Goods and Services Tax

GST notice service requires alternative delivery and personal hearing before ex parte assessment; time-barred input tax credit is quashed.
Case-Laws
GST
Effective service of GST notices requires more than portal upload where repeated non-response indicates that the taxpayer may not have received notice. In those circumstances, the officer must consider other permitted service modes, preferably RPAD, and provide a clear personal-hearing notice; otherwise, an ex parte assessment becomes an empty formality. The assessment on issues other than input tax credit limitation was set aside for fresh consideration after reply and hearing, subject to stipulated partial tax payment. The input tax credit component disallowed as time-barred under section 16(4) was separately quashed in accordance with an earlier common order.
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Retrospective input tax credit eligibility overrides filing-time limits for specified years when GST returns met the prescribed deadline.
Case-Laws
GST
Section 16(5) of the CGST Act operates retrospectively notwithstanding section 16(4), permitting input tax credit for specified financial years where the section 39 return was filed by 30 November 2021. Input tax credit cannot be reversed solely for breach of the ordinary limitation provision when this retrospective exception applies. Recovery founded only on that limitation ground is correspondingly unsustainable, while proceedings concerning other substantive input tax credit eligibility conditions remain unaffected. Consequential relief includes de-freezing bank accounts and refunding or adjusting amounts recovered solely on the limitation ground.
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Effective GST notice service requires further statutory communication and a personal hearing when portal notices receive no response.
Case-Laws
GST
Effective service of GST notices requires more than portal upload where repeated portal communications receive no response. After cancellation of registration, officers must consider other prescribed modes to secure effective notice; the absence of physical or registered-email communication, coupled with denial of a personal hearing, breaches principles of natural justice. The assessment was set aside and remitted for fresh consideration on merits, subject to the stipulated deposit and filing of a reply, with clear notice of personal hearing required.
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Interest on wrongly availed IGST credit requires fresh review against the combined electronic credit ledger balance.
Case-Laws
GST
Interest on wrongly availed IGST credit requires determination by considering the aggregate balance in the electronic credit ledger across IGST, CGST and SGST heads, as required by the clarificatory circular. The interest liability itself remained undecided on merits. The impugned orders were set aside and the matters remitted for fresh consideration after a personal hearing. The fresh enquiry is confined to applying the circular when determining interest on wrongly availed IGST credit.
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Ex parte compensation cess demand set aside, restoring show-cause response opportunity subject to partial balance-tax payment.
Case-Laws
GST
Ex parte adjudication of compensation cess without a reply to the show cause notice was set aside because entitlement to the cess required determination. The High Court also set aside the consequential rectification order and restored the petitioner's opportunity to respond to the show cause notice. The petitioner must file the reply within eight weeks and pay 25% of the balance tax within that period.
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Show-cause notice specificity invalidates GST demands founded on undisclosed grounds and requires reconciliation of wrong-head tax payments.
Case-Laws
GST
GST demands based on alleged ineligible recredit must identify the factual and legal charge in the show-cause notice; a bare assertion that input tax credit conditions were unmet does not support adjudication on undisclosed grounds. Tax paid under an incorrect head on outward supplies does not become input tax credit or create a fresh credit entitlement, and the prescribed refund mechanism cannot be bypassed by unilateral recredit. Correct-head payments require recognition and reconciliation with the original payment and recredit, without duplicate refund or credit. Interest requires wrongful availment and utilisation supported by ledger and timing findings; penalty requires a sustainable wrongful-credit finding.
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Delayed bookkeeping entries supported by invoices and returns do not establish deliberate non-accountal or justify stock confiscation.
Case-Laws
GST
Delayed bookkeeping entries supported by contemporaneous invoices and statutory returns do not, without more, establish unaccounted stock or an intention to clandestinely remove goods. Confiscation is confined to clear and deliberate evasion; a rough visual stock estimate without standard physical weighment is insufficient, particularly where separate assessment proceedings accept the explanation. These principles address alleged stock discrepancies and the consequential confiscation-related tax, penalty and redemption fine.
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Statutory limits on GST appeal delay prevent excess condonation, while implemented registration restoration renders departmental challenge non-maintainable.
Case-Laws
GST
Statutory appellate power to condone delay in GST registration-cancellation appeals ends at the outer limit prescribed by Section 107(4); writ orders granting relief on particular facts do not enlarge that power, and equity or hardship cannot override the limit. Condonation beyond that period is therefore without jurisdiction. Where the Department has implemented an appellate restoration order by reinstating GST registration, its subsequent challenge to that order is barred by its own conduct: reversal would disrupt the restored registration and intervening transactions, with no effective relief available. The departmental appeal is consequently treated as infructuous and not maintainable.
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Rectification of apparent typographical errors may proceed without hearing when tax liability, input tax credit, and ruling substance remain unchanged.
Case-Laws
GST
Rectification of an error apparent on the face of the record may be made without an opportunity of hearing where the correction does not alter the advance ruling, increase tax liability, or reduce admissible input tax credit. An inadvertent typographical reference to B30 in a specified expression was deleted because the error was apparent from the record. The correction left all other findings, discussions, and the substantive ruling unchanged.
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Pre-trial detention in fraudulent input tax credit prosecutions is non-punitive, supporting conditional bail after investigation concludes.
Case-Laws
GST
Pre-conviction detention is non-punitive and serves to secure the accused's attendance at trial. In an alleged fraudulent input tax credit prosecution involving passing credit without inward supply, investigation had concluded and the complaint was filed, while charges remained unframed and trial completion was unlikely within a reasonable period. In the absence of criminal antecedents or material indicating absconding, witness intimidation, evidence tampering, or subversion of justice, continued custody was not warranted. Conditional bail was granted, requiring trial attendance and non-interference with evidence or witnesses.
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Timely Electronic Cash Ledger credit preserves amnesty relief despite later DRC-03A appropriation formalities for tax deposited within prescribed time.
Case-Laws
GST
Section 128A amnesty relief remains available where the full tax amount is credited to the Electronic Cash Ledger within the prescribed period, even if FORM GST DRC-03A for appropriation to the Electronic Liability Register is filed later. Rule 164(2) requires appropriation through the Electronic Liability Register, but subsequent compliance with that requirement can cure the delay where timely deposit establishes bona fides. The proviso to Rule 88B(1), although not directly applicable, recognises the relevance of the Electronic Cash Ledger credit date. A minor procedural delay should not defeat settlement benefits where payment was timely deposited and later appropriated, including waiver of interest and penalty and issuance of GST SPL-05 where the amount is sufficient.
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GST on government-hired hotel accommodation requires operator registration, with tax payable separately by the hiring department beyond rent.
Case-Laws
GST
GST on rental income from hotel accommodation hired by the Department of Home requires the affected hotel operators to obtain GST registration and deposit the applicable tax. GST must be paid by the Department of Home in addition to the agreed rental amount, rather than being treated as part of the rent payable for the accommodation. This treatment follows the approach applied to comparable hotel-accommodation rental arrangements involving the Department of Home.
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Provisional ITC reversal does not establish self-assessed GST liability, preventing refund rejection solely during a pending investigation.
Case-Laws
GST
Provisional reversal of input tax credit in Table 4(B)(2) of GSTR-3B, unlike reporting output-tax liability in Table 3.1, does not by itself constitute self-assessed GST liability. The entry's statutory character depends on its nature, applicable provisions and contemporaneous material. Where the reversal was described as provisional and no liability had been determined or admitted, a pending stock-shortage investigation could not establish liability or justify retention of GST. A later demand under separate appeal could not retrospectively validate refund rejection. Refund eligibility remained subject to verification of applicable statutory conditions, and rejection could not rest solely on voluntary reversal or a pending investigation.
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CBIC actively implements Special Campaign 6 for institutionalising Swachhata and administrative efficiency.
GST
Dated:- 26-10-2026

The Central Board of Indirect Taxes and Customs (CBIC) is actively executing the implementation phase of Special Campaign 6.0. Running from October 2^nd to 31^st October, 2026, the nationwide initiative is dedicated to institutionalizing cleanliness, drastically reducing administrative backlogs, managing office space efficiently, and proper disposal of electronic waste in alignment with the Ministry of Environment, Forest and Climate Change (MoEFCC) E-Waste Management Rules.

As the campaign has come to almost an end, field formations and zones operating under the CBIC have registered significant

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p materials was cleared out. This comprised 3,174 kg e-waste, 16,817 kg general waste, and 1,024 kg non-office scrap.

• Space Optimization & Revenue Generation: Through the systematic clearance of obsolete articles and scrap, an expansive area of 24,222 square feet of office space was successfully reclaimed for productive institutional utilization. Furthermore, the disposal of unserviceable and redundant goods yielded a revenue of Rs. 65,663/-.

Field formations across the nation continue to put forth concerted efforts to fulfill the targeted objectives and strictly abide by the scheduled milestones formulated during the preparatory phase of Special Campaign 6.0.

Glimpses of field activities and transformation work underta

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Cash seizure under GST searches requires statutory authority; unlawful retention may require restitutionary interest and return.
Notes
GST
Section 67 limits GST search-and-seizure powers to confiscable goods and documents, books or things useful or relevant to proceedings. Currency is excluded from goods and, under a contextual ejusdem generis reading, ordinarily cannot be retained as a thing merely because its source is questioned. Seizure and continued retention require recorded reasons, compliance with prescribed seizure procedures, and observance of statutory return periods. Recovery powers cannot be used at the search stage to secure a prospective demand. Where cash is taken without lawful authority, return of the principal does not cure the deprivation; accrued interest may be payable as restitution, distinct from delayed-refund interest.
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Appellate-order refund limitation may use delayed portal upload date, preserving timely claims and triggering interest for non-payment.
Case-Laws
GST
Refund limitation following an appellate order setting aside a tax and penalty demand may, in exceptional circumstances, run from the belated portal upload of Form GST APL-04 rather than physical communication of the order. Although physical communication ordinarily constitutes the relevant date and the refund form does not require awaiting portal upload, treating the later upload date as relevant preserved express appellate refund relief where the application was filed immediately thereafter. The refund rejection was quashed and processing directed. Interest was payable at 6% from the court-fixed date until payment, rising to 9% if directions remained unimplemented after the stipulated period.
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Overlapping input tax credit demands require consideration of the statutory bar before adjudication and may require fresh proceedings.
Case-Laws
GST
Overlapping input tax credit demands must be assessed after considering the objection that parallel Central GST proceedings invoke the statutory bar under section 6(2)(b) of the CGST/MGST Act. The High Court set aside an order denying input tax credit because that objection had not been examined on merits, and remanded the show-cause proceedings for fresh adjudication with all merits kept open.
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Assignment of GIDC leasehold rights falls outside GST supply, defeating blocked-credit recovery and fraud-based allegations.
Case-Laws
GST
Assignment of GIDC industrial-plot leasehold rights is treated as a transfer of benefits arising from immovable property rather than a GST-taxable supply. Input tax credit restrictions for construction of immovable property apply only where goods or services are received for construction; they do not apply where the recipient undertook no construction. Consequently, credit claimed on acquiring such leasehold rights was not blocked. Fraud, wilful misstatement, or suppression could not be invoked for recovery on the contrary premise, particularly where GST collected on the onward assignment had been deposited. The recovery show-cause notices were quashed and the writ petitions succeeded.
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Personal hearing rights in GST adjudication survive an inadvertent form selection and require fresh determination.
Case-Laws
GST
Specific written request for a personal hearing in a reply to a GST show-cause notice cannot be disregarded solely because the noticee inadvertently selected “No” in the relevant form. Such an erroneous selection does not amount to an express waiver of the right to be heard where the written reply clearly seeks a hearing. Denial of the requested hearing breaches principles of natural justice. The adjudication order was therefore quashed, and the adjudicating officer was directed to grant a personal hearing and determine the show-cause notice afresh in accordance with law.
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GST audit commencement follows the later statutory event, preserving timely audit reports where record availability remains disputed.
Case-Laws
GST
Under the Explanation to Section 65(4), a GST audit commences on the later of the date records are made available and the date audit is actually instituted at the registered person's place of business. Where complete furnishing of required records is disputed, the asserted furnishing date need not govern commencement; actual institution supplies an alternative statutory basis. Although outstanding documents should be identified within a reasonable time, failure to do so after repeated notices does not override the later-event rule. The audit report was treated as prepared within the three-month period, and challenges to show-cause notices were left to statutory responses and remedies.
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Intra-court appellate restraint preserves statutory GST remedies unless the Single Judge's referral order is demonstrably erroneous or perverse.
Case-Laws
GST
Intra-court appellate interference with a Single Judge's order is confined to demonstrable error or perversity; the availability of another possible view does not suffice. In GST registration-cancellation matters, where a Single Judge relegates an appellant to the statutory appellate remedy for failing to invoke it, that direction should stand if supported by cogent reasons and free from perversity. Substantive contentions remain open before the appellate authority, and a timely statutory appeal must be considered on merits without treating it as delayed.
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Composite GST notices across tax periods breach separate limitation requirements, permitting fresh period-compliant proceedings where lawfully available.
Case-Laws
GST
Composite show cause notices under Section 74 of the CGST Act cannot combine several financial years or tax periods with separate assessment, return, demand and limitation timelines. Each period must be assessed independently because aggregation obscures distinct due dates and statutory limitation requirements. In-limine dismissal of a special leave petition against a contrary High Court view does not trigger the doctrine of merger or displace later decisions binding on tax authorities. Non-compliant composite notices and consequential orders are subject to quashing, while fresh period-specific notices may be issued in accordance with law, subject to other legal impediments.
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Project-specific ITC benefit calculations may use credit-to-purchase-value data, with GST on excess realisation included in anti-profiteering amounts.
Case-Laws
GST
Project-specific anti-profiteering computation may compare pre-GST credit and post-GST input tax credit with corresponding project purchase values, rather than turnover, to quantify the benefit allocable per square foot to eligible homebuyers. Pre-GST purchase and credit data may remain relevant where records establish a project nexus, notwithstanding formal post-GST commencement of construction. Total project area and eligible sold area must support a reconciled allocation of the project-level benefit. GST collected on excess realisation arising from profiteering forms part of the amount to be passed on. Penalty may apply for contraventions occurring after the penal provision commenced, subject to statutory immunity where the profiteered amount is deposited within the prescribed period.
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Excess IGST Refund: Double payment caused by GSTR-3B misclassification requires verification and may support a separate excess-tax claim.
Notes
GST
Exported goods are zero-rated, but incorrect classification of IGST in the non-zero-rated field of FORM GSTR-3B can block the Rule 96 automated Customs refund. Where IGST is paid again in the correct zero-rated field and the automated refund relates only to that later payment, the original payment may be claimed as separately identifiable excess tax through FORM GST RFD-01 with a transaction-level reconciliation. The claim must establish double payment, the payment actually refunded, and absence of prior adjustment or duplicate benefit. Article 265 prohibits retention of tax not legally due, while Section 39(9) does not permit retrospective revision of the original return; the remedy is an excess-payment refund, not return amendment.
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GST revocation for return defaults requires timely compliance, while portal barriers may warrant access to statutory consideration.
Notes
GST
GST registration cancelled for continuous non-filing of returns may be revoked under Section 30 and Rule 23 only through a time-bound application and fulfilment of prescribed return-filing and payment conditions. For return-default cancellations, pending returns and all tax, interest, penalty and late fee must be discharged before applying; returns due between cancellation and revocation must generally be filed within 30 days after restoration. Cancellation proceedings require clear notice and an opportunity to respond, and must be dropped where pending returns and dues are regularised before cancellation. Portal refusal may obstruct filing but does not determine statutory eligibility or automatically restore registration; physical submission may be permitted where online filing is technically unavailable, leaving revocation to be decided according to law with procedural fairness.
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