Goods and Services Tax

Condonation of GST appeal delay through writ jurisdiction enables merits review despite statutory appellate limitation.
Case-Laws
GST
Condonation of delay in filing a GST appeal was granted in writ jurisdiction despite the Appellate Authority's statutory inability to extend the limitation under section 107 of the RGST/CGST Act. Delay attributable to circumstances beyond the petitioner's control, coupled with the grave prejudice arising from refusal of merits review, justified relief. The High Court directed the Appellate Authority to entertain and decide the appeal on merits, subject to filing within the stipulated period.
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Reversed excess input tax credit and available ledger balance require fresh adjudication before recovery of the disputed demand.
Case-Laws
GST
Excess input tax credit demand required reconsideration because the disputed credit had been reversed and surplus credit remained in the Electronic Credit Ledger. The High Court quashed the demand order, which had confirmed the show-cause notice without a reply, and remitted the matter for fresh adjudication on merits. The taxpayer must file a reply to the show-cause notice with supporting documents within the stipulated period; otherwise, recovery may proceed in accordance with law.
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Personal hearing after a GST reply is essential where an adverse adjudication order may follow.
Case-Laws
GST
GST adjudication requires consideration of the taxpayer's reply to the show-cause notice and a further opportunity of personal hearing before an adverse order is made on that reply. Inconsistent dates in the adjudication order and its annexure supported the inference that the subsequently filed reply had not been considered. The High Court set aside the adjudication and appellate orders and remitted the matter for fresh adjudication after personal hearing, subject to the stipulated further deposit. The original adjudication order would revive if the taxpayer failed to cooperate.
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Statutory Limitation in GST Assessments invalidates notices, assessment orders and recovery action issued beyond the prescribed deadline.
Case-Laws
GST
Statutory limitation under Section 73(2) of the Telangana GST Act governed the validity of the show-cause notice and assessment orders for financial year 2020-21. Issuance of the notice after the prescribed deadline, followed by assessment orders beyond the applicable cut-off, constituted a jurisdictional error. The time-barred proceedings, including the consequential recovery notice, were therefore set aside.
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Mandatory GST appellate pre-deposit remains payable despite tax payment during adjudication, preserving appeal subject to delay condonation.
Case-Laws
GST
GST appellate remedy requires the statutory pre-deposit even where tax dues were paid during adjudication proceedings. Payment of the disputed tax, or a challenge to the correctness of tax or penalty, does not dispense with this filing condition; those issues must be determined on the appeal's merits. The petitioner could pursue the statutory appeal only after making the prescribed deposit and filing a delay-condonation application. The appellate authority was directed to consider the delay application sympathetically and, if satisfied, decide the appeal on merits.
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Voluntary excess ITC reversal before notice ends further interest liability after revenue verifies the taxpayer's claim.
Case-Laws
GST
Voluntary reversal of excess input tax credit, with applicable interest, before issuance of a demand-cum-show-cause notice eliminates further interest liability under section 73 of the CGST Act where revenue records verify the claim. The taxpayer's reversal was accepted as genuine, resulting in the first appellate order being set aside and the appeal being allowed. Any necessary demand appropriation must be issued by the proper officer within one month of communication.
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Input tax credit fraud permits Section 74 recovery where invoices and payments do not prove receipt of goods.
Case-Laws
GST
Input tax credit claimed on invoices issued by non-existent suppliers may attract Section 74 where the notice sets out foundational facts indicating fraud, wilful misstatement or suppression. The claimant must establish actual receipt and physical movement of goods; invoices and banking records alone do not prove transaction genuineness. A consolidated notice may cover multiple financial years because the statutory wording permits proceedings for connected periods. Conversely, reverse charge liability cannot be pursued under Section 74 merely from omissions when relevant expenses were disclosed in accounts and financial statements; deliberate non-disclosure is required. Input tax credit mismatch and reverse charge demands were sustained under Section 73 with consequential interest and penalty, while fraudulent credit demands were restored under Section 74.
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IAAPI Calls for GST Rationalisation to Support Growth and Consumer Demand in India’s Amusement Industry
GST
Dated:- 3-9-2026
PTI
Industry survey highlights strong support for a 5% GST rate without ITC, with operators expecting lower ticket prices, higher footfalls and fresh investments New Delhi, September 2026: For families looking to spend a weekend at an amusement park, water park or indoor entertainment centre, ticket prices are often an important part of the decision. For the businesses operating these attractions, however, the equation is more complex. High operating costs, significant investments in infrastructure and changing consumer spending patterns continue to put pressure on the industry.

Against this backdrop, the Indian Association of Amusement Parks and Industries (IAAPI) is calling for a more rational GST structure for the amusement industry. The association believes that bringing down the GST burden can help make entertainment more affordable for con

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y operators, particularly smaller and mid-sized businesses, the current GST structure adds to the pressure on an already capital-intensive business. A more rational rate can create a win-win situation — consumers can benefit through more affordable tickets, while operators can focus on improving their facilities, creating new experiences and expanding their businesses.” Notably, overwhelming majority (approx. 80%) of the visitors to amusement parks belong to middle and lower-middle-class households, the very demographic that the GST 2.0 reforms sought to protect. Present GST rate adversely impacts footfall, muting customer demand.

Amusement parks are an integral part of the tourism industry and contribute significantly to the growth of tourism, employment, local businesses, and the overall economy. However, the sector is treated unequally compared with other important components of the tourism industry, such as hotels and airlines. Hotel accommodation with room rent up to ?7,5

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cted impact goes beyond ticket prices. 64.9% of operators identified increased customer demand as a key benefit of a 5% GST rate, while 62.3% expect facility expansion, 61% anticipate revenue growth and 54.5% see the possibility of new investments in projects.

What stands out from the survey is that the industry is not looking at GST rationalization simply as a way to improve margins. Operators are looking at it as an opportunity to attract more customers, reinvest in their facilities and build a stronger amusement ecosystem.” IAAPI believes that a simpler and more rational GST structure can support the industry's growth while making leisure and entertainment more accessible to consumers. The association will continue to engage with policymakers and stakeholders, using industry data and member feedback to make a constructive case for GST reform.

(Disclaimer: The above press release comes to you under an arrangement with NRDPL and PTI takes no editorial responsibility for the

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Omission of GST refund restriction rule ends its application to proceedings pending on its omission date.
Circulars
GST
Omission of rule 96(10) of the CGST Rules without a saving clause applies to all proceedings pending on the date of omission, preventing the rule's restrictions from governing those matters. Section 6 of the General Clauses Act does not preserve pending proceedings after omission of a rule; their continuation requires an express saving provision or a statutory legal device. Unlike the Central Excise and Customs laws, GST law contains no comparable saving clause. CBIC may accept the Supreme Court's stated position.
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Security-based bail conditions for alleged tax liabilities were modified when disclosed family assets could secure the alleged dues.
Case-Laws
GST
Bail conditions requiring a security bond equivalent to alleged tax and penalty liability may be modified where the accused stands on the same footing as a co-accused whose condition was found onerous and vague. Disclosed family assets, supported by affidavit, may constitute security instead of the stipulated bond. The impugned security-bond requirement was not to be enforced, and the declared family assets were treated as security for the alleged dues.
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Reasonable cause protects service-tax defaulters from Section 78 penalties when departmental guidance creates genuine interpretational uncertainty.
Case-Laws
GST
Reasonable cause under Section 80 of the Finance Act, 1994 can shield an assessee from penalty under Section 78 for non-payment of service tax where contemporaneous departmental communications supported a bona fide belief that consultancy services provided to Government institutions were non-taxable. Interpretational uncertainty, the Department's initial view, and the absence of fraud, wilful misstatement, suppression with intent to evade, or deliberate default support reasonable cause. Service tax for the normal limitation period and applicable interest remained payable, but the Section 78 penalty was set aside.
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GST refund restriction omission applies to pending proceedings, requiring related notices, orders and refund claims to be processed accordingly.
Case-Laws
GST
Omission of Rule 96(10) of the CGST Rules, effective from 8 October 2024, applies to all pending proceedings and extends its benefit to affected assessees. The Supreme Court upheld this position, settling challenges concerning the deleted provision. Pending matters involving notices, orders-in-original, consequential refund claims and remittances must therefore be processed in accordance with the omission and applicable law. Challenges pending before High Courts are to be placed before the appropriate roster courts for orders consistent with the settled position.
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Input tax credit for leased construction requires binding precedent consideration; unlawful ledger recovery must be reversed.
Case-Laws
GST
Input tax credit claims for construction intended to be leased or licensed require consideration of the principle that such construction is not undertaken on the taxable person's own account. Assessment findings rejecting a leasing-based claim without applying the Supreme Court ruling in Safari Retreats required fresh consideration; the assessment and consequential DRC-07 orders were set aside without deciding ITC entitlement on merits. Recovery by debiting electronic cash or credit ledgers also required prior electronic intimation in Form GST DRC-01D and seven days to pay under Rule 142B. Non-compliant recoveries were to be re-credited or refunded after the underlying assessments were set aside.
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Retrospective input tax credit protection overrides delayed-return limits, requiring reconsideration where statutory eligibility under Section 16(5) is met.
Case-Laws
GST
Section 16(5) of the CGST Act, inserted retrospectively, grants input tax credit to taxpayers who furnished returns by its prescribed cut-off date, notwithstanding the time limit in Section 16(4). A circular cannot restrict that statutory entitlement. A notification requiring a rectification application within a specified period does not govern a taxpayer who had already filed an appeal against the assessment order before the amendment. Denial of March 2020 input tax credit and consequential demands therefore require reconsideration under Section 16(5), subject to other eligibility conditions.
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Electronic gift vouchers can validly pass GST rate-reduction benefits when unconditional, traceable e-wallet credits reach identified customers.
Case-Laws
GST
Section 171 permits GST rate-reduction benefits to be passed through electronic gift vouchers where e-wallet credits carry monetary value, are unconditional, have no expiry or usage restrictions, and are traceable to identified customers, invoices and supplies. System-generated labels such as “Offers and cashback” do not negate the documented link to the benefit. Benefits not traceable to identifiable recipients remain unpassed; after accounting for cancelled or returned supplies, the residual amount must be deposited in the Central Consumer Welfare Fund with applicable interest. The anti-profiteering penalty provision does not apply to conduct occurring before it came into force, so no penalty is leviable for that earlier period.
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School-affiliation charges remain taxable where not directly connected with examinations, while extended limitation requires proof of deliberate tax evasion.
Case-Laws
GST
GST treatment of school-affiliation, annual registration and late-registration charges turns on whether services directly relate to admission to or conduct of examinations. Affiliation and related administrative charges are treated as independent taxable supplies, with the examination-services exemption construed strictly; affiliation regularisation remains limited to its specified period. A consolidated show cause notice may cover multiple tax periods absent prejudice or jurisdictional defect. GST Council-based circulars on affiliation remain binding on departmental authorities. Amounts collected without separately charging GST require cum-tax valuation. Extended limitation requires affirmative proof of fraud, wilful misstatement or deliberate suppression with intent to evade tax; non-payment and delayed registration alone are insufficient. Interest and penalties survive only to the extent of sustained tax demands.
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Taxpayer confidentiality restricts external AI use while requiring officers to verify outputs and independently decide quasi-judicial matters.
Circulars
GST – States
Taxpayer confidentiality bars officers and staff from transmitting identifiable taxpayer information or departmental data to public or commercial AI tools, third-party online platforms, external systems, browser extensions or personal accounts unless expressly authorised in writing. Permitted AI use is limited to generic, wholly hypothetical legal or procedural research and drafting support, with independent verification against primary sources. Officers remain personally responsible for disclosures made by themselves or persons acting under their control; breaches may lead to disciplinary action, criminal liability, data-protection consequences and challenges to affected proceedings. Notices and quasi-judicial orders must reflect the signing officer's independent assessment of facts and law, not unverified or mechanically adopted AI-generated content.
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CBI Arrests CGST Additional Commissioner and Two others in Rs. 40 Lakh Bribery Case in Raigad, Maharashtra
GST
Dated:- 2-9-2026

The Central Bureau of Investigation (CBI) has arrested an IRS officer serving as Additional Commissioner of Central Goods and Services Tax (CGST), in Raigad district of Maharashtra, along with a Superintendent of CGST, Raigad, and a private person, on 27.08.2026, in a bribery case.

The CBI registered the instant case on 26 August, 2026 against the accused Superintendent of CGST on the allegations that he had demanded an undue advantage of Rs.1.50 Crore for settling the GST/royalty matter relating to the stone-quarrying firm of the complainant. After negotiation, the demand was subsequently reduced t

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Haryana: SGST collections grow 29 pc in first 5 months of 2026-27
GST
Dated:- 2-9-2026
PTI
Chandigarh, Sep 2 (PTI) Haryana recorded a 29 per cent growth in state Goods and Services Tax (SGST) collections – the highest expansion among the states – in the April-August period of the current fiscal, an official statement said on Wednesday.

During the first five months of the financial year 2026-27, the state collected Rs 24,662 crore in SGST, as against Rs 19,174 crore during the corresponding period of the previous financial year, registering a growth of 29 per cent. This is nearly double the national growth rate of 16 per cent, it said.

In August 2026, Haryana generated revenue of Rs crore from SGST (post-settlement), compar

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Cross-examination in GST penalty proceedings protects natural justice where witness statements support the proposed penalty.
Case-Laws
GST
Cross-examination of persons whose statements are relied upon in GST penalty proceedings is necessary to satisfy principles of natural justice where the affected party specifically requests it. Denial of that opportunity before imposing penalty constitutes a serious procedural defect. The penalty order and consequential notices were set aside, with fresh consideration required after supplying relevant documents, granting a personal hearing, permitting cross-examination of relied-upon persons, and allowing a fresh reply. The merits of the underlying allegations remained open for independent reconsideration.
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Alternative statutory remedy governs GST adjudication challenges where evidence and limitation objections require appellate review.
Case-Laws
GST
GST adjudication challenges involving the extended-demand provision, audit objections, input tax credit, reverse-charge liability, export transactions and factual demand heads require statutory appellate review where the taxpayer participated in proceedings and had an opportunity to present its defence. A disagreement over the evaluation of replies, documents or evidence differs from a denial of natural justice and does not by itself justify writ jurisdiction. A consolidated show cause notice may cover multiple financial years because the statutory language permits notices for periods, while limitation for the order is calculated by financial year. Limitation for an individual year remains available for determination in appeal. Writ interference is unavailable absent patent lack of jurisdiction or manifest breach of natural justice.
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Opportunity to answer a GST show-cause notice required restoration of demand proceedings for fresh adjudication.
Case-Laws
GST
Opportunity to contest a GST show-cause notice may warrant restoration of demand proceedings where failure to reply resulted from bona fide and unavoidable circumstances. On acceptance of sufficient cause, the adjudication and appellate orders were set aside and the proceedings remitted to the reply stage. Fresh adjudication must permit the assessee to file a reply, produce documents and receive a hearing, subject to imposed conditions.
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GST audit findings in Form GST ADT-02 communicate observations but cannot independently authorise tax recovery proceedings.
Case-Laws
GST
Form GST ADT-02 issued after a GST audit under Rule 101(5) communicates audit findings to the registered person as required by section 65(6) of the Central Goods and Services Tax Act, 2017. The communication is administrative in nature and does not by itself create authority to recover tax or other dues. Any action consequential to the audit findings, including recovery proceedings, must be initiated and pursued separately in accordance with the Act.
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Reasoned Decisions in Kara Samadhana applications require disclosed grounds and a hearing before adverse action.
Case-Laws
GST
Rejection of a Kara Samadhana Scheme application for waiver of penalty and interest must disclose material particulars and reasons under section 128A of the CGST/KGST Act, 2017. An unreasoned adverse notice is illegal and arbitrary where the applicant is denied a sufficient and reasonable opportunity of hearing. The rejection notice was quashed, requiring fresh consideration of the representation after hearing, with coercive steps restrained until that decision.
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Statutory limits on customs bank-account attachments bar continued debit freezes after investigation, adjudication, and expiry of permitted duration.
Case-Laws
GST
Section 110(5) limits provisional attachment of bank accounts under customs law to six months, with one recorded-reasons extension of up to six months. A debit freeze continuing beyond one year, after investigation culminates in adjudication, lacks statutory support. Where an appeal against the adjudication order is filed with the mandatory pre-deposit, continued freezing is coercive and unlawful; the affected bank accounts must be defreezed.
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