Goods and Services Tax

Oil companies bleed Rs 30,000 cr as fuel prices held steady despite global energy shock
GST
Dated:- 8-5-2026
PTI
New Delhi, May 8 (PTI) India's state-run oil marketing companies have bled an estimated Rs 30,000 crore in losses since mid-March as they kept fuel and LPG supplies flowing without raising retail prices despite facing an energy disruption that is bigger than all previous crises combined.

Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have maintained uninterrupted supplies of petrol, diesel, LPG, aviation turbine fuel and other petroleum products since the start of the West Asia conflict, without raising retail prices despite a more than 50 pe

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g around USD 72 per barrel before the United States and Israel launched strikes on Iran on February 28, triggering a sharp escalation in West Asia tensions. Prices then surged as the conflict widened and shipping risks intensified in the Strait of Hormuz, with reports of disrupted tanker movement and heightened supply fears.

At the peak of the escalation, Brent briefly jumped to levels near USD 144 per barrel as Iran retaliated and closed the Strait, effectively freezing parts of global oil transit and amplifying volatility across energy markets.

Sources said the government intervention included excise duty reductions and absorption of part of the fuel cost burden. The Centre's effective absorption at peak crude prices was estimated a

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Despite these pressures, fuel and LPG supplies remained uninterrupted across the country.

The surge in crude prices and the decision to shield consumers from higher retail prices placed significant strain on OMC balance sheets and refining margins, sources said.

They added that the measures reflected a policy decision to prioritise consumer stability and economic continuity during a global energy shock.

Sources warned that a prolonged period of elevated crude prices could lead to higher working capital borrowings and force some recalibration of capital expenditure plans. However, investments linked to refining expansion, energy security infrastructure, ethanol blending, biofuels and transition fuels would continue with government

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Corporate guarantee without consideration is not taxable as a supply of service, though the GST valuation challenge failed.
Case-Laws
GST
Corporate guarantees issued by a company to secure loans for its subsidiaries were held not to constitute a taxable supply of service where no fee, commission, security or other consideration was received or payable. The Court treated the guarantees as in-house financial support, not a regular business of providing guarantees, and quashed the summons and show cause notice founded on GST demand. By contrast, the constitutional challenge to Rule 28(2) of the GST valuation rules failed because fiscal legislation and delegated tax measures are entitled to wide legislative deference, and no clear constitutional transgression was shown. The petition was therefore partly allowed.
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GST appeal limitation and writ condonation fail where no exceptional circumstances justify delay
Case-Laws
GST
The Appellate Authority cannot entertain a GST appeal filed beyond four months from communication of the adjudicating order, and Article 226 interference to bypass that statutory bar is confined to exceptional and extraordinary cases. Here, the order was served through the GST Portal and was within the taxpayer's knowledge, while the medical evidence did not show any disabling circumstance sufficient to explain the delay. The Court therefore found no exceptional ground to condone the delay or invoke writ jurisdiction, and the rejection of the appeal as time-barred was sustained.
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Provisional attachment and parallel proceedings: writ challenge failed for lack of foundational facts and statutory post-decisional remedy.
Case-Laws
GST
A jurisdictional objection based on the statutory bar against parallel proceedings was rejected as premature because no material was produced to show initiation of adjudicatory proceedings, identity of subject matter, tax period, or cause of action; a writ court could not record even a prima facie finding without such foundational facts. The challenge to provisional attachment for want of a pre-decisional hearing also failed, as Section 83 was treated as not requiring prior notice and the statutory scheme was held to provide a complete post-decisional remedy under Rule 159(5). The petitioner's custody at the time of attachment did not, by itself, invalidate the action, and writ interference was declined.
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Alternative remedy and disputed facts led the High Court to decline writ interference in an input tax credit matter.
Case-Laws
GST
The High Court found no breach of natural justice because the impugned order showed that a personal hearing had been given. It also relied on factual findings that no business activity existed at the declared premises and that fake invoices were used through the petitioner's credentials to avail input tax credit. As the dispute turned on contested facts, the Court declined to examine the merits in writ jurisdiction and directed the petitioner to pursue the statutory appellate remedy, with liberty to file an appeal within the time granted and have it heard on merits.
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Personal hearing requirement under GST natural justice led to quashing of an ex parte assessment order
Case-Laws
GST
Failure to grant a personal hearing vitiated the assessment order. The Court noted that only two opportunities of hearing had been given, while the statute permits adjournment up to three times, and the petitioner had expressly sought a personal hearing in its GST DRC-06 response. As Section 75(4) requires a hearing when a written request is made or an adverse decision is contemplated, the proper officer was bound to hear the petitioner before deciding the matter. The ex parte assessment order was therefore quashed for breach of natural justice, and the case was remanded for fresh consideration after hearing the petitioner, with revival of the earlier order if the petitioner again defaulted in appearance.
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Deemed withdrawal of GST assessment ends garnishee recovery once returns are filed and dues are paid, subject to verification.
Case-Laws
GST
Section 62(2) was applied to hold that an assessment made for non-filing of returns stands automatically withdrawn when the registered person files the returns for the relevant period and pays the tax, interest and late fee. On the petitioner's assertion that these requirements had been met, the assessment order was treated as deemed withdrawn, so recovery steps founded on it, including garnishee proceedings, could not continue. The relief was made subject to verification by the authorities of the date of filing and payment of the dues.
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GST on leasehold rights and land development cost upheld as taxable supply of service
Case-Laws
GST
Transfer of unexpired leasehold rights was treated as a taxable supply of service because only the right to use immovable property for the balance lease period was assigned, not title in the land, so the transaction did not fall within sale of land under Schedule III. The Authority also held that decisions cited by the appellant had not attained finality, while Safari Retreats was inapplicable because it concerned input tax credit on construction for leasing, not the taxability of leasehold assignments. Separately, recovery of land development cost was held taxable as consideration for construction and development services, since the underlying works were distinct, identifiable services enhancing the premises. The appeal was dismissed and the advance ruling upheld.
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CBI Arrests CGST Superintendent, Meerut in a Bribery Case
GST
Dated:- 7-5-2026

The Central Bureau of Investigation (CBI), today, i.e., 07.05.2026, has arrested Superintendent, CGST Meerut, U.P. and a Computer Operator working in the office of  Superintendent, in a bribery case.

The CBI registered the instant case on 06.05.2026 against the accused Computer Operator working in the office of the accused Superintendent, CGST Office, Range-I, Meerut (UP), on the allegations of de

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Alternative statutory remedy under GST bars writ petition where appeal lies before the functioning Appellate Tribunal
Case-Laws
GST
A writ petition challenging a GST appellate order was not entertained because an effective statutory appeal before the now-functioning GST Appellate Tribunal was available. The Court held that writ jurisdiction should ordinarily not be used where a specialised remedy exists, especially when the petitioner's objections concerned GST issues suited to the Tribunal's examination. No exception applied: there was no challenge to the statute's vires, no lack of jurisdiction, and no violation of natural justice because the petitioner had participated and filed a reply. The petitioner was relegated to the appellate remedy, with interim protection continued until the Tribunal decides the stay application.
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Statutory GST appeal remains available despite tribunal non-constitution; writ jurisdiction cannot bypass appellate remedy or pre-deposit.
Case-Laws
GST
The High Court held that, where the GST Appellate Tribunal has not yet been constituted, the statutory right of appeal remains available and limitation for filing that appeal runs from the date the President or State President enters office, whichever is later, in line with the Board Circular. It further held that writ jurisdiction cannot be used to bypass the statutory appellate remedy or avoid the pre-deposit requirement. Following its earlier order on identical facts, the Court dismissed the writ petition and granted liberty to pursue the appeal before the GST Tribunal against the impugned appellate orders.
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GST registration cancellation may be remedied through revocation, draft returns, tax payment, and manual filing where needed.
Case-Laws
GST
GST registration cancellation for non-filing of returns and non-payment of tax was addressed by permitting the taxpayer to seek revocation, file draft returns and deposit dues by 31.03.2026. The authority was directed to consider the revocation application within the stipulated time and, if online filing was not possible, to accept manual filing. The approach follows an earlier High Court order in similar circumstances and reflects a remedial route aimed at restoring registration rather than sustaining cancellation where compliance can still be regularised.
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Changed facts in advance ruling on post-sale discounts led to remand for fresh GST consideration.
Case-Laws
GST
Post-sale discounts and non-monetary benefits in a principal-to-principal supply dispute could not be examined on merits because the factual basis before the appellate authority had materially changed. The original advance ruling had proceeded on the supplier-franchise relationship and the absence of any prior agreement on such benefits, while the appeal introduced a different case based on principal-to-principal transactions and prior scheme documents. As the altered facts were divergent from those placed before the original authority, the AAAR held that the correctness of the earlier ruling could not be determined on that record and remanded the matter to the AAR for fresh consideration in accordance with natural justice.
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Grant-in-aid treated as consideration, with research services held taxable and exemption claims under local-body functions denied.
Case-Laws
GST
Grant-in-aid from CCRAS was treated as consideration because the payments were linked to approved proposals, deliverables, reporting, audits and specified research work, and the subsidy exclusion for Government grants did not extend by implication. The appellant and CCRAS were separate legal persons, so the research work constituted supply between distinct taxable persons in the course of business, and the appellant was not a pure agent. Exemption under Entries 3 and 3A was denied because the services were research and documentation for a central research body, not functions entrusted to Panchayat or Municipality bodies. The work was classified as taxable research and development services under Heading 9981, and the appeal was rejected.
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Non-speaking refund rejection quashed for lack of reasons and remanded for fresh adjudication after hearing.
Case-Laws
GST
A refund claim arising from export of services was rejected by a non-speaking order that failed to record any specific finding on entitlement and merely reproduced clauses of the agreement. The High Court held that such bald disposal was contrary to the requirement of a reasoned determination and principles of natural justice, because the authority did not adjudicate the petitioner's submissions or material before it. The impugned appellate order was quashed, and the matter was remanded for de novo consideration by the original authority with an opportunity of hearing, leaving all contentions open.
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Pre-deposit defect under GST appeal law must be cured before dismissal where payment intention is shown
Case-Laws
GST
Non-compliance with the pre-deposit requirement under section 107(6) was treated as a curable procedural defect where the taxpayer had deposited the amount in the electronic cash ledger and shown an intention to comply. The High Court held that the appeal was dismissed solely for alleged non-compliance, not on merits, and that natural justice required the Appellate Authority to point out the defect and allow reasonable time to cure it before rejecting the appeal. The order was quashed and the matter remanded for consideration on merits after the pre-deposit issue is rectified.
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Refund rejection on unutilised input tax credit remanded for fresh consideration after hearing in identical earlier case
Case-Laws
GST
Refund rejection orders concerning unutilised input tax credit of compensation cess on zero-rated supplies were not sustained because the controversy was identical to that already decided in the assessee's own case. Applying the earlier Division Bench decision, the HC directed reconsideration by the original authority in accordance with law after granting an opportunity of hearing. The refund matters were thus remanded for fresh decision within four months, and the impugned rejection orders were set aside for that limited purpose.
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Parallel tax proceedings require the same liability and contravention; distinct GST infractions can proceed separately.
Case-Laws
GST
Parallel proceedings are barred only when they seek to assess or recover the same liability arising from the same contravention. Applying that principle, the Court found no overlap between a proceeding for short payment of tax based on GSTR-1 and GSTR-3B and a later notice for excess input tax credit claimed on invoices not reflected in GSTR-2A. The two actions concerned distinct infractions, even though they related to the same tax period. The challenge on overlapping subject matter therefore failed, and the petitioner was left to pursue the statutory appeal with all grounds kept open.
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Composite tax-period show cause notice under Section 74 quashed; separate financial years must be proceeded with year-wise.
Case-Laws
GST
A composite show cause notice under Section 74 clubbing multiple financial years was held impermissible because the statutory scheme operates tax period-wise and year-wise, with separate return obligations and limitation consequences for each period. The Court followed its own binding precedent and held that authorities within its jurisdiction were bound by that view until stayed or overruled; dismissal in limine of a contrary challenge did not create merger on merits. The composite notice and consequential order were quashed, with liberty to issue a fresh notice strictly in accordance with law.
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Unsigned GST assessment orders are invalid and unserved without DIN; fresh assessment may be made after proper notice and signature.
Case-Laws
GST
A signed assessment order is mandatory under the CGST framework, and absence of the assessing officer's signature means the order is not validly served under Rule 26(3). The court also treated non-mention of a DIN in GST proceedings as affecting the validity of the proceeding. On that basis, the impugned assessment order was set aside, and delay in filing the writ petition was held immaterial because there was no service of the unsigned order. Liberty was granted to complete a fresh assessment after issuing notice and passing a duly signed order containing a DIN, with the intervening period excluded for limitation.
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Employee transportation cost recovery is not a taxable supply when treated as a welfare perquisite outside GST.
Case-Laws
GST
AAR held that nominal amounts recovered from employees for transportation arranged through third-party vendors did not constitute a supply under Section 7 of the CGST Act. The arrangement was treated as an employee welfare facility, not an activity in the course or furtherance of the applicant's engineering and IT-related business, and the recovery was only partial cost-sharing with no independent consideration accruing to the applicant. The transport facility was also regarded as an employment-linked perquisite covered by Schedule III, and therefore outside the ambit of supply. As the transaction was not taxable, the question of valuation for GST did not arise.
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Exempt electrical energy supply under rooftop solar arrangement does not require GST registration, subject to unchanged facts and law.
Case-Laws
GST
AAR held that rooftop solar supply under the power purchase arrangement was a supply of electrical energy, with the plant remaining the applicant's asset during the contract term. Electrical energy was treated as exempt goods, so the applicant was supplying only wholly exempt goods and, under Section 23, was not required to obtain GST registration. The Authority added that this exemption would not apply if taxable goods or services were supplied alongside electricity, or if taxable inter-State supplies were made. It also held that an advance ruling binds only the applicant and the relevant officers under Section 103, and only while the same law, facts and circumstances continue.
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Fluid coupling classification prevails over motor vehicle parts entry, with GST applied under Heading 8483.
Case-Laws
GST
The Authority treated the Fan Drive Assembly as a fluid coupling because it transmits torque through viscous fluid and matches Heading 8483.60.20, so the specific Chapter 84 heading prevailed over the general motor vehicle parts entry in Heading 8708. It also applied the tariff notes excluding Heading 8483 goods from Chapter 87 where they are integral engine parts. On GST, the product was covered by the notified entry for clutches and shaft couplings under Heading 8483 and attracted 18% tax. Separately procured parts and components, for which no specific sub-entry exists, were placed in the residual heading 8483.60.90.
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Outdoor catering as composite supply was classified under SAC 996334, attracting mandatory 5 per cent GST without input tax credit.
Case-Laws
GST
Food prepared for event-based supply, including models with transport, serving and on-site support or delivery to the customer's location, was treated as a naturally bundled composite supply of services. The activity was classified as outdoor catering under SAC 996334, not restaurant or hotel accommodation service, because it related to occasional functions at venues such as marriage halls and exhibition halls. As outdoor catering at premises other than specified premises, the supply fell under entry 7(iv) of Notification No. 11/2017-Central Tax (Rate), attracting GST at 5 per cent subject to non-availment of input tax credit. The applicant could not opt for 18 per cent with input tax credit.
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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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