Eight-Year Delay in GST Appellate Tribunal Operation Raises Litigation Costs and Burdens Taxpayers
The Goods and Services Tax Appellate Tribunal (GSTAT), envisioned as a specialized appellate body to resolve GST disputes, has faced an eight-year delay in becoming operational, forcing taxpayers to directly approach High Courts, resulting in increased litigation costs and judicial burden. Established under Article 323B of the Constitution and Sections 109-112 of the CGST Act, GSTAT aims to provide a three-tier dispute resolution mechanism, including adjudication, first appeal, and second appeal before GSTAT. Delays arose from legal challenges over tribunal composition, exclusion of advocates, and administrative hurdles. Recent procedural rules introduced digital filings, time-bound hearings, and capped pre-deposits to enhance efficiency. Despite the appointment of officials and notified rules, ongoing court cases have stalled full functionality, perpetuating uncertainty and hardship for taxpayers. The tribunal's effective constitution and operation remain critical to ensuring consistent, accessible, and timely GST dispute resolution in India. - (AI Summary)

Misuse of Section 129 CGST Act: Penalties for Minor E-Way Bill Errors Without Tax Evasion Intent Quashed
Section 129 of the CGST Act, 2017, intended to address serious tax evasion during goods transportation, is often misapplied for minor procedural errors, leading to undue penalties. Despite a CBIC circular dated 14/09/2018 prescribing leniency and a maximum penalty of Rs 1,000 for minor errors, tax authorities continue imposing heavy penalties. The Allahabad High Court, in a recent ruling, quashed a penalty imposed for a typographical error in an e-way bill, emphasizing that mens rea for tax evasion is essential for penalty imposition. The Court ordered refund of amounts paid with nominal interest and highlighted the illegality of penalizing minor mistakes without intent to evade tax. The article calls for greater adherence to the CBIC circular by tax officials and suggests the issuance of further guidance to prevent wrongful detention of goods and unnecessary litigation. Taxpayers are advised to ensure accurate documentation during transportation. - (AI Summary)

Entity Agrees to Settlement and Trading Ban Under Securities Rule, Court Orders Payment and Cooperation
An entity under investigation for securities violations applied for a consent order with the securities regulator, offering a settlement payment and agreeing to a trading ban. Although the regulator's advisory committee initially accepted the terms and the payment was made, the regulator later rejected the consent application due to pending court proceedings and objections from other market participants. The entity challenged this rejection in court, which granted interim relief and directed cooperation with adjudication proceedings. Subsequent penalties and trading restrictions were imposed by the regulator. The court ultimately ordered the entity to pay the settlement amount again, after which the regulator would issue the consent order, settling the regulatory proceedings without admitting wrongdoing. The consent order would not affect ongoing civil litigation concerning disputed funds, which would proceed independently. The regulatory penalties would be stayed upon issuance of the consent order, preserving the rights of all parties in related matters. - (AI Summary)

Rules for Certificates of Origin under FTAs: Compliance, Verification, and Penalties Explained
Free Trade Agreements (FTAs) reduce tariffs between countries, requiring a Certificate of Origin (COO) to verify goods' eligibility for preferential treatment. The COO must meet specific Rules of Origin, such as substantial transformation or local content thresholds, and be issued by authorized government agencies or chambers of commerce. Incorrect or expired COOs, misclassification, or insufficient value addition can lead to denial of benefits, penalties, or customs rejection. Importers must submit original COOs and supporting documents, while exporters must accurately self-certify origin and comply with FTA-specific rules. India's CAROTAR 2020 mandates origin verification and documentation retention, with customs empowered to investigate misdeclarations. Utilizing official e-COO portals and maintaining thorough records are strategic best practices to ensure compliance and avoid risks under various FTAs. - (AI Summary)

GST Council Meeting Delayed as Finance Ministry Prepares for Rate Reforms and Simplified Procedures
Parliament's monsoon session beginning July 21, 2025, delays the GST Council meeting, while the Ministry of Finance engages stakeholders to build consensus on GST rate reforms and procedural simplifications. Notices have been issued to gaming industry providers for alleged non-payment of GST on cashbacks, with the industry challenging the 28% rate in court. GST refunds increased significantly in Q1 of 2025-26. The GST Appellate Tribunal (GSTAT) is set to commence, with new member appointments underway. The GSTN portal now allows appeals against waiver order rejections under section 128A of the CGST Act, 2017, with caution advised as appeal withdrawals are not permitted. Security enhancements include notifications for taxpayer consent to data access by Application Suvidha Providers. Advisories address non-editable inter-state supply values in GSTR-3B from July 2025 and clarify erroneous GSTR-3A notices sent to cancelled composition taxpayers, advising affected taxpayers to ignore such notices or file grievances. - (AI Summary)

Importers Must Submit Detailed Questionnaires and Documents for Customs Valuation Under SVB Process
The Special Valuation Branch (SVB) process requires importers to submit a detailed questionnaire and supporting documents to Indian Customs for valuation verification. The questionnaire collects information on the importer, foreign supplier, relationship status, transaction details, pricing methods, and any additional payments or agreements such as royalties or technical fees. Submission must include documents like the importer's IEC, PAN, MOA/AOA, transfer pricing reports, invoices, financial statements, and relevant agreements. Importers must declare the accuracy of the information provided. The process ensures compliance with Customs Valuation Rules, particularly concerning related party transactions and transfer pricing. Tailored guidance is available based on the importer's industry, nature of goods, and business arrangements to facilitate accurate valuation and avoid disputes. - (AI Summary)

Special Valuation Branch Rules: Importers Must Submit Detailed Docs to Prevent Undervaluation Under Customs Law
Assessment under the Special Valuation Branch (SVB) of Indian Customs applies when imported goods involve related parties or transactions that may affect declared values, such as royalty payments or technical fees, to prevent undervaluation or transfer pricing manipulation. Importers must submit detailed documentation including a filled SVB questionnaire, declarations of relationship, agreements, transfer pricing reports, invoices, and financial statements. The documentation must be consistent and reflect arm's length pricing. Importers should declare relationships in import filings, cooperate during inquiries, and maintain records. SVB orders, valid for a specified period, must be referenced in future imports and may impose reporting conditions. The assessment typically takes three to six months, depending on case complexity and documentation completeness. Consulting experts and consolidating transfer pricing studies for multiple related vendors is advisable. - (AI Summary)

GST Rule 90(5) Allows Electronic Withdrawal of Refund Applications Before Sanction or Payment
Under the Central Goods and Services Tax Act and Rules, a registered taxpayer may claim a refund of excess tax or balance in the electronic cash ledger by filing an application electronically. The refund must be processed within 60 days if the application is complete. Previously, taxpayers could not withdraw refund applications once filed, but Rule 90(5) now permits withdrawal before issuance of any refund sanction, payment, or notice orders by submitting a withdrawal application electronically via FORM GST RFD-01W. Withdrawal is allowed only until the refund application receives an acknowledgment. Upon withdrawal, the debited ledger amount is restored, and the taxpayer may file a fresh refund application for the same or different periods. The GST portal provides a detailed procedure for withdrawal, including submission of reasons and supporting documents, and updates the application status to "Refund Application Withdrawn." - (AI Summary)

New GST Appellate Tribunal Rules 2025 Set Procedures for Appeals, Document Handling, and Witness Examination
The Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025, effective from April 24, 2025, establish procedures for appeals under GST. They govern discovery and production of documents, summoning procedures, and document marking, aligning largely with the Code of Civil Procedure, 1908. The Tribunal can suo motu summon public documents and requires applications for document production to specify relevance and prior attempts to obtain certified copies. Witness examination procedures, including oath administration, examination in camera, and recording of depositions, follow prescribed forms and standards. Witnesses are numbered sequentially, and allowances for travel and daily expenses are regulated. The Tribunal may issue discharge certificates to witnesses, and records necessary for commissions must be furnished to the Commissioner with proper acknowledgment. The Commissioner may also collect specimen handwriting, signatures, or fingerprints from witnesses when required. - (AI Summary)

Direct-to-consumer brands speed customs clearance using pre-uploaded docs, expert codes, and AEO status for faster processing
Certain direct-to-consumer brands expedite customs clearance by pre-uploading all required documents on electronic platforms before shipment arrival, ensuring no delays due to incomplete files. They avoid misclassification by thoroughly researching tariff codes and obtaining expert certifications, minimizing legal risks. These brands obtain Authorised Economic Operator status to benefit from faster clearance, duty deferrals, and priority processing. Maintaining a sufficient and reconciled electronic cash ledger prevents payment-related release issues. Additionally, they closely integrate customs clearing agents into their operations through training and collaboration, reducing errors and last-minute complications. This strategic planning and proactive approach enable significantly faster customs clearance compared to typical delays. - (AI Summary)

Passengers Must Declare Goods Using Customs Channels Under Customs Act, 1962 Section Rules
Passengers returning from abroad must declare goods through designated Customs Channels-Red for dutiable or restricted items, Green for no dutiable goods, and Orange for pre-declared goods-under the Customs Act, 1962 and related rules. Accurate declaration via a Customs Declaration Form, either electronically or manually, is mandatory for dutiable goods, followed by assessment and payment of duties. Non-declaration or false declaration constitutes an offense, attracting penalties including seizure, fines, prosecution, and recovery of duties with interest. Repeat violations may lead to increased scrutiny in future customs clearances. Compliance with these procedures is a legal obligation to avoid severe consequences and ensure smooth customs processing. - (AI Summary)

Understanding GST Structure, Rates, Registration, ITC, Returns, and Audit Requirements for Businesses in India
The article explains the Goods and Services Tax (GST) framework in India, highlighting its role as a unified indirect tax system replacing multiple prior taxes. GST is categorized into CGST, SGST, and IGST, depending on intra- or inter-state transactions. It outlines the four main GST rate slabs and the mandatory registration thresholds based on turnover and business type. The article emphasizes the importance of Input Tax Credit (ITC) for offsetting tax paid on inputs against output tax liabilities. It details the filing requirements for various GST returns and stresses timely compliance to avoid penalties. Businesses with turnovers exceeding Rs. 5 crores must undergo a GST audit to ensure accurate filings. The article advises maintaining proper records, reconciling returns, and staying updated on regulatory changes to optimize tax management and compliance under the GST regime. - (AI Summary)

GST Show Cause Notices Must Be Issued Separately for Each Financial Year Under Section 73
The Madras High Court ruled that under GST law, show cause notices (SCNs) must be issued strictly on a per financial year basis and cannot be clubbed to cover multiple financial years, even in audit cases where the department combines periods for convenience. Issuing a single SCN for more than one financial year is impermissible and such orders are liable to be quashed. The court emphasized that tax authorities must adhere to the statutory framework governing tax periods when issuing SCNs, whether based on monthly or annual returns. This judgment clarifies that taxpayers receiving SCNs spanning multiple financial years have grounds to challenge them through writ petitions, reinforcing compliance requirements for tax administrators and protecting taxpayer rights. - (AI Summary)

India's Legal Rules for Exporting Certified Organic Textiles Under NPOP, GOTS, and Customs Laws
India regulates the export of organic textiles through a comprehensive legal framework involving domestic laws, foreign trade policies, and international certification standards. Organic textiles must be certified by bodies accredited under the National Programme for Organic Production (NPOP) or recognized international standards such as GOTS or OCS. Exporters must register with the Directorate General of Foreign Trade, classify products correctly, obtain valid organic certification, and comply with customs and labeling requirements. The NPOP accreditation does not cover organic textiles; thus, exporters must secure transaction certificates from certification bodies designated by Textile Exchange or GOTS as required by buyers. Non-compliance or misrepresentation can result in penalties under Indian customs laws and de-accreditation. Exporters must also adhere to destination country regulations, including those of the EU, US, UK, and Canada. The legal regime supports sustainable trade while emphasizing certification integrity, ethical labor, and environmental standards throughout the supply chain. - (AI Summary)

Foreign Trade Act 1992: Licensing Required for Restricted Imports and Exports to Protect Security and Health
India's import and export of restricted goods are governed by the Foreign Trade (Development and Regulation) Act, 1992, and related policies issued by the Directorate General of Foreign Trade. Restricted goods require prior authorization through licenses, with import and export controls enforced to protect national security, public health, and environmental interests. Non-compliance leads to confiscation, penalties, and possible imprisonment under the Customs Act. Various allied laws and regulatory bodies also oversee specific categories such as pharmaceuticals, hazardous waste, and strategic materials. Judicial rulings affirm that ignorance of licensing requirements is not a defense, and trade regulation is a permissible restriction under the Constitution. The regulatory framework aligns with international obligations and continues to evolve with emerging trade challenges, emphasizing strict compliance by businesses and individuals involved in foreign trade. - (AI Summary)

Customs Law Adjudication Ensures Fair Dispute Resolution Under Natural Justice Principles and Section Rules
Adjudication in customs law involves judicial decisions by designated customs authorities to resolve disputes related to goods classification, valuation, duty determination, refunds, and enforcement actions. The process ensures fairness and transparency by adhering to natural justice principles, including the right to be heard and personal hearings before orders are issued. Competent authorities range from appraising officers to commissioners, excluding appellate commissioners. Parties may appeal decisions first to the Commissioner of Customs (Appeals), then to the Customs, Excise and Service Tax Appellate Tribunal, followed by the High Court and Supreme Court for specific matters. Technological advancements have enhanced efficiency and transparency in adjudication. Legal representation plays a critical role in navigating complex procedures and safeguarding parties' rights. This multi-tiered framework balances enforcement with fairness, supporting compliance and dispute resolution in customs operations. - (AI Summary)

Filing Form GST TRAN-1 Not Mandatory to Claim Refund of Unutilised VAT Input Tax Credit Under Section 174(2)(c) CGST Act
The Gujarat High Court ruled that filing Form GST TRAN-1 is not mandatory to claim a refund of unutilised input tax credit under the erstwhile VAT regime. The court held that the right to refund accrued under the repealed VAT law survives repeal under Section 174(2)(c) of the CGST Act and cannot be denied due to non-filing of TRAN-1. The petitioner's refund claim was upheld despite the department's rejection based on procedural grounds and limitation timelines. The judgment emphasized that procedural requirements like TRAN-1 filing are facilitative and not conditions precedent to refund rights, reinforcing that substantive rights cannot be defeated by procedural defaults during transitional phases. This decision provides relief to dealers who missed TRAN-1 filing but had valid VAT credits, ensuring equitable tax administration and preventing unjust enrichment of the state. - (AI Summary)

Supreme Court's Safari Retreats ruling not directly applicable to CENVAT Credit Rules Rule 2(l) claims, says tribunal
The appellate tribunal held that the Supreme Court's ruling in Safari Retreats, which restricts input tax credit under Section 17(5)(d) of the CGST Act, cannot be directly applied to disallow credit claims under Rule 2(l) of the CENVAT Credit Rules, 2004 without establishing that the provisions are pari materia. The Commissioner erred by mechanically relying on the Safari Retreats judgment without comparing the legislative intent and scope of the two provisions. Rule 2(l) has a broader definition of input services and permits credit on expenses related to immovable property under certain conditions, unlike the more restrictive GST provision. The matter was remanded for reconsideration with liberty to the appellant to make further submissions, emphasizing that judicial decisions must be applied within the context of the statute under which they are delivered. - (AI Summary)

Systemic barriers block cycling talent from reaching top international events despite large population and potential
A country with a vast population and sporting talent has yet to produce a competitor in a premier international cycling event due to multiple systemic barriers. These include the dominance of other sports in funding and media, inadequate cycling infrastructure, absence of grassroots programs, and high costs associated with competitive cycling. Additional challenges encompass geographic and climatic constraints, cultural perceptions of cycling, lack of sports science support, bureaucratic travel hurdles, and insufficient domestic race structures. Social pressures favoring academic pursuits over uncertain sports careers, limited sponsorship, and language barriers further impede progress. Addressing these issues requires comprehensive investment in training academies, safer infrastructure, sponsorship, media promotion, and role model development to build a supportive ecosystem capable of nurturing cycling talent to compete globally. - (AI Summary)

Section 108 CGST: Revisional Authority Must Form Opinion Before Staying Refund Orders
The Supreme Court dismissed a petition challenging the Delhi High Court's decision that the Revisional Authority under Section 108 of the CGST Act cannot stay a refund order without forming an opinion that the order is erroneous or prejudicial to revenue. The Revisional Authority had suspended a sanctioned refund without recording such a finding. The courts held that mere allegations of wrongful input tax credit do not justify staying a refund order. Both electronic credit and cash ledger balances are considered tax, but this does not eliminate the requirement for a valid opinion before revisionary powers are exercised. The ruling emphasizes that Section 108 powers must be based on an independent opinion regarding the refund order's legality, and absent this, the stay is invalid. The Supreme Court's refusal to interfere upholds procedural safeguards against arbitrary withholding of refunds. - (AI Summary)