Subway Franchise Raised Base Prices On GST Cut Day, GSTAT Upholds ₹13.32 Lakh Profiteering Against Pune Outlet

Holding that the franchisee increased base prices on the very date the GST rate on restaurant services was reduced from 18 per cent to 5 per cent, the GST Appellate Tribunal at Delhi has upheld findings that a Pune-based Subway outlet at Amanora Mall profiteered ₹13,32,322 by neutralising the tax benefit meant for consumers. “The Respondent's action of increasing the base price on the very same date on which the notification reducing rate of tax came into force indicates that Respondent has...

Gujarat High Court Quashes ₹98 Lakh GST SCN, Says Construction ITC Bar Not Applicable To Leasehold Rights Transfer

The Gujarat High Court has held that Section 17(5)(d) of the Central Goods and Services Tax Act, 2017, which blocks input tax credit on goods or services used for construction of immovable property on one's own account, did not apply in a case where the taxpayer had only transferred leasehold rights and had undertaken no construction activity. A Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi quashed a show cause notice issued under Section 74(1) of the Act and directed the...

Waiver Under Maharashtra Settlement Of Arrears Of Tax Act Available Only On Disputed Tax: Bombay High Court

The Bombay High Court at Aurangabad has recently held that under the First Phase of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2019, one hundred percent of undisputed tax must be paid and no waiver is available on such amount, dismissing a writ petition filed by a sugar manufacturing co-operative. A Division Bench of Justice Vibha Kankanwadi and Justice Hiten S. Venegavkar held, “for undisputed tax, amount to be paid is 100% of the amount in column B i.e....

Bombay High Court Continues Stay On GST Notice Over 1/3rd Land Deduction Amid Pending Proceedings

Bombay High Court questions jurisdiction of GST authorities to issue show cause notice based on Notification 11/2017, stays further action in light of Gujarat and Delhi High Court rulings on 1/3rd land deduction.

GST Authorities Cannot Enforce IGST Demand Against SREI Finance During Moratorium: Delhi High Court

The Delhi High Court on 12 February held that Goods and Services Tax (GST) authorities cannot pursue coercive recovery of tax dues against a corporate debtor during the moratorium under the Insolvency and Bankruptcy Code (IBC). A Bench of Justice Nitin Wasudeo Sambre and Justice Ajay Digpaul, set aside a demand of Rs. 67.5 lakh of Integrated Goods and Services Tax (IGST), including a penalty of 100% of the tax demand, raised on SREI Equipment Finance Limited (SEFL), observing that the GST...

Kerala High Court Quashes Composite GST Notices Issued to Actor Honey Rose

The Kerala High Court on Monday refused to set aside composite GST show cause notices and assessment orders issued to actor Honey Rose Varghese and several other taxpayers, holding that it was bound by earlier Division Bench rulings requiring separate proceedings for each assessment year. Allowing the batch of petitions, Justice Ziyad Rahman A.A. observed that there was no stay on the earlier orders of the court and was therefore bound by it. “In this case, evidently, no stay is also obtained...

GST Appeal Cannot Be Entertained Beyond Statutory Limit Of 120 Days: Gujarat High Court

The Gujarat High Court has held that delay in filing an appeal against cancellation of GST registration cannot be condoned beyond the statutory maximum period of 120 days (3+1 months) prescribed under Section 107 of the CGST Act. A Bench of Justice A.S. Supehia and Justice Pranav Trivedi, in a judgment dated 22 January 2026, dismissed a writ petition filed by Rajesh Industries, a proprietorship firm, holding that writ jurisdiction under Article 226 cannot be invoked to override...

Supreme Court Grants Bail In Alleged Online Investment Fraud Case

The Supreme Court on Monday granted bail to Paramjit Kharb in a case arising out of an alleged online investment fraud involving the use of bank accounts opened in the name of “R.S. Trading,” holding that “the case for bail is made out.” A Bench of Justice B.V. Nagarathna and Justice Ujjal Bhuyan allowed the appeal challenging the Delhi High Court's order refusing regular bail. The Court observed, “Considering the facts on record, in our view, the case for bail is made out,” and directed that...

GST Knowledge Series: Questions and Answers On GST For Transportation Of Goods By Road [Part 2]

The service of transportation of goods by Road is one major expense incurred by any manufacturer/trader for their inward/outward supply of goods. Such transactions are always subject to scrutiny by GST department due to the lack of compliance owing to divergent practices. To bring clarity, the following important issues are addressed in Part-2 of the Series7. What is rate of tax on transportation of household items?Answer: If the transportation services of household items are provided to an ...

First Appeal Pre-Deposit Sufficient: Jharkhand High Court Permits GSTAT Appeal Without Additional Deposit

The Jharkhand High Court has permitted Ranchi-based manufacturer Ashirwad Food Industries to file an appeal before the GST Appellate Tribunal without making any additional pre-deposit, noting that ₹23.85 lakh had already been deposited at the first appellate stage. A Division Bench of Chief Justice M.S. Sonak and Justice Rajesh Shankar found “substance in the contention” of the petitioner and held: “Considering the deposit of Rs.23.85 lakhs already made at the first appellate stage, we agree...

Madras High Court Orders Adjudication Of GST On Royalty Paid To State, Bars Implementation Till Supreme Court Ruling

The Madras High Court has directed GST authorities to adjudicate a show cause notice proposing to levy GST on seigniorage/royalty fee payable to the Government of Tamil Nadu but ordered that implementation of the assessment order shall remain in abeyance until the Supreme Court decides the issue. Justice C. Saravanan was hearing a petition challenging Show Cause Notice dated September 29, 2025. The notice proposes to levy GST on seigniorage/royalty fee payable to the State. The court noted...

Composite GST Show Cause Notices For Multiple Financial Years Maintainable: Allahabad High Court

The Allahabad High Court has recently held that a composite show cause notice issued under Sections 73 and 74 of the GST Act covering multiple financial years is legally maintainable, rejecting the contention that adjudication proceedings must be confined to a single “tax period” or financial year. A Bench of Justice Saumitra Dayal Singh and Justice Indrajeet Shukla ruled that the statutory scheme expressly permits the Proper Officer to issue statements for periods beyond those mentioned in the...