entitled to reimbursement of differential tax arising from transition from KVAT to GST in respect of ongoing works contracts, following its earlier decision in a similar matter. The respondent-State and its agencies were directed to segregate pre- and post-01.07.2017 work, assess tax liability under KVAT for pre-GST works and under GST for post-GST works, compute input tax credit, and determine the tax difference. Authorities may revise contract values through supplementary agreements and must reimburse any additional tax burden, including where pre-GST works are paid post-GST. Petitioner is allowed to file or amend GST returns without interest, penalty, or limitation. Petition disposed.
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Proceedings u/s73 U.P. GST Act Void When Initiated Against Deceased Proprietor Without Notifying Legal Heirs
Case-Laws
GST
HC quashed proceedings initiated under s.73 of the U.P. GST Act, 2017 against a proprietary concern whose sole proprietor had died prior to issuance of show cause notice. The Court held that s.93 governs the liability of legal representatives for tax, interest or penalty post death, but does not authorize determination of liability in the name of a deceased person. It is a sine qua non that legal representatives be issued notice and heard before any determination. As both the show cause notice and the order were passed against a dead person without notice to legal representatives, the proceedings were declared void and the petition allowed.
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Tax authority told to adjust SGST and CGST toward IGST and refund excess u/s 77 GST Act
Case-Laws
GST
HC quashed the impugned orders concerning misclassification of tax paid under SGST and CGST instead of IGST. It directed the tax authorities to reconsider the matter afresh by duly appropriating the amounts already deposited under SGST and CGST towards the IGST liability. The Court further mandated that, upon such reconsideration, any excess payment or refund legitimately due to the petitioner shall be processed and disbursed forthwith in accordance with Section 77 of the GST Act. The writ petition was accordingly disposed of with these directions.
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Contractor allowed to seek refund of differential GST on pre-GST works contracts, similar to earlier writ directions
Case-Laws
GST
HC dealt with a writ petition seeking refund of differential GST (GST minus VAT) on works contracts executed under the earlier VAT regime, where contractors had not remitted GST. Noting that a co-ordinate Bench had already issued comprehensive directions on an identical issue, the HC held the petitioner similarly circumstanced and entitled to the same relief. Earlier restoration on the ground of non-hearing was cured by affording full opportunity to respondents, satisfying principles of natural justice. The HC disposed of the petition by directing respondents to consider petitioner's representations and pass reasoned orders in accordance with law, reserving liberty to challenge any adverse decision.
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Jal Jeevan Mission data collection via mobile app held exempt pure service under Art. 243G, 243W, Notification 12/2017-CT
Case-Laws
GST
AAR held that the applicant's services of collecting household data through a mobile app for Functional Household Tap Connection (FHTC) under the Jal Jeevan Mission constitute pure services in relation to functions entrusted to Panchayats and Municipalities under Art. 243G and 243W of the Constitution. The activities, involving software development and data collection without any supply of goods, are integrally connected to supply of safe drinking water and water distribution networks in West Bengal. Accordingly, the services are classifiable under Sl. No. 3 of Notification No. 12/2017-CT (Rate) and are exempt from GST.
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