Goods and Services Tax

Rule 86A cannot create a negative Electronic Credit Ledger balance; excess blocking is unlawful, though preventive action needs no prior notice.
Case-Laws
GST
Rule 86A permits only a temporary restriction on debit of credit actually available in the Electronic Credit Ledger; it does not authorise the Commissioner or an authorised officer to create a negative balance by blocking more credit than stands to the taxpayer's account. The High Court also reiterated that prior show cause notice is not required before invoking Rule 86A, because the measure is preventive and intended for emergent situations, but that does not enlarge the statutory power. The impugned blocking beyond the available credit was unsustainable and was set aside, while the authorities were left free to pursue recovery through the statutory mechanisms available in law.
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GST registration restoration permitted after non-filing, where taxpayer clears pending returns and statutory dues
Case-Laws
GST
GST registration cancelled for continuous non-filing of returns was treated as amenable to restoration where the taxpayer was ready to file all pending returns and pay tax dues with applicable interest, penalty and late fee. Following its earlier decision on similar facts, the HC directed the proper authority to consider restoration under the proviso to Rule 22(4) of the CGST Rules, 2017 rather than treating cancellation as final. The taxpayer was allowed sixty days to apply for restoration, and the authority was required to act expeditiously on compliance with the statutory requirements.
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Parallel GST proceedings barred on same subject matter, but summons alone do not start adjudicatory action.
Case-Laws
GST
Section 6(2)(b) bars parallel adjudicatory proceedings on the same subject matter, but summons and other investigative steps do not by themselves amount to initiation of such proceedings. Applying the Supreme Court's ruling in Armour Security, the HC noted possible overlap between Central and State GST action, but declined to decide the merits of that overlap on the material before it. It directed the assessee to comply with the summons and raise the objection before the concerned authority, while requiring the State and Central authorities to communicate and coordinate so that the assessee is not subjected to multiple adjudicatory processes on the same subject matter. The merits and validity of the summons and notice were left open.
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Speedy trial and documentary evidence justified regular bail in a GST prosecution with prolonged custody.
Case-Laws
GST
Regular bail was granted in a GST prosecution because continued custody was found inconsistent with Article 21 in the circumstances of the case. The High Court noted that the offence was triable by a Magistrate, carried a maximum sentence of five years, cognizance had already been taken, the prosecution rested mainly on documentary evidence, no other case was attributed to the accused, and ten witnesses remained, indicating that trial would take time. On that basis, further incarceration was held to offend the right to a speedy trial. Bail was made subject to conditions to be fixed by the trial court or Duty Magistrate, with liberty to seek cancellation for breach.
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Fraud-based GST demand fails where input tax credit was reversed before notice and no utilisation or intent to evade was shown.
Case-Laws
GST
Section 74 of the GST Act cannot be invoked without material showing fraud, wilful misstatement or suppression with intent to evade tax; where the taxpayer reversed the disputed input tax credit before notice and the Revenue showed no conscious involvement in any fraudulent arrangement, the proceedings were held unsustainable. Interest under Section 50 was also refused because wrongly availed credit had been reversed before the show cause notice and the Electronic Credit Ledger retained surplus balance, so utilisation was not established. A further demand and penalty on the same reversal was treated as double taxation and beyond jurisdiction, and the impugned orders were quashed.
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Provisional bank attachment requires tangible material and strict safeguards; High Court quashes arbitrary attachment and imposes personal costs.
Case-Laws
GST
Provisional attachment of a bank account under section 83 is a drastic power that can be exercised only on a prior, valid formation of opinion based on tangible material and after compliance with mandatory procedural safeguards. The pre-attachment communication and attachment order were vague, issued without a show cause notice, and disclosed no proper material or reasoning; the attachment therefore breached the petitioner's civil rights and was unlawful. The High Court quashed the attachment orders but permitted the authorities to proceed afresh in accordance with law if tangible material exists. Finding a gross abuse of power and high-handed conduct causing serious civil consequences, the Court also imposed personal costs on the concerned officer.
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Vague GST cancellation notices and non-speaking orders violate natural justice; registration restored, fresh proceedings permitted.
Case-Laws
GST
Vague show-cause notices proposing GST registration cancellation, and orders rejecting revocation, were held arbitrary because they did not deal with the petitioner's explanation for temporary discontinuance of business and showed no application of mind. The Court reiterated that a notice seeking cancellation must contain adequate reasons to enable an effective reply, and that a mechanical order passed without discussing the assessee's case violates natural justice. The impugned notices and consequential orders were quashed, registration was restored, and the department was left free to initiate fresh proceedings on a properly reasoned notice after granting a hearing.
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ITC mismatch reconciliation required before adverse GST adjudication; demand set aside and matter remanded for fresh consideration
Case-Laws
GST
Input tax credit mismatch between Form GSTR-3B and Form GSTR-2A had to be reconciled in accordance with Circular No. 183/15/2022-GST before adverse adjudication; where that prescribed procedure was not followed, the adjudication order and consequential demand were set aside and the matter was remitted for fresh consideration from the stage of reply to the show cause notice. The assessee was left free to raise all other contentions in the remanded proceedings.
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Vague show cause notice and denial of effective hearing led to quashing of the assessment order and remand
Case-Laws
GST
An assessment order rejecting input tax credit under Section 74 was quashed because the petitioner was not afforded a proper personal hearing and the show cause notice was found to be vague. The Court accepted that the authorised representative had been sent to another officer for document verification rather than being effectively heard, and held that one more meaningful opportunity of hearing was required. It also held that the notice did not sufficiently disclose the specific allegations later relied on in the order, impairing the petitioner's ability to respond. The matter was remitted for fresh consideration after hearing the petitioner and permitting additional documents.
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GSTAT Lucknow Bench begins operations, with jurisdiction and filing of GST appeals now routed through the new bench.
Circulars
GST – States
The Goods and Services Tax Appellate Tribunal, Lucknow Bench has commenced operations at its temporary address in Gomti Nagar, Lucknow and will exercise jurisdiction over the Uttar Pradesh districts notified by the Department of Revenue. Appeals under the Central Goods and Services Tax Act, 2017 and the State GST Act arising from that jurisdiction must now be filed before the Lucknow Bench. Institution of appeals and related proceedings must follow Chapter III of the GSTAT (Procedure) Rules, 2025, along with the e-filing advisory, Presidential Orders, and other applicable statutes and directions made available on the GSTAT portal.
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GSTAT bench reconstitution reshapes roster allocation, transitional transfer of matters, and continued Single Bench jurisdiction immediately.
Circulars
GST
The Principal Bench of the GSTAT reconstitutes its Division Benches under Section 109 of the CGST Act, with Division Bench-I and Division Bench-II assigned the listed Members. Matters will be heard and disposed of according to a roster to be issued separately with the President's approval. Part-heard matters of the erstwhile Division-I and II are released, except two remanded matters of Division Bench-I and three concluded matters of Division Bench-II, while remaining assigned matters transfer under the revised constitution unless otherwise directed. Second appeals will be assigned by specific orders, and Single Benches will continue to hear cases under the existing allocation. The order takes effect immediately.
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GSTAT Judicial Members designated as Vice Presidents of State Benches under the CGST Act, formalising bench leadership.
Circulars
GST
Judicial Members of the GST Appellate Tribunal have been designated as Vice Presidents of their respective State Benches under section 109(7) of the CGST Act, 2017. The office order assigns each listed member to a specified State Bench across multiple States and Union Territories, thereby formalising their bench-wise vice presidential role for tribunal administration.
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Kolkata Bench GSTAT begins functioning, with appeals from specified jurisdictions now to be filed there under the prescribed procedure.
Circulars
GST – States
The Kolkata Bench of the Goods and Services Tax Appellate Tribunal has commenced functioning at 2/5, Judges Court Road, Alipore, Kolkata, and will exercise jurisdiction over West Bengal, Sikkim and the Andaman and Nicobar Islands. Appeals under the Central Goods and Services Tax Act, 2017 and the corresponding State and Union Territory GST laws from these jurisdictions are to be filed before this Bench. Appeals, applications and related proceedings must follow the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025, including Chapter III for institution of appeals. The notice also directs users to the GSTAT portal for e-filing guidance and assistance.
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Lenient GSTAT appeal scrutiny eases initial filing defects and clarifies certification rules for digital and scanned documents.
Circulars
GST
During the initial six-month filing phase under the GSTAT Procedure Rules, 2025, the Registry of each bench must take a lenient view on appeal scrutiny and raise only substantive defects, not defects of form, so non-prejudicial filing irregularities will not be objected to. It is also clarified that documents generated digitally through the GSTN system do not require certification, while scanned copies of physical documents attached to the appeal must be signed. The order is intended to ease portal-based filing difficulties and applies for the stated initial period.
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Pre-deposit Percentage in the GST Portal
GST
Dated:- 11-4-2026

While filing an appeal in Form APL-01 on the GST portal, the pre-deposit percentage is auto-populated as 10% in accordance with Section 107(6) of the CGST Act, 2017, and was previously non-editable. Due to this restriction, taxpayers faced difficulties in cases where the pre-deposit had already been made through other means or where the demand amount was incorrectly reflected under the appropriate head.

To address the

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Natural justice bars GST registration cancellation without considering the taxpayer's reply before adverse action.
Case-Laws
GST
Cancellation of GST registration could not be sustained where the petitioner's reply to the show cause notice was already on record but was not considered before the adverse order, as that defect offended natural justice. The High Court directed that the cancellation order be treated as a suspension of registration pending de novo adjudication, with the petitioner's reply examined on merits and an opportunity of hearing afforded. The department was left free to continue investigation and proceed in accordance with law for tax recovery or penalty.
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Natural justice requires consideration of objections before an adverse order under Section 129(3); ignored objections vitiate the decision.
Case-Laws
GST
An adverse order under Section 129(3) must be preceded by consideration of the affected party's objections and an adequate hearing. Where objections were filed but ignored, and the order was passed without recording reasons on the penalty issue or dealing with the submissions made, the order is vitiated for breach of natural justice and audi alteram partem. The proper course is to set aside such an order and remand the matter for fresh adjudication through a reasoned decision after granting a fair opportunity of hearing.
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Adjudication passed despite interim restraint can be withdrawn, with the show cause notice remitted for fresh hearing.
Case-Laws
GST
Where an adjudication order is passed in breach of an interim order, the High Court permitted withdrawal of the order on the State's statement and treated it as withdrawn. The consequence was that the adjudication could not survive, and the show cause notice had to be adjudicated afresh in accordance with law after granting the petitioner an opportunity of hearing. Relying on earlier orders, the Court declined to examine the constitutional validity challenge and expressly kept that issue, along with all other contentions, open while directing fresh adjudication within the time fixed by the Court.
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GST appeal limitation and electronic order upload: High Court quashes rejection and remits matter for merits consideration.
Case-Laws
GST
Mandatory electronic upload of the summary of an adjudication order under GST is required to preserve the taxpayer's statutory right of appeal, and the appellate authority cannot treat an appeal as time-barred where that summary was issued later. Following its earlier view and the Supreme Court's principle in ASP Traders, the HC held that reliance only on an earlier email transmission was insufficient in the circumstances. The appellate order rejecting the appeal on limitation was quashed, and the matter was remitted for fresh disposal on merits without reference to limitation.
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Department of Commerce and Ministry of Ports, Shipping and Waterways Hold High-Level Meetings to Address Packaging, Logistics and Shipping Challenges Amid West Asia Situation
GST
Dated:- 10-4-2026

Coordinated Efforts Undertaken to Ensure Continuity of Trade, Address Stakeholder Concerns and Stabilise Supply Chains

The Government of India has continued its proactive and coordinated response to the evolving situation in West Asia by convening high-level stakeholder consultations to address emerging logistics, packaging and shipping-related challenges impacting India's trade and export ecosystem.

In this regard, two important meetings were held, one under the chairpersonship of the Commerce Secretary and another co-chaired by the Secretary, Ministry of Ports, Shipping and Waterways (MoPSW) and the Commerce Secretary, bringing together senior officials, port authorities, shipping agencies, Export Promotion Councils (EPCs), industry representatives and other stakeholders.

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erce Secretary emphasised the ongoing endeavour of Government need to ensure uninterrupted availability of critical raw materials and maintain production continuity. He emphasised the need for undertaking time-bound assessments of key packaging inputs, including mapping domestic production capacity and identifying import dependencies. He mentioned that a structured monitoring mechanism for tracking export-import trends and sectoral stress indicators on a weekly basis will also be instituted. Regular consultations with industry and Export Promotion Councils will continue to identify emerging challenges and facilitate timely interventions.

The second meeting, co-chaired by the Secretary, MoPSW and the Secretary, Department of Commerce, provided a constructive platform to address logistics and shipping-related issues raised by stakeholders. The meeting was also attended by the Chairman, Central Board of Indirect Taxes and Customs (CBIC) and other Customs officials, ensuring comprehensi

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esolve any future issues, exporters were encouraged to report case-specific issues for prompt and effective resolution.

Following the meeting, the Ministry of Ports, Shipping and Waterways has directed all ports and terminal operators to take immediate action to enhance transparency and operational efficiency. These measures include publication of concessions and waivers provided to cargo and vessels, review of bunker fuel availability, and expedited evacuation of stranded containers, reinforcing efficiency across the system.

The Government remains closely engaged with all stakeholders to continuously monitor developments and ensure swift and effective resolution of operational challenges. This coordinated approach across Ministries is making India's trade ecosystem resilient, minimising disruptions, and actively supporting trade and Industry during this evolving situation.

The Department of Commerce, Ministry of Ports, Shipping and Waterways and Central Board of Indirect Taxe

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GST recovery stayed conditionally on filing undertaking and making statutory pre-deposit while Appellate Tribunal remains unavailable.
Case-Laws
GST
Pending constitution of the GST Appellate Tribunal, the Court held that recovery of outstanding GST dues was governed by the existing CBIC circular and the statutory pre-deposit mechanism under section 112 of the CGST Act. It disposed of the writ petitions without examining the merits of the input tax credit dispute, and granted the petitioner liberty to secure continued stay of recovery by filing the prescribed undertaking before the jurisdictional proper officer and making the required pre-deposit within the time allowed. If that deposit was not made, the protection under the order would lapse and recovery of the balance demand could proceed.
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GST on seigniorage fee and royalty stayed pending Supreme Court ruling; High Court applies earlier identical order.
Case-Laws
GST
GST proceedings on seigniorage fee/royalty for quarrying and transporting minerals were not finally adjudicated on merits because the levy issue is pending before the Supreme Court. The High Court found the facts to be almost identical to an earlier case and disposed of the writ petitions on the same terms, directing that the impugned proceedings remain in abeyance and that the respondent proceed in accordance with law after the Supreme Court decision. The Court therefore declined to examine the substantive GST demand at this stage and applied the earlier identical order.
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GST assessment remitted for fresh adjudication after taxpayer deposits part of the disputed tax and files supporting documents.
Case-Laws
GST
A GST assessment confirming tax was set aside only to the extent of defect No. 1, because the assessee had not filed a proper reply with supporting documents to substantiate its exemption claim. The High Court noted that the adjudicating authority was not at fault for acting within the statutory timeline under Section 73, but balanced the interests of both sides by ordering de novo adjudication limited to that defect. The assessee was required to deposit 5% of the disputed tax and file the requisite documents, after which a fresh order on merits would be passed and any bank attachment would stand vacated on compliance.
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Employment relationship excludes GST where bank pigmy agents act under control, supervision, and employment conditions.
Case-Laws
GST
Pigmy agents engaged by a bank were treated as employees because the relationship was marked by pervasive control, supervision and disciplinary oversight, with commission functioning in substance as wages. Their services rendered in the course of employment fell within Schedule III read with section 7(2)(a) of the GST law and were therefore neither a supply of goods nor a supply of services. The attempt to classify them as business facilitators liable under reverse charge was rejected, and the show cause notices were quashed for proceeding on an erroneous jurisdictional basis. The challenge to the limitation-extension notifications was left open.
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Prior tax payment proof can be placed through rectification before recovery to avoid double recovery of GST demand.
Case-Laws
GST
A taxpayer showing prima facie prior payment of the same tax amount was entitled to place proof before the proper officer through a rectification application before any recovery action was taken. Where the revenue could not dispute that the receipt corresponded to the amount later treated as short-paid, the court directed verification in accordance with law to avoid double recovery of tax already paid. The petitioner was permitted to file the rectification application within the time granted, and the proper officer was required to consider it within a reasonable period.
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