TaxTMI 
TaxTMI 
19 Sep 2026 
The GST law survived despite several challenges and already stabilised well in its tenth year. The GST Council meeting which was held on 03/09/2025 has brought in several relief measures for the common taxpayer including the decision on GSTAT. In October 2025 itself the GST officials passing Order In Original as well as Order In Appeal should have corrected themselves in NOT passing the orders in gross violations of the provisions of the Act. From the order dated 15/09/2026 in the Madras High Court in W P 35549 of 2026 in the matter of SRI SAKTHl GANAPATHY TEX Versus The Deputy State Tax Officer-1, Kothawalchavadi Assessment circle, Chennai - 2026 (9) TMI 1361 - MADRAS HIGH COURT it has come to light that section 75 (4) and 126 were violated while passing the OIO. The best part of the game is that the OIO pertains to the financial year 2021-22 which was passed on 12/12/2025 when GSTAT was accepting the second appeals.
Who has given the authority to GST officers to pass orders in violation of the provisions of the Act?. The legislature had the vision to anticipate the attitude of the GST officials and accordingly framed Section 126. In simple terms, the section provides for no penalty for minor procedural lapses which are curable. The sub section 2 also provides for the penalty which shall depend on the facts and circumstances of each case and shall commensurate with the degree and severity of the breach. That is why section 125 categorically uses the wors as "which may extend to". In the case referred above, it is observed that even the opportunity of personal hearing was not granted and the High Court has ordered for fresh orders after affording the opportunity of personal hearing subject to conditions specified in that order.
On the same violation of 75 (4), in another case the officer postponed the hearing date as the taxpayer did not appear for personal hearing but without informing the taxpayer the next hearing date, passed orders without any hearing at all. This came to light in M/s Prabhav Enterprises Thru. Pro. Shirish Kumar Ramashray Pandey Versus State Of U.P. Thru. Addl. Chief Secy. State Tax Govt. Lko. And 2 Others - 2026 (9) TMI 1200 - ALLAHABAD HIGH COURT in the matter of Prabhav Enterprises. The order reads as "3. Upon a perusal of the documents, it appears that the order was passed ex parte and was not passed on the date fixed for hearing and for subsequent date no notice was given to the petitioner". The high court accordingly quashed and set aside the impugned order with a direction upon the authority concerned to grant an opportunity of personal hearing to the petitioner and, thereafter, pass a reasoned order in accordance with law. 6. The writ petition is disposed of.
In yet another case, in Conduent Business Services India LLP Versus Commissioner Of Central Tax Bengaluru East GST Commissionerate & Ors. - 2026 (9) TMI 1185 - GSTAT BENGALURU, the GSTAT was categorical based on Supreme Court order in the matter of Tata Steel Limited and ruled as "Substantive Merits: The imposition of Section 74 penalties on Issues 1 and 3 by the First Appellate Authority are unsustainable. In terms of the Supreme Court's mandate in Tata Steel (supra) audit mismatches and pre-SCN payments in the absence of positive proof of deliberate suppression cannot attract Section 74 penalties. 19. ORDER 1. The Appeal is ALLOWED. 2. OIA No. 105/2024-25 dated 01.10.2024 is SET ASIDE 3. The credit reversed and interest paid on issues 1& 3 above are held to be payments under Sec. 73 (5) of CGST ACT, 2017".
The three authorities which passed orders are at Chennai, Allahabad as well as Bengaluru but the message passed on 15/09/2026 was loud and clear .
Conclusion: In one of my earlier article published on 16/09/2026 under the caption GST officials may exercise extreme caution to avoid imposition of cost on them. The required sensitivity seems to be missing even after more that 100 GSTAT orders available as on date in the public domain. The message is kindly correct yourself in strict adherence of all important sections and if not, you will be corrected which shall be expensive. Even today is not late for all the GST officials to start passing OIO as well as OIA with little scope for further litigation.
Conclusion: Artificial Intelligence says "GST 2.0 refers to the comprehensive, next-generation overhaul of India's Goods and Services Tax (GST) system. Officially rolled out on 22 September 2025 under the Prime Minister Narendra Modi-led NDA government, it marks the most significant structural reset to the country's indirect tax framework since its inception in 2017. The core purpose of GST 2.0 is to simplify the complex multi-slab tax structure, lower compliance burdens for businesses, and reduce daily household expenses for consumers. The purpose of making operational of the GSTAT with effect from 16/02/2026 as well as the commencement of acceptance of second appeal in GST portal with effect from 24/09/2025 are only to minimise the GST litigation and to improve the quality of the GST adjudication as well as first appeal orders.
This is the last opportunity for all GST officials to correct themselves from the position which was prevalent prior to September 2025. They have the choice to assume the continuance of honeymoon period even now which is only an illusion.