GST Notices Not Invalid Without Visible Digital Signature If Authenticated On Portal: Telangana High Court

The Telangana High Court has recently held that GST show-cause notices and adjudication orders cannot be invalidated merely because downloaded PDF copies do not display a visible digital signature. This is provided they have been electronically authenticated by the proper officer and uploaded on the GST common portal.“The case of the petitioners based upon the contention that the PDF format does not contain the visible digital signature of the proper officer is untenable in law,” the Full Bench...

GST Circular Requiring Physical Service Of Notices After Registration Cancellation Is 'Founded On Sound Common Sense': Allahabad High Court

The Allahabad High Court has set aside an ex parte adjudication order passed under Section 74 of the UP GST Act, 2017 where the show-cause notice had been served on the dealer only through the Common Portal, almost five years after his registration had already been cancelled. The Court noted that the Commissioner of Commercial Tax, U.P. had, by Circular dated May 07, 2025, issued binding instructions to subordinate authorities to serve physical notice on noticees facing adjudication...

GST | Refusal Of Cross-Examination For A Wrong Reason Does Not Mean It Had To Be Granted: Allahabad High Court

The Allahabad High Court has held that GST authorities cannot automatically be required to allow cross-examination merely because the reason given for denying such a request is legally unsustainable. The need for cross-examination must be assessed on the facts of each case. The bench of Justice Saumitra Dayal Singh and Justice Swarupama Chaturvedi held “While we accept the contention of learned counsel for the petitioner, that the reasoning offered by the adjudicating authority to...

Madras High Court Sets Aside ₹5.50 Crore GST Demand Based On Projected Revenue From Unbuilt Construction

The Madras High Court has set aside a ₹5.50 crore GST demand against Shree Velu Builders Private Limited, holding that tax cannot be levied on projected revenue from two building blocks merely because their plans had been approved. The court noted that construction had not commenced in either block.Justice Krishnan Ramasamy remanded the matter to the State Tax Officer for fresh consideration, subject to the company depositing ₹50 lakh within four weeks.The case arose from an order passed against...

Supplier Cannot Automatically Recover GST From Recipient Without Contractual Basis: Kerala High Court

The Kerala High Court has held that a supplier's statutory obligation to pay Goods and Services Tax (GST) does not automatically entitle the supplier to recover the tax separately from the recipient of the service.“The liability of a supplier to discharge the tax payable under the statute and the question as to whether the supplier is entitled to pass on the burden of such tax to the recipient are distinct and separate matters," the court ruled"However, the right to collect tax from the...

Kerala High Court Quashes GST Notice Issued Before Audit Findings Were Finalised

The Kerala High Court has held that a GST show cause notice issued on the basis of preliminary audit observations, before the audit findings attain finality, cannot be sustained. The court also held that tax authorities must consider a taxpayer's reply to discrepancies before finalising the audit findings.Justice Ziyad Rahman A.A. was hearing a petition filed by The Alleppey Company Ltd., challenging a GST show cause notice issued despite its requests for additional time to respond to audit...

GST Council Recommends Dropping Arrest Powers, Raising Prosecution Threshold To ₹5 Crore

The GST Council has recommended dropping arrest powers under the Goods and Services Tax (GST) law by omitting Section 69 of the Central Goods and Services Tax Act, 2017.Section 69 currently allows the tax authorities to authorise the arrest of a person suspected of committing specified GST offences. These offences are set out under Section 132 of the Act and include certain cases involving tax evasion and fraudulent input tax credit.It has also proposed raising the monetary threshold for...

Kerala High Court Upholds GST Recovery Against Satwa Solutions For Failure To Raise Timely Objection

The Kerala High Court on 26 September refused to interfere with GST recovery proceedings against Satwa Solutions and upheld the dismissal of its writ petition challenging the proceedings arising from a statutory notice and subsequent final order. A Division Bench comprising Justices Devan Ramachandran and Basant Balaji held that the taxpayer had failed to raise its objection to the notice at the appropriate stage. It observed: “It is unmistakable from the attendant circumstances, that the...

Time-Barred GST Refund Claim Cannot Trigger Deficiency Memo: Madras High Court

The Madras High Court has held that a GST deficiency memo cannot be issued merely because a refund application is time-barred, as such a memo is meant to address a remediable defect in the application. Justice Senthilkumar Ramamoorthy on 1 September, disposed of a deficiency memo issued to L.S. Pacific Wood Tech Pvt. Ltd. after it sought a refund under Section 54 of the GST enactments. The Bench observed that “a deficiency memo cannot be issued on the ground that the refund application is time...

Madras High Court Quashes GST Notice To Queen Mira School, Says Assessment Must Precede Recovery

The Madras High Court on 24 September quashed a show cause notice issued to Queen Mira International School, while granting the department liberty to initiate fresh proceedings in accordance with law. Justice C. Saravanan held that the GST authorities must first assess the tax liability of an unregistered person under the prescribed statutory mechanism before proceeding against such person for tax recovery. The Bench observed: “Under the GST enactment, the Department has to first invoke the...

CGST Penalty: Delhi High Court Says Questions On Limitation, Proper Officer & Liability Must Be Raised In Appeal

The Delhi High Court has declined to entertain writ petitions challenging penalties imposed under the Central Goods and Services Tax (CGST) Act, observing that questions concerning limitation, the competence of the Proper Officer and the nature of the petitioners' liability should be examined by the statutory appellate authority.The Division Bench of Justices Anil Khetarpal and Bharat Parashar was dealing with three connected writ petitions arising out of a common adjudication order dated March...

Commissioner's Approval Alone Cannot Sustain Departmental Appeal Below ₹20 Lakh: GSTAT Ghaziabad

On 1 October, the Goods and Services Tax Appellate Tribunal (GSTAT), Ghaziabad, held that a departmental appeal cannot be maintained when the disputed tax demand is below the prescribed monetary limit unless the Revenue establishes a recognised exception to the limit. A Division Bench comprising Judicial Member Dr. Sanjay Kumar Chandhariyavi and Technical Member Sungita Sharma dismissed the Revenue's appeal involving a disputed amount of Rs. 11.88 lakh at the threshold, without examining its...