The Institute of Chartered Accountants of India (ICAI), through its GST & Indirect Taxes Committee, has released the Second Edition (February 2026) of its flagship publication “Significant Judicial and Advance Rulings in GST: A Compilation”, providing an authoritative snapshot of the evolving judicial landscape under the Goods and Services Tax regime.
The updated edition consolidates and analyses landmark decisions of the Supreme Court of India and various High Courts across the country, covering crucial areas such as scope of supply, input tax credit (ITC), refunds, assessment and audit, provisional attachment, and inspection, search and seizure.
Focus on Judicial Outlook and Practical Guidance
In the foreword, ICAI President CA. Charanjot Singh Nanda underscored that the publication aims to help professionals and stakeholders understand “judicial outlook and perspectives on various provisions of GST, as well as prevalent issues in the law,” while presenting landmark rulings concisely for quick reference.
The compilation also reflects recent statutory changes, including retrospective amendments relating to ITC timelines and judicial pronouncements on technology-driven issues such as electronic credit ledgers and GST portal constraints.
Doctrine of Mutuality Reaffirmed: No GST on Member Welfare Schemes
One of the most significant inclusions is the ruling in Indian Medical Association vs. Union of India, delivered by the Kerala High Court, where the Court reaffirmed the doctrine of mutuality, holding that genuine member-only welfare schemes of associations cannot be subjected to GST.
The Court declared Sections 2(17)(e) and 7(1)(aa) of the CGST/KGST Acts—introduced retrospectively by the Finance Act, 2021—as unconstitutional to the extent they deem transactions between associations and members as taxable supplies. The verdict offers wide relief to clubs, resident welfare associations, and professional bodies operating on a mutual basis.
ITC Cannot Be Denied for Clerical Errors by Suppliers
In B Braun Medical India Pvt. Ltd. vs. Union of India, the Delhi High Court held that ITC cannot be denied solely because a supplier mentioned the wrong GSTIN on invoices, where the recipient’s identity, receipt of goods, and accounting were undisputed and no double claim existed.
The Court emphasized that GST law is not intended to penalise bona fide taxpayers for minor clerical mistakes, particularly when the substantive conditions for availing ITC are satisfied.
Retrospective ITC Relief under Finance Act, 2024
The Jharkhand High Court, in Singh Construction Company vs. State of Jharkhand, quashed an order denying ITC on the ground of limitation under Section 16(4), in light of the retrospective insertion of Section 16(5) by the Finance Act, 2024. The matter was remanded for fresh adjudication, recognising that earlier orders ignoring the amendment lack a complete legal basis.
Similarly, the Madhya Pradesh High Court in Anand Steel vs. Union of India observed that disallowing ITC merely for belated filing of returns—despite payment of tax, interest, and late fee—results in double penalisation and is arbitrary, though the Court ultimately relied on the 2024 amendment rather than ruling on the constitutional validity of Section 16(4).
Bona Fide Purchasers Protected
Reiterating a long-standing principle, the Supreme Court of India in Commissioner, Trade & Tax, Delhi vs. Shanti Kiran India (P) Ltd. held that ITC cannot be denied to a bona fide purchasing dealer merely because the selling dealer failed to deposit tax with the Government. The remedy, the Court said, lies against the defaulting seller, not the innocent buyer.
This approach was echoed by the Allahabad High Court in R.T. Infotech vs. Additional Commissioner Grade, which quashed ITC reversals where the purchaser had paid tax through banking channels on the strength of valid invoices.
Refund Rights under Inverted Duty Structure Upheld
In Assistant Commissioner of Central Taxes vs. Gemini Edibles and Fats India Ltd., the Andhra Pradesh High Courtheld—and the Supreme Court of India later affirmed—that refund of unutilised ITC accumulated prior to 18 July 2022 cannot be denied merely because the refund application was filed after that date. Circulars, the courts ruled, cannot curtail statutory rights under Section 54(3) of the CGST Act.
A Practical Resource for Professionals
ICAI said the publication has been categorised topic-wise for ease of reference and is intended to serve as a ready reckoner for chartered accountants, tax professionals, and industry stakeholders dealing with GST litigation, advisory, and compliance.
With courts increasingly favouring substance over procedural lapses and reinforcing taxpayer rights against arbitrary denials, the compilation captures a clear trend towards a more equitable and balanced GST jurisprudence in India.
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