HC – OnlineTaxUpdate

Incremental GST burden on pre-GST works contracts is recoverable only from the contracting employer and not from the State or tax authorities

byCA Bimal Jain10/08/202610/08/2026

The Hon’ble Karnataka High Court in State of Karnataka & Ors. partly allowed the appeal filed by the State of Karnataka and held that reimbursement of incremental GST paid by contractors pursuant to transition from the KVAT regime to the GST regime can be claimed only against the concerned employer under the works contract and not against the State Government or the tax authorities.

Article GST Article

Time Spent in Pursuing Rectification Application under Section 161 of the CGST Act Excludible While Computing Limitation for Filing Appeal under Section 107

byAdmin08/08/202608/08/2026

The Hon’ble Gauhati High Court in Debabrata Bhowmick set aside the Order-in-Appeal whereby the appeal filed under Section 107 of the CGST Act was rejected as time-barred and held that the period spent in bona fide prosecuting a rectification application

Article GST Article

Cancellation of GST registration based on defective verification reports fails the statutory test of ‘reasons to believe’

byCA Bimal Jain08/08/202608/08/2026

The Hon’ble Karnataka High Court in M/s. Flex Enterprises quashed the orders cancelling the GST registrations of the Petitioners along with the consequential suspension of the registrations,

Article GST Article

Limitation for filing GST appeal runs from the date of actual communication of the order as declared by the dealer unless rebutted by the Revenue through cogent material

byCA Bimal Jain07/08/202607/08/2026

The Hon’ble Allahabad High Court in Wilh Loesch India Pvt. Ltd. quashed the appellate order dismissing the appeal solely on the ground of limitation, without entering into the merits, and held that once the Assessee discloses the actual date of communication of the adjudication order

Income Tax in Media Media

Income tax on property sale: Gujarat HC quashes reassessment notice over ₹92 lakh land sale; here’s why

byAdmin05/08/202605/08/2026

The Gujarat High Court has quashed a reassessment notice issued by the Income Tax Department in a long-running capital gains dispute,

Article GST Article

Interest on Delayed Payment of GST Arises by Operation of Law and Cannot be Waived by Courts

byCA Bimal Jain03/08/202603/08/2026

The Hon’ble Karnataka High Court in The Commissioner of Central Tax & Ors. set aside the order passed by the Learned Single Judge to the extent it issued blanket directions to the Revenue to waive interest, penalty, and the limitation for filing returns/revised returns in respect of delayed returns and payment of tax by a sub-contractor…

Article GST Article

Disparity between seigniorage fee paid and supply value declared in GSTR-1 justifies invocation of extended period of limitation under Section 74 of the CGST Act

byCA Bimal Jain03/08/202603/08/2026

The Hon’ble Madras High Court in KPR Enterprises dismissed the writ petitions challenging the assessment orders passed under Section 74 of the TNGST Act and held that where the assessee has paid a huge amount ..

Article GST Article

No 10% pre-deposit required on any Penalty-only order from SCN issued prior to October 01, 2025

byCA Bimal Jain03/08/202603/08/2026

The Hon’ble Delhi High Court in Gaurav Jain & Anr. held that the proviso to Section 107(6) of the CGST Act, as substituted with effect from October 01, 2025, mandating pre-deposit of ten (10%) per cent of the penalty for filing an appeal against an order demanding penalty without involving any demand of tax, …

Article Customs Article

Advocates ought to be summoned only in rare and exceptional circumstances

byCA Bimal Jain01/08/202601/08/2026

The Hon’ble Delhi High Court in Lalitendra Gulani disposed of the writ petition assailing the summons issued under Section 108 of the Customs Act, 1962 to an Advocate calling upon him to disclose a legal opinion rendered to his client on classification of imported goods, after taking on

Article GST Article

Ratification is no substitute for recommendation – Notifications travelling beyond GST Council recommendations are ultra vires

byCA Bimal Jain01/08/202601/08/2026

The Hon’ble Madras High Court (Madurai Bench) in M/s. Guru and Co. ruled that Central Government cannot travel beyond the recommendations of the GST Council, and that the GST Council, whose power under Article 279A of the Constitution of India is only to make recommendations, does not possess any power to ratify Notifications already issued by the Government.