Right to be heard: GST registration cancellation requires fair notice, reasoned orders and opportunity to reply.
Cancellation of GST registration requires adherence to the right to be heard, with affected taxpayers given an opportunity to comply or to respond; technical filing failures or portal glitches should not automatically trigger cancellation. Cancellation orders must contain independent reasoning and be confined to grounds raised in the show cause notice; bald allegations of fraud without evidentiary support and deviations from notified grounds violate natural justice and warrant quashing. (AI Summary)

Cancellation of bail unjustified where no complaint, no new circumstances, and bail conditions are complied with under GST law.
Cancellation of bail is unjustified where no complaint has been filed, no supervening circumstances exist, and bail conditions remain complied with under the CGST framework. The respondent deposited an amount exceeding ten percent of the disputed input tax credit liability, produced original property documents, undertook to cooperate with the investigation and not tamper with evidence, and the Department recorded no contemporaneous objection to the original bail order; no misuse of liberty or interference with the probe was demonstrated. (AI Summary)

Exclusion of duty credit scrips from exempt supplies prevents proportionate ITC reversal on tax-free scrip sales.
DCS are export incentives exempt from GST and, under amended allocation rules, the value of DCS is excluded from the aggregate value of exempt supplies, removing the basis for proportionate Input Tax Credit reversal on tax-free sale of DCS; taxpayers may reclaim ITC reversed or seek refunds and rely on retrospective clarificatory principles for application. (AI Summary)

GST exemption on long-term land lease limited to industrial or financial infrastructure where ownership and use conditions are met.
Entry 41 exempts upfront amounts for long-term leases of land used for industrial plots or for development of infrastructure for financial business, available only when the lessor meets the prescribed public-ownership threshold (directly or through a wholly owned intermediary). The exemption is conditional: plots must be used for the stated activities in designated areas; State Governments monitor compliance; original and subsequent parties are jointly and severally liable for GST with interest and penalty on breach; and lease agreements must record the conditional exemption and undertakings to comply. (AI Summary)

Moratorium under the Insolvency Code bars enforcement attachments during insolvency, overriding conflicting foreign exchange actions.
The Code's moratorium bars attachment and continuation of enforcement proceedings against a corporate debtor's assets during CIRP and after a liquidation order, notwithstanding earlier initiation of other statutory proceedings; actions under a statute without a non obstante clause that conflict with the moratorium may be quashed, while separate liability proceedings against directors or officers remain permissible. (AI Summary)

Opportunity of hearing required before confiscation: administrative confiscation and penalties cannot be imposed on driver's statement alone.
Confiscation and penalty orders based solely on the vehicle driver's reply, issued the same day as interception and without affording the consignor an opportunity of hearing, violate Section 130(4) of the CGST Act. The driver lacked authority to represent the consignor; the proceedings were arbitrary and procedurally defective. The court set aside the confiscation and penalty orders and remitted the matter to the competent officer to recommence proceedings from the show cause notice stage, directing compliance with the statutory hearing requirement. (AI Summary)

Input Tax Credit disputes: procedural mismatches and technology-driven credit blocking increasing taxpayer vulnerability.
The article foregrounds the Input Tax Credit crisis in GST: purchaser ITC is often denied due to supplier filing defaults, automated mismatch rules, and discretionary credit blocking under Rule 86A, converting routine credit claims into litigation and compliance risk. It identifies procedural rigidity-complex reconciliations, constrained refunds, arbitrary GSTIN cancellations-and an enforcement shift toward coercive recovery and inspections, arguing these dynamics erode trust. Recommended reforms include de-linking bona fide buyer ITC from supplier defaults, clear audit SOPs, time-bound and reasoned show-cause processes, review mechanisms for credit blocks, improved portal functionality, and simplified returns for small traders. (AI Summary)

Duty and interest liability on EOU exit: duties and IGST assessed at debonding; interest applies only for delayed payment.
EOU exit requires payment of customs duty, cess, IGST and applicable interest on unutilized raw materials and capital goods assessed at the date of debonding; depreciation may reduce capital goods' taxable value. IGST applies where prior exemption was availed unless already discharged. Interest for delayed payment arises only if the assessed duty is not paid within the stipulated period after demand, running from the date the duty becomes due until actual payment. Procedure includes application to the Development Commissioner, stock verification, liability assessment, payment, No Dues Certificate and final debonding order. (AI Summary)

Input tax credit eligibility for registration and business changes requires strict timing and prescribed adjustment conditions.
Input tax credit is allowable when taxpayers change registration status or business character-new or voluntary registration, exit from exempt supplies, or switch from composition to normal regime-for inputs, inputs in semi finished/finished goods and capital goods (subject to prescribed reduction) held the day before the change, provided claims are made within a strict time limit and general eligibility, apportionment and blocked credit rules apply; transfers of unutilized credit on business transfers and recovery adjustments on supply of capital goods are subject to prescribed conditions. (AI Summary)

IGST refund error due to shipping bill-GST data mismatch; verify records, correct profiles, and resubmit refund application.
SB0006 indicates an IGST refund processing failure due to mismatches between shipping bill data and GST records. Resolve by verifying that GSTIN, shipping bill number, invoice number and HSN codes match GSTR 1 and that IGST payments are recorded in GSTR 3B; confirm IEC linkage and bank details in the GST profile; ensure required documents are uploaded; request Customs to correct EDI records or amend the shipping bill; if unresolved, raise queries with GST/Customs helpdesks and, after corrections, file a fresh refund application with accurate data and attachments. (AI Summary)

Binding High Court Decision cannot be ignored to deny GST refund when no stay or appeal exists.
Where no stay or appeal is pending, the Court held that a tax authority cannot refuse refund by disregarding a binding High Court decision. Under the second proviso to Rule 28 of the CGST Rules, services for which no invoice is raised from a foreign affiliate are to be treated as deemed nil in value, and departmental non-acceptance of an earlier High Court precedent is not a valid ground to deny refund once the controlling decision has attained finality. (AI Summary)

Demand exceeding show cause notice: statutory bar prevents orders seeking more than the notice amount; fresh opportunity to respond ordered.
A demand order exceeding the amount specified in a show cause notice contravenes the mandatory restriction in Section 75(7) of the CGST Act. Where a notice proposed a defined recovery but the subsequent order demanded a materially larger sum by increasing penalty and interest, the court held such excess demand contrary to law and required the assessing officer to afford the taxpayer an opportunity to reply and to pass a fresh order consistent with the statutory cap that the order not exceed the notice amount. (AI Summary)

Unutilized ITC refund: Section 49(6) interpretation permits refund on business closure under GST procedural framework.
Whether a registered person may obtain a refund of accumulated, unutilized Input Tax Credit (ITC) on business cessation depends on the interplay between the ledger-refund mechanism and the specific restriction on ITC refunds. Section 49(6) routes electronic ledger balances to the refund regime while Section 54(3) restricts refunds of accumulated ITC to specified situations; resolving closure-based claims requires examining lawful accrual of ITC and whether the statutory refund architecture permits converting that accrued balance into a cash refund. (AI Summary)

Advance Authorization Scheme: Customs cannot deny duty exemption for description variance when DGFT raises no objection.
Customs authorities cannot refuse duty exemption under the Advance Authorization Scheme solely due to immaterial variances in product description when the DGFT has not objected; such variances that do not change the nature or end use of inputs must yield to the scheme's purpose. Customs may not independently reclassify imports to deny benefits, and penal provisions require proof of deliberate misdeclaration, concealment, or fraudulent intent before being invoked. (AI Summary)

Input tax credit apportionment: restrictions and specified blocked credits limit recoverable GST credit under Section 17.
Section 17 restricts ITC to the portion attributable to business or taxable/zero rated supplies, prescribes inclusion of reverse charge receipts, securities transactions and sale of land/buildings in the exempt supply value (with certain Schedule III exclusions), and allows banks/financial institutions/NBFCs an irrevocable option to claim fifty percent of eligible ITC monthly with the balance lapsing. It sets out specific blocked credits (motor vehicles, vessels/aircraft, related insurance/repairs, specified hospitality and welfare services, works contracts for immovable property, construction on own account, composition taxed supplies, non resident receipts (except imports), CSR, personal consumption, lost or gifted goods, and certain past tax payments) and permits government rules for attribution; plant and machinery is defined for these purposes. (AI Summary)

IGST refund process: reconcile shipping bill and GST returns, then file refund application or escalate for unresolved SB0005 errors.
The note addresses the SB0005 error blocking IGST refunds caused by mismatches between shipping bill data and GST returns, incorrect or unreflected IGST payments, and failures in Customs EDI-GST linkage. Remedies include reconciling shipping bill and GSTR-1/GSTR-3B entries, amending returns for the export period, filing an IGST refund application with supporting documents, updating exporter and bank details, coordinating with Customs for EDI linkage, raising helpdesk tickets, and for 2020 transactions reviewing historical claims or pursuing an advance ruling if eligibility remains unclear. (AI Summary)

Inclusive pricing representation prevents seller from demanding extra GST after buyers paid the declared all inclusive price.
Where a developer expressly advertised the sale price of flats as inclusive of GST, that advertised representation created a binding expectation preventing the developer from later demanding additional GST from allottees who paid the stated price; as drafting party the developer must bear omissions or ambiguities, with promissory estoppel and contra proferentem principles applied and the developer required to reconcile tax from amounts already collected and bear any statutory interest or penalties. (AI Summary)

Data reconciliation between shipping bill and GST enables IGST refund processing once records and payments align.
SB0004 arises from inconsistencies between the Customs EDI shipping bill and the GST system that block an IGST refund. Resolve by reconciling exporter GSTIN, invoice numbers and dates, HSN descriptions, and IGST payment records across the shipping bill, GSTR 1 and GSTR 3B; update exporter profile and bank details; file corrected/amended shipping bill if needed; then resubmit the refund application with supporting documents and escalate to Customs or GST helpdesk if synchronization issues persist. (AI Summary)

Error apparent on the face of the record: rectification limited; fresh assessment with personal hearing directed.
The court found that treating an emailed reply as non-existent and denying a personal hearing breached the principles of natural justice; rectification was inappropriate because it cannot substitute for reassessment or reconsideration of omitted material, being limited to errors apparent on the face of the record. The matter was remanded for fresh assessment after affording a personal hearing and opportunity to file the reply physically or via the portal. (AI Summary)

Input Tax Credit eligibility requires valid invoice, supplier reporting, receipt of supply and timely return filing to claim credit.
ITC is claimable only when a registered person holds a valid tax invoice or debit note, the supplier reports the invoice details via the GST portal and communicates them to the buyer, the goods or services have been received (including deemed receipt), the tax charged has been paid to the government by the supplier, and the buyer has filed the relevant returns; additional provisos address installment deliveries, reversal where payment to supplier is not made within specified timeframes, reclaiming reversed ITC upon payment, exclusion of GST component claimed as depreciation, and statutory time limits for filing claims. (AI Summary)