RECENT DEVELOPMENTS IN GOODS AND SERVICES TAX

The monthly economic review of MoF suggests that outlook for India is one of the cautious optimism and has cautioned against external debt challenges that could potentially impact India’s growth trajectory calling for close monitoring.

All across the country, 1st July is also being celebrated as GST day. Prime Minister Narendra Modi had called it “a path-breaking legislation for New India.” Eight years on, the numbers speak for themselves. In 2024–25, gross GST collections hit a record Rs.22.08 lakh crore, marking a year-on-year growth of 9.4 per cent. This rise reflects the growing formalisation of the economy and improved tax compliance.

According to one survey, GST is widely recognised for improving ease of doing business, streamlining tax administration, and supporting economic growth. Among micro, small and medium enterprises, positive sentiment increased from 78 percent last year to 82 percent this year, reflecting broader acceptance among smaller firms.

Time is now ripe to revisit minutely each provision of GST law by entrusting this task to a group of experts and law makers so that we have a smooth 2.0 version of GST which boosts the business, industry and economy by ironing  out all possible pain points.

In a Circular issued by CBIC, guidelines for reviewing / revisionary / appellate authorities have been prescribed in case of adjudication orders issued by common adjudicating authority against SCN’s issued by the DGGI.

In an important development Orissa High Court has upheld the reconstituted committee’s authority to have second round of interaction for appointment of Members while interpreting Appointment of Members / President Rules, 2023.

GSTN has released the collection figures for the month of June, 2025. Total gross GST collection is Rs. 1,84,597 crore as against Rs. 1,73,813 crore in June, 2024, a growth of 6.2%. Out of this, domestic revenue is Rs. 1,38,906 crore. Total refunds are of Rs. 25,491 crore, a rise of 28.4% on YoY basis. Net GST revenue has recorded Rs. 1,59,106 crore (3.3% rise on YoY basis).

Orders passed by Common Adjudicating Authority (CAA) – Reviewing / Revisional / Appellate Authority

• CBIC has issued a clarification on procedure for review, revision and appeal against Orders-in-Original (OIO) adjudicated by CAAs in terms of Circular No. 239/33/2024-GST dated 04.12.2024 in relation to appointment of CAA for SCNs issued by the Directorate General of GST Intelligence (DGGI).
• Section 107 and 108 of CGST Act, 2017 read with rules provide the mechanism for review / revision / appeals against orders in original issued by adjudicating authorities.
• Since orders are now also being issued by Common Adjudicating Authorities (CAAs), CBIC has now clarified that:

• Review under Section 107 of the CGST Act, 2017: The Principal Commissioner or Commissioner of Central Tax under whom the Common Adjudicating Authority (Additional/ Joint Commissioner) is posted shall be the reviewing authority in respect of such O-I-Os.
• Revisional Power under Section 108 of the CGST Act, 2017: The Principal Commissioner or Commissioner of Central Tax under whom the Common Adjudicating Authority (Additional/ Joint Commissioner) is posted shall be the revisional authority in respect of such O-I-Os.
• Appeal Procedure under Section 107 of the CGST Act, 2017: Appeals against the order of Common Adjudicating Authority (Additional/Joint Commissioner) shall lie before the Commissioner (Appeals) corresponding to the territorial jurisdiction of the Principal Commissioner or the Commissioner of Central Tax, under whom the said Common Adjudicating Authority (Additional/ Joint Commissioner) is posted, as specified in Table III of notification No. 02/2017- Central tax dated 19th June, 2017.
• Departments Representation in Appeals: The Principal Commissioner or Commissioner of Central Tax of such Commissionerate under whom the Common Adjudicating Authority (Additional/Joint Commissioner) is posted shall represent the department in appeal proceedings against the O-I-Os passed by such Common Adjudicating Authority (Additional/ Joint Commissioner) and accordingly may appoint any officer subordinate to him to be the designated officer for filing departmental appeals.
• The reviewing or revisional authority for such orders may seek comments on the O-I-O from the concerned DGGI formation before proceeding to decide on the order passed by the CAA.

• Further, reviewing or Revisional Authority may also seek comments on the subject order in original from concerned DGGI office while proceeding in relation to such OIO.

(Source: Circular No. 250/07/2025-GST dated 24.06.2025)

GST Collection in June, 2025

• Gross domestic GST collection in June, 2025 is Rs. 1,38,906 crore, a rise of 4.6% over June, 2024 collection of Rs. 1,32,800
• Gross total GST collection including imports of Rs. 45,690 crore is Rs. 1,84,597 crore (a growth of 6.2% on YoY basis)
• Total refunds (domestic and exports) in June are to the tune of Rs. 25,491 crore showing a rise of 28.4% over June, 2024 of Rs. 19,853 crore
• Thus, net domestic tax revenue is Rs. 159106 crore as against Rs. 1,53,959 crore, showing a growth of 3.3% from Rs. 1,53,959 crore in June, 2024.
• GST collection growth is higher in Sikkim, Nagaland, Tripura, Ladakh while it is in negative in states like Punjab, Uttar Pradesh, Manipur, Gujarat etc.