Goods and Services Tax

Suspension of GST registration and validity of tax invoice during transit ruled insufficient without e way bill; petitions dismissed.
Case-Laws
GST
Registration suspended at the time of supply prevents a post suspension tax invoice from substituting for prescribed transit documentation; because the supplier's registration remained suspended and no e way bill or other specified documents accompanied the goods, the tax invoice could not be treated as the required document under the statutory scheme. The administrative circular relied upon is inapplicable where prescribed documents are absent. Consequence: petitions challenging seizure and related orders were dismissed for lack of compliance with the e way bill and specified document requirements.
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Enlargement on bail for foreign national in tax evasion case granted with conditions despite expired visa and limited tampering risk
Case-Laws
GST
High Court considered enlargement on bail for a foreign national accused of tax evasion; offence is triable by a Magistrate with a maximum sentence of five years. The court found documentary and electronic evidence present but no convincing material of a real risk of tampering, and noted immigration status (expired visa with pending extension) and family circumstances. Having balanced these factors and the nature of the offence, the court granted bail subject to verification of identity, status and residential proof of sureties by the trial court and warned that breach of conditions would permit bail cancellation and remand.
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Provisional CGST attachment expires after one year; bank must unfreeze accounts and attachment cannot continue.
Case-Laws
GST
Provisional attachment under the CGST regime ceases by efflux of time after one year, so orders issued beyond that statutory period are no longer enforceable; consequence-such attachments cannot be continued. Because the provisional order has ceased, neither the tax authority nor the taxpayer's banker may lawfully maintain freezes on the taxpayer's property or bank accounts; consequence-the bank must defreeze accounts held under that expired order. The writ challenge was partly allowed to give effect to the cessation of the provisional attachment and to lift the continued restraints that post dated the one year period.
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Cancellation of GST registration: writ court directs appellate authority to re-hear revocation appeal on merits, condoning delay
Case-Laws
GST
Under GST rules a revocation application requires prior filing of returns and payment of dues; limitation exists to ensure statutory compliance and protect third party rights, but cancellation of GST registration typically prejudices only the assessee and not third parties. The writ court may condone delay in statutory or quasi judicial proceedings, and on that basis the High Court set aside the dismissal of the appeal for limitation and directed the Appellate Authority to re hear and decide the revocation of cancellation on merits, permitting reconsideration rather than rejection on time bar grounds.
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CGST tax evasion classification and bail: deposit and undertaking not enough to alter cognizability or compoundability, bail cancellation dismissed
Case-Laws
GST
High Court applied section 132 CGST classifications: offences with tax evasion up to five crores are non cognizable and compoundable under section 138, while evasion exceeding five crores is cognizable and non bailable and not compoundable; a five crore deposit against an alleged evasion of Rs. 9,39,79,589/- does not convert the offence into a bailable or compoundable one, so the trial court's analogy is incorrect. The respondent offered to deposit 50% of the alleged evasion and has already deposited five crores; minimal risk of witness tampering and absence of prior misuse of bail led the High Court to dismiss the bail cancellation application.
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Cancellation of GST registration challenged for procedural lapses; notices quashed and fresh proceedings allowed only after rule compliance
Case-Laws
GST
Show-cause notices for cancellation of GST registration were found to breach the principles of natural justice by denying respondents an opportunity to reply and to present documents, and by omitting required physical verification procedures under the CGST Rules; those procedural defects vitiated the final orders and warranted quashing. The availability of an efficacious statutory appeal did not cure the denial of a hearing, and appellate remit powers were not treated as substituting for the Assessing Authority's mandatory compliance. The impugned notices and orders are set aside; fresh proceedings may be initiated only after strict compliance with the prescribed registration cancellation procedure.
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Show Cause Notice under GST found invalid when not issued by Proper Officer; order quashed with liberty to reinitiate.
Case-Laws
GST
Show cause proceedings under Section 73 were invalidated because the Statement of determination attached to the summary FORM GST DRC-01 cannot substitute a Show Cause Notice issued by the Proper Officer; consequently initiation and the impugned order were quashed. The court held that Show Cause Notice, Statement and Order under Section 73 must be issued by the Proper Officer and authenticated per Rule 26(3), and failure to afford opportunity of hearing violated Section 75(4). The court granted liberty to reinitiate proceedings de novo and excluded the period from summary issuance to service of certified judgment for computation under Section 73(10).
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Procurement and logistics of medicines as pure services to government qualify for nil rate GST under local government health functions.
Case-Laws
GST
Services consisting of procurement, logistics and assured supply of quality medicines to government health facilities qualify as “pure services” intrinsically linked to health and sanitation functions entrusted to local government bodies. Rule 33 CGST (valuation of pure agent) cannot be read to define “pure services,” and is irrelevant to that classification. Because the activities fall within functions of Panchayats and Municipalities concerning public health, such pure services supplied to the State attract nil-rate GST under Sl. No. 3 of Notification No. 12/2017 CT (Rate); the appellant is therefore entitled to the exemption.
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Classification of spent bleaching earth as activated natural mineral product under HSN 3802, attracting 18% GST.
Case-Laws
GST
Classification of spent bleaching earth must follow the General Rules for Interpretation by reference to the goods' nature and condition at supply; because the material is a mineral-based, chemically or thermally activated exhausted adsorbent, it lacks the properties and utility of fresh bleaching earth and is not properly treated as a raw or processed clay. Consequently the material aligns with activated natural mineral products and is classifiable under HSN 3802 90 19, with the operative effect that GST applies at the notified rate of 18% (9% CGST + 9% SGST).
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Goods Transport Agency services via e commerce portals: consignment note creates custody and liability and enables exemption for unregistered recipients.
Case-Laws
GST
A consignment note is essential to classify an activity as Goods Transport Agency (GTA) services because it evidences receipt of goods for road transport and transfers custody and liability to the transporter; accordingly, issuing a single consignment note from source hub to delivery address creates a lien and transporter liability until delivery, whether transport is performed directly or via subcontracted carriers. GTA services include ancillary acts (loading, unloading, packing, transshipment, temporary warehousing) as part of a composite supply. Services by a GTA rendered to a person not registered under GST (including customers ordering via e commerce portals) are eligible for exemption under entry 21A of Notification No. 12/2017.
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Paddle wheel aerator classification: remain under HSN 8479 for mechanical water agitation; concessional GST applies via rate notification
Case-Laws
GST
Paddle wheel aerators used exclusively in aquaculture are correctly classified under HSN 84798999 because their primary function is mechanical water agitation and oxygen transfer rather than terrestrial agricultural operations; therefore HSN 8479, as a residual heading for machines with specific functions not elsewhere specified, applies and the unit remains in 84798999. Recent GST rate rationalisation granting a concessional 5% rate to aerators operates by rate notification and does not reclassify goods into HSN 8436; consequently the aerators retain their 8479 classification and associated tariff treatment. Parts exclusively used with these aerators follow the principal machine classification and are not reallocated to 8436.
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Government guarantee commission on bond issuances exempt from GST where State guarantees and commission is payable to the State government.
Case-Laws
GST
Guarantee commission paid by a State undertaking to the State government for guarantees on bonds falls within the exemption under Entry No. 34A of Notification No. 12/2017-Central Tax (Rate), as amended, and is therefore not subject to GST. The Authority relied on the statutory entry's language and the CBIC clarification (Circular No. 154/10/2021) to construe the scope of exempted services, concluding that consideration received by the State for guaranteeing loans or debentures qualifies for exemption; consequently the commission payable for the guarantees is exempt from GST.
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Composite supply of food and logistics services treated as a service, attracting 18% GST and permitting input tax credit.
Case-Laws
GST
Activity of procuring and delivering fresh cooked food with pickup, delivery and logistics services is a composite supply and not a mere sale of goods; therefore it is a supply of service under Schedule II para 6(b). Because the service does not fall within listed catering entries, it is classed under the residual entry for contract food services and attracts GST at 18% (9% CGST + 9% SGST) under entry 7(vi) of the rate notification. Inward supplies used to make that outward composite supply qualify for input tax credit under the proviso exclusion to the input tax credit restriction, so the applicant is eligible to claim ITC.
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Advance ruling for completed transactions: prospectivity bars AAR from deciding taxability or ITC after the deal is closed.
Case-Laws
GST
Advance rulings under Section 95(a) are prospective; where all contractual acts, possession and payment were completed before filing, the transaction is not a supply “being undertaken or proposed” and therefore falls outside the AAR's permissible scope. The authority found that the assignment of leasehold rights and related charges were fully executed before the application, so questions on taxability of land development charges and eligibility of input tax credit could not be determined by advance ruling. Consequence: the application was held not maintainable and the AAR declined to decide the substantive tax issues.
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Reverse charge and assignment of royalty collection: exemption for excess royalty collectors subject to reconciliation; leaseholders remain liable under RCM
Case-Laws
GST
Assignment of the right to collect royalty by a State to a contractor is treated as a taxable licensing service, but Entry 65B in Notification No.12/2017 (as amended) exempts services to Excess Royalty Collection Contractors (ERCC) subject to reconciliation and end of contract certification; consequence: ERCCs obtain conditional exemption on the assigned right fees. Separately, statutory levies (royalty, seigniorage, DMF, MERIT) remain taxable under the Reverse Charge Mechanism and are payable by the quarry/mining leaseholders; consequence: ERCCs collect and remit these amounts but do not bear GST on them, although ERCCs must pay GST on collection/agency services they provide to the Government.
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GST on pre-packaged frozen shrimps: exports taxed at 5% when packaging meets Legal Metrology requirements
Case-Laws
GST
Pre-packaged frozen shrimps packed in inner printed or laminated pouches or boxes with predetermined quantities meet the Legal Metrology Act definition of “pre-packaged and labelled” and therefore attract GST. Notification No. 06/2022 makes GST applicable on such specified pre-packaged commodities; consequently supplies of shrimps in containers up to 25 kg that qualify as pre-packaged are taxable and not treated as zero-rated, with GST chargeable at 5% whether supplied domestically or exported.
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Export of pre-packaged frozen shrimp taxable under GST 5% if inner packaging printed and weight up to 25 kg.
Case-Laws
GST
Exports of frozen shrimp packaged in printed inner containers that fix quantity fall within the Legal Metrology Act definition of “pre-packaged and labelled” commodities; therefore such supplies in containers up to 25 kg are subject to GST and are not exempt or nil-rated. The notification linking Legal Metrology compliance to GST liability applies irrespective of whether outer cartons are printed, and the AAR concluded that these pre-packaged shipments attract GST at 5% for the specified shrimp items when pre-packed and labelled as mandated.
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Rs 172 crore fake input tax credit racket busted; chemical company owner held
GST
Dated:- 11-2-2026
PTI
Thane, Feb 11 (PTI) The Central Goods and Services Tax (CGST) authorities in Maharashtra's Thane have busted a racket allegedly involved in fraudulently availing input tax credit (ITC) of Rs 172 crore, and arrested a chemical company's owner for the scam, officials said on Wednesday.
The action was taken by the anti-evasion wing of the CGST and Central Excise of Thane Commissionerate.
In its probe, the commissionerate found that Bhaumik Girishbhai Gandhi, director of Florida Solvent Private Ltd, was the mastermind who fraudulently availed and passed ineligible ITC without the actual receipt and supply of goods to the tune of

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Validity of electronic assessment orders without DIN: portal reference number upheld; writ dismissed for laches.
Case-Laws
GST
Validity of electronically issued assessment orders was contested for absence of a DIN and unsigned show cause notices; the HC recorded that the assessment carried a portal-generated Reference No (auto-assigned and exclusive to that assessment) and rejected the challenge to electronic issuance on that basis. The HC also found the petitioner aware of assessment action and unable to explain delay between appeal rejection and writ filing; on the ground of laches the writ petition was dismissed. No substantive grounds raised in the petition were sustained.
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Show Cause Notice under Section 73: summary notices do not substitute formal notice; order quashed, de novo proceedings allowed.
Case-Laws
GST
Summary attachments in GST DRC-01 do not replace a formal Show Cause Notice under Section 73; the Statement under s.73(3) is distinct and cannot substitute the s.73(1) notice, and initiation without a proper Show Cause Notice is invalid – resulting in quashing of the impugned order. Notices, Statements and orders under Section 73 must be issued and authenticated by the Proper Officer as defined and in accordance with Rule 26(3); failure to provide personal hearing under s.75(4) vitiated the order – relief granted, accounts defreezed, and liberty given to initiate de novo proceedings with exclusion of the intervening period for limitation.
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Contract termination for breach due to unpaid license fees and GST; court refuses writ relief, allows contractual remedy.
Case-Laws
GST
The licence agreement is a binding contract whose express terms require timely payment of licence fee, GST and interest; the petitioner breached those obligations by accruing substantial arrears, and the court treated the GST obligation as a statutory levy not excluded by the contract-consequence: petitioner's confusion on GST rejected. The existence of an in contract dispute resolution/alternative remedy led the court to decline exercise of extraordinary writ jurisdiction under Article 226 and dispose of the writ petition, while permitting the petitioner to pursue remedies provided in the agreement.
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Place of business and GST registration for repair and maintenance services: HO in Maharashtra, no separate Odisha registration required.
Case-Laws
GST
Location of supplier and 'place of business' depend on where the supplier ordinarily runs the business; therefore the place from which supplies are made determines the location of services – outcome: services are located at the Head Office (HO). Whether FSEs constitute an agent or create a place of business was addressed by noting FSEs are employees who do not contract with customers independently and can be withdrawn by the HO – outcome: FSE presence in Odisha is not a separate place of business or fixed establishment. Registration liability follows the supplier location; outcome: no separate GST registration required in Odisha.
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Admissibility of advance ruling on GST liability for healthcare supplies rejected due to identical pending departmental proceedings and delayed filing
Case-Laws
GST
Admissibility of an advance ruling was denied because identical questions were already subject to departmental scrutiny and adjudication, so the proviso barring applications where proceedings are pending applied. The applicant filed an online application after the assessing officer issued a GST assessment notice and only completed manual submission years later after insistence, failing to supply required enclosures timely under prescribed filing procedures. The adjudication established demands following return mismatches and confirmed tax liability arising from claiming the enhanced threshold exemption while remaining voluntarily registered and not remitting tax. Consequence: the advance ruling application is rejected as inadmissible.
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Advance ruling on refund of unutilised input tax credit for inverted duty structure: application rejected as out of scope and inadmissible
Case-Laws
GST
Advance ruling sought on eligibility for refund of unutilised input tax credit arising from an inverted duty structure for manufacture and outward supply of cotton yarn; AAR holds that refund query falls outside the enumerated matters under the provision governing advance rulings and is therefore not maintainable, resulting in rejection of the application. AAR further finds the application inadmissible because the applicant is a consultant raising questions on behalf of a client and the question does not relate to supplies undertaken or proposed by the applicant; outcome: application liable to be rejected. AAR notes advance rulings may be void ab initio if obtained by fraud or suppression and that rulings bind the applicant and concerned officer.
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Royalty for mining rights treated as licensing services; GST applies and tax payable by recipient under reverse charge.
Case-Laws
GST
Royalty payments for mining leases are consideration for licensing services to excavate and explore minerals, not sale of goods; they therefore fall under licensing services for the right to use minerals (SAC 997337) and attract GST at 9% CGST + 9% SGST (total 18%). The supply is a taxable service provided by the State to a business and tax liability arises on the recipient under the reverse charge mechanism. The service cannot be classified as supply of goods attracting a 5% rate under the transfer-of-title entry and is therefore not chargeable under that entry.
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