GST
IGST Not Leviable On Clinical Observation Studies Provided To Foreign Recipients: Karnataka High Court
The Karnataka High Court held that IGST (Integrated Goods and Services Tax) is not leviable on clinic observation studies for foreign recipients, as such services qualify as export of services with the recipient located outside India. Justice S.R. Krishna Kumar stated that having regard to the specific observations made in the 37th GST Council Meeting, whereby it was resolved to clarify the tax liability in GST liability in relation to foreign recipients for R & D services...
Punjab & Haryana High Court Bars 'Negative Blocking' Of ITC Beyond Available Credit Under Rule 86A CGST Rules
The High Court of Punjab and Haryana has held that tax authorities cannot block a taxpayer's Electronic Credit Ledger (ECL) beyond the Input Tax Credit (ITC) actually available at the time of action, and that creating a negative ITC balance under Rule 86A of the CGST Rules, 2017 is without jurisdiction. A Division Bench of Justice Lisa Gill and Justice Parmod Goyal was hearing a writ petition filed by M/s Garg Furnace Limited, which challenged the blocking of its ECL on 01.10.2025...
GST | Calcutta High Court Quashes Excess ITC Demand Pertaining To Initial Years Of GST Rollout
The Calcutta High Court has quashed the order passed by Appellate Authority dismissing appeal against Section 73 demand, preliminary, “without appreciating the worth of the documents”. Justice Om Narayan Rai observed that there was 'total non-consideration of material on record' upon tracing through the paper book as well as relevant documents annexed to the writ petition which were also placed on record before the Appellate Authority (AA). For the period April 2018 to March 2019,...
GST | Stereo System In E-Rickshaw An Input, Calcutta High Court Grants Refund To Manufacturer
The Calcutta High Court, in a matter concerning admissibility of Input Tax Credit (ITC) for purchase of 'stereo system' to be used in E-rickshaw, has granted Refund claim of Unutilized Input Tax Credit under inverted duty structure amounting to approximately ₹8 lakhs. The Calcutta High Court was called-upon to decide whether "Stereo System" was an input/ raw material in manufacturing of E-rickshaw covered by HSN-87031090. Also, whether ITC involved in purchase of "stereo system" would...
GST Refund Claim Cannot Be Rejected Unless Mandatory Procedure Under Rule 92(3) CGST Rules Is Followed: Jharkhand High Court
The High Court of Jharkhand has set aside GST refund rejection orders passed against Carbon Resources Private Limited, holding that the tax department violated mandatory procedure and principles of natural justice while rejecting the refund claim. A Division Bench comprising Chief Justice Tarlok Singh Chauhan and Justice Rajesh Shankar was hearing two writ petitions challenging a refund rejection order and a subsequent rectification order passed by the Assistant Commissioner, Central...
Once GST Appeal Is Filed On Portal, No Mandatory Requirement To File Hard Copy Or Certified Copy Of Order: J&K&L High Court
The Jammu & Kashmir and Ladakh High Court held that once a GST appeal is filed electronically within the statutory period along with the uploaded order, there is no requirement to file a hard copy or certified copy of the order. Justices Sindhu Sharma and Shahzad Azeem stated that the appeal was filed online within statutory period along with the copy of order and therefore, there was no requirement of filing the hard copy of the same. Therefore, its rejection on the ground of not...
Delhi High Court Allows Use Of Transitional CENVAT Credit For Mandatory Pre-Deposit Before CESTAT
The Delhi High Court, in a 'rare' scenario where an appeal was sought to be admitted before the CESTAT on the strength of pre-deposit made using through DRC-03, has clarified that pre-deposit was partial component of the demand just as tax, interest and penalty. In a recent judgment dated December 22, 2025, the Delhi High Court dealt with whether CENVAT credit transitioned into the GST regime as on July 01, 2017 could be utilised for the purpose of making pre-deposit or not. A ...
Delhi High Court Grants Bail To Accountant Accused Of Running Fake Firms, Passing Fraudulent ITC On ₹5 Lakh Bond
The Delhi High Court on Friday, December 26 2025 has granted bail to an Accountant allegedly involved in running fictitious firms and passing on fraudulent Input Tax Credit (ITC) upon furnishing a bond of Rs. 5,00,000. A Vacation Bench of Justice Vikas Mahajan found this a fit case for regular bail noting 'no previous involvements' with co-accused already released on bail in 2024 in Bail Application No. 1968/2024. Further, from the status report the Delhi High Court inferred that the...
Penalty U/S 45A KGST Act Cannot Be Initiated Beyond 'Reasonable Time' Despite No Prescribed Limitation Period: Kerala High Court
The Kerala High Court held that even though Section 45A of the Kerala General Sales Tax Act, 1963 (KGST Act) does not prescribe any limitation period, penalty proceedings must be initiated within a reasonable time. Justices A. Muhamed Mustaque and Harisankar V. Menon stated that since the notice was issued with reference to the assessment year 2011-12, the period of five years had come to an end on 31.03.2017. The notice was issued admittedly only on 20.12.2018. The above notice is...
GST | Mismatch In E-Way Bill Destination Is Substantive Violation, Not Bonafide Error: Madhya Pradesh High Court
The Madhya Pradesh High Court, in a matter where Invoices and Consignment Note mentioned the correct destination address, but E-way Bill mentioned another address, has dismissed the writ petition. In a recent order, a Division Bench comprising Justice Vivek Rusia and Justice Pradeep Mittal emphasized on how during transportation of the goods 'no steps' were taken to correct the mistake in E-way Bill. This indicated mens rea, the High Court opined. It observed that mentioning of Indore...
Benefit Of S.14 Limitation Act Applies To Appeals U/S 107 GST Act Where Rectification Application Is Filed Within Time: Allahabad High Court
The Allahabad High Court has held that the benefit of Section 14 of the Limitation Act can be granted to a party for filing appeal under Section 107 of the Goods and Service Tax Act where a rectification application under Section 161 of the GST Act was filed within time. Limitation for filing appeal under Section 107 of the GST Act is 3 months from the date of the order with a grace period of one month which may be condoned by the appellate authority if he is satisfied that the...
Information Technology Act Provisions Regarding Service Of Notice Inapplicable To Service Under GST Act: Allahabad High Court
In a landmark judgment, the Allahabad High Court has held that the provisions of Information Technology Act regarding dispatch and receipt of service are not applicable to service made under Section 169 of the Goods and Service Tax Act, 2017. The six modes of service provided under Section 169(1) of the State/Central GST Act are: (a) tendering directly or by messenger; (b) dispatch by speed post, etc. with acknowledgement due; (c) sending communication by email; (d) by making available...