Latest update 16.01.2025

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A. Amendment

Guidelines for arrest and bail in relation to offences punishable under the CGST Act, 2017

New Delhi GST Investigation Wing issued Instruction No. 01/2025 -GST providing “Guidelines for arrest and bail in relation to offences punishable under the CGST Act, 2017”.

GSTN: Implementation of mandatory mentioning of HSN codes in GSTR-1 & GSTR 1A

Phase-III regarding Table 12 of GSTR-1 & 1A is being implemented, from return period January 2025. In this phase manual entry of HSN has been replaced by choosing correct HSN from given Drop down. Also, Table-12 has been bifurcated into two tabs namely B2B and B2C, to report these supplies separately.

GSTN Advisory on Extension of Due Date w.r.t GSTR 1 and GSTR 3B

Due Date for filling of GSTR-1 and GSTR-3B have been extended by two days. For details refer to Notification No. 01/2025 – (CT) dt. 10th January, 2025 and Notification No. 02/2025 – (CT) dt. 10th January, 2025 issued by CBIC.

GSTN – Generation Date for Draft GSTR 2B for December 2024

In light of the extended due dates for filing GSTR-1 and GSTR-3B returns for the month of December 2024 (Quarter Oct-Dec 2024) as per Notifications No. 01/2025 and 02/2025 dated 10th January 2025, the Draft GSTR-2B for the month of December 2024 (Quarter Oct-Dec 2024) will now be generated on 16th January 2025 in accordance with the rule 60 of CGST Rules, 2017.

GSTN Advisory for Waiver Scheme under Section 128A

It is to inform that both Forms GST SPL 01 and GST SPL 02 are available in the GST portal and the taxpayers are advised to file applications under waiver scheme.

B. Article

No GST leviable on free bus transportation facility provided to its Employees by the Employer

The AAAR, Gujarat in the matter of M/s. Emcure Pharmaceuticals Ltd., dismissed the appeal filed by the Department and reaffirmed the ruling passed by AAR, Gujarat in its own case, thereby ruling that Applicant is not liable to pay GST on free bus transportation facility provided to its employees. Further, it was ruled that the ITC on motor vehicle for transportation of person having approved seating capacity of more than 13 persons, not being blocked under Section 17(5)(b)(i) of the CGST Act, and thereby, could be availed by the Applicant.

Ratification cannot substitute recommendation

The Hon’ble Gauhati High Court in the case of the CBIC and Ors. v. Barkataki Print and Media Services & Ors. dismissed the review petition wherein the Petitioner had file review application of Barkataki Print and Media Services v. Union of India (WP(C) No. 3585/2024 dated September 19, 2024), whereby the Court had held that Notification No. 56/2023-Central Tax dated December 28, 2028 to be ultra vires of the the CGST Act. Hence, the said order was set aside and the Notification was quashed.

Gujarat High Court sent case back to reconsider refund request as per CBIC’s circular on adjusted total turnover calculation

The Hon’ble Gujarat High Court in the case of Kashi Exports disposed of the petition where the Assessee was exporting goods under LUT was paid refund of unutilized accumulated ITC as per the Rules 89(4)of the CGST Rules, during pendency of petition, clarification issued on manner of calculation of Adjusted Total Turnover consequent to Explanation (c) inserted in Rule 89(4) of the CGST Rules. Hence, the refund application was to be reconsidered.

Telecom towers are moveable property which are eligible for ITC

The Hon’ble Delhi High Court in the case of Bharti Airtel Limited held that telecommunication towers do not qualify test of permanency, they are not ‘attached to earth’, they can be dismantled and moved and are never erected with an intent of conferring permanency and their placement on concrete bases was only to enable those towers to overcome vagaries of nature. Hence, they can be considered as moveable property which is eligible for Input Tax Credit (“ITC”).

SCN and Order devoid of required particulars to contest claim of erroneous refund is void

The Hon’ble Madras High Court in the case Tvl. Orange Sorting Machines (India) (P.) Ltd. allowed the writ petition and held that the SCN issued, and order passed without providing required particulars based on which refund has been rejected is void

Central GST Department required to issue documents including orders both in Hindi and English Language

The Hon’ble Andhra Pradesh High Court in the case of Subodh Enterprises allowed the writ petition and held that, the Central GST Department is required to issue the Order or any other document both in English and Hindi language.

Department shall provide the copies of documents/data derived from seized items during search and seizure proceedings

The Hon’ble Delhi High Court in the case of Aimay (P) Ltd. directed the Department to comply with the provisions of Section 67 of the CGST Act by ensuring that the copies of the documents and data seized be provided to the Petitioner, and the documents, records, laptops, CPUS and Mobile Phones are seized only till the time they are required but the time period in any case shall not exceed the time period later than 30 days after issuance of notice.

Accused/Taxpayer cannot be kept in custody beyond the period of sixty days if complaint has not been filed pursuant to investigation for offences specified under GST Laws

The Hon’ble Delhi High Court in the case of Commissioner of Central Tax, GST dismissed the writ petition filed by the Department and held that, Accused/Taxpayer cannot be kept in custody beyond a period of more than sixty days when the complaint, pursuant to the investigation, relating to offences specified under GST Laws has not been filed. The said relief has been granted by invoking the powers under Section 167(2) of the Criminal Procedure Code, 1973 (“CrPC”) [Now Section 187(3) of Bharatiya Nagarik Suraksha Sanhita].

GST refund can be granted under IDS as per the modified formula

The Hon’ble Gujarat High Court in the case of Tirth Agro Technology Pvt. Ltd. & Anr. allowed the writ petitions seeking GST refund under Inverted Duty Structure based on Section 54(3) of the CGST Act read with Rule 89(5) of the CGST Rules. The Assessee filed a rectification application for differential refund as per the amended formula which was rejected by issuance of SCN on the ground that refund as per the old formula was already granted to the Assessee…

Generation Date of Draft GSTR 2B for December 2024 & action in IMS

C. Tax Media

New GSTN advisory: GST registered suppliers must take note of these new changes made in GSTR-1 from January 2025

GSTN has implemented multiple changes in Table 12 of GSTR-1 return starting from the January 2025 tax period. The deadline to file GSTR-1 for January 2025 tax period is February 11, 2025. This means on or before February 11, 2025 when you file GSTR-1 the specified new rules will have to be followed otherwise the return will be considered faulty. Needless to say if the supplier’s GSTR-1 is faulty then the buyer’s GSTR-2B will get populated with wrong details.

NRAI seeks industry status, restoration of input tax credit for restaurant sector

The Restaurant sector is seeking industry status and restoration of input tax credit from the government. In a letter written to the Finance Minister Nirmala Sitharaman, the National Restaurant Association of India (NRAI) has sought certain policy and budgetary support to fuel the growth of the industry including simplified licensing regime and targeted subsidy scheme.

High penalties for cash transactions: Know I-T dept’s key restrictions

The Income Tax Department has recently released a brochure emphasising the importance of avoiding cash transactions to mitigate tax penalties. This initiative aims to educate taxpayers about the potential financial repercussions of cash dealings, which can lead to severe penalties under the Income Tax Act.

Tax all new technology batteries uniformly at 5% GST: IESA

India Energy Storage Alliance on Wednesday said batteries, irrespective of technology type, must be uniformly taxed at 5 per cent GST like electric vehicles to support the emerging sector. Ahead of the Union Budget, India Energy Storage Alliance (IESA) President Debi Prasad Dash told PTI that the government may consider protecting domestic cells and battery component manufacturers in the wake of an increase in imports of lithium-ion cells, which has risen to Rs 24,000 crore in FY24 from Rs 18,000 crore in FY23, especially from China.

Garment Trade Associations Across India Want Group Of Ministers (GoM) To Abandon Proposal To Modify GST Rates

Clothing Manufacturers Association of India (CMAI) and 14 leading Garment Trade Associations from across India collectively met as a Group of Associations and under ONE INDUSTRY, ONE VOICE passed a unanimous resolution for submission to Group of Ministers (GoM) to abandon a proposal to modify GST rates in the Garment Sector, and retain the existing structure of 5% and 12%.

Supreme Court relief to online gaming companies on GST issue

In a major relief to online gaming companies, the Supreme Court (SC) on Friday put a stay on GST show-cause notices amounting to Rs 1.12 lakh crore against these companies. The court has suspended all further proceedings under these notices until the matter is conclusively adjudicated.

Deadline for GSTR-1 and GSTR-3B extended after GSTN reported technical issues with the portal

The Central Board of Direct Taxes (CBIC) has extended the deadline to file monthly GST return using GSTR-1 and GSTR-3B form, both by 2 days each.

Budget 2025: Finance Bill likely to further strengthen GST to tackle fake invoicing

The Goods and Services (GST) Act is likely to amend to incorporate the Invoice Management System (IMS) into the legal framework. Sources told Moneycontrol that the amendment aims to address revenue losses caused by fake invoicing and to eliminate tax evasion.

GST officers must explain ‘grounds of arrest’ to offenders, obtain acknowledgement: CBIC

GST officers will now have to explain to offenders about the “grounds of arrest” and obtain a written acknowledgement from them, the CBIC said on Monday. Modifying the guidelines for arrest and bail in relation to offences punishable under the GST Act, the CBIC said: “The grounds of arrest must be explained to the arrested person and also furnished to him in writing as an Annexure to the Arrest Memo. Acknowledgement of the same should be taken from the arrested person at the time of service of the Arrest Memo.”

You can now file a rectification application to claim pending input tax credit; However, there is a catch

Good news for GST registered taxpayers who filed GSTR-3B to claim pending input tax credit (ITC) for FY 17-18, 18-19, 19-20 and 20-21 but were prevented from claiming it due to due date related issues. Many of these taxpayers received GST demand notice because they did not file GSTR-3B return on or before the deadline. As per the GST law input tax credit (ITC) can’t be claimed without filing GSTR-3B return. One issue led to another. Without getting the benefit of ITC their final output tax liability increased unnecessarily.

How is Budget prepared? Understanding insights and expectations for 2025-26

The process of preparing the Indian Union Budget is a rigorous and detailed undertaking that unfolds over several months, led by the Ministry of Finance (MoF) in collaboration with various stakeholders, including NITI Aayog and other ministries.

Tech glitch causes GST filing delay; taxpayers call for deadline extension

With the deadline for December 2024 returns set for January 11, 2025, many Indian businesses are facing delays in filing their GSTR-1 returns due to ongoing technical issues on the Goods and Services Tax Network (GSTN) portal. Taxpayers are urging immediate action and requesting an extension of the filing deadline.

Mankind Pharma faces over Rs 2 crore penalty from GST authority

Mankind Pharma Ltd on Wednesday said it has been imposed a GST related penalty of over Rs 2 crore by tax authority in Kolkata over alleged mismatch in figures for the period of FY18 to FY22.

GST Tribunals may be delayed by 6 months as states yet to appoint officials

The much-anticipated Goods and Services Tax Appellate Tribunals (GSTAT) may take another six months to become operational. Many states are yet to appoint members or allocate office spaces, delaying the process, according to a report by The Economic Times.

GST Amnesty Scheme waiver of penalty and interest: These taxpayers need to withdraw their appeal and then apply for the scheme

Goods and Service Tax (GST) registered taxpayers who wish to apply for the GST Amnesty Scheme 2024 under section 128A announced in Budget 2024, should note about a procedural change in filing its application. Without submitting a request for withdrawal of appeal, the taxpayer cannot apply for the GST Amnesty Scheme under section 128A.

Govt may introduce one-time amnesty scheme to resolve Customs disputes

The Union government is considering introducing a one-time amnesty scheme in the FY26 Budget to be presented on February 1, similar to the Vivad Se Vishwas scheme for income tax, to resolve pending Customs disputes, a senior government official said on condition of anonymity.

Major overhaul of customs duty on over 100 items likely in FY26 Budget

The government is likely to go for a major overhaul of the basic customs duty on more than 100 items in the Budget for FY26, in order to align the rates with global trade dynamics and correct the inverted duty structure, according to a senior official.

Relief against customs duty payment issues for international travellers; new advisory for stuck payments

To help passengers get timely refunds for failed custom payment transactions the customs department has released an advisory outlining the guidelines. These guidelines relate to how passengers can get refunds for failed customs duty payment transactions done through the ICEGATE portal. Do note that this advisory is relevant for only those international travellers, who have brought goods from abroad above the duty free baggage limit of that respective good. For example: Gold above the value worth Rs 50,000 is over the baggage limit and so customs duty must be paid.

Two-day stay in Matheran lands I-T official in CBI net

An Income tax inspector who was under the scanner for accepting bribes finally landed in CBI net after they found that a shipping company paid for his and family’s two-day stay in Matheran.

Income Tax can seize properties even if real owner is untraceable: Court

In a significant ruling, a quasi-judicial body has upheld the Income Tax (I-T) department’s ability to attach properties under the anti-benami law even if the actual owner of the property is not identified. The ruling, issued by the Adjudicating Authority set up under the Prohibition of Benami Property Transactions (PBPT) Act, 1988, confirms that the law provides a mechanism to deal with cases where the actual owners or the person who paid for the property cannot be traced.

Govt employees can get Rs 25 lakh as gratuity. What rules say

The gratuity limit for central government employees has been raised to Rs 25 lakh from the previous Rs 20 lakh, following the increase in the dearness allowance (DA) to 50 per cent.