Goods and Services Tax

Provisional attachment lapses after expiry of the statutory period, and cash credit accounts cannot be frozen.
Case-Laws
GST
Provisional attachment lapses by operation of law once the prescribed one-year period expires, so continued freezing of bank accounts cannot be sustained. On that basis, the attachment was treated as having automatically ceased, and the petitioner was allowed to operate the accounts. Separately, cash credit accounts are not liable to provisional attachment, making their freezing independently unsustainable. The bank-account freeze, including the cash credit facilities, was therefore held to have come to an end, while all other contentions were left open.
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Natural justice in GST registration cancellation requires reasons, hearing, and a speaking order before adverse action is sustained.
Case-Laws
GST
Cancellation of GST registration was set aside because the impugned cancellation and revocation orders were non-speaking, did not record reasons, and were passed without an effective opportunity of hearing. The Court treated the defects as vitiating the decision-making process and held that fresh consideration was required by the original authority. The matter was remanded for issuance of a fresh show-cause notice, grant of personal hearing, and passage of a reasoned order. The consequential notice based on the cancellation was also quashed, and the registration would stand restored if no fresh notice was issued within the time stipulated by the Court.
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Extended input tax credit period upheld, making rejection for delayed filing unsustainable and remitting the claim for fresh decision.
Case-Laws
GST
Section 16(5) was held to override section 16(4) and to extend the entitlement to avail input tax credit for invoices or debit notes relating to financial year 2019-20 where the return under section 39 was filed up to 30.11.2021. As the petitioner's returns were filed in the last week of October 2020, the authority's view that the right had expired on 25.10.2020 was contrary to the statutory extension. Rejection of the claim solely on delay was therefore unsustainable, the rejection orders were set aside, and the matter was remitted for fresh decision in accordance with the Court's interpretation.
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Natural justice and personal hearing requirements vitiated an adverse tax adjudication order for non-compliance.
Case-Laws
GST
Section 75(4) imposes a statutory duty to grant a personal hearing before passing an adverse adjudication order. Where the show cause notice stated that date, time and venue for hearing were not applicable, the absence of any hearing vitiated the order; a failure to file a written reply did not remove the authority's obligation because the assessee could still have appeared, produced records and made submissions. The HC set aside the impugned order and allowed the revenue to proceed afresh only in accordance with law, including compliance with Section 75(4).
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Rectification as first remedy in overlapping GST proceedings; writ court declined merits review and directed recourse to statutory correction
Case-Laws
GST
Overlapping GST proceedings were not examined on merits in writ jurisdiction because the petitioner had not participated in the second proceedings to place the alleged overlap before the proper officer. The Court noted that the identity of demand was not enough for immediate merits review and held that rectification under Section 161 remained the appropriate first remedy, as the six-month period had not expired. The petitioner was allowed to seek rectification within two weeks, to be decided after hearing, with liberty to pursue any available appellate remedy thereafter. The Court left the merits of the overlap objection open.
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Assessment order invalid for missing DIN, with delayed writ entertained subject to deposit and remand for fresh hearing.
Case-Laws
GST
Absence of a Document Identification Number in an assessment order was treated as a patent defect rendering the order unsustainable, and the assessment was set aside with remand for fresh consideration after notice and hearing. Although the writ petition was delayed and the order had been uploaded on the portal, the Court entertained the petition in view of the inherent defect and practical difficulties in the GST online regime, subject to deposit of 20% of the disputed tax. The period spent in the writ proceedings was directed to be excluded, and all issues were left open before the Assessing Officer.
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Document Identification Number defect invalidates GST assessment order; delayed writ entertained and matter remanded after partial deposit.
Case-Laws
GST
Absence of a Document Identification Number rendered the assessment order invalid, following the Court's earlier GST rulings. Although the writ petitions were delayed and service was claimed through portal upload, the Court held that a patent irregularity of this kind justified entertaining the challenge on terms. The assessment order was set aside and the matter remitted to the Assessing Officer for fresh consideration after due hearing, subject to deposit of 20% of the disputed tax. The intervening period was excluded for limitation, and all issues were left open.
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Composite GST assessment orders cannot span multiple financial years; such an order was set aside and year-wise proceedings permitted.
Case-Laws
GST
A single show-cause notice or composite assessment order under the GST Act cannot cover more than one tax period, and once the annual return due date is reached, it cannot extend beyond one year. Following prior Division Bench precedent, the HC held that the impugned order, as it covered multiple financial years, was invalid and was set aside on that ground alone. The matter was remanded, with liberty to initiate fresh proceedings separately for each assessment year, and the intervening period was directed to be excluded for limitation. Other grounds of challenge were left open.
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CBIC Member Shri Surjit Bhujabal inaugurates GST Bhawan at Itanagar
GST
Dated:- 4-5-2026

Shri Surjit Bhujabal, Member (Compliance management and Zonal member), Central Board of Indirect Taxes & Customs (CBIC), inaugurated the new 'GST Bhawan' at Itanagar, Arunachal Pradesh, in the august presence of Shri Kul Prakash Singh, Chief Commissioner, CGST & Central Excise, Guwahati Zone, and Shri Shyam Kanu Mahanta, Commissioner, CGST & CX, Itanagar.

The GST Bhawan, located at Niti Vihar, MOWB-II, Itanagar, has been established as a modern office complex for the Itanagar Commissionerate under CBIC. The facility is envisaged as a dedicated taxpayer facilitation centre aimed at strengthening service delivery, improving accessibility,

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Pradesh on this significant milestone and emphasised on the foundational principles of GST, and stated that the success of GST lies not merely in enforcement, but in trust, voluntary compliance, and a collaborative partnership between taxpayers and the administration. Drawing from the inherent values of sincerity and community trust that characterise Arunachal Pradesh, he noted that the department is committed to nurturing a similarly responsive and people-centric tax administration. He added that this GST Bhawan will not just be an office, but a centre of facilitation, dialogue, and mutual confidence.

Highlighting the State's performance under GST, he noted that revenue collection in Arunachal Pradesh reached Rs.526 crore during F

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all interactions. He also highlighted that this is the third GST Bhawan in the North Eastern region, underscoring the Government's continued focus on strengthening tax administration in the region.

Shri Shyam Kanu Mahanta, Commissioner, CGST & CX, Itanagar, stated that the new GST Bhawan will significantly enhance accessibility and efficiency in taxpayer services. He highlighted the steady increase in the number of registered taxpayers is a reflection of growing trust in the GST system. He remarked that the strength of our tax system lies in the trust we build with taxpayers, and our constant endeavour will be to make compliance simple, transparent, and hassle-free. He assured that regular outreach and awareness programmes will be condu

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Deemed valuation for solar power composite supply applies despite separate invoices; differential 18% levy on entire turnover set aside.
Case-Laws
GST
A High Court held that supply of solar power generating systems under the relevant notifications is governed by the 70:30 deemed valuation mechanism, under which 70% of the gross consideration is treated as goods taxable at 5% and 30% as services taxable at 18%. It rejected the revenue's contention that separate invoices for goods and services excluded the supply from this treatment, finding that the notifications contemplate such composite supplies and that contractual supply could not be displaced by invoicing alone. The assessment was also unsustainable because no separate valuation of goods and services had been undertaken before taxing the entire turnover at 18%. The differential levy was set aside.
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GST proceedings against a non-existent amalgamating company are void ab initio; merger intimation defeats jurisdiction under Section 87.
Case-Laws
GST
GST proceedings initiated against an amalgamating company after the scheme of merger took effect were void ab initio because the entity had ceased to exist in law. The Court held that once the merger was intimated to the GST authorities, a show-cause notice and any consequential order could not validly be issued against the non-existent company, as this was a jurisdictional defect. Section 87 of the CGST Act was confined to the interregnum between the effective date of amalgamation and the date of the order, and did not authorise proceedings against a dissolved entity after merger. The impugned order was therefore unsustainable and the petition was allowed.
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Reasoned GST cancellation orders are mandatory; a non-speaking cancellation order was set aside despite the taxpayer's delay.
Case-Laws
GST
Cancellation of GST registration was quashed because the order was non-speaking and failed to record reasons as required by FORM GST REG-19 and Rule 22. The High Court held that, although non-filing of returns may justify cancellation, the proper officer must still disclose the basis for forming the opinion to cancel registration; mere reference to the show cause notice and the effective date was insufficient. The assessee's failure to reply or appear did not excuse the duty to pass a reasoned order. The Court also held that the delayed approach to writ jurisdiction did not outweigh this defect. The matter was restored to the show cause stage for fresh decision in accordance with law.
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Condonation of delay in GST appeal allowed where circumstances beyond control justified hearing the matter on merits.
Case-Laws
GST
The High Court addressed delay in filing a GST appeal and held that, although the Appellate Authority remains bound by the limitation under the CGST/RGST Act, the explanation showed circumstances beyond the petitioner's control. It found that denying adjudication on merits in such circumstances would cause grave prejudice, so the delay was condoned and the appellate remedy was directed to be entertained on merits. The challenge to the validity of the notifications was not pressed and was left open.
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Provisional attachment cannot be reissued on the same facts after expiry, and it cannot serve as a post-assessment recovery device.
Case-Laws
GST
A second provisional attachment issued after the earlier order had expired was unsustainable where it rested on the same facts and no change in circumstances was shown. The Court held that Section 83(2) does not permit a fresh attachment on substantially identical grounds after the statutory one-year period, as this would defeat the built-in safeguard against misuse. It also held that provisional attachment is only a pre-emptive protective measure and cannot be used as a post-assessment recovery device once assessment has culminated in a final order. The petition was allowed and the attachment was quashed.
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GST summons during inquiry upheld as proper officer's statutory power cannot be stalled by writ intervention.
Case-Laws
GST
Summons issued under the GST law were upheld because the proper officer was conducting an ongoing inquiry under Section 70 and was authorised to require attendance, evidence, and documents in the manner of a civil court. The High Court held that judicial interference at that stage would improperly obstruct and scuttle the inquiry, particularly where the summons concerned alleged availment of fake input tax credit. The challenge to the summons was therefore rejected and the writ petition was dismissed with costs.
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Statutory remedy and ongoing investigation barred writ relief against GST registration cancellation and blocked input tax credit.
Case-Laws
GST
Cancellation of GST registration based on alleged violation of Section 16 read with Rule 21(e) was not entertained in writ jurisdiction because the cancellation order recorded reasons and the petitioner had an efficacious statutory remedy of revocation under Rule 23 read with Section 30 within the prescribed period. The challenge to the e-mail blocking input tax credit was also declined, as the blockage was linked to allegations of fake or non-existent firms and the investigation was still continuing; judicial restraint was therefore warranted. The writ petition was dismissed, leaving the petitioner to pursue the available statutory remedy and other remedies in accordance with law.
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Non-consideration of material evidence invalidates denial of transitional credit and requires fresh speaking order.
Case-Laws
GST
Denial of transitional credit could not be sustained where the appellate authority ignored material documentary evidence placed by the claimant, including a certificate and receipt evidencing payment of service tax into the Government treasury. That non-consideration amounted to clear non-application of mind and rendered the appellate order unsustainable; the original order, which rested on the same foundation, also failed. The HC therefore quashed both orders and remanded the matter for de novo consideration by a reasoned speaking order after granting personal hearing, leaving all contentions open.
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Non-obstante clause in GST ITC rules overrides the filing-time bar, requiring reconsideration of a delayed claim.
Case-Laws
GST
Section 16(5) was held to contain a non-obstante clause that overrides the time bar in Section 16(4) for the specified financial years, so input tax credit could not be denied solely for delay where the returns were filed before 30.11.2021. Because the impugned order rejected the claim only on the basis of Section 16(4), and the returns had been filed on 30.09.2020, the Court set aside the order-in-original and the show cause notice and remitted the matter for fresh adjudication under Section 16(5), leaving other contentions open.
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Vague GST cancellation notice and undisclosed retrospective effect violated natural justice, leading to quashing of the order.
Case-Laws
GST
A show cause notice and retrospective cancellation of GST registration were vitiated because the notice gave no meaningful reasons, did not annex the supporting material it relied on, and failed to disclose that retrospective cancellation was proposed. The Court applied the principle of natural justice that the person affected must be clearly put to notice of the intended action and the material relied upon; absence of such disclosure invalidates the proceedings. The impugned notice and cancellation order were quashed, with liberty to the authorities to proceed afresh in accordance with law.
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Anti-profiteering on additional ITC: Tribunal upheld refund of unpassed benefit, GST component, interest, and penalty exposure.
Case-Laws
GST
The Tribunal held that the respondent contravened the anti-profiteering mandate by failing to pass on the incremental input tax credit benefit to homebuyers in a uniform and commensurate manner. It accepted the DGAP's computation that the post-GST ITC ratio increased, and ruled that any excess adjustment in some cases could not cure the shortfall in others, leaving the balance benefit refundable to eligible buyers. It further held that the profiteered amount, computed on values exclusive of GST but collected from buyers inclusive of GST, had to include the GST component. Interest at 18% per annum was directed on the amount not passed on, and penalty exposure under Section 171(3A) was recorded for the relevant period.
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Punjab records highest GST collections in April: FM Cheema
GST
Dated:- 2-5-2026
PTI
Chandigarh, May 2 (PTI) Punjab Finance Minister Harpal Singh Cheema on Saturday said the state has achieved its highest-ever monthly Goods and Services Tax (GST) collection of Rs 2,987.38 crore, simultaneously topping the nation in overall GST revenue growth.

Cheema said, “The state has recorded a Gross GST collection of Rs 2,987.38 crore alongside a net GST collection of Rs 2,725.08 crore.” This exceptional performance reflects a remarkable year-on-year Net GST growth of 70.70 per cent, translating to an impressive increase of approximately Rs 1,129 crore over our collections in April 2025, he said.

According to the official data, Punjab

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Input tax credit under GST requires proof of supplier tax payment; reading down of the condition was refused
Case-Laws
GST
Section 16(2)(c) of the CGST Act was upheld as a cumulative condition for input tax credit, and the purchaser must prove that tax charged on the supply was actually paid to the Government. The Court held that clauses (a) to (d) of Section 16(2) must be read conjointly, that ITC is a statutory concession rather than a vested right, and that non-payment by the supplier cannot be ignored merely because the recipient has the invoice and goods or services. Reading down was refused because the provision is clear, fits the GST scheme, and preserves revenue integrity against fraudulent transactions.
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Damages under arbitral award are not taxable supply where settlement is merely consequential to award satisfaction
Case-Laws
GST
Payment of damages under an arbitral award did not amount to a taxable supply under the CGST Act because the settlement before the Delhi High Court was not an independent commercial arrangement to refrain from an act or tolerate a situation. The withdrawal or suspension of enforcement proceedings in the UK and US followed only from full satisfaction of the award and did not create separate consideration or a distinct service. In the absence of an independent contract and consideration, Section 7 and Entry 5(e) of Schedule II were inapplicable, and the IGST charge could not be sustained. The intimation and show cause notice were quashed for lack of jurisdiction, and the writ petition was entertained despite the alternate remedy rule.
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Consolidated GST show cause notices upheld, while limitation must still be tested separately for each period covered.
Case-Laws
GST
Sections 73 and 74 of the CGST Act do not bar a common or consolidated show cause notice for more than one tax period or financial year. The Court held that the references to “any period” and the limitation provisions do not confine notice issuance to a single financial year, while each component of a consolidated notice must still independently satisfy the applicable limitation test. It also rejected the objection based on pecuniary jurisdiction of the proper officer. Where Orders-in-Original were challenged, the Court restored the statutory position and granted time to file appeals, with limitation objections not to be raised if appeals were filed within the period allowed.
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Document Identification Number defect invalidates GST assessment orders; delayed writs entertained subject to partial tax deposit and remand.
Case-Laws
GST
Absence of a Document Identification Number rendered the assessment orders invalid, as the High Court followed its earlier view that DIN is an inherent requirement for such orders. Although delay in filing the writ petitions was objected to on the basis of portal service, the Court entertained the delayed petitions in light of practical difficulties under the online GST regime, subject to deposit of 20% of the disputed tax. The impugned orders were set aside and the matter was remanded for fresh assessment after granting due opportunity of hearing, with adjustment of amounts already paid or recovered and exclusion of the intervening period for limitation.
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