GST
Karnataka High Court Quashes Rs 85.51 Crore IGST Demand On Salaries Paid To Foreign Nationals By Huawei India
The Karnataka High Court has recently quashed a show cause notice issued to Huawei Technologies India Private Limited demanding Rs. 85.51 crore in Integrated Goods and Services Tax (IGST), along with interest and penalty, on salaries paid to foreign national employees. Justice S R Krishna Kumar held that this was not a case of secondment at all, but one where Huawei India had a direct employer-employee relationship with the foreign nationals working for it. The Court made it clear that once...
Bombay High Court Restores Trader's GST Registration After Defective 'Cyclostyled Notice'
The Kolhapur Bench of the Bombay High Court recently restored the cancelled GST registration of a trader, observing that the grounds cited in the show‑cause notice and those relied upon in the cancellation order were materially different. A Bench of Justice R.G. Avachat and Justice Ajit B. Kadethankar examined the effect of retrospective cancellation of GST registration and emphasised the need to issue a reasoned notice rather than a generic, template-based communication. The Bench observed: ...
CPC Summons Procedure Not Applicable to GST Inquiry; No 7-Day Notice Required: Bombay High Court
Interpreting Section 70 of the Central Goods and Services Tax Act, 2017, the Bombay High Court has held that the civil court summons procedure under the Code of Civil Procedure cannot be read into GST investigations and that tax authorities are not required to give seven days' prior notice before summoning a person for inquiry.A Division Bench of Justices Sandipkumar C. More and Y.G. Khobragade at the Aurangabad Bench dismissed the Criminal Writ Petition filed by Kanhaiya Nilambar Jha, who...
No Separate GST On Chemicals Supplied Under Mud Engineering Contracts: Andhra Pradesh High Court
The Andhra Pradesh High Court has recently held that GST cannot be levied separately on mud engineering services and the supply of drilling chemicals, ruling that such contracts constitute a composite supply under the Goods and Services Tax law. A Division Bench comprising Justice R Raghunandan Rao and Justice T.C.D. Sekhar allowed a writ petition filed by Halliburton Offshore Services Inc., setting aside orders passed by the Authority for Advance Ruling and the Appellate Authority for Advance...
Supreme Court Reverses 'Alien Modality' Of Refunding IGST To Torrent Power, Orders Credit To Consumer Welfare Fund
The Supreme Court has set aside the Gujarat High Court's judgment that had quashed the transfer of ₹19.28 crore in GST refunds to the Consumer Welfare Fund and directed that the amount be refunded to Torrent Power Ltd. for adjustment in electricity tariff. Holding that such a mechanism was “not contemplated by Section 54 of the CGST Act and the Rules framed therein,” a Bench of Justice Sanjay Kumar and Justice K. Vinod Chandran directed the company to transfer the amount to the authorities...
GST Show Cause Notices Can Be Issued On Monthly Returns Without Waiting For Annual Return: Madras High Court
The Madras High Court recently ruled that a show cause notice under Section 74A of the GST law can be validly issued for F.Y. 2024-25 on the basis of discrepancies noticed in monthly returns, without awaiting the filing of the annual return.Section 74A of the GST Act, applicable from FY 2024-25 onwards, governs the determination of tax not paid or short paid or input tax credit wrongly availed or utilised.Referring to Section 74A(1) to 74A(4) of the GST Act, the bench clarified that "the...
No GST Dues Pending For Release To States, Centre's Response Informs Lok Sabha
In a written response to the Lok Sabha, Minister of State for Finance Shri Pankaj Chaudhary clarified that the government has released Rs. 2,01,195 crore of GST compensation to States and Union Territories for the period 1 July 2017 to 30 June 2022. He further confirmed that no GST dues are currently pending for release to the States, except for Arunachal Pradesh and Manipur, where final payments remain on hold due to the non-receipt of the required Accountant General (AG) certificates. The...
Affiliation Fees Collected By Universities Liable To GST: Madras High Court
On Wednesday, the Madras High Court held that affiliation fees collected by universities from affiliated colleges are liable to GST and are not exempt under Notification No. 12/2017-Central Tax (Rate). A Division Bench of Justice G. Jayachandran and Justice K.K. Ramakrishnan delivered the ruling. The judges were hearing a writ petition filed by Bharathidasan University, challenging the GST demand notices issued for the assessment years 2019-2020 to 2022-23. They held: "In India, there are...
GST | Supreme Court Declines To Interfere With Delhi HC Refusal To Exercise Writ Jurisdiction In Fraudulent ITC Case
The Supreme Court has recently declined to interfere with a Delhi High Court order declining to entertain writ petitions challenging show cause notices alleging fraudulent availment of Input Tax Credit (ITC), holding that no good ground was made out for intervention under Article 136 of the Constitution. In an order dated January 30, 2026, a bench of Justice Manoj Misra and Justice Manmohan dismissed the special leave petitions arising from the Delhi High Court's judgment of December 5, 2025,...
Bombay High Court Urges SOP To Stop GST, MVAT Notices Against Properties With Prior CERSAI-Registered Security Interest
Observing that such petitions are being filed “in large numbers”, the Bombay High Court has advised State tax departments to frame a Standard Operating Procedure (SOP) to prevent issuance of demand notices where banks already have prior CERSAI registration of their security interests. A Division Bench of Justices Manish Pitale and Shreeram V. Shirsat made the observation while allowing two writ petitions filed by Bharat Co-operative Bank Mumbai Ltd challenging GST and MVAT demand notices, a...