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

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…

Subject: FAQs regarding GST Grievance Redressal on National Consumer Helpline Frequently Asked Question 5 Q: Whom do I contact to raise queries/complaints regarding not receiving benefits of GST rate changes?Ans : Please call National Consumer Helpline (NCH) via toll free number 1915 or Whatsapp at 8800001915. Complaints/queries can also be registered on the ntegrated Grievance Redressal Mechanism (INGRAM) portal.

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.