Service Tax Cannot Be Levied By Treating Maintenance Of Minimum Balance As Consideration For Banking Services: Karnataka HC

The Karnataka High court has held that maintenance of a Minimum Average Balance (MAB) in a bank account is merely a contractual condition and cannot be treated as "consideration" for banking services so as to attract service tax. A bench of Justice S.R. Krishna Kumar quashed show-cause notices issued to Canara Bank, Bank of Baroda (formerly Vijaya Bank), Karnataka Bank and another bank over the proposed levy of service tax on facilities extended to customers maintaining minimum balances in...

Hyderabad Cinema Hall Failed To Pass On GST Cut Benefit To Viewers, GSTAT Delhi Upholds ₹9 Lakh Profiteering

The Principal Bench of the GST Appellate Tribunal (GSTAT) has upheld a finding against Hyderabad-based Vishwanath Cinema Hall 70MM that it profiteered by nearly ₹9 lakh after a GST rate cut on certain cinema tickets. Judicial Member Justice Mayank Kumar Jain rejected the cinema hall's objections and accepted the findings of the Director General of Anti-Profiteering (DGAP) According to the authority, the cinema hall profiteered ₹8.99 lakh for the period between January 1 and June 30, 2019. The...

Absence Of Signature On GST Assessment Order Renders It Legally Invalid: Andhra Pradesh High Court

On 15 June, the Andhra Pradesh High Court held that an unsigned GST assessment order suffers from an inherent legal defect and cannot be sustained in law, reaffirming that statutory orders must bear proper authentication to be enforceable. A Division Bench of Justices R. Raghunandan Rao and T.C.D. Sekhar set aside the impugned assessment order while allowing the writ petition filed by Nominee Works Committee Kalavalla and remanded the matter for fresh adjudication. The judges held: “This Court...

Fresh, Unprocessed Isabgol Seeds Supplied Through APMC Auctions Exempt From GST: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has held that psyllium seeds (Isabgol) procured through Agricultural Produce Market Committee (APMC) auctions and supplied in their natural, raw and unprocessed form are exempt from GST. The ruling applies where no drying, freezing, crushing or other processing is carried out. A coram of CGST Member Vishal Manibhai Nanji and SGST Member Rashmi Vajs ruled in favour of Jigneshkumar Narayandas Patel, proprietor of Akshar Traders.“The psyllium seeds...

Bombay HC Quashes GST Demand Raised Through Single Notice Covering Multiple Financial Years

The Bombay High Court has recently set aside a GST demand of about ₹2.54 crore raised through a single show cause notice spanning more than four years. The Court held that the proceedings were without jurisdiction. A Division Bench of Justice Nitin B. Suryawanshi and Justice Vaishali Patil-Jadhav allowed a petition filed by Rithwik Projects Private Limited. The Bench observed that the controversy was already covered by earlier decisions of the Court, particularly Milroc Good Earth Developers v....

GSTAT Committee Recommends Waiver Of Submitting Certified Copies With Appeals If Orders Are On GST Portal

The Committee constituted by the Goods and Services Tax Appellate Tribunal (GSTAT) has recommended that appellants should not be required to file certified copies of orders that are already uploaded on the common GST portal. The proposal forms part of a wider set of suggested changes to the GSTAT (Procedure) Rules, 2025. The recommendation was among several suggestions considered by the committee after examining representations received from trade bodies, bar associations, and industry...

Result Of Assessment Proceedings Has Bearing On Criminal Prosecution Under GST: Allahabad High Court

The Allahabad High Court on 20 May held that the outcome of assessment proceedings can have a material bearing on criminal prosecution under the Goods and Services Tax (GST) regime. Justice Vikram D. Chauhan granted bail to Shakib Qureshi and observed that, although criminal prosecution and assessment proceedings are independent, findings in assessment proceedings may affect a criminal case. He observed: “Although criminal prosecution is not barred and are independent proceedings. However,...

High Court Fare Approval Cannot Defeat GST Anti-Profiteering Mandate For Cinema Operators: GSTAT Delhi

The Delhi Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 27 May held that permission granted by State authorities or the Telangana High Court to collect proposed ticket fares cannot override the statutory obligation under Section 171 of the CGST Act to pass on the benefit of GST rate reduction to consumers through a commensurate reduction in prices. A Bench comprising Technical Member A. Venu Prasad dismissed the appeal filed by ASR Cinema LLP and affirmed the profiteering...

GST Registration Can Be Restored On Filing Pending Returns, Clearing Dues Under Rule 22(4): Gauhati HC

The Gauhati High Court on 1 June held that a taxpayer whose GST registration has been cancelled for non-filing of returns can seek restoration of registration by furnishing pending returns and clearing tax dues, interest, penalty and late fees in terms of the proviso to Rule 22(4) of the CGST Rules, 2017. A Bench of Justice Kardak Ete disposed of the petition filed by Md. Nekib Hussain, proprietor of Nekib Hussain, who challenged the cancellation of his GST registration and sought restoration...

Kerala High Court Quashes GST Notice Issued For Multiple Assessment Years Through Single Proceeding

On 1 June, the Kerala High Court held that the GST Department cannot issue a composite show-cause notice covering more than one assessment year, as such a notice is legally unsustainable and cannot form the basis of adjudication. Justice Ziyad Rahman A.A. quashed the show-cause notice and the consequential Order-in-Original issued against Malabar Trade Links, while granting liberty to the GST Department to initiate fresh proceedings in accordance with law. He held: “The Division Bench has...

Kerala HC Holds ISD Optional Before 2024 Amendment; Quashes ₹1.31 Cr. GST Demand Against Intertek

On 8 June, the Kerala High Court held that, prior to the Finance Act, 2024 amendment to the Central Goods and Services Tax Act, companies were not required to distribute input tax credit (ITC) among distinct units through the Input Service Distributor (ISD) mechanism. Justice Ziyad Rahman A.A. allowed a writ petition filed by Intertek India Pvt. Ltd. and quashed an order passed under Section 74 of the CGST Act that demanded over Rs.1.31 crore in GST and penalty on allegations of fraud,...

Uttarakhand HC Quashes GST Demand, Says Portal-Only Service Invalid After Registration Cancellation

The Uttarakhand High Court has reiterated that where a taxpayer's GST registration has already been cancelled, service of a Show Cause Notice and adjudication order solely through the GST portal cannot be treated as valid service under the GST law. A division bench comprising Chief Justice Manoj Kumar Gupta and Justice Subhash Upadhyay held that once registration stands cancelled, a taxpayer cannot be expected to continuously monitor the GST portal for notices and orders. Referring to the...