Goods and Services Tax

Judicial review of interim tender clarification was premature until the authority considered bidder responses and made a reasoned bid decision.
Case-Laws
GST
Judicial review of an interim tender clarification was premature because the communication sought commercial justification for quoted discounts to assess their sustainability and prevent disruption of medicine supply. Technically qualified bidders had submitted responses and supporting material, but no bid had been rejected or disqualified and no decision on the bids had been made. The tendering authority was required to consider that material and communicate a reasoned decision. The petitions were disposed of, preserving an aggrieved bidder's right to pursue available legal remedies after a final bid decision.
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Corporate guarantee valuation permits actual ascertainable commission while barring retroactive application and extended-period penalties for bona fide disputes.
Case-Laws
GST
Corporate guarantees furnished by holding companies for subsidiaries constitute taxable supplies of services between related persons, including where provided without consideration. A guarantee is not an actionable claim, and a share-pledge arrangement may also amount to a guarantee where its operative terms secure the subsidiary's obligations. Gratuitous guarantees are not continuous supplies, but annual accounting disclosure may determine yearly valuation based on outstanding guaranteed debt. Rule 28(2) remains valid, but the requirement to adopt the higher of deemed value and actual consideration is read down where an actual commission is ascertainable. The valuation rule cannot apply to guarantees executed before its introduction, although continuing guarantees remain taxable prospectively; guarantees for foreign recipients fall outside the rule. Extended-period proceedings and penalties require deliberate intent to evade tax, not a bona fide interpretive dispute.
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GST portal-only notice after registration cancellation is invalid; fresh adjudication requires lawful service and hearing opportunity.
Case-Laws
GST
GST portal service of a show-cause notice is invalid after cancellation of registration because the taxpayer cannot be expected to monitor the portal and must be served through an alternative permissible mode. Personal hearing is mandatory under section 75(4) of the CGST Act when requested in writing or when an adverse decision is contemplated, reflecting the audi alteram partem requirement. Failure to provide valid notice and hearing renders GST adjudication vulnerable. The adjudication order was quashed, with fresh notice and adjudication permitted in accordance with law, including a personal hearing if requested.
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Proper-officer jurisdiction under UPGST penalty provisions upheld; participation on merits prevents bypassing the statutory appellate remedy through writ proceedings.
Case-Laws
GST
Penalty proceedings under Section 122 of the UPGST Act are subject to the proper-officer mechanism under Section 127, despite Section 122 not using the expression “proper officer”. State circulars assign jurisdiction to the Deputy Commissioner for businesses above the prescribed turnover threshold, supporting the officer's authority to issue the show-cause notice. Although jurisdictional objections may be raised in writ proceedings, discretionary writ relief is ordinarily unavailable where the taxpayer participated on merits without objecting and later seeks to bypass the statutory appeal. The taxpayer was relegated to the appellate remedy and may seek Limitation Act protection if its requirements are met.
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Transitioned CENVAT credit may validly satisfy mandatory pre-deposit requirements for legacy service tax appeals through Electronic Credit Ledger debit.
Case-Laws
GST
Section 35F does not require mandatory pre-deposit in legacy service tax appeals to be paid exclusively in cash or prohibit use of validly transitioned CENVAT credit. Credit carried forward under transitional provisions remains a vested credit, and its entry in the Electronic Credit Ledger preserves the right to utilise it. An administrative instruction requiring cash payment cannot restrict that statutory entitlement where no requirement exists to use the Electronic Cash Ledger. Debit of transitioned credit, resulting in credit to the Government, therefore satisfies the pre-deposit requirement. The Tribunal's contrary order was quashed, and the appeal was directed to be heard on merits.
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Portal-only service of GST show cause notice cannot sustain ex parte adjudication without effective opportunity to respond.
Case-Laws
GST
Service of a GST show cause notice solely through the common portal, without acknowledgement of receipt or a reply from the assessee, was treated as insufficient to sustain ex parte adjudication. Applying the principle in Luxmi Traders, the High Court restored the proceedings to the show cause notice stage and required a fresh adjudication after allowing the petitioner to file a reply and be heard. The adjudicating authority must consider any reply and pass a fresh order in accordance with law, while retaining the ability to consider proceedings under the fraud provision.
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Statutory appellate remedy for GST registration cancellation was restored, requiring merits review without limitation-based rejection.
Case-Laws
GST
Statutory appellate remedy against cancellation of GST registration was restored after dismissal on limitation. Applying the terms of an earlier High Court decision, the writ petition was disposed of without adjudicating the merits of the cancellation proceedings. The appeal must be decided on merits and cannot be rejected on limitation, thereby reinstating access to the prescribed appellate process.
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Building-plan sanction charges require statutory authority; unauthorised fees and GST were quashed, while labour cess must follow prescribed collection rules.
Case-Laws
GST
Building-plan sanction charges require statutory authority and, as regulatory fees, a reasonable correlation with services rendered. The development authority could exercise Municipal Commissioner powers only upon State notification, while its governing statute did not independently authorise scrutiny fee, ground rent or security deposit; those demands were quashed, subject to the pending writ appeal. Labour welfare cess remained payable, but requiring payment upfront before construction contravened the prescribed collection mechanism for construction extending beyond one year; a fresh demand had to follow Rule 4. Building-plan sanction involved neither a supply of goods nor services, so CGST and SGST on sanction charges were also quashed.
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Plastic twine classification as an other article of plastics places polypropylene and polyethylene sutli under the applicable GST rate.
Case-Laws
GST
Polypropylene or polyethylene plastic twine (sutli) manufactured through extrusion, slitting, orientation and twisting is classified as an article of plastics under sub-heading 39269099. The manufacturing process does not make it a textile material for Heading 5607, and the product is not a container or packing article within Heading 3923. In the absence of a more specific Chapter 39 classification, residuary Heading 3926 applies. Plastic twine under Heading 3926 attracts GST at 18 per cent, comprising 9 per cent CGST and 9 per cent SGST.
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Pure-agent exclusion fails where hotel booking facilitators receive third-party services themselves, making entire customer consideration taxable as reservation services.
Case-Laws
GST
Pure-agent exclusion under Rule 33 requires satisfaction of every prescribed condition, including contractual authority to procure third-party services on the end customer's behalf. Hotel booking charges could not be excluded where the third-party booking agent invoiced the facilitator, indicating that it received and used the service in supplying its own hotel booking service, and where the recovered amount included a service charge not known to or authorised by the customer. The booking service is classified under SAC 998552 as reservation services for accommodation, cruises and package tours. CGST and SGST apply at 9% each on the entire consideration received from end customers.
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Communication of arrest authorisation safeguards access to anticipatory bail, while post-dismissal interim arrest protection cannot continue.
Case-Laws
GST
Interim protection from arrest is ancillary to anticipatory bail proceedings and cannot continue after a pre-arrest bail application is dismissed as not maintainable. Protection granted after such dismissal was therefore set aside. Communication of the Commissioner's arrest authorisation under the CGST Act is necessary to enable the affected person to seek anticipatory bail or challenge the recorded reasons through judicial review. The authorisation must be communicated electronically, in addition to other legally permissible modes; without prior communication, arrest cannot proceed. The affected person may pursue available legal remedies after communication, while the investigation continues independently of these observations.
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Transitional appellate pre-deposit rules preserve the provision existing when show-cause notices commenced adjudicatory proceedings before substitution.
Case-Laws
GST
Transitional applicability of the appellate pre-deposit requirement depends on the law in force when adjudicatory proceedings commenced through issuance of the show-cause notice. Appeals against penalty orders arising from notices issued before substitution of the proviso to Section 107(6) of the CGST Act remain governed by the earlier pre-deposit provision. Petitioners must pursue the statutory appellate remedy, with physical filing accepted where electronic filing is unavailable because no individual registration or temporary identification exists. The merits, including whether penalty provisions apply to a person who is not taxable, remain open for determination in accordance with the Supreme Court's ultimate decision.
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Effective GST notice service and personal hearing are mandatory before adverse adjudication following registration cancellation.
Case-Laws
GST
Service of GST notices after cancellation of registration must be effective, and an adverse adjudication requires a meaningful opportunity to reply and a personal hearing. Where registration had been cancelled and the taxpayer was not effectively served or heard, the adjudication order was quashed. The taxpayer was permitted to file a reply to the show-cause notice, and the Department could undertake fresh adjudication in accordance with law after granting a personal hearing.
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Alternative GST remedy permitted protective writ intervention for ex parte adjudication, preserving independent appellate review of input tax credit disputes.
Case-Laws
GST
Alternative statutory remedy under GST did not prevent protective writ intervention where an ex parte adjudication was linked to partners' medical exigencies and substantial tax, interest and penalty exposure. The input tax credit dispute remained undecided on merits. Recourse to the statutory appeal was permitted subject to payment of the prescribed pre-deposit and imposed costs, with the appellate authority required to entertain the appeal and determine it independently in accordance with law. The writ proceedings therefore preserved access to the appellate remedy without deciding the underlying input tax credit demand.
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Portal-issued show-cause notices require fresh assessment where the assessee complies with deposit and reply-filing conditions.
Case-Laws
GST
Assessment orders passed after non-response to portal-issued show-cause notices were quashed after the assessee agreed to make the stipulated deposit in instalments and appear before the assessing authority. The assessee may file replies and supporting documents, with the impugned assessment orders treated as addenda to the respective show-cause notices. Fresh adjudication on merits is conditional on compliance with the deposit and reply-filing requirements. If those conditions are not met, recovery proceedings may continue as though the writ petitions had been dismissed in limine.
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Verification of disputed tax recovery conditions fresh adjudication, while default permits statutory recovery after due notice.
Case-Laws
GST
Fresh adjudication of a confirmed tax demand may proceed only after verification that the entire disputed tax has been recovered or after deposit of any unrecovered balance. The demand was remitted for a final decision on merits, conditional on verification or payment of the disputed tax and submission of a reply to the show-cause notice with supporting documents. If those conditions were not met, recovery could continue in accordance with law after due notice.
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Written grounds of arrest and judicial scrutiny sustained GST arrest despite timing discrepancies and non-supply of recorded reasons.
Case-Laws
GST
Article 22(1) requires written communication of arrest grounds within a reasonable time and at least two hours before production for remand. Written grounds identifying the accused's alleged role, wrongful input tax credit, entities involved and particulars of fraud were treated as sufficiently specific; refusal to receive them did not render them vague. Conflicting arrest times did not invalidate the arrest where same-day production before the Magistrate caused no prejudice, and recorded reasons to believe were not required to be supplied. Judicial remand was supported by counsel representation, consideration of both sides' submissions, verification of statutory safeguards and recorded satisfaction on the arrest's justification. The criminal writ petition challenging the GST arrest and remand was dismissed without addressing the underlying merits.
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GST assessment against a deceased proprietor is invalid; fresh proceedings require notice and hearing for the legal representative.
Case-Laws
GST
GST assessment against a deceased proprietor has no legal efficacy, particularly where it is completed without the statutory personal-hearing opportunity under Section 75(4). The assessment order and consequential appellate rejection were declared invalid because the assessment followed the proprietor's death and did not address the hearing requirement. Fresh assessment proceedings may be initiated by issuing notice and providing a hearing to the legal representative or person carrying on the business. Recovery is limited to the deceased person's available estate, and the intervening period may be excluded when computing limitation for fresh proceedings.
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Deemed withdrawal of best-judgment assessment follows timely filing of a valid GSTR-3B return with applicable interest and late fees.
Case-Laws
GST
Section 62(2) of the GST law provides that a best-judgment assessment for non-filing of returns is deemed withdrawn when the registered person furnishes a valid return within the prescribed period. Furnishing the relevant GSTR-3B return, together with applicable late fee, additional late fee and interest, removes the assessment while preserving liability for interest and late fees. The provision therefore operates to withdraw the assessment automatically upon compliant post-assessment return filing.
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Assessment against deceased sole proprietor requires proceedings against the legal representative, rendering prior assessment and appellate orders invalid.
Case-Laws
GST
Assessment proceedings and an appellate order against a sole proprietorship were invalid because the proprietor had died before the assessment order was issued and the objection was raised in appeal. Where GST liability is pursued after a sole proprietor's death, the assessing authority must follow the procedure under Section 93(1)(b) of the CGST Act against the legal representative. The common appellate order was set aside, and the matter was remanded for fresh action against the legal representative after an opportunity of hearing.
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Composite supply requirement bars municipal-function exemption for burial-ground cleaning where cleaning equipment is not supplied to the Corporation.
Case-Laws
GST
Burial-ground upkeep and maintenance involving sweeping, cleaning and daily garbage collection is classified under SAC 999424 as general waste collection services, rather than a residuary service category. The municipal-function exemption under Entry 3A requires a composite supply of goods and services. Welfare kits, bins, tools, consumables and equipment used by the service provider to perform cleaning, without transfer of ownership or possession to the Corporation, do not constitute a supply of goods to the recipient. As the arrangement lacked the required composite supply, the Entry 3A exemption does not apply.
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Residential waste collection classification under SAC 999423 defeats composite-supply exemption where facilitating goods are not transferred to the local authority.
Case-Laws
GST
Residential housing-unit sweeping, cleaning, collection, segregation and storage of garbage are classified as general waste collection services under SAC 999423, which is more specific than the residuary category for other services not elsewhere specified. The arrangement is not eligible for the exemption available for composite supplies of goods and services to a local authority in relation to municipal functions. Cleaning and garbage removal formed the predominant supply, while welfare kits, bins, tools and consumables merely facilitated service performance and were procured at the service provider's cost. As ownership or possession of those items was not transferred to the local authority, no supply of goods occurred and the composite-supply condition was not met.
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GST registration and TDS compliance require government bodies to deduct tax, report payments, and obtain supplier tax clearance.
Circulars
GST – States
Government departments, governmental societies and agencies engaging contractors or suppliers must obtain GST registration as tax deductors if unregistered. They must deduct GST TDS at 2% on contracts and government supplies exceeding the prescribed threshold and file Form GSTR-7 online by the 10th of the following month. For contracts below the TDS threshold, departments must submit prescribed details to the Commissioner of Taxes. Future contracts may be awarded to contractors or suppliers only upon submission of a Tax Clearance Certificate confirming payment of prior tax dues. Officers may be held personally liable for omissions or commissions causing revenue loss.
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50 tonnes of copper without e-way bills seized by Delhi GST, Railways joint team
GST
Dated:- 13-8-2026
PTI
New Delhi, Aug 13 (PTI) Delhi Goods and Services Tax (GST) department in a joint operation with railway officials seized around 50 tonnes of illegal copper and two tonnes of aluminium ingots being transported in a freight train without valid e-way bills and invoices, an official statement said on Thursday.

The estimated value of the seized copper is around Rs 6 crore while t

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CBI ARRESTS CGST SUPERINTENDENT IN BRIBERY CASE
GST
Dated:- 13-8-2026

The Central Bureau of Investigation (CBI) has arrested the Superintendent, CGST, Ibrahimpatnam, Vijayawada, Andhra Pradesh, in a bribery case.

The CBI registered the instant case on 10.08.2026 against the said accused based on a complaint alleging that the accused public servant demanded a bribe of Rs. 1,50,000 from the Complainant, who is running a private company, for not issuing a demand notice towards tax l

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