Goods and Services Tax

GST jurisdiction after taxpayer migration: prior valid actions remain effective, and the transferee authority must continue proceedings.
Circulars
GST – States
Jurisdiction in GST proceedings is determined as on the date the power is invoked, so a valid action or proceeding taken by the transferor jurisdictional authority before migration or transfer of a taxable person remains valid. The transferee jurisdictional authority must then take over, give effect to, and continue the matter from that stage, including consequential proceedings and representation in appeals, while the transferor authority cannot initiate fresh action after the transfer and must pass any new issue to the transferee authority. The Goa GST circular applies the corresponding CBIC clarification mutatis mutandis under the Goa GST Act.
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Statutory refund interest limited to notified rate, so higher pre-deposit interest claim was rejected in appeal.
Case-Laws
GST
Statutory interest on a refunded investigation deposit treated as a pre-deposit is confined to the rate prescribed by the governing provision and notification. Where the statute creates the right to interest and fixes the rate, the claimant cannot seek a higher amount on equitable or restitutionary grounds unless the provision or notification itself is challenged. Applying that principle, the Court upheld interest at 6% per annum and rejected the claim for a higher rate, holding that no substantial question of law arose and dismissing the appeal.
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Successive bail on parity fails without substantial change in circumstances, especially in alleged economic offences involving GST evasion.
Case-Laws
GST
Successive bail applications require a substantial change in facts or circumstances directly affecting the merits; parity with a co-accused alone does not justify release because the court must assess the accused's individual role, the gravity of the allegations and the investigation material. Economic offences are treated as a distinct class for bail and attract a stricter approach because they may involve deliberate conspiracies and broader financial harm. On the stated facts, the accused was prima facie linked to fictitious firms, fake invoices, e-way bills and alleged GST evasion through documentary, electronic and recorded statement material, so later bail to a co-accused did not amount to a sufficient change in circumstances.
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Retrospective Rule 89(5) amendment allows refund processing for unutilised input tax credit on input services
Case-Laws
GST
Retrospective applicability of the amended Rule 89(5) governing refund of unutilised input tax credit on input services was treated as settled: the Court noted the Supreme Court's ruling in VKC Footsteps and the coordinate bench view in Ascent Meditech that Notification No. 14/2022 is retrospective, curative and clarificatory. As that legal position was undisputed, the deficiency memo rejecting the refund claim could not stand. The refund application was required to be processed under the amended formula and the law as declared.
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Mandatory Rule 88C intimation controls GST recovery for mismatch between returns before garnishee action can proceed.
Case-Laws
GST
Mismatch between outward supplies and the return may support recovery of self-assessed tax only if the prescribed procedure is followed. The Court noted that the explanation to Section 75(12) does not create any additional liability beyond the mismatch already reflected under Sections 37 and 39. However, where recovery is pursued on that basis, the Proper Officer must first issue the prescribed intimation in FORM GST DRC-01B under Rule 88C and allow the registered person to pay the differential tax or explain the discrepancy. As no such intimation was issued, recovery through the garnishee notice under Section 79 was unsustainable and was set aside.
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Essential character test keeps cured tobacco leaves within the GST entry despite grading and bundling, preserving concessional rate.
Case-Laws
GST
Tobacco leaves under the GST rate notification were treated by reference to their essential character: sun-cured leaves procured from farmers and supplied as such, or after grading, bundling or butting, continued to fall within the entry for “tobacco leaves” in Schedule I. The rate entry was read in commercial parlance without limiting it to green, fresh or uncured leaves, and the circular was construed consistently with that reading. Curing to reduce moisture, and handling steps such as grading, bundling and butting, were not treated as processes creating a new commodity. The concessional GST rate therefore applied to such leaves.
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E-rickshaw CKD/SKD classification depends on a complete kit and consistent commercial records for finished vehicle GST rate
Case-Laws
GST
E-rickshaw supplies in CKD/SKD form qualify for GST treatment as the finished electrically operated vehicle only when all components needed to assemble a complete vehicle are supplied together as one identifiable kit or package, and the consignment contents and contemporaneous commercial records consistently match that description. The AAAR rejected the motor-plus-three-components test because it does not arise from Rule 2(a), the tariff, or the rate notification, and held that individual parts cannot be classified as the finished vehicle merely because some are essential components. It also noted that customs interpretative fiction under Rule 2(a) has a limited scope and cannot be extended beyond customs classification.
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GST treatment of DMF and NMET mining contributions turns on royalty linkage and later exemption clarification
Case-Laws
GST
Statutory contributions to the District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET) were treated as mandatory incidents of mining operations, because the payments were fixed as a percentage of royalty and non-payment would affect the right to extract coal. On that basis, they were considered part of mining royalty paid in the course or furtherance of business. DMF contribution was nevertheless held not liable to GST because a later clarification treated State-formed DMF trusts as Governmental Authorities eligible for exemption. NMET contribution remained liable to GST, as no similar clarification applied, and the lower ruling was upheld to that extent.
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GST exemption for authorised service providers fails where user charges are collected over and above statutory fees.
Case-Laws
GST
Services rendered by an authorised service provider under Telangana's electronic service delivery framework were treated as distinct from supplies by the State Government. The Authority found that MeeSeva collects user charges over and above statutory fees, and that some services also relate to non-government entities. It therefore concluded that the exemption entries in Notification No. 12/2017-Central Tax (Rate) apply only to Government supplies and only to the extent of statutory levies for discharge of statutory functions. User charges collected separately by MeeSeva were held outside the exemption and liable to GST, so the exemption claim was rejected.
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Parallel GST proceedings bar applies only after adjudication begins; lawful arrest upheld and petition dismissed
Case-Laws
GST
A same-subject-matter bar in GST proceedings arises only when adjudicatory proceedings begin through a show-cause notice; it does not arise merely because inquiry, search, or investigation has commenced. Where overlap is noticed, the authorities may decide inter se which one continues, and the other may transfer the material. Here, the State GST authorities transferred the investigation to the Central GST authorities, so the complaint and criminal proceedings were not barred as parallel proceedings. The arrest was also upheld because the grounds of arrest were furnished in writing, explained to the petitioner, and acknowledged, consistent with governing GST arrest requirements. The petition was dismissed.
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Alternative statutory remedy bars writ review where the GST Tribunal can examine circulars and the amended refund rule.
Case-Laws
GST
The article explains that a writ petition challenging an appellate order was not entertained because an efficacious statutory appeal was available before the GST Appellate Tribunal. It notes that questions on the effect of a departmental circular and the application of amended Rule 89(5) could be examined in that appeal, so the High Court need not exercise Article 226 jurisdiction. Relying on Ratan Melting and Wire Industries, it reiterates that circulars reflect the executive view and cannot override the statute or bind courts. The petitioner was given liberty to pursue the statutory appeal within the notified period.
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IGST export refund under Rule 96 must be processed when Rule 96(4) contingencies are absent.
Case-Laws
GST
IGST refund on exports cannot be confined to a request to amend shipping bills under Section 149 when an independent refund prayer under Rule 96 is on record. The refund rejection was set aside because the authority considered only the alleged lack of contemporaneous evidence for amendment and failed to examine the refund claim on its own merits. As export of goods and payment of IGST were undisputed, and none of the Rule 96(4) withholding contingencies applied, the refund had to be processed under the statutory refund mechanism; the amendment issue was left open.
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Omission of refund-restricting rule without saving clause bars pending denial proceedings and quashes consequential orders
Case-Laws
GST
Omission of refund-restricting Rules 89(4B) and 96(10) without any saving clause rendered the omitted provision inapplicable to pending proceedings, including matters still before the Court or the adjudicating authority and orders not yet final, because they were not transactions past and closed. Applying the earlier Gujarat HC ratio, the Court held that the order-in-original and consequential action founded on the omitted rule could not be sustained. The writ petition was allowed and the impugned order and subsequent action were quashed.
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Interest on delayed refund runs from the original application date after illegal refusal is set aside
Case-Laws
GST
Interest on delayed refund must be reckoned from the original refund application date where the earlier refusal to process that application was found illegal and set aside. The later refiled application, prompted only by the authority's unlawful action, cannot be treated as the starting point to defeat interest otherwise payable. The impugned orders were set aside to the extent they denied interest, and the claim was directed to be decided by taking the date of the initial application into account.
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Proper service of GST show cause notice failed when uploaded under the wrong portal tab, invalidating ex parte adjudication.
Case-Laws
GST
Uploading a GST show cause notice under “Additional Notices” instead of “Notices and Orders” was held to be no proper service, so the ex parte adjudication order and recovery notice based on that notice were unsustainable for breach of natural justice. The impugned notice, adjudication order and recovery notice were quashed, with liberty to issue a fresh show cause notice and proceed afresh in accordance with law. The Court also clarified that limitation would not prevent issuance of a fresh notice in substitution of the earlier one.
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GST reimbursement in works contracts remains contractual, while statutory return, limitation and penalty relief cannot be ordered.
Case-Laws
GST
Under works contracts, reimbursement of incremental tax is treated as a contractual issue between contractor and employer, while GST levy, assessment, recovery and enforcement remain governed strictly by the statute. No judicial direction can permit filing revised returns contrary to the GST framework or waive limitation, interest or penalty outside the Act. On that basis, the High Court found the reimbursement direction unsustainable and limited relief to directing consideration of the representations in accordance with law, modifying the single judge's order accordingly.
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Chhattisgarh cabinet clears Ease of Doing Business bill
GST
Dated:- 8-7-2026
PTI
Raipur, Jul 8 (PTI) The Chhattisgarh cabinet on Wednesday approved a draft bill aimed at simplifying the process of starting a business or setting up a factory in the state and making it time-bound.

The proposed Chhattisgarh Ease of Doing Business (Deregulation and Facilitation) Act, 2026, will be the first of its kind in the country, officials said.

It seeks to reduce procedural hurdles through measures such as deemed approvals, self-certification, third-party verification, risk-based inspections and the elimination of duplicate licensing requirements, said an official.

The proposed law is expected to promote investment by making re

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akings including NTPC for power purchases.

The new system would ensure uninterrupted power supply from CPSUs without imposing any additional financial burden on the state, while the existing Letter of Credit mechanism would continue to remain available whenever required, said the official.

The cabinet also approved amendments to the Chhattisgarh Police Special Executive Force (Bastar Fighters) recruitment and service rules, 2026.

It also cleared the draft Chhattisgarh Value Added Tax (Amendment) Bill, 2026, paving the way for abolition of the state's Commercial Tax Tribunal.

The move follows the implementation of the Goods and Services Tax (GST) regime and the establishment of the GST Appellate Tribunal, making th

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Writ jurisdiction deferred to statutory appeal, with delay condonation and interim protection against recovery
Case-Laws
GST
Writ jurisdiction was declined where a statutory appellate remedy under GST was available. The petitioner was permitted to file the appeal within the time granted, along with a delay condonation application and the statutory pre-deposit, and was allowed to urge all factual and legal grounds before the appellate authority. The appellate authority was directed to consider the reasons for delay and, if satisfied, decide the appeal on merits. Coercive steps pursuant to the impugned garnishee notices were stayed only for the limited period granted to file the appeal.
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Contractual reimbursement of incremental GST cannot override statutory GST returns, interest, penalty or limitation rules
Case-Laws
GST
Contractual reimbursement of incremental GST under pre-GST or transitional works contracts remains a matter between the contractor and the employer, and does not alter the statutory GST scheme. The text states that directions requiring revised returns, or waiving interest, penalty or limitation, cannot be issued contrary to the GST enactments, because levy, assessment, recovery and enforcement must follow the statute. It also clarifies that tax authorities have no role in the private reimbursement dispute, so any reimbursement direction is confined to the employer and cannot be read as fastening liability on the State or tax administration.
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Input tax credit denial set aside where genuineness of supply required further examination and hearing was inadequate.
Case-Laws
GST
In a writ challenge to denial of input tax credit, the High Court held that the genuineness of supply required a fuller examination where the supplier was registered during the relevant period, the invoices reflected vehicle details, and the petitioner asserted that transport was arranged by the supplier and tax had been paid on the supplies. The order was unsustainable because the proposal was confirmed merely for want of lorry receipts and weighment slips, without considering that material evidence. The impugned order was set aside and the matter remanded for fresh consideration, with liberty to file additional documents and after affording a reasonable opportunity of hearing.
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Additional ITC anti-profiteering analysis upheld on project-wise methodology, recipient-specific restitution, interest, and no retrospective penalty.
Case-Laws
GST
Project-wise anti-profiteering analysis under GST upheld where the Tribunal accepted a case-specific methodology for comparing pre-GST and post-GST ITC, allocated the benefit across similarly situated homebuyers, and rejected objections on natural justice, scope of inquiry, and time limits. It found that additional input tax credit had arisen in the project, that the respondent had not passed on the full recipient-specific benefit, and that excess benefit given to some buyers could not offset shortfall owed to others. The balance amount was sustained with 18% compensatory interest, but penalty was declined because the penal provision was held inapplicable to the period in question.
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Airlines' body FIA urges govt to bring jet fuel under GST
GST
Dated:- 7-7-2026
PTI
Mumbai, Jul 7 (PTI) Air India, IndiGo and SpiceJet have asked the government to bring aviation turbine fuel under GST, emphasising that such a move will help in reducing the operating costs for the airlines.

States levy excise duty as well as Value Added Tax (VAT) on Aviation Turbine Fuel (ATF), which accounts for a significant chunk of an airline's operational costs.

The Federation of Indian Airlines (FIA), which represents Air India, IndiGo and SpiceJet, has said that Indian aviation sector is presently facing an extraordinary convergence of challenges, including those arising out of escalating geopolitical tensions from the West Asia conf

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Garnishee recovery against a partner's bank account can stand for crystallised partnership tax dues, not provisional attachment
Case-Laws
GST
A partnership firm's crystallised tax dues may be recovered by issuing a garnishee notice against a partner's bank account when the recovery is directed under Section 79(1)(c)(i), not Section 83. The challenge failed because the impugned communication was on its face a recovery step after liability had crystallised, the demand against the firm itself had not been challenged, and partners are personally liable for the firm's dues. On those facts, no infirmity was found in the notice to the bank, and writ interference was unwarranted.
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Input tax credit set-off across GST heads upheld; assessment order quashed under binding precedent and settlement issue reserved.
Case-Laws
GST
Input tax credit set-off under the IGST head against CGST and SGST liability was accepted because the dispute was already covered by binding Division Bench precedent in favour of the assessee. The assessment order was quashed without a fresh merits determination. Any inter-departmental settlement issue was left open for the State to raise before the GST Council in light of that ruling.
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CAMPA deposits for forest diversion clearance treated as consideration for taxable government service under reverse charge
Case-Laws
GST
Mandatory CAMPA-related deposits made to obtain permission for diversion of forest land were treated as consideration for a taxable supply of government service. The permission was described as a specific statutory approval conferring a direct benefit on an identified business entity, so the payment had a direct nexus with the supply. Exemption under entries for functions entrusted to municipalities or panchayats was denied because the approval was a forest-regulatory function, not a municipal or panchayat activity. GST was therefore payable under reverse charge on the deposits made for the forest clearance.
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