Goods and Services Tax

Advisory regarding confirmation of “Tax Liability Breakup, As Applicable” in GSTR-3B
GST
Dated:- 16-3-2026

1.   In terms of the provisions of Section 50 of the Central Goods and Services Tax (CGST) Act, 2017, interest is payable where the tax liability pertaining to a previous tax period is discharged in a subsequent tax period. Accordingly, the tab “Tax Liability Breakup, As Applicable” in Form GSTR-3B is meant to capture the tax liability relating to supplies of previous tax periods which are being reported and discharged in the current tax period.

2.   From the February 2026 tax period onwards, the GST Portal auto-populates the “Tax Liability Breakup, As Applicable” in GSTR-3B on the basis of the document da

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ly in cases where supplies pertaining to previous tax periods have been reported in the current tax period. However, the confirmation is presently being required in all cases, including where the liability relates only to the current tax period. The feedback is acknowledged by GSTN and the same is under resolution.

6.   Meanwhile, taxpayers are requested to kindly open the “Tax Liability Breakup, As Applicable” tab on the payment page and click “SAVE” within the tab for filing during the current reform cycle. Thereafter, filing of Form GSTR-3B can be completed normally.

Taxpayers are requested to kindly follow the above interim procedure till the issue is resolved on the portal.

Thanks,

Team GSTN

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Advisory on the Payment of pre-deposit while filing of appeal before First Appellate authority
GST
Dated:- 16-3-2026

1. Sometimes taxpayers voluntarily pay some amount during the investigation stage using Form GST DRC-03. Later, when the taxpayer wants to file an appeal application against the demand order issued after the investigation, they are required to pay a pre-deposit to file the appeal. However, many taxpayers complain that the GST portal still asks them to pay the pre-deposit even when they have already paid more than the required amount through Form GST DRC-03

2. When a demand order (for example, Form GST DRC-07) is issued to a taxpayer, a Demand ID is created in Part II of the Electronic Liability Register on the

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ng for further payment. Portal will show the below message, if required amount is already paid the taxpayer.

b. If such amount is lesser than the required amount, then Portal mandates the taxpayer for the payment of Balance payable.

Pre-deposit Payment made through DRC 03:

4. As explained earlier, any payment made through Form GST DRC-03 is not automatically recognized by the GST system against any specific Demand ID. Therefore, such payments are not considered by the system while calculating the pre-deposit amount required for filing an appeal. To ensure that the payment made through Form GST DRC-03 is counted against a particular demand order, the payment must be linked with the respective Demand ID by filing Form GST DRC-0

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Transfer of Input Tax Credit allowed across States on NCLT approved amalgamation; manual ITC 02 acceptance and six week processing mandated.
Case-Laws
GST
The article explains that the departmental endorsement added to statutory Form ITC-02, requiring transferor and transferee to be in the same State/UT, lacks statutory basis and is unlawful; therefore it cannot be used to deny unutilised input tax credit. It states that Section 18(3) read with Rule 41 permits transfer of unutilised CGST on an NCLT approved amalgamation even where entities are in different States, and that portal restrictions are de hors the statutory scheme. Practically, until the portal is amended, the department must accept manually filed ITC-02 forms and process them within six weeks of receipt.
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Show Cause Notice formalities and electronic authentication are mandatory; failure to afford statutory hearing invalidates recovery action.
Case-Laws
GST
The text analyses the legal requirements for initiating tax recovery under Section 73: a formal, authenticated Show Cause Notice specifying reasons and a separate statement of determination are mandatory and cannot be replaced by an attachment to FORM GST DRC-01 or DRC-07; proceedings and orders based solely on unauthenticated summaries are legally defective. In the absence of specific authentication rules in Chapter XVIII, electronic authentication by digital/e signature (Rule 26(3)) applies by default and lack of such authentication vitiates the documents. Separately, Section 75(4) confers a statutory right to a hearing before adverse action and failure to afford that hearing breaches natural justice and invalidates the order.
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Show cause notice requirement: absence of a formal SCN and denial of hearing led to the impugned order being set aside.
Case-Laws
GST
High Court held that initiation of proceedings under Section 74 requires issuance of a formal show cause notice stating reasons and that a summary in Form GST DRC-01 with an attached statement of determination cannot substitute for the SCN mandated by Section 74 read with Rule 142(1)(a); initiation without a proper SCN was contrary to law. The Court also found that an opportunity of hearing prescribed by Section 75(4) must be granted before an adverse order; failure to afford a hearing vitiated the impugned order. The impugned order was set aside, liberty granted to initiate de novo proceedings, and the interregnum excluded for limitation calculation.
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Show Cause Notice formalities: summaries cannot initiate proceedings and unauthenticated documents invalidate orders; hearing required.
Case-Laws
GST
Formal initiation under the tax demand regime requires a distinct Show Cause Notice and a Statement; a summary in FORM GST DRC-01 is supplementary and cannot substitute for the Section 73 Show Cause Notice, so attachment of a tax-determination statement to DRC-01 does not validly initiate proceedings. Documents constituting the SCN, Statement or final Order must be authenticated by the Proper Officer with electronic/digital e-signature under applicable rules; unauthenticated attachments lack legal efficacy. Where an adverse decision is contemplated, a personal hearing must be afforded as a statutory safeguard; failure to provide the mandated hearing breaches natural justice. The impugned order was set aside and fresh proceedings are permitted, with a specified exclusion for limitation.
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Statutory Appeal Forum Functionality: where the tribunal is functional, petitioners must meet appeal conditions and file the statutory remedy.
Case-Laws
GST
Where a statutory appellate forum is constituted and functional, writ jurisdiction is inappropriate and petitioners must pursue the statutory remedy; the court directed the petitioner to comply with the mandatory pre condition in Section 112(8) (deposit requirement) and to file the appeal within the notified timeline, whereupon the GSTAT shall entertain the appeal if it is in order under Section 112 and applicable rules. The writ was disposed of with directions to deposit and file before the Tribunal; the court declined to rule on the merits of the first appellate order.
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Restoration of GST registration: furnish pending returns and pay dues to enable authorities to drop cancellation and restore registration.
Case-Laws
GST
Petitioner may seek restoration of GST registration by complying with the proviso to the relevant rule: furnish all pending returns and make full payment of tax, interest and late fees, whereupon the empowered officer may drop cancellation proceedings and pass an appropriate order in the prescribed form. The court exercised extraordinary jurisdiction because earlier appeal was dismissed as time-barred, directed petitioner to apply within two months, and held that limitation under the applicable limitation provision will run from this order (with a specified exception for the 2024-25 financial year). Order is fact-specific and not a precedent.
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Benefit of GST subsumation must be passed to consumers; profiteering found and directed to consumer welfare funds.
Case-Laws
GST
Subsumation of pre-GST levies into GST reduced the effective tax incidence on DTH services, and that statutory reduction (despite a higher headline rate) created a pass through benefit which suppliers were obliged to transmit to consumers; failure to collect entertainment tax pre GST does not negate that obligation. The obligation to pass resulting tax/ITC benefits applies and was found unmet, with profiteering quantified by comparison of input tax credit to turnover (DGAP methodology) at the stated amount for the period, and the remedy directed as deposit into Central and State Consumer Welfare Funds with interest treatment governed prospectively by the amended rules.
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Writ remedy remains available when the appellate tribunal is non functional, but statutory pre deposit conditions must be complied with.
Case-Laws
GST
When a statutory appellate forum is non-functional an aggrieved person may seek writ relief to avoid being remediless, but such relief cannot displace or relax statutory conditions attached to the statutory appeal. The note emphasises that where the appellate tribunal has been made functional and filing windows extended, disputes should be adjudicated by the designated forum. The pre-deposit condition requiring payment of the admitted amount and an additional portion of disputed tax remains binding and must be complied with before the appeal is entertained by the tribunal within the prescribed timeline.
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Cancellation of GST registration: furnishing pending returns and paying dues permits dropping proceedings and consideration for restoration.
Case-Laws
GST
Cancellation for non filing of returns may be dropped where the registered person furnishes all pending returns and pays tax, interest and late fee as required by the proviso to Rule 22(4); the proper officer is empowered to pass FORM GST REG 20 and consider restoration of GST registration upon such compliance. The petitioner was directed to apply within the prescribed period and, on compliance, the authority shall expeditiously consider restoration. Computation of limitation under Section 73(10) runs from this order, with the financial year 2024 25 governed by Section 44.
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Restriction of Input Tax Credit under Rule 86A applies only to fraudulently or ineligible availed credit; mere wrongful recipient availment is insufficient.
Case-Laws
GST
Rule 86A may be invoked only where credit in the electronic credit ledger has been fraudulently availed or is otherwise ineligible under the rule's specified conditions (for example, documents from a non-existent person, no receipt of goods/services, tax not paid, recipient non-existent, or lack of prescribed documents); where allegations concern only wrongful availment by the recipient of invoices and not fraudulent availment or ineligibility by the invoicing taxpayer, Rule 86A cannot be validly applied. Applying that principle, the notice invoking Rule 86A against the petitioner was without jurisdiction and the blocked electronic credit ledger must be unblocked, with other departmental contentions left open.
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Statutory apportionment 70:30 for Solar Power Systems yields a uniform 8.9% tax on gross consideration; assessments to be recomputed.
Case-Laws
GST
The explanation to Entry No.234 prescribes treating supplies of Solar Power Generating Systems as subject to a statutory 70:30 apportionment between goods and services, producing a uniform effective tax rate of 8.9% on the gross consideration; this apportionment applies even where supplies arise under contracts described as works contracts. The Court set aside the impugned assessment for April 2018-March 2020 and remanded to the Assessing Authority to recompute tax by applying the 70:30 split and 8.9% effective rate on gross consideration and to verify whether correct tax and interest have been paid. The movable/immovable character of the contracts was left open.
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Suspension of GST registration quashed; cancellation notice to be decided allowing regularisation and revival under established guidelines.
Case-Laws
GST
Suspension of a proprietor's GST registration imposed via Form GST Reg-17 from 27.02.2026 was quashed as unwarranted, while the underlying show cause notice proposing cancellation remains extant; the authority is directed to decide that notice by affording the taxpayer an opportunity to regularise defaults and by applying the procedural conditions and safeguards set out in Tvl. Suguna Cut Piece Center, including considerations for revival subject to those guidelines. The writ petition is disposed by removing the suspended status and remanding the cancellation decision for reconsideration under the stated principles.
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Retroactive GST registration cancellation invalid; revival permitted only upon compliance with prescribed conditions and safeguards.
Case-Laws
GST
Validity of a show cause notice proposing retroactive cancellation of GST registration was examined; the High Court held that retroactive cancellation from 01.07.2017 as proposed in Form GST Reg-17 could not be sustained and that portion of the notice is quashed. The Court directed respondents to adjudicate the notice afresh and permitted revival of registration only by following precedent-based safeguards, including filing of returns, payment of tax, interest, fines and fees, restricted utilization of input tax credit until scrutiny, and other regularisation conditions to prevent misuse.
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Double penalisation: general penalty barred where concessional late fee is levied; bank attachment lifted on payment.
Case-Laws
GST
Where a concessional late fee has been levied for delayed filing of annual returns, a separate general penalty cannot be imposed in addition; the article explains that the court applied the principle against double penalisation to quash imposition of a Section 125 general penalty while upholding liability for the late fee under the late-fee regime. It further records that attachment of bank accounts may be conditionally lifted provided the confirmed outstanding late fee is paid within the period directed, affecting enforcement against non-filers of annual GSTR returns.
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Tariff classification of soaps determines GST rate; toilet soaps attract concessional rate, other soaps higher rate.
Case-Laws
GST
Tariff classification under the HSN determines whether a soap is a 'toilet soap' or an 'other (laundry) soap' and thereby fixes the applicable GST rate; HSN headings and chapter/first-schedule interpretation rules govern classification rather than compositional metrics like TFM when the tariff/notification contains no compositional criterion. Goods for toilet use fall under H.S. Code 3401 11 (toilet soap) and attract the concessional Schedule I rate, while other soaps fall under H.S. Code 3401 19 (including 3401 19 42 for laundry soaps) and attract the Schedule II rate. The advance ruling applies these principles to the applicant's products.
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GST exclusion for petroleum: petrol and diesel remain outside GST scope, so fuel charges are non taxable and not ITC eligible.
Case-Laws
GST
Petrol and diesel remain outside the levy of GST until formally notified for inclusion, so supplies incorporating these fuels cannot be treated as taxable under the GST framework; accordingly the composite supply doctrine does not apply where one element is petrol/diesel because all components must be taxable for a composite supply to arise. Until GST inclusion, petroleum products continue to be taxed under the pre GST regime (central excise and State VAT), and VAT paid on such fuel does not qualify as input tax credit under the CGST input tax credit provisions.
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Retrospective cancellation requires prior show cause notice with supplied material and reasoned order; otherwise cancellation is set aside.
Case-Laws
GST
Retrospective cancellation of GST registration cannot be exercised mechanically; a show cause notice must disclose any proposal for retrospective effect, identify or supply the material relied upon and afford a hearing, and any cancellation order must state reasons showing application of mind. An order that merely reproduces the notice or fails to supply supporting documents is non-speaking and unsustainable. Writ jurisdiction may be exercised despite availability of alternate remedies in exceptional cases where absence of fair notice, non-supply of material and a non-speaking order cause prejudice. The impugned retrospective cancellation was set aside; authorities may re-proceed only after proper notice, material and hearing.
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Retrospective cancellation requires specific notice and disclosed material; absence of these invalidates the cancellation.
Case-Laws
GST
Retrospective cancellation of GST registration cannot be exercised mechanically; a show cause notice must specifically propose retrospective cancellation and disclose the material relied upon, and any cancellation order must record reasons and evidence of application of mind. A cryptic or non speaking order based on grounds not disclosed in the notice and without supply of supporting documents is unsustainable; the impugned cancellation was set aside but authorities may proceed afresh after serving proper notice and affording an opportunity of hearing. The High Court also held writ jurisdiction available despite an alternate remedy in the circumstances.
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Deemed cancellation of GST registration on amalgamation: orders against non existent entity invalid; upload to successor registration.
Case-Laws
GST
Where a GST-registered company ceases to exist on amalgamation, its GST registration is to be treated as deemed cancelled from the merger effective date and orders framed in the name of the non-existent entity are invalid; the Revenue must make the successor's GST registration operational and upload adjudication orders and any demands against the successor's GST number, which the successor must contest or discharge according to law. Further, limitation does not bar either party from raising or contesting claims arising from those uploaded orders in view of Section 75(3) of the CGST Act, and the petitioner remains free to pursue remedies.
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Jharkhand govt nod to tourist tax, Rs 276 cr fund to build libraries
GST
Dated:- 12-3-2026
PTI
Ranchi, Mar 12 (PTI) The Jharkhand cabinet on Thursday approved several proposals, including a tax to be levied on tourists staying at hotels in urban areas and a Rs 276.49 crore fund to construct libraries in 23 districts.

The council of ministers green-lighted the Jharkhand City Tourist Tax Rules, 2025, under which travellers staying in urban hotels will be required to pay a tax calculated on the total invoice value.

A total of 40 proposals, including those of infrastructure and education, were cleared in the cabinet meeting, chaired by Chief Minister Hemant Soren.

“The cabinet approved the Jharkhand City Tourist Tax Rules,

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e said.

Each library will have a seating capacity of 800, with an estimated cost of Rs 12.02 crore per facility, including furniture, equipment, and books.

The cabinet also gave its nod to the implementation of the centrally sponsored Pradhan Mantri Awas Yojana – Urban 2.0 in municipal areas across the state.

An estimated Rs 22 crore was approved for establishing an institute of driving, training and research in East Singhbhum district.

Of this, the Centre will provide Rs 17 crore, while Tata Motors, Jamshedpur, will contribute Rs 1.82 crore, and the remaining Rs 3.21 crore will be borne by the state government, she said.

For the current fiscal, the cabinet sanctioned the establishment of four centres of excellence at BIT Sin

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mum age limit and August 1, 2026, for the minimum age limit.

In the education sector, the cabinet approved over Rs 48 crore for the construction of a new building for SS Memorial College, a constituent college under the Ranchi University.

Similarly, Dadel said, Rs 88.92 crore was sanctioned for constructing a new building for Jawaharlal Nehru College, Chakradharpur, a constituent college under the Kolhan University.

Under the Sidhu Kanhu Murmu University, the cabinet cleared Rs 69.57 crore for the construction of a new Women’s College in Godda district, and Rs 40.19 crore for building a degree college at Boarijore in Godda.

It also green-lighted amendments to the 'Manki Munda Student Scholarship Scheme', earlier limited to stu

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Reason to Believe requirement vitiated cash seizure; failure to give six month notice required return and payment with interest.
Case-Laws
GST
The article addresses validity of cash seizures under the CGST framework, holding that seizure under the statute requires a recorded 'reason to believe' that goods, documents, books or things relevant to proceedings are secreted at a place; absence of such reasons rendered the cash seizure arbitrary and unlawful. It further explains that failure to issue the statutorily mandated notice within the six month period obliges return of seized items, and that transferring seized cash to another agency without statutory authority compounds illegality; consequent remedy ordered was release and payment with interest.
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Scope of Certiorari: declined to disturb Section 74 order for input tax credit; statutory pre deposit waiver refused.
Case-Laws
GST
On certiorari review of an order under Section 74 concerning alleged wrongful availment of input tax credit by misstatement and suppression, the court found that reasons were recorded and relevant factors considered and therefore declined to interfere absent any shown perversity or mala fides; the petitioner's request to waive or reduce the statutory pre deposit for filing a statutory appeal was refused for lack of extraordinary circumstances; the writ petition challenging the Section 74 order was dismissed, and the court's observations were treated as tentative and without prejudice to any appeal on merits.
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Right to fair hearing: failure to supply relied-upon documents and deny cross-examination mandated remand and fresh inquiry.
Case-Laws
GST
Non-supply of relied-upon documents with the show-cause notice and refusal to permit requested cross-examination were held to breach the principles of natural justice and the right to a fair hearing; the impugned order was quashed and the matter remanded for a fresh inquiry from the stage of issuance of the show-cause notice. The respondents are directed to supply all relied-upon documents with a list of RUDs, permit cross-examination where requested, and complete the inquiry in accordance with law within three months.
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