Goods and Service Tax (GST) Weekly Flashback for the period from 3 to 9 August 2025.
Supreme Court
100% GST Penalty Can’t Be Imposed Without Proving Fraud, High Court Must Rehear Case: Supreme Court
The Supreme Court has held that the 100% Goods Service Tax (GST) penalty cannot be imposed without proving fraud and directed the high court to rehear the case.
Fake GST ITC | Supreme Court Stays GST Recovery Subject To 25% Pre-Deposit by Non-Taxable Person
The Supreme Court has stayed the goods and service tax (GST) recovery in fake Input Tax Credit (ITC) cases subject to 25% pre-deposit by non-taxable persons.
GST Refund From Cash Ledger Can’t Be Withheld Without Just Cause: Supreme Court
The Supreme Court has held that the Goods and Service Tax (GST) refund from cash ledger cannot be withheld without just cause.
Retrospective GST ITC Refund Under Amended Inverted Duty Structure Upheld: Supreme Court
The Supreme Court has upheld the Gujarat High Court’s decision allowing retrospective refund of Input Tax Credit (ITC) under the amended Inverted Duty Structure (IDS) formula in Rule 89(5) of the CGST Rules.
Under-Construction Real Estate | SC Stays Recovery in 1/3rd Land Deduction GST Dispute for; Gujarat HC Ruling Making Deduction Optional Remains Unstayed
The Supreme Court has put on hold all recovery proceedings related to the disputed 1/3rd deemed deduction for land value in under-construction real estate transactions under GST, until it decides on a Special Leave Petition (SLP) filed by the revenue authorities.
Centre to Supreme Court: Entire Bet Amount Must Be Taxed Under GST for Online Gaming
The Central Government, in its latest submission to the Supreme Court, has strongly defended its stance on taxing the full value of bets placed in online gaming, asserting that the entire stake — referred to as the “full face value” — should be treated as the taxable amount under the Goods and Services Tax (GST) regime.
GST ITC on Telecom Towers Upheld: Supreme Court
The Supreme Court has dismissed the Revenue Department’s Special Leave Petition (SLP) challenging a Delhi High Court verdict that classified mobile telecom towers as “plant and machinery,” making them eligible for input tax credit (ITC) under the Goods and Services Tax (GST) framework.
Delhi High Court
The Delhi High Court has while upholding Attorney-Client Privilege, slammed the GST raid on Advocate’s office and barred access to seized gadgets without lawyer’s presence.
The Delhi High Court has held that the consolidated show cause notice (SCN)/orders for multiple years are permissible in fake Input Tax Credit (ITC) claim cases wilful misstatement.
Delhi High Court Refuses to Entertain Writ Against GST Demand in Alleged Fake ITC Claim; Directs Appeal Route
The Delhi High Court has refused to entertain a writ petition challenging a tax demand and penalty order in a case involving alleged fraudulent availment of Input Tax Credit (ITC) through bogus invoicing during the 2017–18 financial year. The Court directed the petitioner to avail the statutory appellate remedy instead.
Bombay High Court
Bombay High Court Pulls Up GST Appellate Authority for Dismissing IOCL Appeal on Technical Grounds Without Hearing
The Bombay High Court has strongly criticised the GST Appellate Authority for rejecting an appeal filed by Indian Oil Corporation Ltd. (IOCL) on the ground of limitation without affording the company an opportunity to be heard or considering the correct date of filing.
Notification 56/2023 extending time limit to pass order Is Illegal: Madras HC Takes Up 100+ Petitions Challenging GST Demands
In a major development impacting hundreds of small and medium enterprises (SMEs) across Tamil Nadu, the Madras High Court has admitted a large batch of writ petitions—including one filed by SKT Swamy Auto Agency, Salem—challenging the constitutional validity of GST-related notifications and assessment orders issued by tax authorities.
Parallel Proceedings Impermissible: Bombay HC Quashes CGST Demand Against Video Gaming & Bowling Services Provider
The Bombay High Court at Goa has quashed a CGST demand order against a video gaming and bowling services provider, ruling that parallel proceedings on the same issue and for the same period by multiple tax authorities are legally impermissible.
Karnataka High Court
Entity Providing Support Services to Foreign Client Not an ‘Intermediary’; Karnataka High Court Directs GST Refund
The Karnataka High Court has directed the goods and service tax (GST) refund held that the entity providing support services to foreign clients is not an ‘intermediary’.
Calcutta High Court
Fresh GST Audit For Periods Already Adjudicated Is Barred: Calcutta High Court
The Calcutta High Court has held that a fresh GST audit under Section 65 of the Central Goods and Services Tax (CGST) Act, 2017 cannot be initiated for periods that have already been audited and adjudicated under Section 73 of the same Act, the reopening is allowed only for uncovered tax periods.
ITC Can’t Be Denied To Purchaser Due to Supplier’s Insolvency: Calcutta High Court
The Calcutta High Court has set aside an assessment order and a West Bengal Taxation Tribunal ruling that denied a purchasing dealer input tax credit (ITC) on the ground that the selling dealer had undergone insolvency proceedings.
Gauhati High Court
GST Registration Can Be Restored If Dues Are Cleared: Gauhati High Court
The Gauhati High Court has directed the GST department to consider restoring the cancelled registration of a taxpayer who failed to file returns for six consecutive months but is now willing to clear all dues and meet procedural requirements.
Punjab and Haryana High Court
Rs.107 Crore GST Fraud | Bail Can’t Be Denied Just Because Co-Accused Is Still Under Probe: P&H High Court
The Punjab and Haryana High Court granted regular bail to Manish Kumar and Amit Kumar Goyal, both accused in a ₹107 crore GST fraud case, while issuing strong observations against the misuse of arrest powers under the Central Goods and Services Tax (CGST) Act.
Gujarat High Court
Gujarat HC Quashes Interest, Penalty in GST Transitional Credit Dispute
The Gujarat High Court has quashed the interest and penalty in the GST transitional credit dispute.
ITC Reversal Dispute Involving Expired Drugs: Gujarat High Court Issues Notice To Govt.
The Gujarat High Court has issued notice in a significant case involving Eris Lifesciences Ltd., a pharmaceutical company, challenging a demand order for reversal of Input Tax Credit (ITC) under the Goods and Services Tax (GST) framework related to returned and expired medicines/drugs.
Chhattisgarh High Court
Chhattisgarh High Court Grants Bail to Man Accused in Rs. 16.83 Crore Fake GST Invoice After 3 Months Of Custody
The Chhattisgarh High Court has granted regular bail to Ajay Singh, who was arrested in April 2025 in connection with an alleged Rs. 16.83 crore fake GST invoice scam.
AAR
GST ITC Allowed on Construction of Concrete Tower for VCV Lines: AAAR Relies on Safari Retreats Judgement
The Gujarat Appellate Authority of Advance Ruling (AAR) has ruled that Input Tax Credit (ITC) can be availed on inputs and input services used for construction of concrete tower to support and erect the VCV lines at the factory of the applicant for manufacture of EHV cable in terms of the explanation to section 17 (5Xd) of the CGST Act 2017.
No GST Exemption For Transportation and Catering Services Billed Directly to Students: AAR
The Gujarat Authority for Advance Ruling (GAAR) has clarified that transportation and catering services for school students do not qualify for GST exemption under Serial No. 66(b)(i) and (ii) of Notification No. 12/2017-Central Tax (Rate) when fees are collected directly from parents instead of the educational institution.
Peeled, Chopped & Packed Garlic Exempt from GST: AAR
The Gujarat Authority for Advance Ruling (AAR) has clarified that the supply of peeled, chopped, and packed garlic will be classified under HSN code 07032000, thereby attracting no Goods and Services Tax (GST).
Failure to Disclose DGGI Inquiry: AAAR Cancels Advance Ruling
The Gujarat Appellate Authority for Advance Ruling (GAAAR) has dismissed an appeal by I-Tech Plast India Pvt. Ltd. and upheld the Gujarat Authority for Advance Ruling’s (GAAR) decision to declare a 2021 advance ruling “void ab initio” for failure to disclose DGGI inquiry.
