Karnataka High Court Holds GST Payments Made During Investigation Were Not Voluntary, Orders Refund

The Karnataka High Court has directed the GST authorities to refund ₹53.97 lakh collected from a taxpayer during an investigation, holding that the payments could not be treated as voluntary payments under the GST law.Justice C.M. Poonacha observed that there was no material to show that the taxpayer had voluntarily ascertained his tax liability before making the payments. The Court also noted that no prior demand or assessment had been made before the payments and that the authorities had not...

GST Appeal Limitation To Run From Rectification Order Where Application Filed In Time: Gujarat High Court

The Gujarat High Court has ruled that a GST appeal cannot be rejected as time-barred by calculating limitation solely from the original adjudication order when the assessee had filed a rectification application within the prescribed period and the application was subsequently decided by the adjudicating authority.A Division Bench comprising Justice A.S. Supehia and Justice Vaibhavi D. Nanavati observed, “It would not be permissible to reject the appeal on the ground of limitation by computing...

GST Officer's Competence Can Be Challenged Before Appellate Authority: Delhi High Court Declines Writ

The Delhi High Court has declined to entertain a batch of writ petitions challenging GST proceedings and penalty orders. The court held that the petitioners can raise their objections, including the alleged lack of competence of the officers who issued the show-cause notices, before the statutory appellate authority.The Division Bench of Justices Anil Kshetarpal and Shail Jain held that the objection regarding the competence of the officers did not constitute a “patent or self-evident absence...

GST Notice To Deceased Invalid, Legal Heirs Must Be Separately Notified: Calcutta High Court

The Calcutta High Court on 27 August held that GST authorities cannot issue a show cause notice or determine tax liability against a deceased person, and must instead issue the notice to the deceased's legal representatives in their own names. Justice Smita Das De made the observation while quashing a show cause notice issued under Section 74 of the Central Goods and Services Tax Act, 2017 (CGST Act) against Late Haradhan Pan, who died on 20 May 2021, along with the consequential...

Calcutta High Court Directs Post-Decisional Hearing On ₹4.43 Crore ITC Blocking

The Calcutta High Court on 1 September directed GST authorities to grant a post-decisional personal hearing to a company whose Electronic Credit Ledger was blocked to the extent of Rs. 4.43 crore, holding that it must be given an opportunity to substantiate the genuineness of its purchases and suppliers. Justice Smita Das De disposed of a writ petition filed by SPL Steel Processors Private Limited challenging the blocking of its Electronic Credit Ledger for the period from 1 February 2026 to 17...

Karnataka High Court Directs Authorities To Decide Contractor's ₹2.99 Crore GST Claims

The Karnataka High Court on 29 August directed government authorities to consider and decide a civil contractor's claim for payment of Goods and Services Tax (GST) on road construction and improvement works. Justice Sachin Shankar Magadum noted that government authorities must examine a civil contractor's claim for payment of GST on road construction and improvement works by scrutinising the tender conditions, invoices, bills and payments to determine whether the GST component had already been...

GST Council Meeting Gets A New Date On Clash With BRICS Summit

The Goods and Services Tax (GST) Council Meeting has been postponed to October 7, 2026 owing to logistical clashes with the upcoming BRICS Summit. India is hosting the annual BRICS conference at New Delhi this year and discussions on economic balance amidst the West-Asia Crisis is expected.The GST Council met last time more than a year ago on September 3, 2025. In the last meeting, simplified slabs and a higher 40% slab for sin and luxury goods were recommended by the council.The GST Council...

Gujarat High Court Quashes GST Demand Against Deceased Proprietor, Says Legal Heir Must Be Properly Heard

The Gujarat High Court has held that GST proceedings initiated against a deceased taxpayer cannot be sustained when the legal heir was neither made a noticee nor given a meaningful opportunity to respond, quashing proceedings initiated against a proprietor who had died several years earlier. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati allowed a petition filed by Ushaben Kalpeshbhai Patni, the wife of the deceased proprietor, Kalpeshbhai Ramubhai Patni, and quashed...

Madras High Court Upholds GST Authorities' Power To Block Electronic Credit Ledger For Tax Recovery

The Madras High Court on 25 August held that Goods and Services Tax (GST) authorities can block an electronic credit ledger, including through a negative blocking entry, to recover tax dues, even where recovery proceedings arising from the assessment order have been stayed. Justice Senthilkumar Ramamoorthy passed the ruling while disposing of a writ petition filed by Zigma Machinery & Equipment Solutions against the Assistant Commissioner, Coimbatore-I Division. The Bench held: “In...

Rajasthan High Court Sets Aside Unsigned GST Notice And ₹3.13 Lakh Demand Against Mayur Timber

The Rajasthan High Court on 11 August set aside an unsigned Goods and Services Tax (GST) show-cause notice and consequential demand of over Rs. 3.13 lakh raised against Mayur Timber, along with interest of Rs. 4,26,002 and an equivalent penalty. A Division Bench comprising Justices Arun Monga and Ashutosh Kumar held that mere generation of a document on the GST portal or allotment of a reference number cannot replace the mandatory requirement of authentication under Rule 26(3) of the Central...

Rajasthan High Court Says Supplier's Tax Payment Mandatory For ITC, Upholds Recovery From Buyer

The Rajasthan High Court on 17 August held that actual payment of tax by the supplier to the Government is a mandatory condition for availing Input Tax Credit (ITC) under Section 16(2)(c) of the Central Goods and Services Tax (CGST) Act, 2017, and that the credit can be recovered from the purchaser if the supplier fails to pay the corresponding tax. A Division Bench comprising Justices Dr. Pushpendra Singh Bhati and Praveer Bhatnagar dismissed a writ petition filed by Shree Karni Electrovision,...

Deferred Annuity Payments To Road Companies Under NHAI Contracts Taxable Under GST: Rajasthan High Court

The Rajasthan High Court on 17 August upheld the levy of Goods and Services Tax (GST) on annuity payments received by road construction companies under concession agreements with the National Highways Authority of India (NHAI), holding that such deferred payments for works contract services cannot claim exemption merely because they are paid as annuities. A Division Bench of Justices Pushpendra Singh Bhati and Praveer Bhatnagar dismissed a batch of writ petitions filed by Nagaur Mukundgarh...