Where No Tax Evasion Is Alleged, Liberal Approach Warranted in Transitional ITC Case: Kerala High Court

The Kerala High Court has recently observed that a bona fide mistake committed by a taxpayer while filing revised TRAN-1 and TRAN-2 forms cannot justify denial of transitional Input Tax Credit, especially in the absence of any allegation of tax evasion.TRAN-1 and TRAN-2 are statutory forms under Section 140 of the CGST Act through which taxpayers carried forward eligible input tax credit from the pre-GST regime into GST."However, I am of the view that, when it comes to a case where no evasion of...

GST Registration Cannot Be Cancelled Based On Investigative Dictation Alone: Gauhati High Court

The Gauhati High Court on 17 February, held that cancellation of GST registration cannot be sustained when it is based on vague allegations and issued at the behest of the investigating wing, without independent application of mind by the proper officer. A Bench of Justice Arun Dev Choudhury allowed a writ petition was filed by Ankit Choudhary, sole proprietor of Ankit Enterprises, challenging a show cause notice, the subsequent order cancelling his GST registration, and the order rejecting...

CBIC's 2024 Policy Barring Govt Appeals Below ₹2 Crore Covers Pending Cases, Not Merely Future Filings: Supreme Court

Holding that the Centre's 2024 litigation policy applies even to pending appeals, the Supreme Court on February 5, 2026 dismissed appeals filed by the Commissioner of Commercial Tax against Vikaram Cement, ruling that the Rs. 25.47 lakh tax demand involved fell well below the Rs. 2 crore monetary limit fixed under the June 26, 2024 circular issued by the Central Board of Indirect Taxes and Customs. Rejecting the State's contention that the circular would not apply to appeals already filed under...

Bombay High Court Allows Videography Of GST Summons Proceedings After Taxpayer Undertakes to Bear Cost

Taking note that a director of Tuesonpower International Pvt. Ltd. is undergoing treatment for cancer and has expressed willingness to cooperate with the investigation, the Bombay High Court permitted videography of summons proceedings under Section 70 of the Central Goods and Services Tax Act, 2017. It also allowed his advocate to remain present at a visible but not audible distance during recording of the statement. The Court clarified that the relief is confined to the facts of the case,...

GSTN Activates Withdrawal Facility For Small Taxpayers To Opt Out Of Simplified Registration Option

As of 21 February 2026, the Goods and Services Tax Network (GSTN) has activated the facility to file Form GST REG-32 for taxpayers who wish to opt out of registration under Rule 14A of the Central Goods and Services Tax (CGST) Rules.To mitigate compliance burdens, as part of the 'Next Generation GST Reforms', a Simplified GST Registration Scheme for Small and Low-Risk Businesses under Rule 14A was introduced in 2025.Rule 14A provides a simplified registration option for small and low-risk...

Subway Franchise Raised Base Prices On GST Cut Day, GSTAT Upholds ₹13.32 Lakh Profiteering Against Pune Outlet

Holding that the franchisee increased base prices on the very date the GST rate on restaurant services was reduced from 18 per cent to 5 per cent, the GST Appellate Tribunal at Delhi has upheld findings that a Pune-based Subway outlet at Amanora Mall profiteered ₹13,32,322 by neutralising the tax benefit meant for consumers. “The Respondent's action of increasing the base price on the very same date on which the notification reducing rate of tax came into force indicates that Respondent has...

Gujarat High Court Quashes ₹98 Lakh GST SCN, Says Construction ITC Bar Not Applicable To Leasehold Rights Transfer

The Gujarat High Court has held that Section 17(5)(d) of the Central Goods and Services Tax Act, 2017, which blocks input tax credit on goods or services used for construction of immovable property on one's own account, did not apply in a case where the taxpayer had only transferred leasehold rights and had undertaken no construction activity. A Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi quashed a show cause notice issued under Section 74(1) of the Act and directed the...

Waiver Under Maharashtra Settlement Of Arrears Of Tax Act Available Only On Disputed Tax: Bombay High Court

The Bombay High Court at Aurangabad has recently held that under the First Phase of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2019, one hundred percent of undisputed tax must be paid and no waiver is available on such amount, dismissing a writ petition filed by a sugar manufacturing co-operative. A Division Bench of Justice Vibha Kankanwadi and Justice Hiten S. Venegavkar held, “for undisputed tax, amount to be paid is 100% of the amount in column B i.e....

GST Authorities Cannot Enforce IGST Demand Against SREI Finance During Moratorium: Delhi High Court

The Delhi High Court on 12 February held that Goods and Services Tax (GST) authorities cannot pursue coercive recovery of tax dues against a corporate debtor during the moratorium under the Insolvency and Bankruptcy Code (IBC). A Bench of Justice Nitin Wasudeo Sambre and Justice Ajay Digpaul, set aside a demand of Rs. 67.5 lakh of Integrated Goods and Services Tax (IGST), including a penalty of 100% of the tax demand, raised on SREI Equipment Finance Limited (SEFL), observing that the GST...

Kerala High Court Quashes Composite GST Notices Issued to Actor Honey Rose

The Kerala High Court on Monday refused to set aside composite GST show cause notices and assessment orders issued to actor Honey Rose Varghese and several other taxpayers, holding that it was bound by earlier Division Bench rulings requiring separate proceedings for each assessment year. Allowing the batch of petitions, Justice Ziyad Rahman A.A. observed that there was no stay on the earlier orders of the court and was therefore bound by it. “In this case, evidently, no stay is also obtained...

GST Appeal Cannot Be Entertained Beyond Statutory Limit Of 120 Days: Gujarat High Court

The Gujarat High Court has held that delay in filing an appeal against cancellation of GST registration cannot be condoned beyond the statutory maximum period of 120 days (3+1 months) prescribed under Section 107 of the CGST Act. A Bench of Justice A.S. Supehia and Justice Pranav Trivedi, in a judgment dated 22 January 2026, dismissed a writ petition filed by Rajesh Industries, a proprietorship firm, holding that writ jurisdiction under Article 226 cannot be invoked to override...

First Appeal Pre-Deposit Sufficient: Jharkhand High Court Permits GSTAT Appeal Without Additional Deposit

The Jharkhand High Court has permitted Ranchi-based manufacturer Ashirwad Food Industries to file an appeal before the GST Appellate Tribunal without making any additional pre-deposit, noting that ₹23.85 lakh had already been deposited at the first appellate stage. A Division Bench of Chief Justice M.S. Sonak and Justice Rajesh Shankar found “substance in the contention” of the petitioner and held: “Considering the deposit of Rs.23.85 lakhs already made at the first appellate stage, we agree...