Goods and Services Tax

CGST Delhi South Commissionerate awarded BIS IS 15700:2018 Certification for Excellence in Public Service Delivery
GST
Dated:- 17-5-2025

The Central Goods and Services Tax (CGST) Delhi South Commissionerate has been awarded the Bureau of Indian Standards (BIS) IS 15700:2018 certification, recognising its commitment to excellence in public service delivery.
This certification acknowledges the Delhi South Commissionerate's adherence to the highest standards of service quality, tr

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Taxpayer Wins Partial Relief: 10% Tax Deposit Secures Interim Stay Under CGST Section 112(8)
Case-Laws
GST
HC granted conditional interim relief in tax dispute, directing petitioner to deposit 10% of remaining disputed tax amount within four weeks. Unconditional stay of demand issued for four weeks, with continued interim order contingent upon petitioner's compliance with deposit requirement. Order allows partial stay under Section 112(8) of CGST/WBGST Act, 2017, providing temporary relief pending final adjudication of writ petition.
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Tax Authority Fails to Follow Proper Procedure, Best Judgment Assessment Under GST Nullified for Lack of Mandatory Notice
Case-Laws
GST
HC nullified best judgment assessment under GST due to procedural irregularities. The court found the assessment order invalid as the tax authority failed to issue mandatory notice under Section 46 and did not provide an opportunity of hearing, thereby violating principles of natural justice. The assessment order lacked substantive material and reasoning required for Section 62 invocation. Consequently, both assessment orders dated 27.08.2019 and 29.01.2025 were quashed, emphasizing the necessity of procedural compliance in tax assessment proceedings.
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Legal Challenge Upheld: CGST Section 107 Appeal Permitted with Pre-Deposit, Limitation Period Extended to July 10th
Case-Laws
GST
HC allowed the appellate remedy under Section 107 of CGST Act, 2017, permitting the Petitioner to file an appeal by 10th July, 2025 with pre-deposit. The appeal, if filed within the stipulated timeframe, will not be dismissed on limitation grounds and will be heard on merits. The court explicitly left open the issue regarding the validity of the impugned notifications, making the order subject to the Supreme Court's decision in the pending SLP. The petitioner was granted a belated opportunity to challenge the order while preserving the right to contest notification validity in future proceedings.
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Insurance Salvage Claims Dispute: GST Demand Partially Challenged with Procedural Irregularities Identified and Coercive Recovery Restrained
Case-Laws
GST
HC partially allowed the petition challenging GST demand related to insurance salvage claims. The court found procedural irregularities in the demand calculation, specifically noting an erroneous conversion of demand from Rs. 7.21 crores to Rs. 144 crores. The HC restrained coercive recovery actions and directed respondents to seek clarification regarding appellate jurisdiction across multiple states. The court mandated departments to review and potentially rectify the demand order, providing interim relief to the petitioner pending further judicial review.
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Attention – Advisory on reporting values in Table 3.2 of GSTR-3B
GST
Dated:- 16-5-2025

This is to inform taxpayers of the following developments concerning Table 3.2 of Form GSTR-3B:
1.As per the earlier advisory dated April 11, 2025, it was communicated that the auto-populated values in Table 3.2 of Form GSTR-3B would be made non-editable starting from the April 2025 tax period (i.e., for the return to be filed in May 2025).
2.However,&nbsp

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Legal Challenge Succeeds: Procedural Flaws Invalidate Registration Cancellation Proceedings Under Natural Justice Principles
Case-Laws
GST
HC allowed the appeal, finding the registration cancellation proceedings fundamentally flawed. The show cause notice (SCN) was deemed legally non-existent due to lack of specific allegations and absence of reasoned grounds, constituting a violation of principles of natural justice. The court held that the jurisdictional defect was inherent and could not be rectified subsequently, rendering all subsequent proceedings invalid. The original authority's order cancelling registration was quashed, effectively reinstating the appellant's legal status based on procedural impropriety in the administrative action.
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Tax Credit Dispute: Authorities Must Provide Fair Hearing Before Disallowing Input Tax Claims Under Proper Procedural Safeguards
Case-Laws
GST
HC set aside ex parte assessment order disallowing Input Tax Credit (ITC) for Superior Kerosene Oil distribution under Public Distribution System. The court found the order unsustainable due to lack of proper verification and failure to provide the petitioner an opportunity to substantiate ITC claim. The ex parte order violated principles of natural justice by not allowing the petitioner to produce books of accounts and evidence supporting the tax credit claim. The court emphasized that while the burden of proving ITC claim rests with the taxpayer, the assessee must be given a fair chance to present evidence before passing an adverse order.
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Taxpayer Wins Challenge Against Tax Notice Due to Procedural Irregularities in Natural Justice Violation
Case-Laws
GST
HC invalidated the impugned SCN and demand notice under N/N. 9/2023-Central Tax, finding a violation of natural justice principles. The court set aside the order due to lack of personal hearing and mandated that the department re-issue the show cause notice, provide proper hearing notice via email, and allow the petitioner to submit replies within thirty days. The decision follows precedent from a similar case, emphasizing procedural fairness in tax adjudication proceedings. The matter is remanded for fresh consideration with full opportunity of hearing.
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Free Silver Supply by Naval Formations Counts as Non-Monetary Consideration Under CGST Act Sections 15(2)(b) and 15(4)
Case-Laws
GST
AAAR determined that free silver supplied by Naval Formations as used batteries constitutes non-monetary additional consideration for battery supply. The taxable value must include the value of free silver under Section 15(2)(b) and Section 15(4) of CGST Act. The free material has direct economic nexus with the underlying supply and represents a substantial part of raw material input. The transaction value cannot be solely determined under Section 15(1), as the supply involves significant non-monetary components. Consequently, the free silver's value must be incorporated into the total taxable value for GST calculation purposes, encompassing both monetary and non-monetary consideration elements.
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Panchayat's Weekly Market Fee Collection Through Contractors Deemed Non-Taxable Public Service Under Article 243G
Case-Laws
GST
The AAR determined that leasing weekly market space to tender contractors for collecting entry fees from vendors/farmers constitutes a function entrusted to Panchayat under Article 243G. The activity is considered a public authority service and falls outside the GST taxable framework. The ruling clarifies that such activities, even when performed through contractors, remain exempt from taxation under Notification No. 14/2017-CT (Rate). The key principle is that the essential constitutional function remains unchanged regardless of administrative execution method. The back-to-back contract arrangement does not alter the fundamental nature of the service, and thus remains non-taxable, effectively preserving the constitutional intent of local government service provision.
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Input Tax Credit Denied for Imported Warranty Parts When Foreign Supplier Pays Tax Under Section 16 CGST Act
Case-Laws
GST
AAR ruled that the applicant cannot claim Input Tax Credit (ITC) for IGST on imported warranty parts where the foreign supplier (M/s. MUEGGE GmbH) paid the tax. Despite importing parts in the applicant's name for warranty services, the ITC cannot be availed since the tax was discharged by the foreign supplier, and the invoice for warranty service did not include spare parts cost. The ruling interprets section 16 of CGST Act, 2017, denying ITC eligibility based on the specific transactional arrangement between the parties.
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ITC Blocked for Immovable Property Construction Under Section 17(5): Limited Exceptions Apply for Plant and Machinery
Case-Laws
GST
The AAR ruled that Input Tax Credit (ITC) is not eligible for construction of immovable property under section 17(5)(c) and (d). The SC's interpretation in Safari Retreats P Ltd clarified that ITC is blocked for works contract services involving construction of immovable property, with limited exceptions for plant and machinery. In this case, the pre-engineered building, gantry beam, and associated structures are considered immovable property. Consequently, ITC is denied for steel, cement, consumables, installation services, and capital goods like rails and electrification used in constructing the integrated factory building and crane infrastructure, as these are embedded in civil structures and do not qualify for proportionate credit.
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GST Applies to Housekeeping Services for IIITDM, Not Exempt from Standard Tax Rates Under Current Regulations
Case-Laws
GST
AAR ruled that housekeeping services provided to IIITDM do not qualify for GST exemption. The services, involving cleaning, gardening, and security, are distinct from constitutional sanitation responsibilities. IIITDM does not constitute a governmental authority, and therefore, the service provider must charge GST when invoicing. The ruling explicitly states that raising invoices without GST would be unlawful, requiring standard tax application for these housekeeping services.
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Medicines and Consumables for Inpatients Deemed Integral Healthcare Service, Fully Exempt from GST Under Notification 12/2017
Case-Laws
GST
AAR determined that medicines and consumables supplied to in-patients as part of healthcare services constitute a composite supply exempt from GST. The services, including medical, pharmaceutical, and paramedical interventions from admission to discharge, are classified under inpatient services. The hospital, as a clinical establishment providing healthcare under medical direction, qualifies for exemption under Notification No. 12/2017-CT(Rate). The supply of medicines and consumables to in-patients is naturally bundled with principal healthcare services and therefore considered a single composite supply, rendering the entire service tax-exempt. Notably, this exemption applies specifically to in-patient services and differs from out-patient medical supply treatments.
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DGGI officers bust inter-state nexus involving 3 biz; Rs 13-cr GST evasion detected
GST
Dated:- 15-5-2025
PTI
New Delhi, May 15 (PTI) GST Intelligence officers have busted an inter-state nexus by three business entities that were involved in fake billing and GST evasion of Rs 13.41 crore, the finance ministry said on Thursday.
The Directorate General of GST Intelligence (DGGI), Ludhiana, investigated three business entities based in Mandi Gobindgarh M/s Aar Dee Enterprises, M/s Aa

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GST Registration Cancellation Quashed Due to Vague Show-Cause Notice Violating Principles of Natural Justice
Case-Laws
GST
HC allowed the writ petition challenging GST registration cancellation. The show-cause notice was found vague and defective, violating principles of natural justice by failing to provide a meaningful opportunity to respond. The cancellation order dated 17.04.2025 was deemed mechanically passed without proper application of mind, thus rendering it invalid. The court emphasized that a show-cause notice must provide a fair opportunity for the affected party to effectively rebut allegations and demonstrate innocence, which was absent in this case. The retrospective cancellation without substantive reasoning was consequently set aside.
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Tax Levy Challenge Rejected: Complex Fund Expense Dispute Requires Detailed Scrutiny Beyond Writ Jurisdiction
Case-Laws
GST
The HC dismissed the writ petition challenging tax levy on fund expenses, finding that the complex factual determination regarding establishment charges and service fee classification requires detailed scrutiny beyond writ jurisdiction. The court held that the petitioner's inconsistent positions regarding establishment charges necessitate a comprehensive examination of accounts. While rejecting direct intervention, the HC permitted the petitioner to pursue appellate remedies under CGST Act, 2017, emphasizing that interpretation of service agreements involving factual nuances falls outside summary writ proceedings. The impugned order remains operative, with the petitioner directed to seek redressal through appropriate statutory channels.
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Tax Order Upheld: Petitioner's Failure to Respond and Engage Leads to Dismissal Under Section 107 of CGST Act
Case-Laws
GST
HC dismissed the petition challenging tax order, finding the petitioner failed to exercise due diligence in responding to show cause notices and personal hearing opportunities. Despite receiving multiple notices dated 22nd July, 2022 and 3rd August, 2024, the petitioner neither filed replies nor attended hearings. The court held that the administrative authority provided fair opportunity for hearing, and the petitioner's lack of proactive engagement precluded claims of procedural impropriety. The order under Section 107 of CGST Act, 2017 was upheld, and the petition was disposed of without substantive intervention.
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Ex-parte Order Invalidated: Procedural Fairness Demands Personal Hearing and Proper Notice in Tax Dispute Resolution
Case-Laws
GST
HC held that ex-parte order violated principles of natural justice by failing to serve show cause notice to the petitioner, thereby denying opportunity of being heard. Strict interpretation of tax statutes mandates procedural compliance, particularly regarding personal hearing requirements. The court emphasized that penal statutes affecting individual rights must be construed narrowly to prevent arbitrary decision-making. Consequently, the impugned order was declared unsustainable, and the petitioner was directed to be afforded a fresh opportunity to present its case before the competent authority.
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Sada Tambaku Mixed with Lime Deemed Manufactured Tobacco Product, Triggering Higher Tax Rates and Classification
Case-Laws
GST
The AAR determined that 'sada tambaku pre-mixed with lime' constitutes a manufactured tobacco product through a mixing process that creates a new product with distinct characteristics. The goods are classifiable under HSN 24039910, attracting GST at 28% and compensation cess at 0.56R per unit for products with declared retail sale price or 160% for other products. The ruling hinged on the transformation of raw tobacco leaves through lime mixing, which renders the product fit for direct consumption and qualifies as manufacturing under CGST Act, 2017, section 2(72), thus moving beyond unmanufactured tobacco classification.
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Metal Cutting Blades for Chaff Cutters Classified Under Chapter 8208, Attracting 18% GST Based on Specific Heading Rule
Case-Laws
GST
AAR ruled that metal cutting blades for chaff cutters shall be classified under Chapter Heading 8208 40 00, attracting 18% GST. Applying Rule 1 of Interpretative Rules, the specific heading for cutting blades for agricultural machines takes precedence over general machinery headings. Note 1(k) of Section XVI excludes articles of Chapter 82, rendering Note 2 to Section XVI inapplicable. The classification is based on the specific nature of the blades as cutting implements for agricultural machinery, thereby mandating classification under the more precise Chapter 82 heading rather than the broader machinery classification.
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Groundnut Heat-Drying Process Transforms Product, Disqualifies from Original HSN 1202 Classification Based on Compositional Changes
Case-Laws
GST
AAR determined that heating groundnuts with shell to reduce moisture content constitutes a roasting process, rendering the product ineligible for classification under HSN 1202. The ruling hinged on the lack of detailed documentation regarding the heating process, potential temperature controls, and infrastructure. The authority found that heat-drying can alter the physical characteristics and composition of goods, effectively transforming the groundnuts beyond their original state. Consequently, the heated groundnuts were deemed not classifiable under the specified harmonized system code.
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Procedural Defects Cannot Override Substantive Rights: Appeal Allowed with Opportunity to Rectify Technical Errors Under Section 107
Case-Laws
GST
HC allowed the appeal, finding that procedural irregularities in filing should not defeat the petitioner's substantive rights. The court held that technical defects do not warrant automatic rejection of an appeal, particularly where the delay is within the condonable period under Section 107 of the GST Act. The petitioner was granted an opportunity to rectify the procedural deficiencies in the appeal filing, emphasizing that procedural requirements are meant to facilitate justice, not obstruct it. The court's ruling underscores the principle that technical non-compliance should not supersede the fundamental right to seek judicial remedy.
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Advisory on Appeal withdrawal with respect to Waiver scheme
GST
Dated:- 14-5-2025

In the GST system, when Withdrawal application (APL 01W) for appeal is filed before issuance of final acknowledgment (APL 02) by the Appellate authority, then the system automatically withdraws the Appeal application (APL 01). In such cases, the status of the appeal application will automatically change from “Appeal submitted” to “Appeal withdrawn”.
However, if withdrawal application is filed after is

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