GST | ITC Not Available On Construction Of Warehouse Used For Storage Or Leasing: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has held that input tax credit (ITC) is not admissible on goods and services used for construction of a warehouse or shed, even when such warehouse is used for providing taxable storage and warehousing services or is leased out for business purposes. The ruling was delivered by the bench of CGST Member Vishal Malani and SGST Member Sushma Vora in the application of a registered GST assessee engaged in providing storage and warehousing...

GST| Tobacco In Small Retail Packs Classifiable As 'Chewing Tobacco': Gujarat High Court

The Gujarat High Court, in a bunch of matters concerning classification of Raw Tobacco Leaves packed and sold in retail pouches, were classifiable as 'Chewing Tobacco' irrespective of whether it was scented, fermented or liquored and re-packed or re-labelled. In a recent judgment delivered by a Division Bench comprising Justice Bhargav D. Karia and Justice Pranav Trivedi, rejected the Tobacco Manufacturers stance that Tobacco without being fermented or liquored ceases to be a “Chewing...

GST Registration Cancellation Unsustainable When Hearing & Decision Were Made By Different Authorities: Calcutta High Court

The Calcutta High Court held that a GST registration cancellation order is unsustainable where the personal hearing is granted by one authority, but the final order is passed by another. Justice Om Narayan Rai stated that, interestingly, while the notice for personal hearing was issued by the Assistant Commissioner, CGST & CX, Burrabazar Division, but the order impugned has been passed by the Superintendent. The order therefore defies the very well-settled principle that an order...

Notification Defining Jurisdiction Does Not Automatically Empower All Officers To Invoke S. 122 CGST Act: AP High Court

The Andhra Pradesh High Court held that a notification merely defining or fixing the territorial jurisdiction of officers cannot be construed as conferring the power to initiate penalty proceedings under Section 122 of the CGST Act. Section 122 of the Central Goods and Services Tax (CGST) Act, 2017 is the primary provision defining various GST-related offences and the specific monetary penalties applicable to them. Justices R. Raghunandan Rao and T.C.D. Sekhar examined whether...

Flavoured Milk Is Not 'Beverage'; Taxable At 5% GST: Karnataka High Court Provides Relief To Dodla Dairy

The Karnataka High Court held that flavoured milk qualifies as a dairy product under Tariff Heading 0402 and not as a 'beverage' under Tariff Heading 2202. Consequently, GST at 5% will be applicable on flavoured milk instead of 12%. Justice S.R. Krishna Kumar examined the classification of the flavoured milk under the GST, considering whether it falls under Tariff Heading 2202 (beverages containing milk) or under Tariff Heading 0402 (milk and cream, containing added sugar or...

'Lame Excuses': Gujarat High Court Refuses To Condone Delay In Filing GST Appeal On Ground Of Illness Of Accountant, Closure Of Business

The Gujarat High Court dismissed a plea challenging order of the appellate authority which had rejected the assessee's GST appeal filed belatedly, observing that it cannot quash the order in wake of the "lame excuse" given by the petitioner for condoning delay such as illness of the Accountant and closure of business.The petitioner had filed an appeal before the Commissioner (Appeals) challenging a 24.04.2024 order which was rejected on the ground that the same is not maintainable and time ...

No GST On Liquidated Damages For Breach Of Contract: Karnataka High Court Quashes SCN

The Karnataka High Court held that liquidated damages recovered for breach or delay in contractual obligations are compensatory in nature and do not constitute consideration for any supply under GST. Justice S.R. Krishna Kumar examined whether the amount paid as compensation by the Lending Service Provider (LSP) to the assessee constituted 'liquidated damages' and whether such amount was taxable under the provisions of the CGST Act. In the case at hand, the assessee/petitioner was...

New RSP Based Valuation Mechanism, 40% GST Rate On Pan Masala, Cigarettes, Cigars, Tobacco Products From February 01

Central Board of Indirect Taxes & Customs (CBIC) has notified upward revision of GST rate on tobacco and related products together with legislative changes to the GST Rules, enforceable from February 01 2026. To phase out Compensation Cess on Pan Masala, Tobacco and Allied Products, CBIC has issued a Notification on Wednesday to prescribe a NIL rate of Compensation Cess on Tobacco Products, Pan Masala and related items from February 01 2026. As part of the GST 2.0 framework,...

Tree Plantation & Maintenance In Non-Forest Areas By Charitable Trust Exempt From GST: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has granted exemption to tree plantation and maintenance of them by a Trust in non-forest arears like unutilized barren lands, roadsides, amidst lane dividers, on private lands and every other available patch in its reach. In a recent ruling Mr. Vishal Malani (Member- Central Tax) and Ms. Sushma Vora (Member- State Tax) has held that Entry No. 1 of Notification No. 12/2017 was applicable to tree plantation and maintenance by the Applicant...

GST Demand Stayed As Audit Report Issued By Unauthorised Officer: Orissa High Court Finds Prima Facie Jurisdictional Defect

The Orissa High Court has stayed further proceedings arising from a Goods and Services Tax (GST) demand-cum-show cause notice issued under Section 73 of the Central Goods and Services Tax Act, 2017, after finding a prima facie jurisdictional defect in the audit process that formed the basis of the demand. The interim order was passed in a writ petition which challenged an audit notice and a consequential demand-cum-show cause. The demand was issued following an audit report...

GST | Parallel Proceedings On Sanctioned Refund An 'Overstep': Orissa High Court Quashes Recovery Proceedings As Appeal Order Stands

The Orissa High Court in a matter concerning, Double Jeopardy on Refund of about Rs. 14 crores where recovery proceedings were initiated under Section 73 for Refund already sanctioned by the Appellate Authority, has quashed the Show Cause Notice for recovery. In a recent judgment, the Division Bench, comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman, observed that by initiating recovery the Joint Commissioner sought to revive a Review Order differing with the...

Taxpayers To Be Barred From Filing GSTR-3B Return For Excess GST ITC Claims: GSTN Issues Advisory

The Goods and Services Tax Network (GSTN) has announced that taxpayers will soon be barred from filing Goods and Services Tax (GST) Return GSTR-3B if they attempt to claim or reclaim input tax credit (ITC) in excess of the balance available in the relevant electronic ledgers. In the advisory issued on December 29, 2025, GSTN stated that negative balances and excess ITC availment will no longer be permitted in the Electronic Credit Reversal and Re-claimed Statement (ITC Reclaim Ledger)...