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Recent developments in goods and services tax

World Bank keeps India growth forecast at 6.3% while tax authority issues new compliance advisories
The World Bank maintained India's economic growth forecast at 6.3% for FY 2025-26, while other agencies revised projections downward. In May 2025, 12.26 crore e-way bills were generated, indicating robust economic activity. The tax authority clarified that Document Identification Numbers are not required for communications from the common portal already bearing Reference Numbers, avoiding duplication. The portal will bar filing of returns after three years from July 2025. New advisories addressed auto-populated liability in monthly returns becoming non-editable from July 2025, refund application procedures for quarterly taxpayers, and technical guidance for amnesty scheme applications under the tax law.

Written by Dr. sanjiv agarwal

19 Jun 2025

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Application for revocation of gst registration cancellation to be decided within one month

GST registration revocation application must be decided within one month, ensuring timely resolution of disputes
The Delhi High Court directed that an application for revocation of GST registration cancellation must be decided within one month. A company's GST registration was retrospectively cancelled from July 2017 based on suspicious transactions with another entity. The company filed a writ petition challenging the cancellation order and sought expeditious disposal of their revocation application. The court noted no objection from tax authorities to the request for early disposal and mandated that the revocation application be decided within one month, with the decision communicated to the applicant, ensuring timely resolution of GST registration disputes.

Written by Bimal jain

19 Jun 2025

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High court granted interim stay on adjudication order involving levy of gst on transfer of leasehold rights

GST stay granted on leasehold rights transfer after company argues immovable property exemption applies
The High Court of Bombay granted an interim stay on an adjudication order requiring GST payment on transfer of leasehold rights. The petitioner company challenged the revenue department's determination that GST was applicable on assignment of leasehold rights of industrial plots and buildings to a third party. The company argued this constituted an immovable property transaction, not a taxable service supply. The court relied on precedent from Gujarat High Court ruling that such assignments involve immovable property benefits and fall outside GST scope under relevant statutory provisions. The court stayed the impugned order pending final hearing, following similar relief granted in connected cases involving identical legal issues.

Written by Bimal jain

19 Jun 2025

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Gstat procedure rules – part 5

GST Appellate Tribunal Procedure Rules 2025 Establish Comprehensive Case Management and Efficient Judicial Process
The Central Government notified the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025, effective from 24.04.2025. The rules outline procedures for preparing daily cause lists, case prioritization, and service of notices. Key provisions include specifying case listing priorities, communication methods, and allowing flexible notice service when standard methods are challenging. The rules govern appellate tribunal proceedings and ensure systematic case management.

Written by Dr. sanjiv agarwal

18 Jun 2025

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Invocation of writ jurisdiction restricted by delhi hc when allegation raised regarding fraudulent availment of itc

Fraudulent Tax Credit Claims Denied: Legal Recourse Limited When Evidence Points to Systemic Manipulation Under Rule 86A
The Delhi High Court restricted writ jurisdiction in a case involving alleged fraudulent Input Tax Credit (ITC) availment. The court dismissed the petition filed by a company challenging a tax order, noting discrepancies in the company's statements and highlighting the potential systemic damage from fraudulent ITC claims. The court emphasized that writ jurisdiction should not be invoked when there are no natural justice violations and the petitioner lacks clean hands.

Written by Bimal jain

18 Jun 2025

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Rethinking royalty in customs valuation - lessons from the owens corning cestat ruling

Royalty Payments in Import Valuation: Direct Link Required for Transaction Value Calculation Under Customs Rules
A legal analysis of a customs valuation case involving royalty payments reveals that running royalty linked to domestic sales cannot automatically be added to imported goods' transaction value. The judicial ruling established that royalty must directly relate to imported goods and be a specific condition of sale. The decision aligns with international customs valuation standards, providing clarity for technology licensing and cross-border sourcing arrangements by emphasizing strict interpretative principles for assessing royalty inclusions.

Written by Drjoshua ebenezer

18 Jun 2025

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Recovery order passed is not valid when return has been filed post issuance of order under section 62

Legal Victory: GST Return Filed Within 30 Days Nullifies Assessment Order and Stops Unlawful Recovery Proceedings Under Section 62
The Patna High Court set aside a recovery order when a taxpayer filed a GST return within 30 days of an assessment order under Section 62 of the CGST Act. The court held that once a valid return is filed, the assessment order is legally deemed withdrawn, rendering subsequent recovery proceedings unlawful. The court also criticized the dismissal of the appeal on technical grounds and issued a notice to the tax official to explain the improper actions.

Written by Bimal jain

18 Jun 2025

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A concise overview of ucp 600 and isbp 745.

Navigating Global Trade Finance: UCP 600 and ISBP 745 Streamline International Credit Transactions and Standardize Banking Practices
A concise overview of international trade finance regulations focusing on Letters of Credit (LCs). UCP 600 provides standardized rules published by the International Chamber of Commerce governing documentary credits, defining bank responsibilities and document examination standards. ISBP 745 serves as a complementary practical guide, offering detailed interpretations for document checking, aimed at reducing discrepancies and ensuring consistency in international trade transactions.

Written by Yagay andsun

18 Jun 2025

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Is gst an over-regulated law? a constitutional examination of itc provisions

Challenging GST Input Tax Credit Rules: Balancing Regulatory Compliance with Constitutional Trade Freedoms Under Article 19(1)(g)
Legal Analysis Summary:The article critically examines the constitutional validity of GST's Input Tax Credit (ITC) provisions through the lens of Article 19(1)(g), which guarantees the right to trade. It analyzes Supreme Court precedents to assess whether GST regulations impose reasonable restrictions. The analysis suggests that while GST aims to prevent tax evasion, its complex compliance framework potentially oversteps constitutional boundaries by creating disproportionate procedural barriers for businesses. The key concern is whether the regulatory approach balances legitimate government interests with fundamental trade rights.

Written by Abhishek raja

17 Jun 2025

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Railway claims tribunal

Specialized Tribunal Streamlines Railway Compensation Claims with Efficient Dispute Resolution Mechanism Under RCT Act 1987
The Railway Claims Tribunal (RCT) is a specialized legal forum established under the Railway Claims Tribunal Act of 1987 to expedite compensation claims related to railway accidents, goods damage, fare refunds, and passenger injuries. With multiple benches across India, the tribunal provides a faster alternative to traditional court proceedings. It comprises judicial and technical members, offers territorial jurisdiction for filing claims, and has specific procedures for claim applications, document submission, hearings, and appeals to high courts within 90 days of an order.

Written by Dr.mariappan govindarajan

17 Jun 2025

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Refund of itc in gst permissible in case of discontinuation of business

Manufacturer Wins ITC Refund Claim After Business Closure, Challenging Tax Authority's Restrictive Interpretation of Credit Rules
A manufacturing company sought refund of unutilized Input Tax Credit (ITC) after discontinuing business operations in Sikkim. The tax authorities initially rejected the refund claim. The Sikkim High Court ruled that there is no express legal prohibition against refunding ITC upon business closure. The court emphasized that the statute does not authorize tax retention without legal backing and allowed the refund of accumulated ITC, setting aside the previous rejection order.

Written by Bimal jain

17 Jun 2025

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Madras high court on section 168a of cgst act

GST Council's Post Facto Time Limit Extension Invalidated, Challenging Pandemic-Era Regulatory Compliance Mechanisms Under Section 168A
A legal challenge was raised against Section 168A of the CGST Act regarding time limit extensions during force majeure situations. The Madras High Court ruled that post facto approval from the GST Council is invalid, striking down a notification extending time limits for financial years 2018/19 and 2019/2020. This decision could impact show cause notices and potentially invalidate certain time extensions previously implemented during the COVID-19 pandemic.

Written by K balasubramanian

17 Jun 2025

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Types of discrepancies in letter of credit (lc), their consequences, and how to avoid them.

International Trade Alert: Navigating Letter of Credit Discrepancies to Prevent Payment Rejection and Ensure Smooth Global Transactions
In international trade, Letters of Credit (LCs) involve three primary discrepancy types: fundamental, technical, and common. Fundamental discrepancies include major violations like late shipments or incorrect goods descriptions, potentially causing payment rejection. Technical discrepancies involve documentary errors such as missing signatures or formatting issues. Common discrepancies encompass spelling mistakes or incomplete documentation. Proper preparation, thorough document review, and understanding LC requirements can mitigate risks and ensure smooth transactions.

Written by Yagay andsun

17 Jun 2025

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Gst registration cannot be cancelled mechanically without taking into consideration the points in reply, statements and evidence recorded during verification

Business Entity Wins GST Registration Challenge, Highlighting Procedural Fairness and Need for Substantive Reasoning in Administrative Decisions
A business entity challenged the cancellation of its GST registration after a premises survey revealed discrepancies. The Allahabad High Court ruled that registration cannot be cancelled mechanically without considering the entity's reply, statements, and evidence. The court found the cancellation order lacked substantive reasoning, noting the business showed signs of activity and no proper notice was provided. The case was remanded for reconsideration with a reasoned order.

Written by Bimal jain

16 Jun 2025

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Facing a penalty for tax evasion? judicial relief for minor e-way bill discrepancies

Minor E-Way Bill Errors Don't Warrant Penalties: GST Taxpayers Protected from Punitive Actions Without Proven Tax Evasion Intent
A recent legal analysis highlights judicial relief for taxpayers facing penalties under GST for minor e-way bill discrepancies. The Allahabad High Court consistently ruled that penalties require evidence of tax evasion intent. Courts quashed penalty orders for unintentional errors like typographical mistakes, incorrect vehicle numbers, and invoice discrepancies, emphasizing that technical errors without deliberate tax evasion should not attract punitive measures.

Written by Abhishek raja

16 Jun 2025

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Hc directs timely conclusion of scn proceedings for gst registration cancellation as prolonged suspension of gst registration without conclusion of scn proceedings violates business rights

Timely Resolution of GST Registration Cancellation Proceedings Mandated to Protect Business Interests and Ensure Fair Hearing
The Delhi High Court directed timely conclusion of show cause notice (SCN) proceedings for GST registration cancellation. The court emphasized that prolonged suspension of GST registration without concluding SCN proceedings violates business rights. It mandated completing proceedings within 45 days, granting a personal hearing, and noted that registration cancellation can completely halt business operations.

Written by Bimal jain

16 Jun 2025

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Applicability of corporate governance provisions to a listed company

Corporate Governance Penalty Overturned: Company Wins Exemption Dispute Through Precise Regulatory Interpretation
A listed company challenged a penalty for non-compliance with corporate governance provisions. The Securities Appellate Tribunal analyzed Regulation 15(2) of LODR, which provides exemption for entities with paid-up equity share capital not exceeding Rs.10 crores and net worth not exceeding Rs.25 crores. Despite the company's net worth exceeding Rs.25 crores, the Tribunal ruled in favor of the company, finding the penalty unsustainable and directing its refund, based on a strict interpretation of the regulatory conditions.

Written by Dr.mariappan govindarajan

16 Jun 2025

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Country risk rating - oecd and ecgc.

Country Risk Ratings Decoded: How OECD and ECGC Assess Global Investment and Export Risks Across Nations
Concise Summary:The article discusses country risk ratings by OECD and ECGC, which evaluate investment and export risks for different countries. Both organizations classify countries based on political, economic, and payment factors using distinct rating scales. OECD uses a 0-7 scale focusing on global export credit risks, while ECGC provides India-specific ratings from A1 to D, helping exporters assess potential risks and determine insurance coverage and premium rates for international transactions.

Written by Yagay andsun

16 Jun 2025

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Legal analysis of notification no. 21/2025-customs (n.t.) dated 3rd april 2025 — export entry (post export conversion in relation to instrument based scheme) regulations, 2025

Exporters Gain Flexible Post-Export Entry Modification Rights Under New Customs Notification Guidelines
Legal analysis of customs notification regarding post-export conversion of export entries under instrument-based incentive schemes. The regulations establish a comprehensive framework for amending export declarations within one year of export, with potential extensions. Key conditions include scheme compliance, non-duplication of benefits, and absence of ongoing investigations. The framework aims to balance trade facilitation with regulatory oversight, providing clear procedural guidelines for exporters seeking to modify export entries under specific incentive schemes.

Written by Yagay andsun

16 Jun 2025

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Legal analysis and significance of notification no. 29/2025-customs dated 9th may 2025. (seeks to exempt works of art and antiques from basic customs duty).

Cultural Artifacts Gain Duty-Free Import Status Under New Rules Promoting Heritage Preservation and Public Exhibition
A government notification exempts customs duty on specific art and cultural artifacts intended for public exhibition in museums and galleries. The exemption applies to works of art, memorial artworks, and antiquities, subject to strict conditions. Importers must obtain certification, submit undertakings, and ensure public accessibility. The policy aims to promote cultural exchange, preserve heritage, and prevent commercial exploitation of imported cultural items.

Written by Yagay andsun

16 Jun 2025

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