Here’s a Goods and Service Tax (GST) weekly flashback from 11 To 17 January 2026.
Supreme Court
Supreme Court Grants Bail in Rs. 315 Crore Fake ITC Case, Cites Prolonged Custody and Delay in Trial
The Supreme Court granted bail in a matter involving alleged fraudulent availing of Input Tax Credit (ITC) amounting to approximately Rs. 315 crore as the accused had already spent nearly 8 months in custody and that the trial had not yet commenced.
GST Pre-Deposit Refunds Governed By Appeal Provisions, Not General Refund S. 54: Supreme Court
The Supreme Court has held that refunds of statutory pre-deposits made for filing GST appeals are governed by the specific appellate provisions of the GST law and not by the general refund provision under Section 54 of the Jharkhand GST Act, 2017.
Physical Surrender Not Mandatory Where Accused Regularly Appeared Before Trial Court: Supreme Court Grants Bail to Accused in GST Fake Invoice
The Supreme Court has granted regular bail to four accused persons booked under the Central Goods and Services Tax Act, 2017, holding that no meaningful purpose would be served by directing their incarceration merely because they had not physically surrendered after withdrawal of COVID-era interim bail. The Court emphasised that consistent appearances before the trial court amounted to “constructive custody” and justified consideration of bail on merits.
Supreme Court on GST Pre-Deposit Refunds: Did S. 115 Get Overstretched? A Critical Legal Analysis
In State of Jharkhand v. BLA Infrastructure Pvt. Ltd. (order dated 9 January 2026), the Supreme Court examined the legality of a Jharkhand High Court ruling that had directed refund of GST statutory pre-deposit along with interest by invoking Section 54 of the Jharkhand GST Act, 2017. The dispute arose after the assessee succeeded in appeal and sought refund of the mandatory pre-deposit made for filing the appeal.
Delhi High Court
Wrong SGST Payment Triggers Rs. 10.91 Lakh Refund Dispute: Delhi HC Sends Vodafone Idea to GSTAT
A procedural error in the payment of Goods and Services Tax (GST) has escalated into a protracted refund battle for telecom major Vodafone Idea Ltd. (Vi), with the Delhi High Court on Wednesday declining to grant relief and directing the company to pursue its remedy before the GST Appellate Tribunal.
Bombay High Court
Assignment of Long-Term Industrial Lease Not ‘Supply’ Under GST; Bombay HC Quashes Rs. 27 Lakh Demand
The Nagpur Bench of the Bombay High Court has held that the assignment of long-term leasehold rights in industrial land does not constitute a ‘supply of service’ under the GST law, and therefore cannot be subjected to Goods and Services Tax.
Madras High Court
Madras High Court Quashes GST ITC Reversal Order, Applies Retrospective Relief Under Amended Section 16(5)
The Madurai Bench of the Madras High Court has set aside a GST assessment order that reversed Input Tax Credit (ITC) on the ground of limitation, holding that such denial is unsustainable in view of the retrospective amendment introduced under Section 16(5) of the CGST/TNGST Act.
GST Registration Can’t Be Permanently Cancelled for 6 Months’ Non-Filing of Returns Due to Financial Hardship: Madras HC
The Madurai Bench of the Madras High Court has held that cancellation of GST registration solely on account of six months’ non-filing of returns, caused by genuine financial hardship, warrants reconsideration and conditional restoration.
Madras High Court Revokes GST Registration Cancellation for Non-Filing of Returns After Accepting Genuine Cause
The Madurai Bench of the Madras High Court has set aside the cancellation of Goods and Services Tax (GST) registration of a timber business, holding that the reasons for non-filing of returns appeared genuine and deserved leniency, subject to strict compliance conditions.
GST Registration Cancellation Unwarranted Where Non-Filing Was Bona Fide, Taxpayer Seeks Compliance: Madras HC
The Madurai Bench of the Madras High Court has set aside an order cancelling a taxpayer’s Goods and Services Tax (GST) registration for failure to file returns for six consecutive months, holding that the explanation offered for the default appeared genuine and deserved a chance for compliance.
Madras High Court Refuses to Interfere with GST Assessments Passed After Repeated Hearing Opportunities
The Madurai Bench of the Madras High Court has declined to interfere with multiple GST assessment orders passed under Section 74 of the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017, holding that no violation of principles of natural justice was made out where the assessee failed to avail repeated opportunities of personal hearing. However, the Court granted liberty to the assessee to approach the statutory appellate authority within a stipulated period.
Karnataka High Court
Courts Must Not Interfere at Nascent Stage of Economic Crime Investigations: Karnataka HC Declines to Quash GST Arrest
The Karnataka High Court has declined to grant interim bail and refused to interfere with the arrest of a husband and wife accused of a multi-crore Goods and Services Tax (GST) fraud, holding that courts must exercise extreme restraint while examining the legality of arrests made under special economic statutes such as the GST law.
Calcutta High Court
Electronic Credit Ledger Can’t Be Blocked Beyond 1 Year U/R 86A: Calcutta High Court
The Calcutta High Court has ruled that the Goods and Services Tax (GST) authorities cannot continue blocking a taxpayer’s electronic credit ledger beyond one year, as such continuation is expressly barred under Rule 86A(3) of the CGST and SGST Rules, 2017.
‘Reason to Believe’ Need Not Be Detailed in Seizure Memo: Calcutta HC Upholds Betel Nuts Seizure
The Calcutta High Court has dismissed an appeal challenging the seizure of a domestic consignment of betel nuts by the Customs department holding that the preventive officers had sufficient “reason to believe” that the goods were of smuggled foreign origin and the ‘reason to believe’ need not be detailed in the seizure memo.
Procedural Lapses in Customs Systems Can’t Lead to Reversal of Import ITC: Calcutta High Court
The Calcutta High Court has remanded a GST dispute involving alleged excess availment of Input Tax Credit (ITC) on imported goods back to the appellate authority after customs department clarified that the non-reflection of IGST in the GST portal was due to procedural limitations arising from manual processing of Bills of Entry, and not non-payment of tax.
Gujarat High Court
GST Dept. Can’t Jump Straight From Detention To Confiscation During Transit Checks: Gujarat HC
The Gujarat High Court has upheld the independent and parallel operation of Sections 129 and 130 of the Central Goods and Services Tax (CGST) Act, 2017, rejecting the contention that confiscation proceedings under Section 130 must await completion of detention proceedings under Section 129.
GST Officers ‘Sat Idle’ Despite Knowing Law, Aided Taxpayer Through Lapses In Gold, Cash Seizure Case: Gujarat HC Orders Inquiry
The Gujarat High Court has directed the Chief Commissioner of State Tax to hold appropriate inquiry against the officers involved in leaving the loopholes in the gold, cash seizure case and stated that the officer, though being aware of the statutory provisions and the limitation period sat idle and did not issue any notices, and paved the way for the petitioner to take shelter of omissions.
Andhra Pradesh High Court
GST Liability Of Legal Heirs Is Limited After Death Of Taxpayer: AP High Court
The Andhra Pradesh High Court has set aside a GST assessment order passed against a person who had died prior to the initiation of proceedings, holding that assessments cannot be legally carried out against a non-existent person.
GST Registration Restoration Nullifies ITC Reversal Demand: Andhra Pradesh High Court
The Andhra Pradesh High Court has held that once a GST registration is restored, the consequential demand for reversal of closing Input Tax Credit (ITC) automatically falls, setting aside an assessment order that directs reversal of ITC exceeding Rs. 22.68 lakh.
Solar Pumping Systems Not ‘Works Contract’; 5% GST Payable: Andhra Pradesh High Court
The Andhra Pradesh High Court has held that the supply of solar power pumping systems does not constitute a “works contract” under the GST law and must instead be treated as a composite supply taxable at 5%.
GST Best Judgment Assessments Deemed Withdrawn Once Returns Filed Within Extended Time Under Section 62(2): Andhra Pradesh HC
The Andhra Pradesh High Court has held that best judgment assessment orders passed for non-filing of returns are deemed to be withdrawn once the registered person subsequently files returns along with payment of tax, interest, and late fee within the statutorily prescribed—or extended—time period.
Telangana High Court
Rs. 838 Crore Penalty Proceedings Quashed: Telangana HC Strikes Down CGST Rule Mandating Same-Month ISD Credit Distribution
The Telangana High Court has declared Rule 39(1)(a) of the CGST Rules, 2017 ultra vires the CGST Act, holding that the rule unlawfully imposed a mandatory time limit for distribution of Input Tax Credit (ITC) by Input Service Distributors (ISDs).
Himachal Pradesh High Court
HP High Court Bars Parallel GST Proceedings, Reiterates S. 6(2)(b) Protection Against Overlapping Adjudication
The Himachal Pradesh High Court has reiterated the statutory bar on parallel GST adjudicatory proceedings by Central and State tax authorities on the same subject matter, holding that such duplication is prohibited under Section 6(2)(b) of the Central Goods and Services Tax Act, 2017.
Orissa High Court
Writ Jurisdiction Can’t Be Used To Bypass Mandatory Pre-Deposit Once GSTAT Is Functional: Orissa HC
The Orissa High Court has held that writ jurisdiction cannot be used to bypass mandatory pre-deposit once the Goods and Service Tax Appellate Tribunal (GSTAT) is functional.
Rajasthan High Court
GST Appeal Limitation | Appellate Authority Powerless to Condone Delay Beyond Statute, But Writ Court Can: Rajasthan HC
The Rajasthan High Court, Jaipur Bench has held that while appellate authorities are bound by the strict limitation period prescribed under Section 107 of the Central Goods and Services Tax (CGST) Act, 2017, the High Court can intervene in writ jurisdiction to condone delay where the facts disclose a reasonable and bona fide cause.
Lower Court
CGST Ghaziabad | Bail of Businessman Accused of Rs. 75 Crore GST Fraud Rejected By Meerut Court
The Court of the Additional Sessions Judge, Court No. 01, Meerut, has rejected the bail application of Vivek Garg, a Ghaziabad-based businessman accused of orchestrating a large-scale fake GST invoice racket involving over Rs. 75 crore of fraudulent Input Tax Credit (ITC).
DGGI Meerut | Court Sends Delhi-Based GST Accused to 14-Day Judicial Remand in Rs. 75 Crore Fake ITC Case
The Court of the Remand Magistrate/Additional Chief Judicial Magistrate, Meerut, on Thursday granted 14 days’ judicial remand of Sandeep Singhal, a Delhi-based businessman, in a major GST evasion and fake input tax credit (ITC) fraud case involving approximately Rs. 75 crore.
DGGI Ghaziabad | Court Grants 14-Day Judicial Remand in Rs. 36.42 Crore GST ITC Evasion Case
The Court of the Special Chief Judicial Magistrate (SCJM), Meerut granted a 14-day judicial remand of an accused, Jaikumar Agarwal in a major Goods and Services Tax (GST) evasion case involving alleged fraudulent availment of Input Tax Credit (ITC) amounting to approximately Rs. 36.42 crore.
AAR
Used Vehicle Dealers Can Claim GST ITC on Business Expenses: AAR
The Kerala Authority of Advance Ruling (AAR) has ruled that the Input Tax Credit under Goods and Service Tax (GST) is allowable on repairs, refurbishment, rent, capital goods and the restrictions are only applicable on purchase of used vehicles.
GST Not Applicable On Centage Charges Collected For Pure PMC Or Consultancy Services Provided To Govt.: AAR
The Kerala Authority of Advance Ruling (AAR) has held that (GST) is not applicable on the centage charges collected for pure PMC / consultancy services provided to Government/local authorities in relation to functions under Article 243G / 243W as these are exempt under Entry 3 of Notification No. 12/2017-CTR, subject to conditions.
GST Payable On Hair Transplant Services But Dermatological Treatments Exempted: AAR
The Kerala Authority of Advance Ruling (AAR) has held that the Goods and Service Tax (GST) is payable on hair transplant services but exempted the dermatological treatments.
