GST Weekly Flashback (15–21 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.
Table of Contents
Delhi High Court
GST Exemption for Adult, Clinical Diapers: Delhi HC Asks Centre to Decide Within 6 Months
The Delhi High Court has directed the Union government to examine and decide, within six months, a representation seeking exemption of adult and clinical diapers from the Goods and Services Tax (GST), which is presently levied at 5 per cent. The Court was hearing a writ petition challenging the tax as arbitrary and discriminatory, particularly in its impact on persons with disabilities and others who depend on such products for basic hygiene and dignity.
Bombay High Court
The Bombay High Court on Friday granted interim protection from arrest to Sunil Biyani, non-executive director of the Future Group, in connection with an alleged multi-crore Goods and Services Tax (GST) fraud currently under investigation by the tax authorities.
Right to Videography and Lawyer’s Presence During S. 70 CGST Summons: Bombay HC
The Bombay High Court has permitted videography of summons proceedings under Section 70 of the CGST Act and allowed the presence of an advocate at a visible but not audible distance during recording of statements.
Madras High Court
Madras High Court Keeps GST Proceedings on Royalty in Abeyance Pending Supreme Court Ruling
The Madras High Court has disposed of a writ petition challenging a show cause notice proposing levy of Goods and Services Tax (GST) on seigniorage/royalty payable to the Government of Tamil Nadu, directing that while adjudication may proceed, the implementation of any assessment order must be kept in abeyance until the Supreme Court decides the larger constitutional question on the nature of royalty.
The Madras High Court has remitted a high-stakes GST classification dispute involving Marico Limited back to the tax authorities, following a recent ruling of the Supreme Court of India clarifying the principles for classification of coconut oil.
Madras HC Quashes GST Order After Finding SCN ‘Served’ 2 Days Before Its Issuance
The Madurai Bench of the Madras High Court has set aside an assessment order after finding a glaring discrepancy in the service of the show cause notice — the notice was recorded as having been received two days prior to its date of issuance.
Allahabad High Court
Chinese National Involved In GST Evasion Granted Bail: Allahabad HC
The Allahabad High Court has granted bail to a Chinese national woman, Alice Lee accused of involvement in alleged Goods and Services Tax (GST) evasion by a Greater Noida–based LED display manufacturing company, holding that the offences are triable by a Magistrate, carry a maximum punishment of five years, and that the case is primarily founded on documentary evidence.
DGGI Ghaziabad – Arrested Accused Set Free By High Court For Not Providing Grounds Of Arrest
The Allahabad High Court has set aside the remand order and directed the release of Jai Kumar Aggarwal in a habeas corpus petition filed against the Directorate General of GST Intelligence (DGGI).
Chhattisgarh High Court
The Chhattisgarh High Court has granted anticipatory bail to a Raipur-based businessman accused of fraudulent availment of Input Tax Credit (ITC) amounting to approximately Rs. 17.83 crore under the Goods and Services Tax (GST) regime, observing that the case is predominantly based on documentary evidence and does not warrant custodial interrogation at this stage.
The Chhattisgarh High Court has quashed show-cause notices and orders cancelling GST registrations of two companies, holding that the authorities violated mandatory requirements by not specifying a date and time for personal hearing and by failing to upload physical verification reports on the GST portal.
Andhra Pradesh High Court
Free Issue Materials Supplied by Service Recipients Can’t Be Added to GST Taxable Value: AP HC
The Andhra Pradesh High Court has set aside a tax demand raised on the value of cement, admixture and waterproofing materials supplied free of cost by service recipients to a ready-mix concrete manufacturer.
Consolidated GST SCN Against Uber India Systems Quashed: Andhra Pradesh High Court
The Andhra Pradesh High Court has set aside a consolidated show cause notice (SCN) issued to Uber India Systems Private Limited covering multiple financial years, holding that separate notices must be issued for each distinct tax period.
The Andhra Pradesh High Court has held that officers detaining goods in transit under the Central Goods and Services Tax Act, 2017 cannot undertake adjudication on valuation or allege under-valuation as a ground for seizure or confiscation. The Court ordered the immediate release of goods and vehicles detained in multiple cases, while clarifying that any dispute on valuation must be examined only by the jurisdictional assessing authority.
The Allahabad High Court has held that the Appellate Authority under Section 107(11) of the Central Goods and Services Tax Act, 2017 (CGST Act) has no power to remand matters back to the adjudicating authority. The Court set aside multiple remand orders passed in a refund dispute involving a leading law firm.
The Allahabad High Court has set aside the suspension of a State Tax Officer, observing that prima facie the chronology of events did not justify continuation of suspension when the officer had already submitted an adverse verification report prior to the alleged fraudulent claim of Input Tax Credit (ITC).
Gauhati High Court
The Gauhati High Court has held that the Goods and Service Tax (GST) registration cannot be cancelled on ‘investigative dictation’ and vague Input Tax Credit (ITC) allegations.
The Gauhati High Court has held that GST registration cancellation cannot be used as a tool of coercion during investigation.
The bench of Justice Arun Dev Choudhury has observed that there is no independent reasoning. There is no analysis of whether the alleged discrepancy in GSTR-2B, assuming it exists, satisfies the statutory conditions under Section 16(2) or attracts the rigour of Rule 21(e).
The Gauhati High Court has continued interim protection to assessee company and its director in a writ petition challenging summons issued under Section 70 of the Central Goods and Services Tax (CGST) Act, 2017.
Rajasthan High Court
The Rajasthan High Court has refused anticipatory bail to a company director accused of large-scale GST evasion exceeding Rs. 20.63 crore, holding that economic offences require strict scrutiny and that custodial interrogation may be necessary for an effective investigation. However, the Court granted pre-arrest bail to a co-accused whose role was found to be limited and ancillary.
Telangana High Court
The Telangana High Court has held that there is no exemption from the mandatory pre-deposit requirement for filing an appeal, even where the taxpayer claims to have paid the entire GST dues and disputes only the penalty component.
Calcutta High Court
The Calcutta High Court while questioning the validity of notifications issued without ‘Force Majeure’ Under Section 168A of the GST Act restrained State GST department from taking any coercive recovery steps against the petitioner/assessee pursuant to an adjudication order dated August 11, 2024 passed under Section 73 of the WBGST Act, 2017 and CGST Act, 2017.
Punjab & Haryana High Court
The Punjab & Haryana High Court has set aside a penalty order issued against the assessee, holding that payment of penalty under protest does not absolve authorities of their duty to pass a reasoned order after granting an effective opportunity of hearing.
Karnataka High Court
ISD Mechanism Not Mandatory for Distribution of Common ITC: Karnataka High Court
The Karnataka High Court has set aside a substantial GST demand raised against pharmaceutical major Micro Labs Limited, holding that distribution of common Input Tax Credit (ITC) through the Input Service Distributor (ISD) mechanism was not mandatory during the relevant period and that cross-charging through tax invoices was legally permissible.
The Karnataka High Court has directed the State tax authorities to refund the GST amount recovered from Divyasree Tarbus Builders Private Limited, after retaining only the statutory pre-deposit required under Section 112 of the Central Goods and Services Tax (CGST) Act, 2017.
Refund of Accumulated ITC Allowed Even When Input and Output Goods Are the Same: Karnataka HC
The Karnataka High Court has allowed the refund of accumulated Input Tax Credit (ITC) even when input and output goods are the same.
The bench of Justice S.R. Krishna Kumar has observed that refund of accumulated Input Tax Credit (ITC) under an inverted duty structure cannot be denied merely because the input and output goods are the same.
Jharkhand High Court
The Jharkhand High Court has rejected the anticipatory bail in connection with a Rs. 55.66 crore tax evasion case investigated by the Directorate General of GST Intelligence (DGGI) on the ground of absconding and non-cooperation.
Orissa High Court
GST Refund Limitation Inapplicable to Double Tax Deposit Made Under Mistake: Orissa HC
The Orissa High Court has held that the limitation period prescribed under Section 54 of the GST Act does not apply where tax has been deposited twice under a mistaken notion.
Kerala High Court
The Kerala High Court has held that officers of the Intelligence Wing cannot initiate parallel adjudication proceedings when jurisdiction has already been exercised by the proper officer under the GST framework.
Lower Court
DGGI Ghaziabad | Court Grants 14-Day Judicial Remand In GST Evasion In Online Gaming Case
A Special Chief Judicial Magistrate court in Meerut has granted 14-day judicial remand to an accused arrested in connection with an alleged Rs. 115-crore Goods and Services Tax (GST) evasion linked to online gaming operations.
In one of the largest crackdowns on illegal online gaming operations in recent months, authorities have dismantled a sprawling ₹13,000-crore network allegedly run through shell entities, fabricated digital identities, and compromised financial infrastructure. The operation led to the arrest of Hyderabad-based fintech entrepreneur Pankaj Kumar, officials confirmed on Thursday.
DGGI Busts Rs. 600 Crore Silver Trade Racket in Surat
The Directorate General of GST Intelligence (DGGI) has unearthed a massive unaccounted silver bullion and articles trading network in Surat, allegedly involving cash transactions exceeding ₹600 crore over the past three years.
GSTAT
GSTAT Begins Operations with 1,029 Online Appeals Filed; First Case Disposed
The Goods and Services Tax Appellate Tribunal (GSTAT) has formally commenced its operations, marking a significant milestone in India’s indirect tax dispute resolution framework. In its first official progress update shared on X, the Tribunal announced that 1,029 cases have already been filed online, with one matter disposed of—signaling the start of adjudicatory proceedings under the long-awaited appellate body.
AAR
18% GST Payable On Fee Paid To Arbitrator: AAR
The West Bengal Authority of Advance Ruling has held that 18% Goods and Service Tax (GST) is payable on fee paid to arbitrators.
The bench of Jaydip Kumar Chakrabarti and Shafeeq S the amount awarded as the cost of arbitration will not come under the purview of GST.
5% GST On Shaving Cream and 18% On Shaving Foam: AAR
The West Bengal Authority for Advance Ruling (WBAAR) has ruled that shaving foam and shaving cream are not the same product for GST classification purposes and that 5% goods and service tax (GST) is payable on shaving cream and 18% on shaving foam.
The West Bengal Authority for Advance Ruling (WBAAR) has ruled that tobacco leaves purchased from farmers and sold after curing, grading, bundling, or butting continue to attract GST at 5%, provided they retain their essential character as “tobacco leaves” and are not subjected to processes such as cutting, stripping, or threshing that alter their identity.
18% GST On EVA Gloves, Sterile Aprons, OT Shoe Covers, Ultrasound Probe Covers: AAR
The West Bengal Authority for Advance Ruling (AAR) has held that EVA gloves, sterile aprons, OT shoe covers, drape sheets, and various medical equipment covers manufactured by Hi Care Remedy Private Limited are liable to 18% GST.
