Supreme Court Notice On GST Department Plea Against HC Order Quashing Arrest Over Failure To Serve Grounds

The Supreme Court on Thursday issued notice on the GST Department's plea challenging an Allahabad High Court order that set aside the remand of a person arrested under the Central Goods and Services Tax Act, 2017. The High Court had found that the grounds of arrest were not shown to have been served before his production before the Magistrate. The High Court also found that the arrest memo did not mention any annexure containing the grounds of arrest. The court relied on the January 13, 2025...

Order Authorising Arrest Under GST Law Must Be Communicated Before Arrest: Supreme Court

The Supreme Court on Wednesday ruled that an order authorising arrest under the GST law must be communicated to the person concerned before the authorities proceed with the arrest.“To ensure that anyone who is facing the apprehension of arrest is not left in a position of irreparable damage, we have said that Section 69 [CGST Act] order has to be communicated,” a bench of Justices Dipankar Datta and Sheel Nagu held.The court made the observation while setting aside a Bombay High Court...

Rule 96(10) CGST Rules | Supreme Court Says Deleted Restriction On IGST Refunds Cannot Apply To Claims Pending On Omission

The Supreme Court has ruled in favour of exporters seeking refunds of integrated tax paid on exports, holding that a restriction that had earlier prevented some of them from claiming such refunds cannot be applied to their cases if the refund proceedings were pending when the restriction was removed.The restriction was contained in Rule 96(10) of the Central Goods and Services Tax Rules, 2017. Before it was omitted on October 8, 2024, the rule restricted refunds of integrated tax paid on exports...

ITC Can Be Denied To Buyer If Supplier Fails To Pay Tax: Supreme Court Upholds S.16(2)(c) Of CGST Act

The Supreme Court has recently upheld the Gujarat High Court's judgment sustaining the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017. In doing so, it affirmed that a registered purchaser cannot claim Input Tax Credit (ITC) unless the supplier has actually paid the tax charged on the underlying supply to the government.Upholding the High Court's judgment, the court observed, "High Court was fully justified in holding that no grounds were made out to...

Supreme Court Directs FanMade11, 9Stacks To Pursue GST Appeal Instead Of Writ Petitions

The Supreme Court has disposed of writ petitions filed by two online gaming companies, FanMade11 Fantasy Sports Private Limited and 9Stacks, challenging GST proceedings against them. A bench of Justice J.B. Pardiwala and Justice K. Vinod Chandran heard both pleas. The court directed both companies to pursue the statutory remedies available under the GST law instead of invoking its writ jurisdiction. In the matter involving 9Stacks, the court held that since a final assessment order had...

Future Group GST Case: Supreme Court Questions Bombay HC's Power To Grant Sunil Biyani 7-Day Protection From Arrest

The Supreme Court on Wednesday reserved its decision on the Union of India's appeal questioning whether the Bombay High Court could grant Future Group non-executive director Sunil Biyani one week's protection from arrest after holding that his anticipatory bail plea was premature. The High Court had directed that if GST authorities subsequently authorise Biyani's arrest in an alleged ₹1,200 crore GST fraud probe, he should not be arrested for one week from the date the arrest order is...

GST Is Levied On Actionable Claims Arising From Stakes, Not Dependent On Whether A Game Is Of Skill Or Chance: Supreme Court

The Supreme Court has recently held that GST liability on online gaming transactions does not depend on whether the underlying game is one of skill or chance, ruling that the levy is attracted by the supply of actionable claims arising from money staked on uncertain outcomes. A bench of Justices J.B. Pardiwala and R. Mahadevan said the taxable event under the GST framework is the supply of actionable claims generated by staking money on uncertain outcomes and not the underlying game itself. The...

Supreme Court Upholds 28% GST On Online Money Gaming, Fantasy Sports; 2023 Amendments Retrospective

The Supreme Court on Wednesday upheld the constitutional validity of the GST framework taxing online gaming, fantasy sports, and casino transactions involving staking on uncertain outcomes, affirming the 28% levy applicable to such taxable actionable claims. It also held that the 2023 GST amendments, which specifically brought online money gaming, casinos, and horse racing within the revised tax framework, are merely clarificatory and therefore apply retrospectively.A bench of Justices J.B....

Supreme Court Upholds Tamil Nadu, Karnataka Online Betting Laws; Skill Game Betting Not Protected

The Supreme Court on Wednesday upheld the constitutional validity of the Tamil Nadu and Karnataka laws regulating and prohibiting online betting and wagering, while setting aside the Madras High Court and Karnataka High Court judgments that had struck down portions of the legislation.A bench of Justices J. B. Pardiwala and R. Mahadevan was hearing appeals arising from challenges to the Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021 and the Karnataka Police (Amendment) Act, 2021. The...

Supreme Court Grants Bail To Future Maker Directors In Rs 54.77 Crore Service Tax Evasion Case

The Supreme Court on Monday granted bail to Radhey Shyam and another senior official of Future Maker Life Care Pvt Ltd in a Rs 54.77 crore service tax evasion case. The case arises from allegations that the multi-level direct marketing company failed to discharge its statutory tax liabilities. A Bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi held that continued custody of the petitioners would serve no useful purpose in the tax case. The Court noted that assets worth...

Supreme Court Stays ₹400 Crore GST Demand Proceedings Against Kubera Fantasy, Awaits Gameskraft Ruling

The Supreme Court on Friday stayed further proceedings arising out of a nearly ₹400 crore GST demand raised by the Directorate General of GST Intelligence (DGGI) against Kubera Fantasy Pvt Ltd over allegations that its online fantasy sports platform amounted to betting/actionable claims liable to 28% GST. A Bench of Chief Justice Surya Kant and Justice Joymalya Bagchi adjourned the matter to await the Supreme Court's decision in DGGI (HQS) v. Gameskraft Technologies Pvt. Ltd where the court is...

Supreme Court Seeks Revenue Explanation On Digitisation Of Missing GST Files In Bengal Cold Rollers Case

The Supreme Court has sought an explanation from the Revenue regarding the digitisation of 14 files seized in a GST investigation that are now stated to be missing in the case of Bengal Cold Rollers Pvt. Ltd.The taxpayer argued that the absence of the original files affected its ability to establish the genuineness of transactions in pending GST adjudication proceedings. A Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan noted the Revenue's stand that although the original physical...