GST Weekly Flashback (01–07 February 2026) brings together the most significant developments under the Goods and Services Tax law during the week, covering important judgments of the Supreme Court and various High Courts, key notifications and official announcements issued by the GST authorities, and notable advance rulings by the AAR and appellate rulings by the AAAR.
This weekly roundup offers a concise yet comprehensive snapshot of crucial legal interpretations, compliance updates, and policy changes that taxpayers, professionals, and businesses need to track to stay updated with the evolving GST regime in India.
Supreme Court
Supreme Court Backs Bombay HC’s Interpretation of ‘Where It Is Possible’ Clause in Service Tax Recovery Law
The Supreme Court dismissed a Special Leave Petition (SLP) filed by ANI Technologies Private Limited, the parent company of ride-hailing platform Ola, challenging a Bombay High Court ruling on the interpretation of service tax recovery provisions under the Finance Act, 1994.
Supreme Court To Examine Use of GST Fraud Provision Where No Taxable Supply Is Alleged
A writ petition challenging the invocation of Section 74 of the Central Goods and Services Tax (CGST) Act, 2017—which empowers tax authorities to raise demands of tax, interest, and penalty in cases involving fraud or suppression—has come up before the Supreme Court in a significant challenge to the scope of GST enforcement powers.
No Proof of SCN Service: Supreme Court Quashes GST Demand Order for Breach of Natural Justice
The Supreme Court has set aside a GST demand order of over ₹8.9 crore against a company after finding that there was no material on record to show that the show cause notice had been properly served, holding that such failure violated the principles of natural justice.
Delhi High Court
DGGI Inquiry U/s 70 Not Equal to Proceedings or Arrest: Delhi High Court Refuses to Quash GST Summons
The Delhi High Court has dismissed a writ petition filed by two Panipat-based traders seeking quashing of GST summons and protection from alleged illegal detention, holding that summons issued by Directorate under Section 70 of the CGST Act are only a step in inquiry and do not amount to initiation of proceedings or threat of arrest.
Validity Of CBIC Circular Assigning GST Officers as ‘Proper Officers’ Upheld: Delhi High Court
The Delhi High Court has upheld the validity of a Central Board of Indirect Taxes and Customs (CBIC) circular assigning functions to GST officers as “proper officers,” rejecting a taxpayer’s challenge that the Board lacked authority to issue such directions.
Madras High Court
Mechanical GST Portal Notices Waste Judicial Time, Lead to Avoidable Litigation: Madras High Court
The Madras High Court while directing the Goods and Service Tax (GST) officers to explore the possibility of sending notices by way of other modes prescribed in Section 169 of the GST Act apart from uploading the notice on the portal and held that the mechanical GST portal notices waste judicial time, leading to avoidable litigation.
GST Appeal Can’t Be Entertained Without Statutory Pre-Deposit Even if Issue Is Pending Before Supreme Court: Madras High Court
The Madurai Bench of the Madras High Court has held that the mandatory statutory pre-deposit under the GST law cannot be waived merely because the core issue is pending adjudication before the Supreme Court.
Madras High Court Revives GST Registration Cancelled for Non-Filing of Returns Due to Health Issues
The Madurai Bench of the Madras High Court has set aside the cancellation of GST registration of a Nagapattinam-based assessee, holding that genuine health and financial difficulties can justify non-filing of returns and deserve a liberal approach from tax authorities.
Madras HC to Decide Whether Time Spent in GST Rectification Can Be Excluded from Appeal Limitation; Allahabad HC Has Already Ruled in Assessee’s Favour
A significant question of law under the Goods and Services Tax (GST) regime—whether the time spent pursuing rectification proceedings should be excluded while computing limitation for filing an appeal—has come up before a Division Bench of the Madras High Court, even as the Allahabad High Court has already decided the issue in favour of taxpayers.
ITC Can’t Be Denied on Limitation Grounds After S. 16(5) Amendment: Madras High Court
The Madurai Bench of the Madras High Court has ruled that input tax credit (ITC) under the Goods and Services Tax (GST) law cannot be denied solely on the ground of limitation once the benefit of Section 16(5) of the Central Goods and Services Tax (CGST) Act, 2017 is available.
Audit, SCN Must End in a Final Order; GST Dept. Can’t Keep Proceedings Pending Indefinitely: Madras High Court
The Madras High Court has held that audit and show cause notice must end in a final order; tax authorities cannot keep proceedings pending indefinitely.
Splitting of SCN: Madras HC Stays GST Orders Against Titan Citing It As Time-Barred
The Madras High Court has granted interim relief to Titan Company Ltd. in what has become a second round of litigation between the company and tax authorities. The company, which had earlier succeeded in obtaining court directions to split a “bunched” show cause notice (SCN) into separate assessment-year proceedings, is now challenging the resulting adjudication orders on the ground that they were issued after the limitation period had expired.
Calcutta High Court
Failure to Consider GST Returns Vitiates Orders: Calcutta HC Remands ITC Reversal Dispute
The Calcutta High Court has set aside both the adjudication order and the appellate order passed against Shine Pharmaceuticals Ltd.under the GST regime, holding that the authorities failed to examine material facts already available on the GST portal, thereby amounting to a clear abdication of statutory duty.
Appeal Delay in GST Case Must Be Reconsidered if Order Was Not Properly Served: Calcutta HC
The Calcutta High Court has allowed a GST assessee to approach the appellate authority again for condonation of delay, observing that where a taxpayer claims lack of knowledge of an adjudication order due to improper service, such explanations deserve consideration in light of prevailing judicial precedents.
GST Order Invalid if Seized Documents Not Supplied To Assessee: Calcutta High Court
The Calcutta High Court has set aside the effect of a GST adjudication order passed against holding that failure to supply seized documents and a computer CPU to the taxpayer deprived it of a fair opportunity to defend itself and violated principles of natural justice.
Patna High Court
Delay in Processing VAT, GST Reimbursement Claims: Patna High Court Directs Dept. to Verify Documents, Decide Within 8 Weeks
The Patna High Court has directed the Bihar government’s Industry Department to verify documents submitted by a manufacturing unit and process its pending claims for reimbursement of VAT and State GST within a specified time frame, emphasizing that applications must be considered expeditiously once required documents are furnished.
Andhra Pradesh High Court
No DIN, No Physical Signature? AP High Court Says GST Assessment Still Valid Citing Delay In Filing Petition
The Andhra Pradesh High Court has dismissed a writ petition challenging GST assessment and penalty orders on grounds of absence of physical signatures and Document Identification Number (DIN) citing that the petition was barred by delay and that the objections raised were no longer legally sustainable.
GST Orders Served via Portal Are Valid Despite Registration Cancellation: AP High Court
The Andhra Pradesh High Court has dismissed a writ petition challenging a GST assessment order passed for the period December 2021 to June 2023, holding that the petition suffered from inordinate delay and that the tax department had followed due process under law.
Transfer of Business as a Going Concern Is Not Taxable ‘Supply’ Under GST: AP HC
The Andhra Pradesh High Court has set aside an order passed by the Appellate Authority for Advance Ruling (AAAR), holding that the transfer of an entire business undertaking as a “going concern” does not amount to a taxable supply of goods.
Punjab & Haryana High Court
Taxpayer Liable Despite CA’s Alleged Misappropriation: Punjab & Haryana High Court Dismisses GST Fraud Plea
The Punjab and Haryana High Court has dismissed a writ petition filed by a manpower supply firm based in Gurugram, challenging GST demand orders running into crores, holding that the petitioner/assessee cannot escape statutory tax liability on the ground that its Chartered Accountant (CA) allegedly misappropriated funds meant for tax payment.
Karnataka High Court
GST Can’t Be Levied on Regulatory Functions of Electricity Commissions: Karnataka High Court Quashes Rs. 13.42-Crore Demand
The Karnataka High Court has quashed a Goods and Services Tax (GST) demand of over Rs. 13.42 crore raised against the Karnataka Electricity Regulatory Commission (KERC) holding that the regulatory and adjudicatory functions performed by electricity regulatory commissions do not constitute a “supply of services” under the Central Goods and Services Tax Act, 2017.
Allahabad High Court
Voluntary GST Payments Can Be Treated as Mandatory Pre-Deposit for Appeal: Allahabad High Court
The Allahabad High Court has ruled that amounts voluntarily deposited by a taxpayer during GST audit proceedings can be treated as the statutory pre-deposit required for filing an appeal under Section 107(6) of the Central Goods and Services Tax (CGST) Act, 2017. The Court set aside an appellate order that had dismissed an appeal solely on the ground of non-payment of pre-deposit, despite substantial amounts having already been deposited by the assessee prior to adjudication.
Allahabad HC Upholds Composite Notices but Rules Notices Issued Within 3/6 Months of Adjudication Deadline as Time-Barred
The Allahabad High Court has upheld composite notices but ruled that the notices issued within 3 or 6 months of adjudication deadline as time-barred.
No Interest Liability Under GST If Not Quantified In SCN: Allahabad HC
The Allahabad High Court has held that no interest liability under GST if not quantified in the show cause notice.
Rs. 1.06 Crore GST Demand Quashed Citing Order “Shockingly Non-Speaking”: Allahabad High Court
The Allahabad High Court has set aside a GST demand order exceeding Rs. 1.06 crore passed against assessee holding that the order was wholly non-speaking, mechanically passed, and in blatant violation of due process.
Orissa High Court
GST Rectification Application Can’t Be Rejected Without Hearing and Reasons: Orissa High Court
The Orissa High Court has held that a rectification application filed under Section 161 of the Central and Odisha Goods and Services Tax Acts cannot be rejected without granting an opportunity of hearing and without passing a reasoned order.
GST Orders for FY 2024–25 Can’t Be Passed Under Omitted S. 73, 74; Must Follow S. 74A: Madras HC
The Madurai Bench of the Madras High Court has ruled that GST proceedings relating to the financial year 2024–25 cannot be initiated or concluded under the omitted Sections 73 and 74 of the Central Goods and Services Tax (CGST) Act.
Rajasthan High Court
Appeal Beyond 4 Months Not Condonable by GST Appellate Authority; Rajasthan HC Clarifies S. 107 Limitation
The Rajasthan High Court has held that Section 107 of the CGST Act prescribes a strict limitation scheme under which an appeal must be filed within three months, with a maximum condonable delay of only one additional month by the appellate authority. The Court clarified that this outer limit is jurisdictional and binding on statutory authorities, leaving them with no power to condone delay beyond the prescribed period.
Chhattisgarh High Court
GST Invoices, Audit Records Not Enough to Quash FIR: Chhattisgarh High Court
The Chhattisgarh High Court has dismissed a petition seeking quashing of an FIR, charge sheet, and criminal proceedings in a large-scale cooperative bank fraud case, holding that reliance on GST invoices and audit-related material does not justify quashing criminal proceedings when a prima facie case exists.
Kerala High Court
Difference in Month of Reporting Sale and ITC Claim Doesn’t Amount to Tax Evasion: Kerala High Court
The Kerala High Court held that a mere difference in the month of reporting a sale by the supplier and claiming input tax credit (ITC) by the purchaser does not, by itself, amount to tax evasion, particularly when the discrepancy arises due to the timing of receipt of goods and requires only reconciliation.
Lower Court
DGGI Meerut | Court Grants 14-Day Judicial Custody to 4 Accused Involving Rs. 200+ Crore GST Evasion
The Court of the Special Chief Judicial Magistrate, Meerut, has remanded four accused to 14 days’ judicial custody in a major case involving fraudulent availment and passing of Input Tax Credit (ITC) under the Central Goods and Services Tax Act, 2017.
AAAR
GAIL | ITC Not Available on Cross-Country Gas Pipelines: AAAR
The Odisha Appellate Authority for Advance Ruling (AAAR) has held that input tax credit (ITC) is not admissible on goods and services used for constructing and laying underground cross-country pipelines for transmission of natural gas.
Procurement, Distribution of Medicines by State Medical Corporation Qualifies as ‘Pure Services’, Eligible for GST Exemption: AAAR
The Odisha Appellate Authority for Advance Ruling (AAAR) has held that services rendered by the Odisha State Medical Corporation Ltd. (OSMCL) in procuring and distributing medicines and medical equipment for government health facilities qualify as “pure services” and are eligible for GST exemption under Notification No. 12/2017–Central Tax (Rate).
Field Service Engineers Deployment, Temporary Storage Of Spare Parts In State Doesn’t Constitute “Place Of Business” Or “Fixed Establishment”, No Separate GST Registration Required: AAAR
The Odisha Appellate Authority for Advance Ruling (AAAR) has held that the deployment of field service engineers and temporary storage of spare parts in a State, by itself, does not constitute a “place of business” or “fixed establishment” under the GST law, so no separate GST registration is required.
Others
GST Collections Rise to Rs. 1.93 Lakh Crore in January 2026, Net Revenue Grows 7.6%
India’s Goods and Services Tax (GST) collections maintained a strong growth trajectory in January 2026, reflecting resilient economic activity and sustained compliance levels. Provisional figures show that gross GST revenue for the month stood at ₹1,93,384 crore, marking a 6.2 per cent increase compared to January 2025.
DGGI Meerut Zonal Unit Uncovers Rs. 5,000-Crore Areca Nut GST Evasion Syndicate; Rs. 250-Crore Tax Loss Detected
The Directorate General of GST Intelligence (DGGI), Meerut Zonal Unit (MeZU), which has pan-India jurisdiction, has unearthed a large, well-coordinated GST evasion racket involving clandestine trade in areca nuts (supari) valued at around Rs. 5,000 crore.
DGGI Surat Rs. Detects Rs. 80 Crore GST Evasion, 3 Arrested
The Surat zonal unit of the Directorate General of GST Intelligence (DGGI) has unearthed a large-scale fake input tax credit (ITC) fraud involving a web of firms operating out of Ahmedabad and Surat, leading to the arrest of three key individuals namely Niral Shah, Director of Computtronix Infotech Pvt Ltd, Jyoti Kumar Choraria, Proprietor of Mangaldeep Inc, and Babulal Sharma, Proprietor of RT Enterprise.
GST Payments via UPI and Cards Now Available in Telangana
The Goods and Services Tax Network (GSTN) has enabled GST payments through UPI as well as Credit and Debit Cards in Telangana, expanding digital payment options for taxpayers in the State.
UltraTech Cement Accused Of Availing Excess ITC: GST Dept. Confirms Over Rs. 30 Crore Tax, Interest, Penalty
UltraTech Cement Limited has disclosed that it has received two separate orders from the Assistant Commissioner of State Goods and Services Tax (SGST), Trichy, Tamil Nadu, confirming substantial GST demands relating to alleged excess availment of input tax credit (ITC) in past financial years.
GST Portal Enables Online Application for Unbarring of Barred Returns
The Goods and Services Tax Network (GSTN) has operationalised a new online facility titled “Application for Unbarring Returns” on the GST portal, offering registered taxpayers a formal mechanism to seek unblocking of GST returns that have been system-barred due to prolonged non-compliance.
Rationalise Fees Prescribed for GSTAT [READ REPRESENTATION]
The Sales Tax Bar Association under the leadership of the President, Sanjay Kunar Sharma has filed the representation before the Finance Minister Nirmala Sitharaman seeking urgent rationalisation of the fees prescribed for filing appeals before the Goods and Services Tax Appellate Tribunal (GSTAT), raising serious concerns over access to justice for small taxpayers, MSMEs, and individual litigants under the GST regime.
GSTN Merges Earlier “Additional Notices & Orders” tab with main “Notices and Orders” section
The Goods and Services Tax Network (GSTN) has merged the earlier “additional notices & orders” tab with the main “notices and orders” section on the GST portal.
