Goods and Services Tax

Prolonged incarceration justified regular bail where trial was slow and substantial prosecution evidence remained incomplete.
Case-Laws
GST
Despite the seriousness of the allegations, regular bail was granted because the petitioner had remained in custody for more than five years and nine months while the trial progressed slowly and substantial prosecution evidence still remained. The Court applied the principle that an accused cannot be kept in custody indefinitely before guilt is proved, and held that prolonged incarceration, together with incomplete examination of witnesses, justified release on bail. Bail was made subject to furnishing bonds and compliance with conditions against influencing witnesses or tampering with evidence, with liberty to seek cancellation if misused.
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Writ jurisdiction cannot quash pending criminal prosecution where disputed facts must be tried in a criminal court.
Case-Laws
GST
Writ jurisdiction under Article 226 was held unsuitable for quashing a pending CGST criminal prosecution where the complaint raised several disputed factual issues requiring trial. The Court treated the complaint as the foundation of the prosecution and declined to undertake any fact-finding inquiry or interfere with triable matters. It also held that Suncraft Energy (P) Ltd. was inapplicable because that decision concerned revenue action, not a pending criminal prosecution. The writ petition was dismissed, with liberty to the petitioner to raise all factual and jurisdictional objections before the jurisdictional criminal court during trial.
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Section 129 release of detained goods on penalty payment despite ownership dispute and pending demand adjudication.
Case-Laws
GST
Section 129 is described as a complete code for detention and release of goods in transit, requiring release on payment of the prescribed penalty where the owner or another person comes forward, without treating detention as a continuing lien pending final adjudication of the demand. On the facts discussed, objections regarding ownership, quantity, quality and supporting documents were not backed by contrary material sufficient to displace the petitioner's claim of ownership at that stage. The consignment was therefore directed to be released on compliance with Section 129(1)(a), while the revenue was left free to recover any finally sustained demand in accordance with law.
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Invalid service by affixation and premature tax recovery were held illegal, with refund ordered.
Case-Laws
GST
Service of a show cause notice by affixation is valid only when the prescribed alternative modes are not practicable and that impracticability is first recorded; absent such declaration, service is invalid and any demand founded on it is illegal. Recovery of tax before expiry of the statutory three-month payment period is permissible only where the proper officer records written reasons under the proviso for immediate action in the interest of revenue; recovery from the electronic ledger on the same day as the demand order, without recorded reasons, was therefore illegal. The demand order was set aside, refund was directed, and liberty was reserved to proceed afresh in accordance with law.
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Reverse charge on bar licence fee rejected as TASMAC was not treated as the State Government under GST notifications.
Case-Laws
GST
Writ challenges to licence notices and tender conditions became infructuous after the licence period expired, so no effective relief could be granted on those issues. GST demands raised under reverse charge on 99% of the licence fee were unsustainable because TASMAC is a distinct juristic entity and not the State Government, Union Territory or local authority for the relevant notifications; the reverse charge entry therefore did not apply. The assessment orders and show cause notice on that basis were quashed. The Court left open independent GST liability, if any, on the petitioners' own supplies and permitted fresh proceedings under the machinery for unregistered persons, subject to limitation.
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Proper prior show cause notice under GST law is mandatory; summary in Form DRC-01 cannot replace statutory notice.
Case-Laws
GST
A proper prior show cause notice under Section 73(1) is a condition precedent for a valid order under Section 73(9), and the summary in Form GST DRC-01 with an attachment does not substitute for that statutory notice. The High Court reiterated that the notice, statement under Section 73(3), and order under Section 73(9) must each be issued by the proper officer in the manner required by the statute and rules. As only the summary notice was issued, the impugned order was unsustainable in law and was set aside. The authorities were given liberty to proceed afresh in accordance with law, and the petitioner may raise all available grounds in those proceedings.
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GST treatment of temple auction rights: licence-based supplies taxed, with limited exemptions for harvesting and precinct rentals.
Case-Laws
GST
A statutory religious body was treated as a body corporate engaged in business for GST purposes, and auctioning or tendering exclusive rights was characterised as a licensing arrangement and therefore a supply of services. GST was held payable on rights to collect offering-remnants and abandoned clothes, to perform rituals, and to operate toilets and washrooms, because the applicant was not itself supplying those services but granting commercial rights for consideration. Exemption was recognised for rights to harvest coconuts from temple lands as a service linked to agricultural operations, and for pooja item stalls as renting of precincts of a religious place, subject to notification conditions. Reverse charge did not apply to honorarium or sitting fees paid to the President and Members, but applied to legal services from advocates.
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GSTAT portal scrutiny guidelines extended, clarifying required appeal documents, certification, and Revenue filing requirements.
Circulars
GST
The GSTAT Principal Bench extended the earlier portal-filing guidelines and scrutiny instructions until 31 December 2026 to ease appeal filing during the initial implementation phase. Scrutiny officers are directed to verify that APL-05 includes soft copies of the SCN, OIO, OIA, statement of facts, grounds of appeal, and court fee or pre-deposit where required; no defect should be raised where higher-court orders exempt court fee or pre-deposit. For appeals under section 112(1), a scanned certified copy of the OIO or OIA is acceptable if the endorsement shows it is certified. Appellants must upload authorisation in favour of the tax professional or vakalatnama for an advocate. For Revenue applications under section 112(3), the listed documents are required, and no court fee or pre-deposit is payable.
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Composition levy stock intimation deadline extended for FORM GST CMP-03 filings under Assam GST rules.
Circulars
GST – States
The time limit for taxpayers opting for composition levy under section 10 of the Assam GST Act to intimate details of stock held on the preceding date in FORM GST CMP-03 is extended until 31 January 2018. The order supersedes the earlier Assam GST order on the same subject, thereby replacing the previous deadline with the extended period.
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Proper GST notice is mandatory before adjudication; summary DRC-01 alone cannot sustain a Section 73 order.
Case-Laws
GST
Issuance of only a summary show cause notice in Form GST DRC-01 does not satisfy the requirement of a proper prior notice under Section 73(1) read with Rule 142(1), because the summary is not a substitute for the statutory notice that sets adjudication in motion. The Court held that the notice, the statement under Section 73(3), and the order under Section 73(9) must be issued by the Proper Officer in accordance with the statutory scheme, and such compliance is a condition precedent to a valid Section 73(9) order. As no proper prior notice had been served, the HC quashed the impugned order and consequential actions, while granting liberty to initiate fresh proceedings and directing exclusion of the specified period for limitation purposes.
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Alternate statutory appeal bars writ jurisdiction where the levy dispute can be examined in the GST appellate hierarchy.
Case-Laws
GST
Writ petitions challenging orders-in-original were held not maintainable because an alternate and efficacious statutory appeal existed under section 107 of the GST Act. The petitioners' reliance on an earlier High Court decision concerning the legislative competence and validity of the State levy did not assist them, because the adjudicating authority had separately examined the nature and use of the levy for service tax purposes. The Court found no jurisdictional defect in the authority's action, and held that the correctness of that view, including the effect of the 13.04.2016 circular, should be considered by the appellate authority and, if necessary, the Tribunal. Liberty was granted to file appeals within the time allowed.
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Habeas corpus challenge to arrest safeguards remains maintainable, but substantial compliance with reasons-to-believe requirement defeats the petition.
Case-Laws
GST
A habeas corpus petition challenging arrest and detention remained maintainable despite a judicial remand order where the grievance was breach of a mandatory statutory arrest safeguard affecting personal liberty. The Court held that while a remand order is not ordinarily assailable on merits by habeas corpus, the writ can be invoked to test whether arrest complied with the statutory precondition of recording reasons to believe. On the merits, the Court found that the competent authority had recorded the reasons, authorised arrest, and supplied them in substance to the arrestee; no rule required a verbatim signed copy. The challenge to arrest and custody was therefore rejected.
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Confiscation of available stock set aside; delayed registration of an additional business place attracted only general penalty.
Case-Laws
GST
Storage of stock in premises not yet registered as an additional place of business did not, on the seizure records, justify confiscation of the available goods, redemption fine, or tax demand on the seized stock itself. The Court noted that the stock had not been liquidated at inspection and remained available, while the premises was later brought into the registration. The only consequence for the delayed registration default was a general penalty under the GST enactments. Tax, interest and penalty could still be redetermined only for any goods already sold.
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Anti-profiteering liability confirmed for unpassed input tax credit, with interest ordered and separate cancellation claim excluded.
Case-Laws
GST
The Tribunal accepted the re-investigation report on anti-profiteering, holding that the respondent had failed to commensurately pass on the input tax credit benefit and had thereby contravened the anti-profiteering obligation. It relied on the quantified balance worked out after crediting benefits already passed to home-buyers and directed return of the remaining profiteered amount with interest at 18% from the date of collection until repayment. Separately, it held that the applicant's grievance over interest on money retained after cancellation of allotment arose from a different dispute already pursued before the RERA forum and fell outside the statutory scope of anti-profiteering proceedings, leaving that claim to the appropriate forum.
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Andhra CM writes to Centre over crises faced by aquaculture, tobacco farmers
GST
Dated:- 18-5-2026
PTI
Amaravati, May 17 (PTI) Andhra Pradesh Chief Minister N Chandrababu Naidu has written to Union Ministers Piyush Goyal and Nirmala Sitharaman over issues affecting aquaculture and tobacco farmers in the state.

The chief minister said in the letter that the tariff imposed by the United States on shrimp imports from India is resulting in nearly a 60 per cent tax burden on Indian exports, severely impacting aqua products exported from Andhra Pradesh.

“The tariff burden on shrimp exports is severely affecting aquaculture farmers and exporters in Andhra Pradesh and putting exports worth nearly Rs 25,000 crore at risk,” Naidu sa

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orarily exempting five per cent interest and five per cent Goods and Services Tax (GST).

Naidu urged the Centre to hold discussions with the United States for the reduction of tariffs and take steps to increase exports to alternative markets such as Russia, the European Union and Australia.

The Chief Minister further requested the Central government to include shrimp in the food menu of the Indian Armed Forces, enhance the Kisan Credit Card limit to Rs 1 lakh for aquaculture farmers and provide a special railway facility for shrimp transportation from southern to northern states.

In a separate letter to the Finance Minister Sitharaman, Naidu sought sanction of a Rs 100 crore corpus fund through the National Fisheries Development Bo

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lamity Contingent Duty, had slowed market purchases and affected procurement.

Naidu noted that tobacco's opening auction price had fallen from Rs 280 per kg last year to Rs 250 this year, while companies' reduction of procurement quantities was causing losses to farmers.

The chief minister also highlighted that exporters were facing difficulties due to prevailing international geopolitical conditions.

The livelihood of nearly 43,000 tobacco farmers in Andhra Pradesh and lakhs of workers dependent on the sector were under threat, Naidu said.

Naidu cautioned that excessive taxation on legal cigarettes could lead to illegal tobacco products entering the market and urged the Centre to review the enhanced taxation policy and excise d

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Delhi: Two arrested in multi-crore GST, VAT fraud involving dummy firms, fund layering
GST
Dated:- 16-5-2026
PTI
New Delhi, May 16 (PTI) Two persons including a chartered accountant have been arrested by the Economic Offences Wing (EOW) in connection with GST and VAT irregularities running into several crores, and involving alleged misuse of business credentials, dummy firms and layering of funds by routing them through multiple bank accounts, an official said on Saturday.

The accused have been identified as Rajeev Kumar Parasar and chartered accountant Atul Gupta, associated with an accountancy firm in Chandni Chowk, EOW said in a statement.

According to the EOW, an FIR in this matter was registered under various charge

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onding genuine business activity.

The probe further revealed that dummy firms and accounts were allegedly operated with the assistance of Atul Gupta and one Prakash Gupta, who has since died.

Investigators also found that GST returns and statutory compliances of the suspected firms were allegedly filed through the firm, police said.

According to investigators, the accused, along with their associates, allegedly misused GST/VAT credentials and opened or operated bank accounts in the names of dummy proprietors to route and layer huge sums through multiple firms and beneficiary accounts.

“The funds were transferred rapidly across accounts or withdrawn in cash to conceal the identities of actual beneficiaries and obscure the fin

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Delhi: Six arrested in Rs 128-crore fake GST invoicing racket busted by EOW
GST
Dated:- 16-5-2026
PTI
New Delhi, May 16 (PTI) The Delhi Police's Economic Offences Wing (EOW) has busted an alleged GST fraud cartel operating through shell companies and fake invoicing networks, arresting six individuals involved in swindling Rs 128 crore, an official said on Saturday.

The accused allegedly operated fake firms, generating bogus GST invoices, and availing wrongful Input Tax Credit (ITC) without any actual supply of goods or services, EOW in a statement said.

On May 15, EOW teams made several raids at different locations in Delhi-NCR and arrested Raj Kumar Dixit, Amar Kumar, Vibhash Kumar Mitra, Nitin Verma, Mohammad Waseem, a

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banking transactions, email IDs and other digital evidence, revealed that Dixit and Dilip Kumar, still at large, were the main conspirators behind the racket.

The police said Dixit operated a large-scale fake invoicing syndicate from Daryaganj with his brothers and associates and orchestrated the creation of nearly 250 shell companies using forged and fraudulently obtained documents.

Investigators said the accused used these firms for bogus billing, fake GST transactions, and fraudulent ITC claims while concealing the financial trail through multiple bank accounts, mobile numbers and intermediaries.

Amar Kumar and Vibhash Kumar Mitra facilitated the formation of shell firms and bogus GST activities, they said.

Nitin Verma al

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GSTAT bench allocation order classifies GST appeals by issue type and sets Division Bench first-listing for pending and future matters.
Circulars
GST
GSTAT has classified GST appeals into three categories and mapped them to Single, Division and designated benches. Matters below the specified threshold and not involving a question of law are to be placed before a Single Bench, while pending and future matters before the Principal and State Benches are to be listed first before a Division Bench, which may remit cases lacking a question of law for further directions. Category I covers core classification, valuation, input tax credit, registration and tax-liability disputes; Category II covers registration, composition, recovery, refund, assessment and related matters; Category III covers seizure, confiscation, rectification, penalty, compounding and residual matters. The order also assigns member combinations, hearing days and travel/daily expense entitlements for members posted away from their normal station.
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Release of Supply and Use Tables of 2022-23 and 2023-24: Detailed Product-Industry Insights into the Indian Economy
GST
Dated:- 16-5-2026

The National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), has released the 'Supply and Use Tables (SUTs) of 2022-23 and 2023-24'. This release marks a significant milestone in India's national accounting framework, as it is the first comprehensive set of Supply and Use Tables compiled under the revised base year of 2022-23, which replaced the earlier 2011-12 base year series. The new series of Annual National Accounts Estimates with base year 2022-23 was released on 27th February, 2026, following international best practices and recommendations of the United Nations System of National Accounts (SNA). In the new series, the compilation of annual revised estimates has been integrated with Supply and Use Table framework, to eliminate discrepancy between production/income es

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lability of new datasets and adoption of methodology as listed below:

Salient Features of the SUT under 2022-23 Series

(i)  Integration of Annual Estimates with SUT framework: In the new GDP series, the production, income, and expenditure estimates are reconciled within the SUT to ensure internal consistency, in line with SNA recommendations.

(ii)  Alignment with latest classifications: The adoption of updated classifications like NIC 2025, COICOP 2018 improves the alignment of national accounts with international standards and evolving economic structures.

(iii)  Improved Non-Financial Private Corporate (NFPC) Estimates: The estimates NFPC sector have been improved by segregating revenue share, hence GVA for multi activity enterprises using MGT 7 data. Multipliers have been used at disaggregated level to account for the differences in capital across industries and size classes. Comprehensive coverage of Limited Liability Partnership (LLPs) has been

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ASI and ASUSE and several administrative data sources.

(viii)  Elimination of Discrepancy: One of the key strengths of the new series is that complete integration of annual estimation with SUT framework, hence elimination of statistical discrepancies at the final estimation stage.

Purpose of Supply and Use Tables

Supply and Use Tables serve multiple, mutually reinforcing purposes that have made them indispensable to modern national accounting. At their core, SUTs offer a unified analytical framework that simultaneously integrates the three canonical approaches to measuring Gross Domestic Product (GDP)-the production approach, the income approach, and the expenditure approach within a single, internally consistent structure. This integration is critical because it ensures that estimates derived from conceptually different methodologies and data sources converge to a single, harmonised estimate of the size and growth of the economy.

Beyond GDP re

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s are presented as two interlinked matrices: the Supply Table and the Use Table, both organised in a product-by-industry format. The Supply Table records the total supply of each product in the economy, distinguishing between supply from domestic production (disaggregated by the producing industry) and supply from imports. To bridge the gap between producer and consumer valuations, the Supply Table also incorporates adjustments for trade and transport margins and product taxes and subsidies, enabling a transition in valuation from basic prices, at which domestic output is recorded to purchasers' prices, at which goods and services are actually transacted in the market.

Complementing the Supply Table, the Use Table records how each product is utilised across the economy, disaggregating total use into: intermediate consumption by each industry (i.e., products used as inputs in the production process), private final consumption expenditure, government final consumpti

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an economy available in official statistics. The compilation draws on a diverse and comprehensive set of survey and administrative data sources in addition to datasets used in annual accounts compilation: the Annual Survey of Industries (ASI) for the organised manufacturing sector; the Annual Survey of Unincorporated Sector Enterprises (ASUSE) for the informal non-agricultural sector; the Household Consumption Expenditure Survey (HCES) for private final consumption; and a wide range of administrative databases maintained by government departments and regulators.

The compilation methodology follows a structured, four-stage process: (i) Identification of Industries and Products: industries are delineated using the National Industrial Classification (NIC) from ASI data for the manufacturing sector and Compilation Categories (CC) from annual estimates for non-manufacturing sectors; products are classified as per the National Product Classification for Manufacturing Sector (NPCMS) a

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; and Central Board of Indirect Taxes and Customs (CBIC) tariff rate for import duties.

The Use Table provides, in a single integrated framework, the Gross Value Added (GVA) at basic prices by industry (consistent with the production approach to GDP), the expenditure-side GDP (derived by deducting imports from the sum of all final uses), and the income-side decomposition of value added by industry, covering compensation of employees, gross operating surplus, and mixed income. This three-in-one representation of the economy is the hallmark of the SUT framework and is made possible only through the use of comprehensive, product-level data. Key data sources informing the Use Table include: Cost of Cultivation Studies (CCS) for agricultural inputs; ASI data for manufacturing; Ministry of Corporate Affairs (MCA) for the corporate sector; EXIM data for export of goods; and RBI data for exports of services.

Considering the diverse datasets used to compile SUT, the product balancing is c

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tely 51-52%, underscoring the continued dominance of services in the Indian economy.

• The GVA-to-GVO (Gross Value Added to Gross Value of Output) ratio is a key indicator of the efficiency of value addition within an industry. In 2022-23, the five industries with the highest ratio (range: 0.95 to 0.76) are: Ownership of Dwellings, Forestry and Logging, Agriculture, Crude Petroleum, and Education & Research-industries characterised by relatively low material input requirements. In 2023-24, the top five (range: 0.95 to 0.74) are: Ownership of Dwellings, Agriculture, Forestry and Logging, Public Administration & Defence, and Education & Research.

• Conversely, industries with the lowest GVA-to-GVO ratios are those with high material-input intensity. In 2022-23, the bottom five (range: 0.11 to 0.08) are: Production, Processing and Preservation of Meat, Fish, Fruit, Vegetables, Oils and Fats; Manufacture of Dairy Products; Manufacture of Communication Eq

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onsumption Expenditure (PFCE) in 2022-23 constitute of 57% goods and 43% services, while in 2023-24, goods accounted for 56% and services 44%.

Taken together, the Supply and Use Tables of 2022-23 and 2023-24 provide a uniquely comprehensive and internally consistent account of the Indian economy at the product-industry level. They constitute a foundational resource for economic research, structural analysis, and evidence-based policymaking.

With MoSPI focus on improving the timeliness and granularity of the statistics, the SUT is being published with much reduced time lag than the previous base. Moreover, in terms of granularity the number of products have been increased to 155 from 140 in the previous base SUT.

The 'Supply and Use Tables of 2022-23 and 2023-24' along with a detailed Methodological Note on SUT Compilation are available for free download on the MoSPI official website at:

https://www.mos

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Alternative statutory remedy bars writ interference where GST tax and penalty were paid without contemporaneous protest and goods were released.
Case-Laws
GST
A HC declined to entertain a writ petition challenging GST detention and release proceedings because the tax and penalty were paid after service of notice in Form GST MOV-07 and the goods were then released, with no contemporaneous protest shown. The Court treated the proceedings as concluded upon payment, held that the penalty order was appealable, and noted that no appeal had been filed within the prescribed period. It found no demonstrated violation of natural justice or jurisdictional error to justify bypassing the statutory appellate remedy, and dismissed the petition as devoid of merit.
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Adequate hearing in GST registration cancellation requires fair time to reply, not a hasty order.
Case-Laws
GST
GST registration cancellation requires an adequate opportunity of hearing, not merely a formal chance to respond. The High Court found that the authority fixed a personal hearing before the 30-day reply period had expired and cancelled the registration the next day, which showed undue haste and breached natural justice. The cancellation order was set aside for want of a fair and reasoned decision. The show cause notice was revived, and the competent authority was directed to take the petitioner's reply, grant hearing, and pass a speaking order.
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Natural justice in assessment proceedings: matter remitted for fresh merits review after no reply was filed to the show cause notice.
Case-Laws
GST
Assessment was challenged for being confirmed without a reply to the show cause notice, raising breach of natural justice. The Court noted that the impugned order was passed only because no reply had been filed, while the record also showed attachment of the bank account and full recovery of the arrears for the relevant year. The matter was remitted for fresh consideration on merits, with liberty to the petitioner to file a reply with supporting documents and with prior notice before the fresh order. The remand was made conditional: if the reply was not filed within the stipulated time, the impugned assessment order would stand confirmed.
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GST registration restoration follows payment of outstanding dues where cancellation for non-filing would prejudice revenue interests.
Case-Laws
GST
Cancellation of GST registration for continuous non-filing of returns was set aside where the taxpayer was still carrying on taxable works contract activity and continued registration was necessary to ensure discharge of statutory tax liabilities. The Court held that excluding the taxpayer from the GST regime would prejudice revenue, because any dues payable under the GST law would otherwise remain outside the tax system. Following the approach adopted in similar matters, the authorities were directed to intimate the outstanding statutory dues up to the date of cancellation, and upon payment, to revoke the cancellation and restore registration.
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Advance ruling scope limited: documentary sufficiency for SEZ authorised operations falls outside section 97 jurisdiction.
Case-Laws
GST
Advance ruling jurisdiction under section 97 of the CGST Act does not extend to questions seeking guidance on the sufficiency of documentary evidence for proving that supplies to SEZ units or developers are for authorised operations. The applicant asked whether LOA or eligibility certificate evidence was enough for zero-rated treatment, or whether invoice endorsement by the Specified Officer was mandatory, but the Authority held these issues did not fall within any category listed in section 97(2), such as classification, notification applicability, time or value of supply, input tax credit, tax liability, registration, or whether an activity amounts to supply. It therefore declined to answer all three questions and left the merits of zero-rating and endorsement requirements unexamined.
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Tariff classification of AAC bricks turns on ceramic character, with heading 6810 preferred over tariff item 69041000.
Case-Laws
GST
AAC bricks/blocks were held not to qualify as ceramic products under Chapter 69 because the manufacturing process and test material showed a sand-lime type article subjected to steam treatment in autoclaves, not goods fired after shaping or heated above the Chapter 69 threshold. The Authority applied HSN Notes and Chapter 69 Notes to conclude that heading 6810 better matched the product description. It also rejected the argument that tariff item 69041000 must prevail as a specific entry, since heading 6810 likewise contains a specific entry for building blocks and bricks. The goods were therefore classified under heading 6810, and classification under tariff item 69041000 was denied.
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