Goods and Services Tax

Parallel GST proceedings bar applies only after adjudication begins; lawful arrest upheld and petition dismissed
Case-Laws
GST
A same-subject-matter bar in GST proceedings arises only when adjudicatory proceedings begin through a show-cause notice; it does not arise merely because inquiry, search, or investigation has commenced. Where overlap is noticed, the authorities may decide inter se which one continues, and the other may transfer the material. Here, the State GST authorities transferred the investigation to the Central GST authorities, so the complaint and criminal proceedings were not barred as parallel proceedings. The arrest was also upheld because the grounds of arrest were furnished in writing, explained to the petitioner, and acknowledged, consistent with governing GST arrest requirements. The petition was dismissed.
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Alternative statutory remedy bars writ review where the GST Tribunal can examine circulars and the amended refund rule.
Case-Laws
GST
The article explains that a writ petition challenging an appellate order was not entertained because an efficacious statutory appeal was available before the GST Appellate Tribunal. It notes that questions on the effect of a departmental circular and the application of amended Rule 89(5) could be examined in that appeal, so the High Court need not exercise Article 226 jurisdiction. Relying on Ratan Melting and Wire Industries, it reiterates that circulars reflect the executive view and cannot override the statute or bind courts. The petitioner was given liberty to pursue the statutory appeal within the notified period.
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IGST export refund under Rule 96 must be processed when Rule 96(4) contingencies are absent.
Case-Laws
GST
IGST refund on exports cannot be confined to a request to amend shipping bills under Section 149 when an independent refund prayer under Rule 96 is on record. The refund rejection was set aside because the authority considered only the alleged lack of contemporaneous evidence for amendment and failed to examine the refund claim on its own merits. As export of goods and payment of IGST were undisputed, and none of the Rule 96(4) withholding contingencies applied, the refund had to be processed under the statutory refund mechanism; the amendment issue was left open.
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Omission of refund-restricting rule without saving clause bars pending denial proceedings and quashes consequential orders
Case-Laws
GST
Omission of refund-restricting Rules 89(4B) and 96(10) without any saving clause rendered the omitted provision inapplicable to pending proceedings, including matters still before the Court or the adjudicating authority and orders not yet final, because they were not transactions past and closed. Applying the earlier Gujarat HC ratio, the Court held that the order-in-original and consequential action founded on the omitted rule could not be sustained. The writ petition was allowed and the impugned order and subsequent action were quashed.
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Interest on delayed refund runs from the original application date after illegal refusal is set aside
Case-Laws
GST
Interest on delayed refund must be reckoned from the original refund application date where the earlier refusal to process that application was found illegal and set aside. The later refiled application, prompted only by the authority's unlawful action, cannot be treated as the starting point to defeat interest otherwise payable. The impugned orders were set aside to the extent they denied interest, and the claim was directed to be decided by taking the date of the initial application into account.
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Proper service of GST show cause notice failed when uploaded under the wrong portal tab, invalidating ex parte adjudication.
Case-Laws
GST
Uploading a GST show cause notice under “Additional Notices” instead of “Notices and Orders” was held to be no proper service, so the ex parte adjudication order and recovery notice based on that notice were unsustainable for breach of natural justice. The impugned notice, adjudication order and recovery notice were quashed, with liberty to issue a fresh show cause notice and proceed afresh in accordance with law. The Court also clarified that limitation would not prevent issuance of a fresh notice in substitution of the earlier one.
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GST reimbursement in works contracts remains contractual, while statutory return, limitation and penalty relief cannot be ordered.
Case-Laws
GST
Under works contracts, reimbursement of incremental tax is treated as a contractual issue between contractor and employer, while GST levy, assessment, recovery and enforcement remain governed strictly by the statute. No judicial direction can permit filing revised returns contrary to the GST framework or waive limitation, interest or penalty outside the Act. On that basis, the High Court found the reimbursement direction unsustainable and limited relief to directing consideration of the representations in accordance with law, modifying the single judge's order accordingly.
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Chhattisgarh cabinet clears Ease of Doing Business bill
GST
Dated:- 8-7-2026
PTI
Raipur, Jul 8 (PTI) The Chhattisgarh cabinet on Wednesday approved a draft bill aimed at simplifying the process of starting a business or setting up a factory in the state and making it time-bound.

The proposed Chhattisgarh Ease of Doing Business (Deregulation and Facilitation) Act, 2026, will be the first of its kind in the country, officials said.

It seeks to reduce procedural hurdles through measures such as deemed approvals, self-certification, third-party verification, risk-based inspections and the elimination of duplicate licensing requirements, said an official.

The proposed law is expected to promote investment by making re

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akings including NTPC for power purchases.

The new system would ensure uninterrupted power supply from CPSUs without imposing any additional financial burden on the state, while the existing Letter of Credit mechanism would continue to remain available whenever required, said the official.

The cabinet also approved amendments to the Chhattisgarh Police Special Executive Force (Bastar Fighters) recruitment and service rules, 2026.

It also cleared the draft Chhattisgarh Value Added Tax (Amendment) Bill, 2026, paving the way for abolition of the state's Commercial Tax Tribunal.

The move follows the implementation of the Goods and Services Tax (GST) regime and the establishment of the GST Appellate Tribunal, making th

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Writ jurisdiction deferred to statutory appeal, with delay condonation and interim protection against recovery
Case-Laws
GST
Writ jurisdiction was declined where a statutory appellate remedy under GST was available. The petitioner was permitted to file the appeal within the time granted, along with a delay condonation application and the statutory pre-deposit, and was allowed to urge all factual and legal grounds before the appellate authority. The appellate authority was directed to consider the reasons for delay and, if satisfied, decide the appeal on merits. Coercive steps pursuant to the impugned garnishee notices were stayed only for the limited period granted to file the appeal.
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Contractual reimbursement of incremental GST cannot override statutory GST returns, interest, penalty or limitation rules
Case-Laws
GST
Contractual reimbursement of incremental GST under pre-GST or transitional works contracts remains a matter between the contractor and the employer, and does not alter the statutory GST scheme. The text states that directions requiring revised returns, or waiving interest, penalty or limitation, cannot be issued contrary to the GST enactments, because levy, assessment, recovery and enforcement must follow the statute. It also clarifies that tax authorities have no role in the private reimbursement dispute, so any reimbursement direction is confined to the employer and cannot be read as fastening liability on the State or tax administration.
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Input tax credit denial set aside where genuineness of supply required further examination and hearing was inadequate.
Case-Laws
GST
In a writ challenge to denial of input tax credit, the High Court held that the genuineness of supply required a fuller examination where the supplier was registered during the relevant period, the invoices reflected vehicle details, and the petitioner asserted that transport was arranged by the supplier and tax had been paid on the supplies. The order was unsustainable because the proposal was confirmed merely for want of lorry receipts and weighment slips, without considering that material evidence. The impugned order was set aside and the matter remanded for fresh consideration, with liberty to file additional documents and after affording a reasonable opportunity of hearing.
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Additional ITC anti-profiteering analysis upheld on project-wise methodology, recipient-specific restitution, interest, and no retrospective penalty.
Case-Laws
GST
Project-wise anti-profiteering analysis under GST upheld where the Tribunal accepted a case-specific methodology for comparing pre-GST and post-GST ITC, allocated the benefit across similarly situated homebuyers, and rejected objections on natural justice, scope of inquiry, and time limits. It found that additional input tax credit had arisen in the project, that the respondent had not passed on the full recipient-specific benefit, and that excess benefit given to some buyers could not offset shortfall owed to others. The balance amount was sustained with 18% compensatory interest, but penalty was declined because the penal provision was held inapplicable to the period in question.
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Airlines' body FIA urges govt to bring jet fuel under GST
GST
Dated:- 7-7-2026
PTI
Mumbai, Jul 7 (PTI) Air India, IndiGo and SpiceJet have asked the government to bring aviation turbine fuel under GST, emphasising that such a move will help in reducing the operating costs for the airlines.

States levy excise duty as well as Value Added Tax (VAT) on Aviation Turbine Fuel (ATF), which accounts for a significant chunk of an airline's operational costs.

The Federation of Indian Airlines (FIA), which represents Air India, IndiGo and SpiceJet, has said that Indian aviation sector is presently facing an extraordinary convergence of challenges, including those arising out of escalating geopolitical tensions from the West Asia conf

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Garnishee recovery against a partner's bank account can stand for crystallised partnership tax dues, not provisional attachment
Case-Laws
GST
A partnership firm's crystallised tax dues may be recovered by issuing a garnishee notice against a partner's bank account when the recovery is directed under Section 79(1)(c)(i), not Section 83. The challenge failed because the impugned communication was on its face a recovery step after liability had crystallised, the demand against the firm itself had not been challenged, and partners are personally liable for the firm's dues. On those facts, no infirmity was found in the notice to the bank, and writ interference was unwarranted.
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Input tax credit set-off across GST heads upheld; assessment order quashed under binding precedent and settlement issue reserved.
Case-Laws
GST
Input tax credit set-off under the IGST head against CGST and SGST liability was accepted because the dispute was already covered by binding Division Bench precedent in favour of the assessee. The assessment order was quashed without a fresh merits determination. Any inter-departmental settlement issue was left open for the State to raise before the GST Council in light of that ruling.
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CAMPA deposits for forest diversion clearance treated as consideration for taxable government service under reverse charge
Case-Laws
GST
Mandatory CAMPA-related deposits made to obtain permission for diversion of forest land were treated as consideration for a taxable supply of government service. The permission was described as a specific statutory approval conferring a direct benefit on an identified business entity, so the payment had a direct nexus with the supply. Exemption under entries for functions entrusted to municipalities or panchayats was denied because the approval was a forest-regulatory function, not a municipal or panchayat activity. GST was therefore payable under reverse charge on the deposits made for the forest clearance.
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Forged GST bills, rural bank accounts aided India-Myanmar betel nut racket: ED
GST
Dated:- 6-7-2026
PTI
New Delhi, Jul 6 (PTI) The ED has found that an organised syndicate, which operated a Rs 1,500-crore betel nut smuggling ring along the India-Myanmar international border, allegedly used forged GST invoices and routed “illicit” funds through some rural bank accounts in Mizoram via a hawala network.

The central agency said in a statement on Monday that its Guwahati zonal office unearthed the alleged modus operandi after it conducted multi-state searches at 20 premises in Assam, Mizoram, West Bengal and Uttar Pradesh on July 3.

The investigation pertains to a “large, organised syndicate” engaged in smuggling betel nu

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Champhai grows none itself,” the ED said.

Production data obtained from central and state government agencies established that Champhai, from where the bulk of the consignments were shown to originate, recorded zero domestic production of areca nut during the relevant years, it said.

“This corroborates that the goods were of smuggled, foreign origin routed through the Indo-Myanmar border,” the ED said.

The syndicate used “forged” GST invoices, “bogus” supplier and buyer firms and “false” transport papers.

“The proceeds are then layered through buyers in West Bengal and Uttar Pradesh who pay Silchar/Assam hawala operators, who subsequently route the money mostly through Mizoram Rural Bank transit accounts that mask t

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Input tax credit on QIP services allowed only for business debt repayment, not for investment in a subsidiary
Case-Laws
GST
Input tax credit on QIP-related services was held admissible only to the extent the funds were used for repayment or pre-payment of borrowings, because that deployment was treated as business-related and incidental to operations under Section 16(1). The authority linked the tax credit test to the actual use of the QIP proceeds, finding a sufficient nexus where the funds reduced financial liabilities, improved liquidity, and supported business activity. By contrast, credit was denied on the portion used to invest in a wholly owned subsidiary, because the investment was an acquisition of securities by a distinct legal entity and did not create the direct nexus required with the appellant's own business.
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Reverse charge credit and ITC distribution: self-invoice accepted, and pre-amendment ISD registration not mandatory.
Case-Laws
GST
Input tax credit on reverse charge services from an unregistered foreign supplier was treated as sustainable where the registered recipient raised a self-invoice, discharged tax under reverse charge, and claimed credit on that basis. Reading section 9(3), section 16(2)(a), section 31(3)(f) and rule 36 together, the self-invoice was recognised as a valid tax-paying document, and credit could not be denied merely because the foreign supplier's invoice identified a particular unit. The text also states that, for the relevant period, ITC distribution to other distinct persons without Input Service Distributor registration was not impermissible, as unamended section 20 was only enabling and the later compulsory-registration amendment indicated the earlier position. Revenue neutrality was noted as supporting denial of no technical objection.
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Special GST law bars general criminal prosecution for delayed tax deposit; new penal law cannot apply retrospectively.
Case-Laws
GST
Delayed or non-deposit of deducted GST/TDS relating to Gram Sabha works was held to fall within the U.P. GST Act, 2017 as a complete special code covering default, penalty, prosecution and compounding, so general penal law could not be invoked unless distinct offences such as cheating, forgery or misappropriation were independently made out. The Court further held that a substantive penal provision cannot be applied to an alleged omission of the 2017-18 financial year when the invoked B.N.S. provision was not then in force. On these grounds, the charge-sheet, cognizance order and consequential proceedings were quashed.
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Retrospective cancellation of GST registration upheld where statute permits cancellation from any date and suspension during proceedings.
Case-Laws
GST
Retrospective cancellation of GST registration was treated as permissible because section 29(2) expressly allows cancellation from any date, and the second proviso was read within the same scheme to permit suspension during pending cancellation proceedings. The challenge to retrospective suspension was therefore rejected, and no basis was found to question section 29(2) or rule 21(a). The notice was also considered procedurally fair because it allowed a reply and personal hearing, so the writ challenge to the show-cause notice was declined and the objections were left to be raised before the authority.
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Retrospective GST registration cancellation and interim suspension upheld, while writ challenge to show cause notice failed
Case-Laws
GST
Retrospective cancellation of GST registration was held permissible because section 29(2) expressly allows cancellation from any date, including a past date, and the second proviso authorises suspension of registration during pending cancellation proceedings. The HC rejected the contention that suspension cannot operate retrospectively. It also declined to entertain the challenge to the cancellation provisions and the show cause notice, noting that fraud was alleged, time and personal hearing were granted, and the petitioner had filed no reply despite opportunity. The writ was dismissed, leaving the petitioner to raise all available pleas in response to the notice.
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IGST refund on exports cannot be denied solely for higher duty drawback claim under an invalid circular
Case-Laws
GST
IGST refund on exports could not be rejected merely because the exporter had claimed the higher duty drawback rate under Circular No. 37/2018, since that circular had already been held invalid as inconsistent with the statutory provisions and refund rules. Relying on the earlier High Court rulings, the Court set aside the rejection founded solely on that circular and remitted the refund claim for fresh consideration in accordance with law after giving the exporter an opportunity of hearing.
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Regular bail in economic offences turns on custodial need, documentary evidence and the triple test, not offence seriousness alone.
Case-Laws
GST
In economic offences punishable up to seven years, continued detention is not automatic: the court must assess personal liberty, the need for custodial interrogation, the risk of tampering, the risk of absconding and the triple test for bail. The text notes that seriousness of the allegation alone does not justify refusal where the complaint has already been filed, no further police custody is sought, and the prosecution case depends largely on documentary, electronic and seized material. On that footing, the seized goods and machinery reduced the need for custody, the disputed nature of the material was left for trial, and bail was granted subject to conditions.
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Directory time limit for belated return filing after best judgment assessment displaces provisional assessment.
Case-Laws
GST
The period for filing a return after a best judgment assessment was treated as directory, not mandatory. Once a belated return is filed, the provisional assessment made for non-filing does not survive and the matter must proceed in the regular course for further assessment for the year. On that basis, the impugned best judgment assessment order was quashed and the respondent was directed to complete further assessment in accordance with law.
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