Category: CA Chandrasekhar Kutty. B.Com, F.C.A.

MOHAN & CHANDRASEKHAR CHARTERED ACCOUNTANTS Hosur  |  Bengaluru  |  Chennai ⚠️  URGENT ACTION REQUIRED  ⚠️ GSTR-3B FILING CHANGED! New Mandatory Step Before You Can File Effective from February 2026 Tax Period Onwards Advisory Circular No. MC/GST/2026-03        Date: 16th March 2026 WHAT HAS CHANGED? The GST Network (GSTN) has introduced a new mandatory step in the GSTR-3B filing process. Pursuant to Section 50 of the CGST Act, 2017, interest is leviable where tax liability of a previous tax period is discharged in a subsequent period. To operationalise this provision accurately, GSTN has enabled auto-population of the "Tax Liability Breakup, As Applicable" tab in Form GSTR-3B, effective from the February 2026 return period. This tab captures tax liability pertaining to prior tax periods reported in the current month's GSTR-1/GSTR-1A/IFF but discharged through…

ADVISORY CIRCULAR Link DRC-03 Payment with DRC-03A for Recognition in Appeal Pre-Deposit Calculation — GSTN Advisory   Based on GSTN Portal Advisory | March 2026 Circular Ref.MC / GST / CIR / 2026-03SubjectPre-deposit via Form GST DRC-03 — Filing Form GST DRC-03A is Mandatory Before AppealIssued byMohan & Chandrasekhar, Chartered AccountantsDateMarch 2026ApplicabilityAll GST-registered taxpayers who have paid amounts via Form GST DRC-03 against demand orders and intend to file appeals before the First Appellate Authority 1.  Background — The Problem Taxpayers are Facing A recurring practical difficulty has been flagged by the GSTN (Goods and Services Tax Network) which affects taxpayers who have made payments through Form GST DRC-03 during the course of investigation, scrutiny, or audit proceedings — and who subsequently wish to file an appeal against the demand…

GST on Residential Welfare Associations — Karnataka AAR Settles Key Issues A Consolidated Analysis of Four Advance Rulings dated 11.02.2026 Introduction The Karnataka Authority for Advance Ruling (KAAR) delivered four significant rulings on 11th February 2026 concerning the GST treatment of collections made by Resident Welfare Associations (RWAs) / Apartment Owners' Associations. The four applicants — M/s Liberty Square Apartment Owners Association (KAR.ADRG/08/2026), M/s Apartment Owners Association of Raj Lake View (KAR.ADRG/11/2026), M/s Sandeep Vihar Owners Association (KAR.ADRG/12/2026), and M/s Godrej United Owner's Association (KAR.ADRG/13/2026) — raised questions covering corpus fund taxation, water and electricity charge recovery, and the scope of the ₹7,500 exemption. The rulings, pronounced by Shri Kalyanam Rajesh Rama Rao (Member, Central) and Shri Sivakumar S Itagi (Member, State), provide authoritative clarity on several long-contested issues. Issue…

DGCF Alert: Automatic Extension of Export Obligation Period Date: March 10, 2026 Source: Public Notice No. 51/2025-26 dated 06.03.2026   In light of current geopolitical developments impacting global trade and shipping routes, the Directorate General of Foreign Trade (DGFT) has provided significant relief to exporters by amending the Handbook of Procedures, 2023.   Key Highlights of the Extension • Eligibility: The extension applies to all Advance Authorisations (including Annual and Special categories) and EPCG Authorisations.   • Qualifying Period: Authorisations where the Export Obligation (EO) period or Block-wise EO period is expiring between 01.03.2026 and 31.05.2026.   • New Deadline: The EO period for eligible licenses is now automatically extended up to 31.08.2026.   • No Costs/Formalities: This extension is automatic. There is no requirement for a separate application, payment of composition fees, or physical…

Date: March 2026  Gauhati High Court Holds — Summary of SCN in DRC-01 Cannot Substitute a Proper Show Cause Notice under Section 73; Absence of Digital Authentication and Denial of Personal Hearing Vitiate Demand Proceedings  Case: Md Shoriful Islam v. State of Assam Citation: [2026] 183 taxmann.com 669 (Gauhati) Decided on: 06 February 2026 Bench: Hon'ble Justice Soumitra Saikia Writ Petition (C) No. 471 of 2026  Background  The petitioner, a GST-registered taxpayer in Assam, was issued a Summary of Show Cause Notice in Form GST DRC-01 dated 02.05.2024 under Section 73 of the CGST/AGST Act, 2017. The DRC-01 stated that a Show Cause Notice was attached. However, the only attachment was a "determination of tax" — no separately drafted Show Cause Notice specifying reasons and circumstances for invoking Section 73 was ever served.  The petitioner did not file a reply, precisely because no proper SCN was…

CLIENT ADVISORY Deferred Payment of Customs Duty – New Scheme for Eligible Manufacturer Importers (EMI) Circular ReferenceCircular No. 08/2026-Customs dated 28th February, 2026Issued ByCBIC, Department of Revenue, Ministry of FinanceEffective DateApplications from 01.03.2026 | Facility from 01.04.2026ValidityTill 31st March, 2028 1. Background & Purpose CBIC has vide Notification No. 12/2026-Customs (N.T.) dated 01.02.2026 extended the facility of Deferred Payment of Customs Import Duty (available hitherto only to AEO-accredited entities) to a new class of importers called 'Eligible Manufacturer Importers' (EMI). This is governed by the Deferred Payment of Import Duty Rules, 2016, as amended. The key objective is to expedite Customs clearance of imported goods at Ports/Airports/ICDs, thereby reducing transaction costs and improving ease of doing business for the manufacturing sector. 2. Who Can Apply – Eligibility Criteria To qualify…

Maharashtra Waives E-Way Bill for Motor Vehicle Road Testing The Commissioner of State Tax, Maharashtra, has issued Notification No. SGST/e-way bill/02/2025-26 dated February 20, 2026. This notification provides significant relief to automobile manufacturers by waiving the mandatory e-way bill requirement for motor vehicles being transported specifically for road testing purposes.   This relaxation follows a representation by M/s. Tata Motors Limited, acknowledging the practical difficulties in generating e-way bills for movements that do not constitute a "supply".   Scope of the Exemption The waiver applies exclusively to the movement of motor vehicles for road tests across India where the transport is for reasons other than by way of supply. It is issued under the powers conferred by Sub-rule (5) of Rule 138A of the MGST Rules, 2017.   Key Conditions and Procedures To…

Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) One-time Opportunity for Condonation of Delay in Statutory Filings   1. Introduction The Ministry of Corporate Affairs (MCA), vide General Circular No. 01/2026 dated 24th February 2026, has introduced the "Companies Compliance Facilitation Scheme, 2026" (CCFS-2026). This scheme aims to provide a one-time window for companies to regularize their pending annual filings and financial statements with significantly reduced additional fees.   2. Validity Period • Effective Date: 15th April 2026.   • Closing Date: 15th July 2026.   3. Key Benefits and Fee Structure The scheme provides a substantial reduction in the financial burden for defaulting companies:   • Annual Filings (MGT-7/AOC-4, etc.): Companies can complete pending filings by paying only 10% of the total additional fees normally payable for the delay.   • Dormancy (e-form MSC-1): Inactive companies can…

Gujarat HC: ITC on GIDC Leasehold Transfers Not Blocked Under Section 17(5)(d) The Gujarat High Court, in the case of Niket Bipinbhai Patel vs. Assistant Commissioner (A.E.) CGST, ruled that Input Tax Credit (ITC) cannot be denied for activities involving the transfer of leasehold rights when no construction is involved. Key Highlights of the Judgment Nature of Business: The petitioner, an NRI, acquired leasehold rights for GIDC plots, performed sub-plotting, and transferred those rights to purchasers. ITC Eligibility: The Court held that ITC availed on GIDC invoices for charges like sub-divisional fees and transfer fees is not barred by Section 17(5)(d) of the CGST Act Legislative Intent: The Court clarified that the restriction under Section 17(5)(d) applies exclusively to construction-related expenditure for immovable property. Absence of Construction: Since the Revenue…

AAR Gujarat: Classification of Ice Cream Supply as 'Restaurant Service' vs. 'Supply of Goods' The Gujarat Authority for Advance Ruling (AAR), comprising Shri Vishal Malani and Smt. Sushma Vora, issued a ruling on February 19, 2026, clarifying the GST classification for ice cream sold in various service contexts. The ruling distinguishes between "restaurant services" and the "supply of goods" based on the manufacturing location and the nature of the transaction. 1. Nature of the Applicant's Business The applicant, Mohammed Sajid Mohammed Sharif Kakuwala, proposed to operate multi-product retail outlets in Ahmedabad. Key features of the business include: Diverse Menu: Preparation and sale of Bhajiya, Khaman, Sandwiches, Pizza, Juices, Falooda, Milkshakes, and Ice cream. Facilities: Outlets offer both dine-in and takeaway options. Manufacturing: Ice cream is either prepared at the retail…

Facility for Withdrawal from Rule 14A (Small tax payers simplified Registration Scheme) Feb 21st, 2026 GSTN has enabled a new online facility for eligible taxpayers to apply for withdrawal from the option availed under Rule 14A of the CGST Rules by filing Form GST REG-32 on the GST Portal. 1. Who can apply Active Taxpayers who are registered under Rule 14A, may apply for OPT OUT in accordance with the provisions of the law. 2. How to apply on the GST Portal After login, navigate to:Services -> Registration -> Application for Withdrawal from Rule 14AThe link will be visible only if the taxpayer is registered under Rule 14A and is active. The field “Option for registration under Rule 14A” will be selected as “No” by default. Enter “Reason for withdrawal…

Attention : Update on Advisory on Interest Collection and Related Enhancements in GSTR-3B Feb 19th, 2026 In continuation to the advisory posted on the GST Portal on 30th January, 2026 on the above subject, it is hereby informed that the functionality to utilise CGST or SGST ITC for payment of IGST liability, in any order of payment after complete exhaustion of IGST Credit (ref point no 3 of the advisory), shall be available from February-2026 period. Find below the detailed advisory posted earlier. Advisory on Interest Collection and Related Enhancements in GSTR-3B It is hereby informed that from January-2026 period onwards, the following enhancement have been made in filing of GSTR-3B: Update in Interest Computation for GSTR-3B From January-2026 tax period onwards, the interest calculation in table 5.1 of GSTR-3B…

GST Update: Taxability of Employee Canteen Facilities & Recoveries Reference: Maharashtra Authority for Advance Ruling (AAR) in the matter of KSB Limited [TS-1069-AAR (MAH)-2025-GST] Executive Summary The Maharashtra AAR recently issued a significant ruling regarding the GST implications for employers providing canteen facilities to their employees through third-party vendors. The core takeaways for businesses are: Free Canteen Services: If an employer provides canteen facilities completely free of charge to employees, it is treated as a non-taxable perquisite and attracts no GST. Subsidized / Paid Canteen Services: If an employer recovers any amount (partially or fully) from employees for canteen meals, the amount actually recovered is treated as taxable consideration, and GST is applicable on that recovered amount. The portion of the cost borne by the employer remains a non-taxable perquisite.…

GST Ruling on Residential Construction & Land Deduction Case Name: In the matter of M/s. Jaypee Enterprises Authority: Authority for Advance Ruling (AAR), Tamil Nadu Order Date: January 8, 2026   Executive Summary The Tamil Nadu AAR has clarified the taxability of residential projects where a promoter sells land and provides construction services. The ruling establishes that even if a developer has a separate sale deed for the land, they must follow the statutory one-third (1/3^{rd}) land value deduction for GST purposes rather than deducting the actual land value.   Key Ruling Highlights 1. Tax Rates for Residential Projects The AAR confirmed that for projects commencing after April 1, 2019, promoters are liable to pay GST at the following concessional rates (without Input Tax Credit): • Affordable Residential Apartments: 1.5% GST (0.75%…

White House Issues Fact Sheet: A New Era of Reciprocal Trade Between the United States and India On February 9, 2026, the White House released an official fact sheet outlining a historic trade agreement between President Donald J. Trump and Prime Minister Narendra Modi. This deal is designed to open India’s market of over 1.4 billion people to American products while addressing long-standing systemic trade imbalances.   Major Breakthroughs & Tariff Adjustments The agreement follows a high-level call between the two leaders, resulting in immediate fiscal shifts:   • Removal of Oil-Related Tariffs: President Trump signed an Executive Order to remove an additional 25% tariff on Indian imports, recognizing India's commitment to stop purchasing Russian oil.   • Lowered Reciprocal Tariffs: The United States will further lower the Reciprocal Tariff on India from…

Legal Update: Allahabad HC Clarifies Rules on Composite GST Notices, Section 6(2)(b) Bar, and Mandatory Limitation Periods In a significant judgment for the GST landscape, the High Court of Judicature at Allahabad has delivered a balanced ruling in the batch of petitions led by M/s SA Aromatics Pvt Ltd vs. Union of India [WTAX No. 7515 of 2025]. The Court addressed critical questions regarding the validity of composite Show Cause Notices (SCNs) spanning multiple years and the "hard" nature of statutory limitation periods.   Key Judicial Findings 1. Validity of Composite SCNs (Decided against Assessee) The Court ruled that it is permissible for Revenue authorities to issue a single, composite SCN for multiple tax periods or Financial Years (FYs) under Sections 73 and 74. • Adjudication vs. Assessment: The Court distinguished…

New Era in US-India Trade: Key Highlights of the 2026 Interim Agreement Framework February 7, 2026 The United States and India have officially announced a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade. This development, announced today, serves as a significant stepping stone toward a broader Bilateral Trade Agreement (BTA) and aims to fortify supply chains while enhancing market access for both nations. Here is a breakdown of the critical components of the framework: 1. Tariff Reductions and Market Access The agreement outlines major tariff adjustments intended to balance trade interests: US Market Access for India: The United States will remove tariffs on Indian steel, aluminum, and copper that were previously imposed under national security proclamations. Additionally, India will receive a preferential tariff rate quota for automotive…

A recent ruling by the Odisha Appellate Authority for Advance Ruling (AAAR) in the case of Thermo Fisher Scientific India Pvt. Ltd. provides significant relief and clarity for businesses operating across state lines through service engineers without a physical office.The AAAR has overturned a previous ruling, confirming that deploying Field Service Engineers (FSEs) to a state does not automatically mandate a separate GST registration in that state.The Core ConflictThe lower authority (AAR) originally held that because the company had engineers residing in Odisha who stored minor spare parts and tools locally, they had a "Fixed Establishment" and a "Place of Business," requiring GST registration. The AAAR has now set aside this decision.Key Takeaways from the AAAR RulingThe AAAR’s decision was based on several critical factors that define what does—and does…

mportant Update: GST Portal Simplifies Notice Checks Great news for ease of compliance! As of Feb 5, 2026, the GST Network has finally merged the "Additional Notices and Orders" tab into the main "Notices and Orders" tab. What this means for you: One Stop: No more toggling between two different tabs to find Department letters. Less Risk: All Show Cause Notices (SCNs), Orders, and Registration alerts are now in a single list. Where to look: simply go to Services > User Services > View Notices and Orders. This small change makes tracking compliance much safer and easier!

Important Update: Enhancements to GSTR-3B Interest Calculation & Filing (Effective January 2026)The Goods and Services Tax Network (GSTN) has announced significant enhancements to GSTR-3B filing, effective from the January 2026 tax period. These changes are designed to align with the CGST Rules and provide a fairer method for calculating interest on delayed payments. 1. New Interest Computation FormulaThe system now provides the benefit of the minimum cash balance available in your Electronic Cash Ledger (ECL) from the return due date until the date of payment. This ensures you are only charged interest on the actual "cash" liability not covered by your existing balance. Crucial Constraints for Table 5.1:• Non-Editable Downwards: You cannot decrease the auto-populated interest value. • Minimum Liability: The system calculates the minimum interest required. • Manual Upward Revision: If your records…

Highlights of the Direct Tax Proposals (Budget 2026)1. Structural Reforms & Compliance• The New Income Tax Act, 2025: Set to take effect from April 1, 2026. New rules and forms will be notified shortly. • Revised Return Timelines: The deadline for revising income tax returns is extended from December 31 to March 31 (subject to a nominal fee). • Updated Returns: Taxpayers are now permitted to update their Return of Income (ROI) even after reassessment proceedings have been initiated.• Integration of Proceedings: Assessment and penalty proceedings will be integrated into a common order to streamline the process.• Accountant Definition: The definition of 'accountants' is being rationalized for better clarity under the Act.2. Reduced Tax Collected at Source (TCS)• Overseas Travel: TCS on overseas tour packages is reduced to 2% with no upper…

Budget Alert 2026: Major Ease of Doing Business in GST ValuationThe Finance Bill, 2026 has proposed a landmark shift in how Post-Supply Discounts are treated under GST. This change simplifies one of the most litigative areas of the CGST Act, aligning tax laws with modern commercial realities.The Big Change: Section 15(3)(b) & Section 34Previously, for a post-sale discount to reduce your GST liability, you had to prove it was established via a pre-existing agreement and linked to specific invoices. The 2026 amendment removes these rigid hurdles.What is Changing?• Removal of the "Agreement" Mandate: You no longer need to prove that the discount was "agreed at or before the time of supply."• No Invoice-by-Invoice Linking: The requirement to specifically link every discount to a particular original invoice is being done away…

Budget Alert 2026: Interim Mechanism for GST Advance RulingsThe Finance Bill, 2026 has introduced a strategic amendment to the CGST Act, 2017, aimed at resolving the long-standing delay in the operationalization of the National Appellate Authority for Advance Ruling (NAAAR).Key Proposed Amendment: Section 101ATo ensure that taxpayers aren't left in limbo due to conflicting State-level rulings, the Bill proposes the following:• New Sub-section (1A): This empowers the Government to notify an "existing authority" (which specifically includes a Tribunal) to act as the National Appellate Authority.• Interim Power: Until the NAAAR is formally constituted, this notified authority will hear appeals under Section 101B regarding conflicting advance rulings from different States or Union Territories.• Legal Standing: All references to the "National Appellate Authority" in the Act will be treated as references to…

Budget Alert 2026: Extension for Revised Tax ReturnsThe Finance Bill, 2026 has introduced a welcome move for taxpayers, offering more breathing room to correct errors in their filings. Here is a breakdown of the proposed changes to the timeline for filing Revised Income-Tax Returns.Key Proposed AmendmentsThe Bill seeks to align the timelines across both the current and legacy tax frameworks:• Extended Deadline: The time limit for filing a revised return is proposed to increase from 9 months to 12 months from the end of the relevant tax year.• Section 263(5) [2025 Act]: This new provision will reflect the 12-month window for those governed by the updated Income-tax Act.• Section 139(5) [1961 Act]: To maintain consistency, the Bill proposes a corresponding amendment to the legacy 1961 Act, ensuring all taxpayers benefit…

Budget Alert 2026: Major GST Refund Reforms for Businesses 🚀The Finance Bill, 2026 has introduced pivotal changes to the CGST Act refund framework, aiming to unlock working capital and simplify compliance for both exporters and domestic manufacturers.📝 Key Amendments at a Glance• Provisional Refunds for Inverted Duty Structure (IDS):The scope of Section 54(6) is being expanded. Previously, the 90% provisional refund was primarily for zero-rated supplies (exports). Now, businesses facing an Inverted Duty Structure (where tax on inputs is higher than tax on outputs) can also claim a 90% provisional refund upfront, significantly improving cash flow.• Removal of the ₹1,000 Threshold for Exports:In a major boost for small exporters, Section 54(14) is being amended. The existing restriction—which barred refund claims below ₹1,000—will no longer apply to goods exported out of…

Budget 2026 Alert: Major GST Relief for Intermediary Services 🚀In line with the recommendations of the 56th GST Council Meeting, the Finance Bill 2026 has proposed a critical amendment to the IGST Act, 2017, specifically for Intermediary Services (brokers, commission agents, etc.).The Key ChangeThe Bill proposes to omit Section 13(8)(b).Before: The "Place of Supply" was fixed at the supplier's location (India). You had to charge 18% GST even for foreign clients.Now: The "Place of Supply" shifts to the recipient's location (u/s 13(2)).Top 3 Benefits1. Export Status: Services to foreign clients will now qualify as Zero-Rated Exports, making you 18% more competitive globally.2. Refund Eligibility: You can now provide services under LUT and claim a refund of Input Tax Credit (ITC) on your business expenses.3. End of Litigation: This resolves years…

Orissa High Court Grants Interest on Refunded IGST for 'Ocean Freight' The Verdict In a significant ruling for taxpayers, the Orissa High Court has held that the government must pay interest on the refund of Integrated Goods and Services Tax (IGST) paid on "ocean freight," calculated from the original date of deposit. The court awarded simple interest at 6% per annum from the date of payment until the actual refund date.   The Case Background The petitioner, Paradeep Phosphates Limited, had paid IGST under protest on ocean freight in CIF (Cost, Insurance, and Freight) contracts. This payment was made pursuant to government notifications that were later declared unconstitutional by the Supreme Court in the landmark Mohit Minerals case. While the tax authorities eventually sanctioned the refund of the principal amount, they…

GSTAT Eases Appeal Scrutiny for Initial 6 MonthsThe Update: To smooth the transition to the new GSTAT Portal, the President has directed Registries to take a lenient view on appeal filings for the next 06 months . What You Need to Know:Focus on Merit: Objections will only be raised for defects of 'substance' (merits of the case), not defects of 'form' .Digital Documents: GSTN-generated documents do not require certification .Physical Documents: Scanned copies of physical documents must be signed . Dated: 20th January, 2026

Madras HC Quashes GST Assessment Order for Lack of Statutory Backing on "Best Judgment" under Section 74 Case Reference: M/s. Amritha Marketing & Ors. vs. The Joint Commissioner of CGST & Central Excise Court: Madurai Bench of Madras High Court Order Date: November 26, 2025 Judge: Hon'ble Mr. Justice G.R. Swaminathan 1. Executive Summary The Madras High Court has allowed a batch of writ petitions filed by wholesale dealers, quashing the GST assessment orders passed by the Joint Commissioner. The Court ruled that the tax authorities cannot resort to "Best Judgment Assessment" (extrapolating data) while demanding tax under Section 74 of the CGST Act, 2017, as the section does not explicitly confer such powers. 2. Background & Facts The Allegation: The petitioners (wholesale dealers in groceries and FMCG) were accused…

Bombay HC Mandates 3-Month Gap Between Notice and Order We wish to bring to your attention a significant judgment pronounced by the Bombay High Court on January 17, 2026, which reinforces taxpayer rights regarding adjudication timelines under the CGST Act. Key Takeaway The High Court has ruled that a minimum gap of three months is mandatory between the issuance of a Show Cause Notice (SCN) under Section 73(2) and the passing of the final order under Section 73(10). Case Details Case Name: A. M. Marketplaces Pvt. Ltd vs The Union of India & ors  Court: High Court of Bombay  Date of Order: January 17, 2026  The Dispute In this case, the Revenue department issued a notice on November 18, 2024, and passed the final order on January 31, 2025. The time gap between the notice and the order was approximately 2 months and…

Important GST Judgment on Transfer of Leasehold Rights Bombay High Court Rules No GST Applicable on Assignment of Leasehold Rights in MIDC Land. 1. Executive Summary In a significant relief to industries operating on leasehold plots (such as MIDC/GIDC), the Hon’ble Bombay High Court (Nagpur Bench) has ruled that the assignment or transfer of leasehold rights in a plot of land to a third party does not attract GST. The Court quashed a demand of Rs. 27 Lakhs raised against the assessee, holding that such a transaction amounts to the transfer of immovable property benefits and not a supply of service. 2. Case Details Case Name: Aerocom Cushions Private Limited Vs Assistant Commissioner (Anti-Evasion). Court: Bombay High Court. Date of Order: January 9, 2026. 3. Facts of the Case The…

Service of Notice via "Additional Notices/Orders" Tab & Unreasoned Rejection of Rectification Case Name: Jindal Steel Limited v. Commissioner, Commercial Taxes & GST, Odisha & Anr. Citation: [TS-12-HC(ORI)-2026-GST] Court: High Court of Orissa Date of Judgment: January 08, 2026 1. Executive Summary The Orissa High Court ruled in favor of the taxpayer, holding that uploading Show Cause Notices (SCN) or Orders solely under the "Additional Notices/Orders" tab on the GST Portal does not constitute valid service. The Court found this practice to be a flagrant violation of the principles of natural justice as the tab is not prominent or easily accessible. Furthermore, the Court deprecated the practice of rejecting rectification applications (Section 161) without providing specific reasons. +2 2. Brief Facts The Dispute: The GST department raised a demand against…

Bombay HC Quashes Consolidated SCN Under Section 74 — Clubbing of Multiple FYs Not Permissible The Bombay High Court (Nagpur Bench) in M/s Paras Stone Industries v. Union of India (WP 7718/2025, dated 09.01.2026) has quashed a consolidated Show Cause Notice (SCN) issued by the DGGI covering FY 2017-18, 2018-19 and 2019-20 in a single notice under Section 74 of the CGST Act. Key Findings of the Court 1. Clubbing of Multiple Financial Years in a Single SCN Is Impermissible The Court relied on two recent Division Bench rulings of the Bombay HC: Milroc Good Earth Developers (Goa Bench) (09.10.2025) Rite Water Solutions (Nagpur Bench) (28.11.2025) Both judgments categorically held that: GST law recognizes each financial year as a separate tax period. Section 74 SCNs must be issued year-wise, not…

Madras HC Affirms Department's Power to Issue Multiple SCNs for the Same Tax Period on Distinct Issues Case Reference: Radiant Cash Management Services Ltd. Vs. The Commercial Tax Officer (Madras High Court) Synopsis The Madras High Court has ruled that the GST Department is not barred from issuing multiple Show Cause Notices (SCNs) for the same financial year, provided the notices pertain to distinct discrepancies or subject matters. The Court clarified that the principles of res judicata or estoppel do not strictly apply to GST proceedings where the issues raised are factually different. Key Facts Background: The taxpayer received a Show Cause Notice (Form GST DRC-01) for the tax period 2021-22. The taxpayer challenged this notice, arguing that an earlier intimation/notice for the same tax period had already been issued…

Andhra Pradesh HC Rules State Liable for Theft of Seized Goods; Rejects 'Sovereign Immunity' Defense Case: GRM Jewellers Vs. The Assistant Commissioner of State Tax & Ors. The High Court of Andhra Pradesh has delivered a significant judgment holding the State government constitutionally liable to compensate a taxpayer for goods lost or stolen while in official custody. The Court ruled that the doctrine of "Sovereign Immunity" cannot shield the State from the negligence of its officials. Key Highlights Background: The petitioner, a bullion merchant, had 105 kg of silver and ₹2.05 lakhs in cash seized by authorities during transit. The petitioner subsequently paid the applicable tax, penalty, and fine (approx. ₹39.20 lakhs) to redeem the goods, and a release order was issued. The Incident: When the petitioner attempted to collect…

Input Tax Credit Cannot Be Denied for Supplier Default: Tripura High Court Judgment on Section 16(2)(c) of the CGST Act – Relief to Bona Fide Purchasers BackgroundSection 16(2)(c) of the Central Goods and Services Tax Act, 2017 provides that Input Tax Credit (ITC) can be availed only if the tax charged by the supplier has actually been paid to the Government. This provision has been widely invoked by the department to deny ITC to recipients where the supplier defaults in payment of GST, even though the recipient has paid the tax to the supplier and complied with all statutory requirements. Key JudgmentThe Tripura High Court, in its judgment dated 06 January 2026 in Sahil Enterprises vs Union of India & Ors. (WP(C) No. 688 of 2022), has examined the constitutional…

Important High Court Judgment – Relief from General Penalty on Belated GSTR-9 Filing & Extension of Amnesty Scheme Benefits Case Name: Kandan Hardware Mart vs. The Assistant Commissioner (ST) (FAC) [TS-01-HC(MAD)-2026-GST] Court: Madras High Court Key Issue The Department had been levying a "General Penalty" under Section 125 of the GST Act (up to Rs. 25,000) in addition to the "Late Fee" under Section 47 for the delayed filing of Annual Returns (GSTR-9). The core questions were: Can a General Penalty be imposed when a Late Fee is already being charged? Are taxpayers who filed their belated returns before the Amnesty Scheme (Notification No. 7/2023-CT) eligible for the reduced late fee benefits? Judgment Highlights 1. "Late Fee" is effectively a Penalty; No Double Jeopardy The High Court ruled that the…

GST Advisory on Online Filing of Opt-In Declaration for “Specified Premises” for Hotel Accommodation Services (Effective FY 2026-27) The Goods and Services Tax Network (GSTN) has issued an important advisory regarding online filing of Opt-In Declarations for declaring hotel accommodation premises as “Specified Premises” on the GST Portal. This facility, earlier available only through manual filing, is now enabled electronically and will be applicable from FY 2026-27 onwards. Below is a detailed summary for the benefit of taxpayers engaged in hotel accommodation services: 1. Background of the Advisory Declarations prescribed under Notification No. 05/2025 – Central Tax (Rate) dated 16 January 2025 have now been made available online on the GST Portal. Eligible taxpayers can electronically declare their hotel premises as “Specified Premises”, which has a direct bearing on the…

📢 Major Tax Changes for Tobacco & Pan Masala Sector – Effective from 1 February 2026 Background Pursuant to the GST rate realignment for tobacco and pan masala products notified in September–December 2025, the Government has undertaken a comprehensive restructuring of indirect taxes on tobacco products. This includes: Rationalisation of GST rates, Withdrawal of GST Compensation Cess, Re-introduction of Central Excise Duty, and Introduction of a new Health & National Security Cess. All these changes come into force from 1 February 2026. 🔹 1. GST Rate Realignment (Notification No. 19/2025 – Central Tax (Rate)) Biris brought under 9% + 9% GST (18%) Pan masala, unmanufactured tobacco, cigarettes, smoking tobacco, vaping products, etc. shifted to 20% + 20% GST (40%) Schedule VII (14%) omitted 📌 This marks a clear classification of…

CBIC Extends Validity of Transitional Provisions under SCMTR, 2018 to March 31, 2026 SCMTR Compliance Timeline Extended Reference: Notification No. 79/2025-Customs (N.T.) dated 31st December, 2025. Summary:The Central Board of Indirect Taxes and Customs (CBIC) has notified the Sea Cargo Manifest and Transshipment (Fifth Amendment) Regulations, 2025. Key Amendment: Extension of Time: The Board has amended the Table after FORM-XII in the 2018 Regulations. New Deadline: The date mentioned against Serial No. 6 has been substituted. The new validity date is 31.03.2026. Impact: This amendment extends the transitional period for compliance, providing additional time for Shipping Lines, Carriers, and other stakeholders to align with the Sea Cargo Manifest and Transshipment Regulations (SCMTR), 2018.

Customs Update: Mandatory Use of Body Worn Cameras (BWC) at International Airports Reference: Instruction No. 34/2025-Customs | Date: December 30, 2025 The Central Board of Indirect Taxes & Customs (CBIC) has issued new instructions to implement the use of Body Worn Cameras (BWCs) for uniformed customs officers at international airports. This initiative aligns with global best practices and the Government's "Ease of Doing Business" goals, aiming to enhance transparency, accountability, and professionalism in passenger facilitation. Below is a detailed summary of the new operational guidelines. 1. Applicability and Scope Targeted Officers: The use of BWCs is prescribed for Baggage Clearance Officers (Superintendents and ACOs operating the e-BR Module) deployed specifically in the Red Channel. Red Channel Definition: This channel is designated for passengers submitting declarations for dutiable or restricted goods.…

Maintenance and Welfare of Parents and Senior Citizens Act, 2007 1. Background and Purpose of the Act The Maintenance and Welfare of Parents and Senior Citizens Act, 2007 (“the Act”) was enacted by Parliament to address the growing social concern of neglect, abandonment, and ill-treatment of parents and senior citizens, especially in an era of nuclear families and urban migration. The Act seeks to: Ensure financial support and maintenance to parents and senior citizens Protect them from harassment, exploitation, and abuse Provide simple, speedy, and inexpensive remedies Safeguard their right to live with dignity and security The legislation is a welfare statute and is to be interpreted liberally in favour of parents and senior citizens. 2. Applicability and Scope The Act applies throughout India (except Jammu & Kashmir, as originally…

Date of Advisory: 29 December 2025Issued by: Goods and Services Tax Network (GSTN) BACKGROUND GSTN has introduced system-driven validations through:1. Electronic Credit Reversal and Re-claimed Statement (ITC Reclaim Ledger)2. RCM Liability / ITC Statement (RCM Ledger) These validations aim to prevent excess or incorrect ITC availment. Earlier, only warnings were issued; now GSTR-3B filing will be blocked in non-compliant cases. ITC RECLAIM LEDGERIntroduced from August 2023 (monthly) and July–September 2023 (quarterly).Tracks ITC reversed in Table 4(B)(2) and re-claimed in Table 4(D)(1).Path: Dashboard > Services > Ledger > Electronic Credit Reversal and Re-claimed RCM LEDGERIntroduced from August 2024 (monthly) and July–September 2024 (quarterly).Tracks RCM liability in Table 3.1(d) and ITC claimed in Table 4(A)(2)/(3).Path: Dashboard > Services > Ledger > RCM Liability/ITC Statement KEY VALIDATIONS- ITC reclaimed in Table 4(D)(1) must…

🚨 BREAKING NEWS – GST TRIBUNAL UPDATE 🚨 GSTAT (Goods & Services Tax Appellate Tribunal) finally set to become operational. In a significant and long-awaited development, the Government has formally allotted benches to Judicial and Technical Members of GSTAT, marking a decisive step towards commencement of Tribunal proceedings. 📌 Key Highlights:• Benches have been assigned across multiple locations• Judicial Members and Technical Members (Centre & State) have been posted• Members are directed to join their respective benches on 21 January 2026 This development brings long-pending GST appeals closer to hearing and is expected to substantially ease the appellate backlog, especially for matters currently pending before High Courts due to non-constitution of GSTAT. 🔔 What this means for taxpayers:• Revival of statutory appellate remedy under GST• Faster resolution of disputed demands•…

Important GST Judgment – Limitation for Appeal Starts Only on Proper Service of Order Allahabad High Court | Dec 2025Bambino Agro Industries Ltd vs State of Uttar Pradesh & Ors[TS-1033-HC(ALL)-2025-GST] Key Issue Whether mere uploading of a Show Cause Notice (SCN) or adjudication order on the GST portal amounts to valid “communication” for the purpose of computing limitation under Section 107 of the CGST/SGST Act. What the High Court Held The Allahabad High Court has delivered a significant and taxpayer-friendly ruling, holding that: Portal upload alone is NOT sufficient communicationUploading an SCN or adjudication order only on the GST common portal does not automatically trigger the limitation period for filing appeal under Section 107. Limitation starts only on actual or legally valid communicationThe three-month appeal period begins only when the…

Pramur Homes and Shelters v. Union of India & Ors.TS-1011-HC(KAR)-2025-GST | Judgment dated 11 December 2025 Background:The Karnataka High Court examined the legality of a single consolidated Show Cause Notice (SCN) issued under Section 74 of the CGST/KGST Act covering multiple financial years from FY 2019-20 to FY 2023-24. The notice alleged wrong availment of Input Tax Credit (ITC) and raised a consolidated demand of approximately ₹11.87 crores including tax, interest, and penalty. Key Legal Issue:Whether the GST Department is legally permitted to issue a single composite SCN covering multiple financial years instead of issuing separate year-wise notices under Sections 73 or 74 of the CGST Act. Key Findings of the Court: Composite SCNs Are Without Jurisdiction: The Court held that clubbing or consolidating multiple financial years in a single…

McLeod Russel India Ltd (Judgment dated 09.12.2025) The Gauhati High Court, in McLeod Russel India Ltd vs Union of India, delivered an important ruling on the constitutional validity and applicability of Section 16(2)(aa) of the CGST/SGST Act. Background Section 16(2)(aa) makes Input Tax Credit (ITC) contingent on the supplier uploading invoices in GSTR‑1 and the same being communicated to the buyer. This led to denial of ITC even where the buyer had paid GST to the supplier and possessed valid documents. Key Issues Raised • Buyers cannot control supplier compliance under Section 37. • Denying ITC for supplier default is arbitrary and shifts the tax burden illegally. • Genuine taxpayers face double taxation—once paid to supplier and again through ITC denial. • The GST framework aims to avoid cascading of…

The Telangana High Court has granted an interim stay on the Order-in-Original dated 05.05.2025 that demanded GST on royalty/seigniorage, District Mineral Foundation (DMF), and State Mineral Exploration Trust (SMET) deductions. The petitioner challenged Entry 17(viii) of Notification 11/2017–CTR, arguing that GST cannot be levied on royalty-related payments because: • Supreme Court’s MADA judgment confirms that taxing mineral rights falls exclusively under State power (Entry 50, List II). • Article 246A (GST power) cannot override State taxing power. • Petitioner has no mining licence, received no mineral extraction rights, and merely acted as an intermediary—hence no taxable supply. • Similar matters are pending before the Supreme Court (Udaipur Chambers of Commerce & Industry). • Telangana HC has already granted interim relief in India Cements Ltd. and MEIL–NCC (JV) in identical issues.…

GSTN has issued an important advisory regarding auto-suspension of GST registration under Rule 10A for taxpayers who fail to furnish their bank account details within the prescribed timelines. Key Points of the Advisory: Requirement under Rule 10A: Taxpayers (except those registered under TCS, TDS, or Suo-moto registration) must furnish their bank account details within:    - 30 days from the date of registration, or    - Before filing GSTR‑1 / IFF for outward supplies, whichever is earlier. Automatic Suspension: If bank account details are not furnished within the prescribed time, the GST system will automatically suspend the registration.    The suspension order can be viewed under:    Services > User Services > View Notices and Orders. Adding Bank Account Details:    Taxpayers may update/add bank account details using:    Services…

GSTN has issued an important advisory regarding the reporting of inter-State supplies to unregistered persons, composition taxpayers and UIN holders in Table 3.2 of Form GSTR-3B. These values are auto-populated based on data reported in GSTR-1, GSTR-1A and IFF. Key Changes Applicable from November 2025 Tax Period: Table 3.2 of GSTR-3B will become non-editable. Taxpayers will no longer be able to manually change the values in Table 3.2 while filing GSTR-3B. The filing must be done strictly using system-generated auto-populated values. Corrections must be done through GSTR-1A. If any value in Table 3.2 appears incorrectly due to wrong reporting in GSTR-1/IFF, taxpayers must amend the details through GSTR-1A for the same tax period. The corrected values in GSTR-1A will immediately update Table 3.2 of GSTR-3B. Amendments can still be made…