Polypropylene Leno Bags Are Plastic, Not Textile Products For GST Classification: Calcutta High Court

The Calcutta High Court has recently dismissed Mega Flex Plastics Limited's challenge to a GST ruling that treated its polypropylene leno bags as plastic products rather than textile products. A Division Bench of Justice Debangsu Basak and Justice Md. Shabbar Rashidi upheld the order of the Appellate Authority for Advance Ruling (AAAR) and a Single Judge's decision refusing to interfere with it. At the heart of the case was the classification of polypropylene leno bags made by weaving...

Kerala High Court Holds Section 16(5) Overrides Section 16(4), Bars ITC Denial For Delayed Returns

The Kerala High Court on 19 May held that authorities cannot deny Input Tax Credit (ITC) to a registered taxpayer merely on the ground of delayed filing of returns under Section 16(4) of the CGST Act, where the taxpayer satisfies the conditions prescribed under Section 16(5), a subsequent relaxation provision. Justice Ziyad Rahman A.A. allowed a writ petition filed by We Match and quashed the assessment order passed under Section 73 of the CGST Act, which had disallowed ITC claims for the...

Gauhati High Court Holds DRC-01 Cannot Replace Statutory Show Cause Notice Under GST Act

The Gauhati High Court on 13 May held that GST authorities under the Assam GST Act cannot initiate and conclude proceedings under Section 73 solely on the basis of a Summary Show Cause Notice in Form GST DRC-01, reiterating that issuance of a proper statutory show cause notice is a mandatory precondition for raising a tax demand. Justice Manish Choudhury allowed the petition filed by Riyan Enterprises and set aside the adjudication order passed under Section 73 of the Assam GST Act for alleged...

GST Is Levied On Actionable Claims Arising From Stakes, Not Dependent On Whether A Game Is Of Skill Or Chance: Supreme Court

The Supreme Court has recently held that GST liability on online gaming transactions does not depend on whether the underlying game is one of skill or chance, ruling that the levy is attracted by the supply of actionable claims arising from money staked on uncertain outcomes. A bench of Justices J.B. Pardiwala and R. Mahadevan said the taxable event under the GST framework is the supply of actionable claims generated by staking money on uncertain outcomes and not the underlying game itself. The...

Punjab & Haryana High Court Rules PLC Not Separately Taxable, Sets Aside DLF Advance Ruling Orders

The Punjab and Haryana High Court on 13 May held that Preferential Location Charges (PLC) collected by developers for offering a preferred location within a housing project form part of the composite construction service and cannot attract separate taxation. A Division Bench of Justices Deepak Sibal and Lapita Banerji allowed a writ petition filed by DLF Limited and quashed the Advance Ruling Authority order dated 28 August 2020 and the Appellate Authority for Advance Ruling order dated 28...

BOT Concessionaire Liable To Pay GST On Toll Rights Received As Consideration: Rajasthan High Court

The Rajasthan High Court on 22 May held that toll collection rights granted under a Build-Operate-Transfer (BOT) concession agreement constitute consideration for taxable works contract services and are not exempt from GST merely because toll collection itself enjoys exemption. A Division Bench of Justices Arun Monga and Sandeep Shah dismissed a writ petition filed by CG Tollway Ltd challenging orders of the GST authorities that had demanded Rs. 16.36 GST, interest and penalty on services...

Gujarat AAR Rules 'Black Mineral Water' Classifiable As Mineral Water, Taxable At 5% GST

The Gujarat Authority for Advance Ruling (AAR) on 8 May 2026 held that “Black Mineral Water” marketed under the brand “ALVA” by Oxyhydra Beverages Pvt. Ltd. qualifies as mineral water under HSN 22011010 and attracts GST at 5%. A Bench comprising SGST Member Sushma Varma and CGST Member Vishal Malani held: “The applicant's product contains added minerals only and contains no flavouring or sweeteners & therefore the product squarely fits within the scope of HSN 22011010.” Oxyhydra Beverages...

Gujarat AAR Allows ITC On Inputs, Services Used To Set Up CCV Tower For Insulated Cable Manufacturing

The Gujarat Authority for Advance Ruling (AAR) has ruled that Apar Industries Ltd. can avail Input Tax Credit (ITC) on goods and input services used for setting up a Continuous Catenary Vulcanization (CCV) tower at its manufacturing facility. The tower is used in the manufacture of insulated electrical cables. A bench comprising CGST Member Vishal M. Ladani and SGST Member Subham Roy passed the ruling in an application filed by Apar Industries Ltd. “On going through the layout of the CCV tower...

Supreme Court Upholds 28% GST On Online Money Gaming, Fantasy Sports; 2023 Amendments Retrospective

The Supreme Court on Wednesday upheld the constitutional validity of the GST framework taxing online gaming, fantasy sports, and casino transactions involving staking on uncertain outcomes, affirming the 28% levy applicable to such taxable actionable claims. It also held that the 2023 GST amendments, which specifically brought online money gaming, casinos, and horse racing within the revised tax framework, are merely clarificatory and therefore apply retrospectively.A bench of Justices J.B....

Supreme Court Upholds Tamil Nadu, Karnataka Online Betting Laws; Skill Game Betting Not Protected

The Supreme Court on Wednesday upheld the constitutional validity of the Tamil Nadu and Karnataka laws regulating and prohibiting online betting and wagering, while setting aside the Madras High Court and Karnataka High Court judgments that had struck down portions of the legislation.A bench of Justices J. B. Pardiwala and R. Mahadevan was hearing appeals arising from challenges to the Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021 and the Karnataka Police (Amendment) Act, 2021. The...

Himachal Pradesh HC Quashes GST Show Cause Notice, Says Department Bound By Unchallenged Advance Ruling

The High Court of Himachal Pradesh has quashed a GST show cause notice issued to Amit Engineers after finding that the notice was issued despite an earlier Advance Ruling that had attained finality between the parties. A bench of Justice Vivek Singh Thakur and Justice Ranjan Sharma observed: “in view of the finality attached to the Advance Ruling between the parties, the show cause notice dated 14.02.2025 (Annexure P-6) was without foundation. In view of the finality of the advance ruling...

Gujarat AAR Declines To Answer GIFT SEZ Co-Developer's GST Zero-Rating Query On SEZ Supplies

The Gujarat Authority for Advance Ruling has declined to answer whether endorsement by the Specified Officer is mandatory for claiming zero-rated GST treatment on supplies involving Special Economic Zone entities and whether alternative documentary evidence could suffice. It held that the applicant's queries fell outside the scope of advance ruling jurisdiction. A bench of CGST Member Vishal Muni and SGST Member Subham Roy passed the ruling on an application by Waystar Properties LLP, a...