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Where goods or services (or both) that were earlier taxable have now become exempt, suppliers must take note of the provisions of Section 18(4) of the CGST Act, 2017.• Reversal of ITC: Any input tax credit (ITC) availed earlier on such supplies cannot be retained once they become exempt.• The registered person is required to pay back (reverse) ITC equivalent to:1. Inputs held in stock2. Inputs contained in semi-finished goods3. Inputs contained in finished goods4. Capital goods – ITC to be reversed on a proportionate basis considering the useful life (5 years).• Mode of payment: The reversal amount must be discharged by debiting the Electronic Credit Ledger (if balance is available) or through the Electronic Cash Ledger.

Circular No. 251/08/2025-GST F. No CBIC-20001/3/2025-GS-GSTGovernment of IndiaMinistry of FinanceDepartment of RevenueCentral Board of Indirect Taxes and CustomsGST Policy Wing North Block, New DelhiDated the 12th September, 2025 To,The Principal Chief Commissioners/ Chief Commissioners of Central Tax (All)The Principal Director Generals/ Director Generals (All) Madam / Sir,Subject: Clarification on various doubts related to treatment of secondary or post-sale discounts under GST - reg. Representations have been received seeking clarifications in respect of tax treatment in casesof secondary discounts or post-sale discount. The matter has been examined. In order to ensure uniformity in the implementation of the law across the field formations, the Board, in exercise of its powers conferred under sub-section (1) of section 168 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “the CGST…

(Issued by CBIC pursuant to the 56th GST Council Meeting – 03.09.2025) The CBIC has issued a second set of FAQs (19 queries) clarifying industry concerns on GST rate rationalisation. Below is a structured analysis: 1. Medicines & Medical Devices (Q1) Position: No recall/re-labelling needed for stocks released before 22.09.2025. Requirement: Manufacturers must issue revised price lists (Form V/VI) to dealers, retailers, and State Drug Controllers. Implication: Practical relief to pharma companies – avoids wastage of already printed stock. Compliance shifts to ensuring retailer-level price control. Similar to past NPPA interventions during rate changes. 2. Drones (Unmanned Aircrafts) (Q2) Position: Uniform 5% GST for all drones (previously 28% for personal use, 18% for drones with cameras, 5% for others). Implication: Major boost to drone industry (especially agriculture, logistics, mapping). Reduces classification disputes…

The Consumer Affairs Ministry has allowed manufacturers, packers, and importers to declare revised MRP on unsold stock lying prior to GST rate changes, by way of stamping, stickers, or online printing. ✅ Valid till 31st December 2025 or until stock is exhausted. ✅ Original MRP must remain visible – revised price cannot overwrite it. ✅ Price revision limited only to the extent of GST rate change. ✅ Two newspaper advertisements + notices to dealers & Director of Legal Metrology required. ✅ Old packaging material can be used till 31st December 2025 after making MRP corrections.

Advisory to file pending returns before expiry of three years Sep 9th, 2025As per the Finance Act,2023 (8 of 2023), dt. 31-03-2023, implemented w.e.f 01-10-2023 vide Notification No. 28/2023 – Central Tax dated 31th July, 2023, the taxpayers shall not be allowed file their GST returns after the expiry of a period of three yearsfrom the due date of furnishing the said return under Section 37 ( Outward Supply), Section 39 (payment of liability), Section 44 ( Annual Return) and Section 52 (Tax Collected at Source). These Sections cover GSTR-1, GSR-1A, GSTR 3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR 7, GSTR 8 and GSTR 9 or 9C.Hence, above mentioned returns will be barred for filing after expiry of three years. The said restriction will be implemented on the GST portal from…

Aug 28th, 2025 1. As per the available functionality, taxpayers could claim refunds under the category "On account of Assessment/Enforcement/Appeal/Revision/Any Other Order" (ASSORD) only if: This restriction prevented taxpayers from claiming refunds when individual components (minor heads) of a demand showed negative balances and the overall cumulative balance was zero or positive. 2. For the above scenario, several references have been made by the tax payers and tax officers stating that the taxpayers are not able to claim the refund. Accordingly the following changes have been implemented in the system: 3. A comprehensive user manual and FAQs will be shared shortly. In case of any discrepancies or system-related queries, a ticket may be raised with the GST helpdesk. Regards,Team GSTN

GST Reforms Proposed by Central Government – Focus on Structural Reforms, Rate Rationalisation & Ease of Living  Date:15 August 2025  Source: Ministry of Finance, PIB Delhi  On the 79th Independence Day, Prime Minister Narendra Modi highlighted the role of Goods and Services Tax (GST) in benefiting the nation since its implementation in 2017, and announced the next generation of reforms to further strengthen the system. Objective:  Support Atmanirbhar Bharat by making GST simpler, fairer, and more growth-oriented through three main pillars of reform. Three Pillars of Proposed GST Reforms 1. Structural Reforms  Correct inverted duty structures to align input/output tax rates and reduce unutilised input tax credit, boosting domestic value addition.   Resolve classification issues to reduce disputes, simplify compliance, and ensure equity.   Provide stability and predictability in tax policy to…

Very Important Judgement reported by Taxsutra SC: Prohibition u/s 6(2)(b) inapplicable to parallel search and seizure proceedings In a case concerning parallel proceedings, where summon is issued by Central GST authorities after search, and State GST authorities have already framed final orders u/s 73, SC disposing of Assessee’s SLP against Delhi HC judgment, put at rest long lasting debate on section 6(2)(b) of CGST Act; After sifting through multiple HC judgments on the issue, SC interprets the words ‘on a subject matter’, ‘on the same subject matter’ and ‘proceedings’ in section 6(2)(b); Issues the following guidelines, viz, (i) Section 6(2)(b) of the CGST Act and equivalent state enactments, bars the initiation of any proceedings on the same subject matter, (ii) any action arising from the audit of the accounts, or detailed scrutiny…

Real estate has always faced a tough road when it comes to taxation. From the days of Sales Tax to the present GST regime, it has been a sector plagued with constant change, complexity, and litigation.Now, the GST Council has formed a Group of Ministers (GoM) to address some of the most contentious issues impacting the sector:1. Taxability of development agreements2. Tax treatment of units allotted to landowners3. Tax treatment of units allotted to existing unit holders in redevelopment projects4. Re-introduction of ITC for the sector5. Revisiting the mechanism for valuation of land6. Revisiting the limits for classification as “Affordable Residential Unit”If implemented well, these changes could bring long-awaited clarity and fairness. However, history tells us that while such reforms solve some issues, they often open new grounds for interpretation…

Order Date: 9th July 2025 Key Facts: The petitioner, Vishalfab (India) Pvt. Ltd., imported machinery from China in 2018 and transported it from Nhava Sheva port (Maharashtra) to Indore. An E-Way Bill was generated on 09.08.2018, but Part-B (vehicle details) was not filled, making the E-Way Bill incomplete and invalid. The vehicle was intercepted on 11.08.2018. The goods were seized under Section 129(1) of the GST Act, and a tax and penalty of ₹2,99,208/- was imposed. The petitioner paid GST in advance and argued that filling Part B was the transporter’s duty, not the consignor’s. The Appellate Authority and Adjudicating Authority upheld the penalty; hence the petitioner approached the High Court. Court’s Findings: Rule 138(2) of MPGST Rules mandates the registered person must furnish vehicle details in Part-B before movement…

The Gujarat High Court held that no direct recovery of interest under Section 79 of the CGST Act is permissible without prior issuance of notice in Form GST DRC-01D, as mandated under Rule 142B of the CGST Rules (effective 04.08.2023). The writ petition was filed by Reliance Formulation Pvt. Ltd. challenging an advisory dated 18.12.2024 which demanded payment of interest under Section 50(1) of the GST Act for multiple financial years (2017–18 to 2023–24), warning that failure to pay may trigger recovery under Section 79. Key Findings: Form GST DRC-01D is now a statutory precondition for recovery of interest under Section 79(1). This intimation will be treated as the notice for recovery, and the assessee must be given a chance to respond within 7 days. The advisory issued by the…

Madras High Court Ruling on Improper “Bunching” of Show Cause Notices under GST Judge: Hon’ble Justice Krishnan Ramasamy Overview The Madras High Court has delivered a landmark judgment in the case of Ms. R A and Co vs. The Additional Commissioner of Central Taxes, quashing a consolidated Show Cause Notice (SCN) and assessment order issued for six financial years under GST. The Court ruled that "bunching" of multiple financial years into a single SCN and assessment order is impermissible under GST law, as it violates statutory provisions and prejudices taxpayer rights. Key Legal Issues Addressed 1. Whether a single SCN can validly cover multiple financial years under Sections 73 and 74 of the CGST/TN SGST Acts.2. Whether combining tax demands across several years into one adjudication order breaches limitation rules…

Jul 20th, 2025 As per the provisions of Section 39(2) of the Central Goods and Services Tax (CGST) Act, 2017, read with Rule 68 of the CGST Rules, 2017, notices in Form GSTR-3A are required to be issued in cases of non-filing of Form GSTR-4. However, it has come to notice that, due to a system-related glitch, such notices have been inadvertently issued in certain cases where they were not applicable — including instances involving taxpayers whose registrations had been cancelled prior to the Financial Year 2024–25. 2. The issue is currently under active examination, and the technical team is implementing appropriate corrective measures to ensure that such instances do not recur. In the meantime, taxpayers who have either duly filed the relevant return or whose registrations were cancelled prior…

Jul 17th, 2025 The GST System is being continuously enhanced to strengthen data security and improve transparency to the taxpayers. In this effort, the below mentioned enhancement shall be shortly introduced to provide transparency and control to the taxpayers who interact with the GST System using Application Suvidha Providers (ASP). The ASP use GST System authorised API channel partners that are called GST Suvidha Providers (GSP). The role of a GSP is to provide API access between GST System and ASP. 1. Email and SMS notification service to inform taxpayer upon every successful OTP consent access provided by taxpayer to the ASP. The taxpayers authorized signatory shall receive notification via email and/or SMS whenever ASP successfully obtains their consent, by providing OTP from the GST System, to access their data…

Jul 19th, 2025 Kindly refer to the advisory on table 3.2 of GSTR-3B, issued on 11th April 2025, wherein it was informed that, from April 2025 tax period, inter-State supplies auto-populated in Table 3.2 of GSTR-3B on the GST portal would be made non-editable and GSTR-3B must be filed with system-generated values only. 2.However due to several representations received from taxpayers citing difficulties in filing GSTR-3B, the implementation of this functionality was deferred earlier and table 3.2 was made editable in the interest of taxpayer’s convenience and smooth filing of GSTR-3B. It may be noted that the changes mentioned in para 1, making the auto populated liabilities in table 3.2 non-editable shall be re-introduced on the GST portal from July 2025 tax period. In case any modification/amendment is required in…

Taxpayers who had applied for waiver of interest, late fee, or penalty under Forms SPL-01/SPL-02 and received Rejection Orders in SPL-07, can now file Appeals (APL-01) on the GST portal.🔹 Key Highlights:• Appeals against SPL-07 (Rejection Orders) are now enabled on the GST portal.• Navigation Path:• Go to Services → User Services → My Application• Choose Application Type: “Appeal to Appellate Authority”• Click on New Application• Under Order Type, select: “Waiver Application Rejection Order”⚠️ Important Advisory:• Appeals filed under the waiver scheme CANNOT be withdrawn on the portal — exercise due caution before proceeding.• If you do not wish to appeal SPL-07, but want to restore your earlier appeal (withdrawn for filing waiver), you can do so by submitting an Undertaking:• Go to the “Orders” section in the “Waiver Application”…

In a significant development, the Rajasthan High Court has granted interim relief to Vedanta Ltd., staying recovery proceedings under a GST assessment order that sought to levy GST on Corporate Guarantees (CGs) extended by a parent company to its subsidiaries.The assessment order was based on CBIC Circular No. 204/16/2023-GST, which clarified that a corporate guarantee issued without consideration between related parties qualifies as a supply of service under Schedule I of the CGST Act and should be valued at 1% of the guaranteed amount under Rule 28(2) of the CGST Rules, 2017.Vedanta Ltd. challenged:• The vires of Rule 28(2),• The legality of the valuation mechanism prescribed in the Circular, arguing it to be onerous and confiscatory.Taking note of the submissions and the absence of any reply from the GST Department,…

Key take aways from the judgement Delegated Legislation Requires Strict Scrutiny The notifications issued under Section 168A are classified as delegated legislation and not conditional legislation. The Court reiterated that any deviation from statutory limitation must be interpreted strictly and narrowly 2. Section 168A Invokable Only in Genuine Force Majeure Cases Court emphasized that mere administrative difficulty or systemic inefficiencies do not justify the invocation of Section 168A. Pandemic, as a force majeure event, must have a direct causal impact on adjudication timelines – a “cause-effect” link is mandatory, not presumed. 3. Systemic Failures ≠ Force Majeure Government’s justification citing staff shortage and system overload was rejected as it failed the test of causality under force majeure. Court held that institutional bottlenecks do not fall under the “Act of God”…

In writ petition pertaining to negative blocking of Electronic Credit Ledger (ECrL), SC issues notice noting ‘conflict’ between Delhi HC judgment in Best Corp Science and Madras HC judgment in Skanthaguru Innovations; On scope of Rule 86A, while Delhi HC comprehending the phrase ‘amount equivalent to such credit’ appearing in Rule 86A decisively held that the Rule can only block existing ITC, not a negative balance in ECrL, Madras HC ruled that negative blocking of ITC is permissible under Rule 86A of the CGST Rules; Interpreting the phrase ‘‘credit of ITC available in ECL’ appearing in Rule86A, Madras HC held that ““ITC has to be available in the ECL, at any point of time, for the purpose of debiting the ECL”; SC has condoned delay of 78 days and posted the matter in August, 2025

Sl NoQuestionAnswer1How can a recipient avail ITC of wrongly rejected Invoices/ Debit notes/ECO-Documents in IMS as corresponding GSTR-3B of same tax period was also filed by recipient?In such cases recipient can request to the corresponding supplier to report the same record (without any change) in same return period’s GSTR-1A or respective amendment table of subsequent GSTR-1/IFF. Thus, recipient can avail the ITC basis on amended record by accepting such record on IMS and recomputing GSTR-2B on IMS. Here the recipient will get ITC of complete amended value as original record was rejected by the recipient.   However, recipient will be able to take ITC for the again furnished document by the supplier, as stated above, only in the GSTR-2B of the concerned tax-period.2If any original record is rejected by the…

Circular No.: 249/06/2025-GSTDate: 09th June 2025Issued By: Central Board of Indirect Taxes and Customs (CBIC)Subject: Clarification on requirement of Document Identification Number (DIN) for GST communications via common portal🔍 BackgroundCBIC had earlier made it mandatory to generate and quote a Document Identification Number (DIN) on all communications issued by its officers, as per Circulars:• 122/41/2019-GST dated 05.11.2019• 128/47/2019-GST dated 23.12.2019The intention behind DIN was to promote transparency, accountability, and traceability in communication with taxpayers.⸻🆕 Current Clarification in Circular 249/2025CBIC has now exempted the requirement of quoting DIN in communications issued via the GST common portal, such as:• Show Cause Notices (SCNs)• Summary of Orders• Communications like DRC-01 and DRC-07These documents already carry a Reference Number (RFN) which:• Is unique• Is electronically generated• Is verifiable by the taxpayer through the official…

As per the Finance Act,2023 (8 of 2023), dt. 31-03-2023, implemented w.e.f 01-10-2023 vide Notification No. 28/2023 – Central Tax dated 31th July, 2023, the taxpayers shall not be allowed file their GST returns after the expiry of a period of three years from the due date of furnishing the said return under Section 37 ( Outward Supply), Section 39 (payment of liability), Section 44 ( Annual Return) and Section 52 (Tax Collected at Source). These Sections cover GSTR-1, GSTR 3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR 7, GSTR 8 and GSTR 9. Hence, above mentioned returns will be barred for filing after expiry of three years. The said restriction will be implemented on the GST portal from July 2025 Tax period. Hence, the taxpayers are once again advised to reconcile…

 GST Portal provides a pre-filled GSTR-3B, where the tax liability gets auto-populated based on the outward supplies declared in GSTR-1/ GSTR-1A/ IFF. As of now taxpayers can edit such auto populated values in form GSTR 3B itself. With introduction of form GSTR 1A, taxpayer now has a facility to amend their incorrectly declared outward supplies in GSTR-1/IFF through GSTR-1A, allowing them an opportunity to correct their liabilities before filing their GSTR-3B in the same return period. In view of the same, from July,2025 tax period for which form GSTR 3B will be furnished in August,2025 such auto populated liability will become non editable. Thus, taxpayers will be allowed to amend their auto populated liability by making amendments through form GSTR 1A which can be filed for the same tax period…

CBIC notifies Jalna in Maharashtra for unloading of imported goods and the loading of export goods

In a significant interim relief, the Delhi High Court has stayed a GST demand of ₹9.85 crores (approx.) raised on Vardhman Electronics, a retailer of electronic goods, for discounts received from manufacturers via credit notes. The Revenue had alleged that such discounts amounted to a taxable “service” rendered by the retailer in promoting the manufacturer’s goods. The High Court, comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta, took the prima facie view that discounts offered by manufacturers cannot be equated to consideration for services rendered by the retailer, thereby staying the impugned order passed by the Additional Commissioner, CGST Delhi West. Key Highlights: Petitioner’s Argument: There is no underlying “supply” or “consideration” involved; the transaction is a mere commercial arrangement linked to purchases. Revenue’s Stand: Discounts are a…

(Based on GSTN Advisory dated May 16, 2025)Key Highlights: Earlier Communication (April 11, 2025): GSTN had proposed to make Table 3.2 of GSTR-3B non-editable from the April 2025 return period (due in May 2025). Stakeholder Concerns: Numerous representations were received from taxpayers raising concerns about this change. These are currently under review. Interim Decision – Table 3.2 Remains Editable: GSTN has decided to keep Table 3.2 editable for now. Taxpayers are advised to: o Review the auto-populated values carefully, o Make necessary amendments, and o File returns with accurate and verified information. Next Steps:GSTN will issue a separate notification when the proposed non-editable feature is implemented.

In the case of Mukesh Kumar Garg In yet another writ petition pertaining to fraudulent availment of Input Tax Credit (ITC) to the tune of more than Rs. 115 crores, Delhi HC rules on misuse of ITC facility which “if permitted to continue, would create an enormous dent in the GST regime itself”; On nature of fraud, HC noticing serious allegations and  ‘complex maze of transactions’ carried out between various non-existent firms for the sake of fraudulent transactions, harps on how a large number of writ petitions have been filed on availment of fake ITC without supply of goods; Further holds that “Input Tax Credit… is meant as an incentive for businesses who need not pay taxes on the inputs, which have already been taxed at the source itself. The said facility, which was introduced…

As per the latest advisory from GSTN, the following critical points must be noted for refund applications under the categories of:  Export of Services with payment of tax  Supplies made to SEZ Unit/SEZ Developer with payment of tax  Refund by Supplier in case of Deemed Exports  ✅ Advisory Highlights:  Invoice-Based Filing:  The refund process has shifted from tax period-based to invoice-based filing. Taxpayers must upload eligible invoices as per the applicable statement:  Statement 2 – Export of Services with payment of tax  Statement 4 – SEZ Supplies with payment of tax  Statement 5B – Supplier of Deemed Exports  Locking of Invoices:  Invoices once uploaded with a refund application will be locked.  Amendments or reuse of these invoices in other refund claims is not allowed.  Invoices will be unlocked only if: …

GSTN advisory states that due to technical challenges in system development and testing, the implementation of invoice-wise reporting in Form GSTR-7 is slightly delayed from the original April 2025 timeline; However, assures that the enhanced functionality will be deployed soon and confirms that users will be notified once the changes go live on the portal: GSTN Advisory.

Subject: Grievance Redressal Mechanism for GST Registration Applications Background:This instruction supplements the earlier Instruction No. 03/2025 dated 17.04.2025, which provided guidelines for processing GST registration applications. Applicants often face issues such as arbitrary queries or unjustified rejection of registration applications, especially under Central jurisdiction. Key Highlights of the New Grievance Redressal Mechanism: 1. Applicability:• Applies to applicants whose Application Reference Number (ARN) is assigned to the Central jurisdiction.• Covers grievances regarding queries raised, grounds for rejection, or non-compliance with earlier instructions. 2. Grievance Redressal Procedure:• Designated Email ID:• Each CGST Zone (Principal Chief Commissioner/Chief Commissioner) will publicize a dedicated email ID for grievance submissions.• Applicants must send their grievance to this ID with the following details:• ARN• Jurisdiction (Centre/State)• Brief description of the issue• State Jurisdiction Cases:• If the grievance…

The key highlights are: 1. Break-up of Gross Collections: ComponentApr 2024 (₹ Cr)Apr 2025 (₹ Cr)GrowthCGST43,84648,634–SGST53,53859,372–IGST99,6231,15,259–Cess13,26013,451–Total2,10,2672,36,71612.6% 2. Net GST Revenue (after refunds): TypeApr 2024 (₹ Cr)Apr 2025 (₹ Cr)GrowthDomestic1,60,4961,76,4189.9%Imports31,33732,9585.2%Net Total1,91,8332,09,3769.1% 3. Refund Trends: Total refunds jumped by 48.3% YoY to ₹27,341 crore. Export-related refunds through ICEGATE increased by 86.1%. 4. State-wise Revenue Growth (YoY): High Performers: Arunachal Pradesh (66%), Meghalaya (50%), Nagaland (42%) Major Contributors: Maharashtra (₹41,645 Cr), Gujarat (₹14,970 Cr), Karnataka (₹17,815 Cr), Tamil Nadu (₹13,831 Cr) Decline in Revenue: Mizoram (-28%), Andhra Pradesh (-3%), Tripura (-7%)

The Ministry of Finance has firmly debunked recent misinformation suggesting that the Government is considering levying Goods and Services Tax (GST) on Unified Payments Interface (UPI) transactions above ₹2,000. In an official press release dated April 18, 2025, the Government stated that such claims are entirely false, misleading, and baseless. Currently, there is no proposal under consideration to impose GST on UPI transactions. GST is applicable only on specific service charges, such as the Merchant Discount Rate (MDR), but since January 2020, the MDR on Person-to-Merchant (P2M) UPI transactions has been completely removed via Gazette Notification dated December 30, 2019. As a result, no GST applies to these transactions either. To further promote the adoption of UPI and digital payments, the Government has introduced an Incentive Scheme targeting low-value P2M…

As per Instruction No. 03/2025-GST dated April 17, 2025 Introduction The Central Board of Indirect Taxes and Customs (CBIC) has issued comprehensive instructions to ensure standardized and efficient processing of GST registration applications. These guidelines are meant to prevent fraudulent registrations while ensuring ease of compliance for genuine taxpayers. They supersede Instruction No. 03/2023-GST and are to be followed strictly by all officers involved in registration processing. 1. Objective Standardize document verification procedures. Avoid undue harassment of genuine applicants. Prevent delays and speculative queries. Ensure timely processing of registration requests. 2. General Guidelines Officers must only seek documents as listed in FORM GST REG-01. Any additional document (outside prescribed list) must be sought only with prior approval from a Deputy/Assistant Commissioner. Presumptive or irrelevant queries are strictly prohibited. 3. Documentation…

The Bombay High Court at Goa, in its judgment dated 15th April 2025 in Writ Petition No. 723/2024, ruled in favor of Goa University and quashed a GST demand of ₹4.83 crore on affiliation fees collected from colleges. Key Points: Goa University had challenged:A show cause notice issued under Section 74 of the CGST Act.Two circulars issued by CBIC (dated 17.06.2021 and 11.10.2024). A press note based on recommendations of the 54th GST Council meeting. The University argued that:Affiliation fees are collected as part of its statutory duties under the Goa University Act, 1984.The activity is regulatory in nature and not commercial. Such services are exempt under GST Notification No. 12/2017. The GST department claimed:Affiliation fees are taxable services under GST. The exemptions apply only to services provided directly to…

Bombay High Court Judgment in Writ Petition No. 7135 of 2024 Case Title: M/s Shrinivasa Realcon Private Ltd. vs. Deputy Commissioner, Anti-Evasion Branch, CGST & Central Excise, Nagpur & Others Date of Judgment: 8th April 2025 The Bombay High Court at Nagpur allowed a writ petition filed by M/s Shrinivasa Realcon Pvt. Ltd., challenging a GST demand arising from a development agreement dated 07.04.2022. Key Points: The petitioner was appointed as a developer for constructing a multi-storied complex on land owned by a third party. The department issued a notice claiming GST under Entry 5B of the Notification dated 28.06.2017 (as amended by Notification dated 29.03.2019), treating the transaction as a “transfer of development rights (TDR).” The Court observed that the agreement did not involve any transfer or purchase of…

The GSTN has announced the rollout of Phase-III changes to Table-12 of GSTR-1 and GSTR-1A effective from the April 2025 tax period. The table will now be split into B2B and B2C sections, requiring separate HSN-wise reporting for each. Manual HSN entry will be discontinued, and taxpayers must select the appropriate HSN code from a system-generated dropdown. Advisory on Table-12 of GSTR-1 or GSTR-1A It to inform that GSTN has implemented phase wise changes in Table-12 of GSTR-1 or GSTR-1A. For the same various advisories have been issued time to time, which are available on GST Portal. GSTN is going to implement Phase-III of Table 12 of GSTR 1 & 1A from April, 2025 tax period onwards. Which implies: Table-12 has been bifurcated into two tables namely B2B and B2C,…

The GSTN has issued an advisory stating that, effective from the April 2025 tax period, Table 3.2 of GSTR-3B will be non-editable and auto-populated based on inter-state supplies reported in GSTR-1, GSTR-1A, or IFF. These values relate to supplies made to unregistered persons, composition taxpayers, and UIN holders. Any corrections must be made through amendments in the respective GST returns. Advisory on reporting values in Table 3.2 of GSTR-3B Table 3.2 of Form GSTR-3B captures the inter-state supplies made to unregistered persons, composition taxpayers, and UIN holders out of the supplies declared in Table 3.1  &  3.1.1  of  GSTR-3B.  The  values  in  Table  3.2  of  GSTR-3B  auto-populates  from corresponding inter-state supplies declared in GSTR-1, GSTR-1A, and IFF in requisite tables. It  is  to  inform  you  that  fromApril-2025  tax  period,inter-state  supplies …

Indian Medical Association v. Union of India & Ors. W.A. Nos. 1659, 1487 & 468 of 2024 | Judgment dated 11 April 2025 The Kerala High Court has allowed the writ appeal filed by the Indian Medical Association (IMA), Kerala State Branch, setting aside the judgment of the Single Judge that had upheld GST levy on services provided by associations to their own members. Key Highlights: The Court struck down the retrospective amendment introduced through Section 7(1)(aa) of the CGST Act, inserted by the Finance Act, 2021, which had sought to nullify the principle of mutuality. The amendment had deemed services rendered by a club or association to its members to be a taxable “supply”, retroactively from 01.07.2017. The Division Bench held that such deeming fiction violates the constitutional understanding…

GSTN informs that from June 01, 2025, Invoice Reporting Portal (IRP) will treat invoice/document numbers as case-insensitive for the purpose of Invoice Reference Number (IRN) Generation; Invoice numbers reported in any format (abc, ABC or Abc) will automatically be converted to uppercase before IRN generation; This development has been made to ensure consistency and to avoid duplication; GSTN further mentions “this change aligns with the treatment of invoice numbers in GSTR-1, which already treats them as case-insensitive”: GSTN Advisory http://mohansekhar.in/wp-content/uploads/Advisory_on_Case_Sensitivity_in_IRN_Generation.pdf

The CBIC has issued clarifications and FAQs regarding the revised GST treatment for restaurant services offered at “specified premises”, bringing a major shift in how hotel premises are classified and taxed. Here are the key takeaways every hotelier and restaurateur should know: 🍽️ What’s Changing? 🔹 ‘Declared Tariff’ Out, ‘Value of Supply’ In Starting FY 2025-26, a hotel will be classified as a “specified premises” based on actual transaction value (> ₹7,500/unit/day), not the published tariff. 🔹 GST Rate Difference • 18% GST with ITC at specified premises • 5% GST without ITC at other premises 🔹 Flexible Opt-In/Out Mechanism Hotels can voluntarily declare their premises as specified using Annexure VII/VIII. Once declared, it applies until an opt-out is filed. 🔹 Multiple Premises? Each premise must be evaluated individually. One…

CBIC notifies amendment in Rule 164 of the CGST Rules, 2017 to provide the amnesty benefit relating to waiver of interest and penalty u/s 128A of the CGST Act, 2017; Vide the amendment in sub-rule (4) of section 164, specifies that where the notice or statement or order specified in section 128A, includes a tax demand partly for the period from July 1, 2017, to March 31, 2020, and partly for a later period, an application for closure of proceedings (FORM GST SPL-01) can be filed only after full tax payment  “related to period mentioned in the said sub-section” as mentioned in the notice or statement or order, before the notified date; Further, specifies that refund will not be granted for any tax, interest, or penalty paid before the instant…

The Supreme Court of India, in the matter of Union of India vs Brij Systems Ltd., dismissed the Special Leave Petition filed by the Union Government, citing its prior dismissal of a similar case (Central Board of Indirect Taxes and Customs v. M/s Aberdare Technologies Private Limited and Ors.). However, recognizing the broader implications regarding the rectification of clerical or arithmetic errors in Input Tax Credit (ITC) claims, the Court took cognizance of the prevalent practice of denying rectifications beyond the statutory timelines defined under Sections 37(3) and 39(9) of the Central Goods and Services Tax Act, 2017. The Court acknowledged the administrative rigidity, which has resulted in genuine errors going unrectified, adversely impacting purchasers due to denial of ITC. To address this systemic issue, the Supreme Court issued a…

Central Board of Indirect Taxes and Customs vs. M/s Aberdare Technologies Pvt. Ltd. & Ors. Date of Judgment: 21 March 2025 The Supreme Court dismissed the Special Leave Petition filed by the Central Board of Indirect Taxes and Customs, upholding the Bombay High Court’s judgment. The Court found the High Court's judgment fair, noting no loss of revenue. The Supreme Court emphasized the need for realistic timelines and provisions to correct genuine clerical or arithmetic errors, stating such corrections stem from the fundamental right to do business. Denying correction based solely on software limitations was deemed inadequate, as software should be configured to facilitate compliance, not hinder it. The judgment highlighted the unnecessary hardship caused to purchasers denied input tax credit despite having already paid the taxes due, effectively causing…

Mar 21st, 20251. Grievances are raised by taxpayers regarding difficulties faced while filing the waiver applications. Following grievances faced by taxpayers have come to the notice of GSTN and team is working to resolve the issues at the earliest.i. Order number is not available in dropdown for selection in SPL 02.ii. Order details are not getting auto populated after selection of a particular order in SPL 02.iii. Payment details are not getting auto populated in Table 4 of SPL 02.iv. After filing the SPL 02 for a demand order, the taxpayer is not able to make payment using “Payment towards Demand” for that order. Also, taxpayer is not able to adjust the amount paid through DRC 03, against the same demand order, using DRC 03A.v. Not able to withdraw the…

Kerala SGST directs all the adjudicating and appellate authorities to conduct personal hearings only through video conferencing mode except in the exceptional circumstances involving technical or other constraints; The Circular includes some guidelines which the authorities must adhere to ensure a smooth and transparent process; The guidelines include informing the date and time of the video conference with its meeting id and password in advance, serving the personal hearing notice on email, authorizing the consultant/authorized representative/Advocate of the Assessee to attend the personal hearing etc. Detailed guidelines can be referred in the Circular: Kerala SGST Circular Circular_07_2025 :- http://mohansekhar.in/wp-content/uploads/Circular_07_2025.pdf

Kerala SGST authorizes territorial jurisdiction over the whole State of Kerala to the officers in Centralised Refund Processing Formation for processing of refunds; This development comes as an amendment to Notification No. 01/2023-State Tax; A proviso to Para 12 has been inserted to the said Notification in this regard, which shall be effective from March 15, 2025: Kerala SGST Notification

Submission of Letter of Undertaking (LUT): Registered Person supplying zero-rated supplies to SpecialEconomic Zones (SEZs) or exports, without paying Integrated GST (IGST), must submit a Letter of Undertaking (LUT) in Form RFD -11for the upcoming FY by March 31, 2025. Opting for the Composition Scheme: Eligible businesses to avail the Composition Scheme for FY 2025-26shall electronically file an intimation in FORM GST CMP-02, duly signed or verified through electronic verification code, on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, prior to the commencement of the financial year for which the option to pay tax under the aforesaid section is exercised and shall furnish the statement in FORM GST ITC-03 in accordance with the provisions of sub-rule (4) of Rule 44 of the CGST…

GSTN informs that unregistered dealers engaged in the movement or transportation of goods can now generate an E-Way Bill (EWB) by enrolling themselves on the EWB portal; A unique Enrolment ID will be generated for such users which will be an alternative to the Supplier/Recipient GSTIN; The advisory also includes the user guide for ENR-03 enrolment specifying the processes (i) Accessing ENR-03, (ii) Filling Out the ENR-03 Form, (iii) Creating Login Credentials and (iv) Generating the e-Way Bill; Users can access the Detailed User Guide for further assistance: GSTN Advisory Subject: Advisory on Introduction of Form ENR-03 for Enrolment of Unregistered Dealers/Persons in e-Way Bill Portal for generating e-way Bill.Feb 15th, 2025Dear Stakeholders,A new feature has been introduced in the E-Way Bill (EWB) system to facilitate the enrolment of unregistered dealers…

GSTN issued new advisory for GST Registration process The GSTN has issued an update to inform that if taxpayers choose not to authenticate via Aadhaar, they must visit the designated GST Suvidha Kendra (GSK) for photo capturing and document verification. It is also informed that applicants must adhere to the steps as per Rule 8 of the CGST Rules, 2017. If taxpayers are opting for Aadhaar authentication, they should first visit the GSK for biometric authentication and photo capturing, followed by the Primary Authorized Signatory (PAS). Advisory for GST Registration Process (Rule 8 of CGST Rules, 2017) Feb 12th, 2025 Dear Taxpayer, In line with recent developments in the GST registration process, applicants must adhere to the following steps as per Rule 8 of the CGST Rules, 2017: 1.    Applicants…

1. Background and Purpose The Central Board of Indirect Taxes and Customs (CBIC) issued this circular to clarify the applicability of late fees under Section 47 of the CGST Act, 2017 for the delay in furnishing FORM GSTR-9 (Annual Return) and FORM GSTR-9C (Reconciliation Statement). This clarification was issued in response to representations seeking confirmation on whether a separate late fee is applicable when GSTR-9C is filed late but after GSTR-9. 2. Key Clarifications on Late Fees Legal Provisions (Before and After 01.08.2021) Before 01.08.2021: Section 44(2) of the CGST Act required registered persons to submit audited annual accounts and a reconciliation statement (GSTR-9C) along with their annual return (GSTR-9). After 01.08.2021: The mandatory audit requirement was removed, and taxpayers with an aggregate turnover exceeding ₹5 crore must submit a self-certified GSTR-9C along with GSTR-9.…