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

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…

S.NoQueryGSTN Reply1If I paid GST on RCM for FY24-25 in GSTR3B of FY25-26. Should this liability and ITC of RCM be reported in GSTR 9 of FY 2024-25 or FY 2025-26?This RCM Liabilities and ITC on said RCM transaction should be reported in GSTR-9 of FY 2025-26.Explanation- As clarified by CBIC vide Press release dated 3rd July 2019, the RCM Liability may be reported in the year, in which it was paid along with applicable interest (if any). Relevant extract of the said press release -g) Reverse charge in respect of Financial Year 2017-18 paid during Financial Year 2018-19: Many taxpayers have requested for clarification on the appropriate column or table in which tax which was to be paid on reverse charge basis for the FY 2017-18 but was paid…

Madras High Court Quashes GST Orders Passed Under Section 74 for Lack of “Jurisdictional Facts” (Based on Madras High Court judgment in Neeyamo Enterprise Solutions Pvt. Ltd. vs. CTO, dated 11.11.2025) Background The Madras High Court has delivered an important ruling affecting all taxpayers who have been issued notices or assessment orders under Section 74 of the GST law. The Court examined whether extended limitation under Section 74 can be invoked without specific allegations of fraud, wilful misstatement, or suppression of facts. Key Findings of the Court Section 74 can be invoked only when fraud/suppression is alleged with supporting material The Court held that fraud, wilful misstatement, or suppression of facts must be clearly stated in the Show Cause Notice (SCN) and the order. In this case, no such allegation…

Judgment dated 04 December 2025 – State of Karnataka vs. Taghar Vasudeva AmbrishThe Supreme Court has upheld that leasing a residential dwelling to an operator (such as a hostel/PG operator) qualifies for GST exemption under Entry 13 of Notification 9/2017, provided the end-use is residential. This applies for the period prior to 18 July 2022.Key Findings:1. The property qualifies as a 'residential dwelling'.2. All three exemption conditions are satisfied:   - Renting of property   - Property is a residential dwelling   - Used as a residence (even by sub-lessees)3. Exemption is activity-based, not person-based.4. Purposive interpretation adopted—tax should not burden students/working professionals.5. Amendments of 18.07.2022 and 01.01.2023 are not retrospective.Practical Impact:- Exemption applies for 2019–2022 even when property is leased to a company that sub-lets to students or working professionals.- Post 18.07.2022,…

In recent days, a number of WhatsApp forwards, social media posts and informal discussions have circulated stating that GST is not applicable on clubs and associations, particularly in transactions with their own members. Unlike many tax‑related viral claims, this narrative is not entirely baseless — but it is only a partial reflection of the legal position. It arises from a judgment of the Kerala High Court in the case of Indian Medical Association (IMA) v. Union of India (April 2025),which reaffirmed the doctrine of mutuality and its application under GST. 1.      Kerala High Court Ruling — IMA vs Union of India (2025) The Kerala High Court struck down Section 7(1)(aa) and Section 2(17)(e) of the CGST Act on the ground that transactions between clubs/associations and their members do not involve…

Delhi HC restores the GST registration of MS Imagine Marketing Ltd (who owns consumer electronics brand boAt), observing “a sad situation where a reputed company is being made to deal with an unjustified cancellation” as “Adjudicating Authority’s approach in this matter has been cavalier” having “..failed to consider any of the replies and the documents which were filed…and has passed mechanical, templated and computer generated orders without any application of mind”; Setting aside the order for want of basic reasoning and fundamental fairness of adjudication, which Court terms as “perverse”, comes down heavily on the Superintendent conduct, who passed the cancellation order, by imposing a costs of Rs. 25000 on him; While examining the issue, court observes that, “…. there is no reason given as to why the cancellation has been effected with effect from 15th October, 2024. Moreover, there…

GSTN urges taxpayers who have not yet updated their bank account details, to do so at the earliest to avoid suspension of their GST registration and disruption of business operations; Apprises that with Rule 10A soon coming into effect on the GST portal, requiring taxpayers (except those registered under TCS, TDS, or suo-moto registrations) to furnish bank account details within 30 days of registration or before filing GSTR-1/IFF, whichever is earlier, timely update of bank account detail is essential.

The Notification No.18/2025 dated 31.10.2025 introduces important amendments to the Central Goods and Services Tax Rules, 2017, effective from November 1, 2025. It primarily focuses on simplifying procedures for GST registration and introducing a special option for businesses with lower monthly output tax liability. Key Amendments at a Glance A new Rule 9A provides for the electronic grant of registration through the common portal within three working days of application submission, based on data analysis and risk parameters. Rule 14A has been inserted, allowing businesses with monthly output tax liability up to ₹2,50,000 for supplies to registered persons to opt for a simplified electronic registration process. Aadhaar authentication is now a prerequisite for registration under the new rule. Restrictions apply to multiple registrations against the same PAN in a state/UT…

Oct 30th, 2025 The Invoice Management System (IMS) was introduced on the GST portal from the October 2024 taxperiod. It enables recipient taxpayers to accept, reject, or keep pending their individual recordsuploaded by their suppliers through GSTR-1/1A/IFF. To further enhance the taxpayer convenience, anew section for "Import of Goods" has been introduced in IMS wherein the Bill of Entry (BoE) filed bythe taxpayer for import of goods including import from SEZ, will be made available in the IMS fortaking allowed action on individual BoE. This functionality will be available from Oct-2025 periodonwards. It may be noted that, If no action is taken on an individual BoE, it will be treated as deemed acceptedand based on the action taken, the GST Portal will generate the draft GSTR 2B for the recipient…

Background The GSTN has introduced significant enhancements to the Invoice Management System (IMS) starting from the October 2025 tax period. These updates aim to improve reconciliation, accuracy in Input Tax Credit (ITC) management, and enhance coordination between suppliers and recipients. Key Highlights of the New Changes Sl. No.Question / AreaClarification / Key Points1For which documents has the “Pending” option been added?Now available for: Credit Notes (CNs) & amendments, Downward CNs (if original rejected), Downward Invoice/DN (if accepted & 3B filed), and ECO document amendments.2What new functionalities are introduced?Pending action allowed, ITC reduction declaration by recipient, and option to add remarks when taking Reject/Pending action.3Are these changes prospective or retrospective?All changes are prospective, applicable from October 2025 tax period onwards.4Till when can documents be kept “Pending”?Monthly taxpayers – 1 month; Quarterly…

Issued by: CBIC, GST Policy Wing  F. No.: CBIC-20016/75/2025-GST/1025  Date: 25th September 2025  Background  CBIC received representations regarding whether importers or traders having their principal place of business in one State (e.g., Delhi) but storing goods in warehouses or cold storages in another State (e.g., Haryana) are required to obtain separate GST registration in that other State.  After examination of the provisions under the CGST Act, 2017 and IGST Act, 2017, the following key clarifications have been issued.  Requirement of GST Registration in Another State  Under Section 22 of the CGST Act, 2017, every person making taxable supplies from a State must be registered in that State once the turnover threshold is crossed.  The term “place of business” under Section 2(85) includes any warehouse, godown, or premises where goods are…

GSTN issues advisory, informs that Form GSTR-9 and GSTR-9C for FY 2024-25 have been enabled on the GST portal from October 12, 2025; Advises taxpayers to ensure filing of GSTR-1 and GSTR-3B for the said financial year to become eligible for filing GSTR-9/9C; Further states that a detailed FAQ to assist taxpayers in filing the annual return and reconciliation statement will be published shortly: GSTN Advisory

Attention : Important Advisory on IMS Oct 8th, 2025 It has come to notice that some posts are circulating incorrect information regarding changes in GST return filing from October 1, 2025. We would like to clarify the following: I. No Change in Auto-Population of ITC: Input Tax Credit (ITC) will continue to auto-populate from GSTR 2B to GSTR-3B without any manual intervention. The mechanism of auto-population remains unchanged due to the implementation of the Invoice Management System (IMS). II. GSTR-2B Generation GSTR-2B will continue to be generated automatically on the 14th of every month, without any manualintervention by taxpayers or based on the actions taken by the taxpayers. Taxpayers can take actions in IMS even after generation of GSTR-2B till filing of GSTR-3B and canregenerate GSTR-2B accordingly, if required. III.…

Instruction No. 06/2025-GST (Dated 03.10.2025) Provisional sanction of refund claims on the basis of identification and evaluation of risk by the system Background The 56th GST Council meeting (03.09.2025) recommended amendment to Rule 91(2) of CGST Rules, 2017. The change allows sanction of 90% of refund on provisional basis by the proper officer based on risk identification by the system. A proviso permits the officer, on a case-by-case basis (with recorded reasons), to bypass provisional refund and instead conduct detailed examination. Notification No. 14/2025-CT dated 17.09.2025 notified categories of taxpayers ineligible for provisional refund for zero-rated supplies. Processing of Refund Applications Initial processing Refund applications continue under existing guidelines till issuance of FORM GST RFD-02 / RFD-03. Timelines must be strictly followed. Low-risk applications If categorized as low risk by…

CBIC Withdraws Circular on CA/CMA Certificate for ITC Reversal The CBIC has withdrawn Circular No. 212/6/2024-GST which had required recipients of post-supply discounts to furnish a CA/CMA certificate confirming proportionate Input Tax Credit (ITC) reversal. This earlier certificate was treated as valid evidence of compliance under Section 15(3)(b)(ii) of the CGST Act, 2017. With this withdrawal, such certification is no longer required, though the substantive conditions under Section 15(3)(b) remain in force – i.e., discounts must be pre-agreed, invoice-linked, and ITC proportionately reversed by the recipient. This step brings compliance relief, reducing procedural burden and litigation risk. Notably, JSW Steel had challenged the earlier circular before the Delhi High Court, which had issued notice. Businesses should ensure ITC reversals are carried out correctly as per law, but no external CA/CMA…

Date: 26th September 2025 As per Notification No. 09/2025 – Central Tax dated 11.02.2025, Form GSTR-7 has been amended to capture invoice-wise reporting of tax deducted at source (TDS). 🔹 New Update: The functionality for invoice-wise reporting in Form GSTR-7 is now operational on the GSTN portal. 🔹 Applicability: From the September 2025 tax period onwards, TDS deductors are required to furnish invoice-level details for all deductions in Form GSTR-7. 🔹 Due Date: The due date for filing GSTR-7 for September 2025 remains 10th October 2025. 🔹 Action Required: TDS deductors should prepare data invoice-wise for reporting. Ensure proper reconciliation to avoid mismatches and notices. For any difficulty, raise a grievance through the GST Self-Service Portal with complete details for prompt resolution. ✅ Key Takeaway: Filing of GSTR-7 is no…

Advisory to file pending returns before expiry of three years Sep 25th, 2025 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 31st 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, 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…

Summary of New Changes in Invoice Management System (IMS)(Effective from October Tax Period)1. Pending Action for Specified RecordsTaxpayers are now permitted to keep certain records pending for one tax period only:• Monthly taxpayers – one month• Quarterly taxpayers – one quarterThe records eligible for pending action include:• Credit notes, or upward amendment of credit note• Downward amendment of credit note (where original CN rejected)• Downward amendment of invoice/debit note (where original invoice already accepted and GSTR-3B filed)• ECO-document downward amendment (where original accepted and GSTR-3B filed)⸻2. Declaring ITC Reduction Amount• If ITC has not been availed, no reversal is needed.• If ITC availed partially, reversal obligation is limited to that extent only.A new IMS facility allows taxpayers to:• Declare the actual ITC availed, and reverse it in full or part.•…

CBDT to take call on tax audit due date extension today; Matter now in Delhi HCIn response to Writ Petition filed in Delhi HC, CBDT informs the HC that the Board will consider the issue of Tax Audit due date extension later today; CBDT counsel further informs the HC that the Board is seized of Rajasthan and Karnataka HC orders directing CBDT to extend Tax Audit due date by 30 days; However, Board is yet to take final call on this issue and is likely to consider the same today; Hence, Delhi HC posts the matter for tomorrow.

In the matter of Ramdharsan Thanikachalam (Vee Gee Sundaram and Sons)Kerala AAR holds that the supply of frozen chicken (HSN 0207 1200 and HSN 0207 1400), packed in wholesale bags of 30 kg containing 15 smaller packs of 2 kg each, made to institutional consumers such as the Indian Army, Ministry of Defence, and Taj Kerala Hotels & Resorts Ltd. (Gateway, Varkala), is exempt from GST under Sl. No. 13 of Notification No. 2/2017 – Central Tax (Rate); Rules that the exemption would remain available even where supplies are routed through a distributor, provided the end use is by a qualifying institutional or industrial consumer;  AAR emphasizes that, u/s 2(l) of the Legal Metrology Act, 2009, r/w Rule 3(c) of the Legal Metrology (Packaged Commodities) Rules, 2011, packaged commodities meant for industrial or institutional consumers, are excluded from retail labelling requirements, and therefore, such supplies…