Clause 8 Of Assam GST Reimbursement Scheme Prima Facie Ultra Vires: Gauhati High Court Stays SCN Against Patanjali Foods

The Gauhati High Court found that Clause 8 of the Assam Industries [Tax Reimbursement for Eligible Units] Scheme, 2017, which restricts input tax credit, runs contrary to the Constitutional framework and the provisions of the CGST Act. Consequently, the bench stayed the operation of the show-cause notices (SCN) issued to Patanjali Foods Limited. Justice Manish Choudhury was addressing a case in which Patanjali Foods Limited, the assessee, challenged the constitutional validity of...

Cryptic Show Cause Notice Without Factual Details Invalidates GST Registration Cancellation: Gauhati High Court

The Gauhati High Court held that a GST registration cannot be cancelled on the basis of a cryptic show cause notice, which merely quotes statutory provisions without disclosing the factual grounds. Justice Sanjay Kumar Medhi noted that apart from stating the provisions of Section 29(2)(e) of the CGST Act, there are no facts or any details stated in the show cause notice. In the case at hand, the assessee's/petitioner's GST registration was cancelled through a show cause notice. An...

CGST Act | Once Returns Are Filed Within Time Period U/S 16(5), Limitation U/S 16(4) Loses Significance: Kerala High Court Allows ITC Claim

The Kerala High Court held that Section 16(5) of the CGST Act (Central Goods and Services Tax Act, 2017), being a non-obstante provision, overrides the time limit prescribed under Section 16(4) once returns are filed within the cut-off date specified therein. Section 16(4) of the Central Goods and Services Tax Act, 2017 specifies that no registered person can take Input Tax Credit (ITC) for any invoice or debit note issued against the supply of goods or services after the due date for...

Homeopathic Medicines Having Single, Two Or More Constituents Attract 5% GST Post Rate-Revision: West Bengal AAR

The West Bengal Authority for Advance Ruling (AAR) has held that homeopathic medicines having a single, two or more components formulated exclusively in alignment with the Drugs and Cosmetics Act, irrespective of retail sale, attracted 5% GST. In a ruling by Shri. Shafeeq S (Member- Central Tax) and Shri. Jaydip Kumar Chakrabarti (Member-State Tax) from the two Tariff Entries 3003 and 3004 inferred that medicines manufactured by the Applicant consisted of two or more constituents mixed ...

Manpower-Based Municipal Services For Ganges Ghat Special Cleanliness Drive Exempt From GST: West Bengal AAR

The West Bengal Authority for Advance Ruling (AAR) has held that supply of unskilled labour for special cleanliness drive for cleaning Ganga ghats would qualify as 'Pure Service'. In a ruling by Shri. Shafeeq S (Member- Central Tax) and Shri. Jaydip Kumar Chakrabarti (Member-State Tax) it was observed that operation and maintenance services to various Corporations and Municipalities who were 'Local Authorities'. These local authorities in turn use those services under Solid Waste...

Bona Fide Errors In GSTR-3B Can Be Corrected; Karnataka High Court Directs Department To Accept Revised Returns

The Karnataka High Court held that bona fide errors in GSTR-3B returns are rectifiable and cannot be a ground to initiate proceedings under Section 73 of the KGST /CGST (Central Goods and Services Tax) Act. Justice S.R. Krishna Kumar directed the department to accept the revised returns, noting that the Supreme Court has also directed the CBIC to re-examine the provisions/timelines fixed for correcting the bona fide errors. In the case at hand, the assessee/petitioner is a works...

Delhi High Court Upholds GST Adjudication Despite SCN Being Signed By One Officer & Reflected On Portal Under Another Officer's Name

The Delhi High Court has upheld the adjudication process in a matter involving validity of a Show Cause Notice which was signed by an Officer, but portal reflected the same under the name of another Officer. A Division Bench comprising Justice Prathiba M. Singh and Justice Shail Jain relegated the Petitioner to avail remedy of appeal against order passed by the Joint Commissioner, Delhi (South), CGST before the Commissioner (Appeals), Gurugram. The Delhi High Court observed that...

Centre Projects ₹47,700 Crore Revenue Loss Amid GST Rate-Rationalisation

The Centre has estimated a Net Negative Revenue loss of ₹ 47,700 crore due to GST rate-rationalisation. However, it was clarified that shift from 28% to the 40% tax bracket were projected to account for an additional revenue of approximately ₹45,570 Crore. The Finance Ministry in response to whether a Group of Ministers were to be constituted by the GST Council to address the issues of initial revenue losses incurred by the States due to GST 2.0, answered in negative. In response...

Delhi High Court Quashes Pre- Insolvency Resolution GST Demands Against Patanjali Foods

The Delhi High Court has set aside GST demands raised against Patanjali Foods Limited (Ruchi Soya) for periods preceding the final approval of its insolvency resolution plan on September 4, 2019. The court held that all statutory dues not included in the approved plan stood extinguished. A division bench of Justice Prathiba M Singh and Justice Shail Jain, in a judgment delivered on December 11, 2025, allowed Patanjali Foods' writ petition challenging an order dated January 21, 2025, along...

Hotelier Liable To 18% GST Not 28% On Supply Of Carbonated Beverages, For Dine-In/Room Service : West Bengal AAR

The West Bengal Authority for Advance Ruling (AAR) has held that supply of restaurant services, including the supply of aerated beverages, would be taxable at the rate of 18% GST. In a ruling by Shri. Shafeeq S (Member- Central Tax) and Shri. Jaydip Kumar Chakrabarti (Member-State Tax) examined the two kinds of supply of Aerated Drinks viz. (i) With food (shown separately in bill and (ii) Individually (only aerated water). The West Bengal AAR considering the 'factual matrix' observed...

GST | Allahabad High Court Grants Stay On Composite Show Cause Notice For Multiple Assessment Years

Recently, the Allahabad High Court has granted stay on composite show cause notice issued by the Directorate General of GST Intelligence where multiple assessment years have been clubbed in one show cause notice. Petitioner approached the High Court against a single show cause notice issued by the Additional Director, Directorate General of GST Intelligence, Ghaziabad for tax period starting from August 2019 to September 2023. It was pleaded that the same could not be done as each tax...

Income Tax Act | GST Would Not Form Part Of Gross Receipts Under Section 44BB: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Goods and Services Tax (GST) collected by a non-resident assessee cannot be included in gross receipts for computing presumptive income under Section 44BB of the Income Tax Act, 1961. A Bench comprising Vikram Singh Yadav (Accountant Member) and Sandeep Singh Karhail (Judicial Member) allowed the appeal filed by the assessee, Oceaneering International GmbH for Assessment Year 2023–24 and directed the Assessing...