GST compliance challenges strain businesses through higher costs, cashflow pressure and increased litigation and operational disruptions.
GST's unified indirect tax framework presents operational burdens: a complex tax structure with multiple slabs increases classification and filing difficulties; technical glitches in the online portal and E-way Bill system produce filing errors, documentation delays and penalties; and delays in Input Tax Credit refunds create working capital constraints. These factors drive higher compliance costs, disproportionate impacts on SMEs, increased litigation from disputes and reduced competitiveness. (AI Summary)

Reasonable fees for Interim Resolution Professional upheld when documented CIRP work and creditor delays justify compensation.
The core dispute concerned whether the Interim Resolution Professional's claimed fees and CIRP expenses were reasonable and proportionate to the documented work performed, and whether regulatory provisions relied upon were applicable. The Tribunal, after reviewing CoC minutes and the IRP's detailed activity list, found the IRP had undertaken requisite CIRP steps and that creditor indecision delayed the process; the IRP's voluntary fee reduction and curtailed expenses supported the reasonableness of the quantum approved by the Adjudicating Authority. (AI Summary)

Commissioner review and appeal rights require electronic filing with limited manual exceptions and certified order submission.
Commissioner may direct a subordinate officer to file an appeal against orders of adjudicating, appellate, or revisional authorities when those orders are considered not legal or proper; such directions specify grounds and must be acted upon within the prescribed time. Rule 109 requires electronic filing in the designated appellate form as default, allows manual filing only where notified by the Commissioner or the order is not available on the common portal, mandates submission of a certified or self certified copy within a short specified period, and provides that issuance of an acknowledgment with an appeal number fixes the filing date. (AI Summary)

Director liability under GST requires satisfaction that the person was director during the relevant period before recovery proceedings.
Under the GST framework, principal liability lies with the registered person and an individual who is not a registered person cannot be held primarily liable. Recovery from a director requires the assessing officer to be satisfied that the person was a director during the specific period of liability; only after such satisfaction may liability be imposed. An attachment undertaken without issuing a show cause notice, without affording personal hearing, and without recorded satisfaction of director status raises material procedural and factual defects in pursuing recovery against a former director. (AI Summary)

GST registration requirement for commission agents: agency status triggers mandatory registration and GST compliance obligations.
Agents who supply goods or services on behalf of principals are subject to GST and must register regardless of usual turnover thresholds; non-resident taxable persons supplying in India must also register. Composition scheme availability and invoice, e-way bill and e-invoicing obligations apply subject to statutory thresholds. Valuation rules exclude reimbursed pure agent expenses and prescribe special valuation for sole agents based on recipient resale prices. Tax on agency supplies is imposed at the applicable rate and reverse charge can make the recipient liable in specified sectors, with regular return filings required for compliance. (AI Summary)

Taxability of corporate guarantees: GST treatment of a holding company's guarantee to a subsidiary questioned; court issued notice.
Whether a holding company's issuance of a corporate guarantee to a subsidiary is a supply of services under GST is contested; petitioner contends such guarantees given without consideration are not taxable and characterizes them as contingent contracts not enforceable until called upon, arguing that valuation by reference to a percentage of the guarantee imposes an undue burden. The Delhi High Court issued notice and listed the matter for further hearing. (AI Summary)

Interest waiver for belated returns may be allowed where prescribed conditions are met, subject to filing and full tax payment.
The article summaries statutory interest provisions for belated return filing, shortfall in advance tax and deferment of advance tax installments, notes that a central directive permits discretionary reduction or waiver of such interest in specified classes of cases provided the return for the relevant year is filed and the full tax assessed is paid, and identifies classes of cases (including seizure-related inability to file, unanticipated income, retrospective law changes, and voluntary undiscovered filings) where waiver may be considered. (AI Summary)

Penalty under Section 122(1A) limited to taxable persons who retain benefit; non beneficiary employees cannot be penalised.
Penalty under the CGST framework applies only to a taxable person who is responsible for the transaction and in a legal position to retain the benefit of that transaction; absence of retention of benefit or transactional control precludes imposition of penalty under sub section (1A) of Section 122. Prosecution under Section 137 does not apply to a demand issued under Section 74, and issuing penalty notices to employees who neither retained benefit nor had transactional responsibility is an improper extension of liability. (AI Summary)

Refund of unutilised input tax credit: exporters may use a general formula or specific provision, but calculation and dispute risks persist.
Exporters of zero rated supplies without payment of tax can claim refund of unutilised input tax credit under the general refund formula or under specific sub rules for exporters who import or procure exempt inputs; Rule 89(4) prescribes a formula and does not by its terms bar such exporters, while the specific sub rule permits refund "to the extent used" but provides no statutory calculation method. Absent a formula, taxpayers must adopt a rational, documented apportionment (for example input output ratios, weighted average input prices and exclusion of exemptly procured inputs) and face potential dispute with tax authorities. (AI Summary)

Limitation for filing appeal runs from receipt of the order copy, not the date of pronouncement, ensuring filing fairness.
The central legal principle is that when a superior forum directs an appellant to file an appeal within a short period "from today," the phrase must be construed as the date on which the order copy is issued or received by the party. Limitation for filing the appeal therefore runs from receipt of the certified order copy, since practical ability to file and the appellate authority's requirement of an order copy make issuance/receipt the operative starting point for computing time. (AI Summary)

Government company classification by majority state ownership shapes auditor appointment, reporting duties, and disclosure obligations.
A government company is one where at least 51% of paid up capital is held by government, triggering CAG advised auditor appointment, MOA/AOA control over employee appointments, and presentation of annual and audit reports to Parliament or the state legislature; such companies have reduced public disclosure compared with public limited companies. A public limited company raises capital from the public, has limited liability, member appointed auditors, director control of employee appointments, annual reports presented to members, and broader public disclosure obligations. Both are governed by the Companies Act, 2013. (AI Summary)

Locus to challenge constitutional amendment denied; petition dismissed where petitioner lacked standing and affected parties not marginalized.
The petition contended that Sections 2, 9, 12 and 18 of the 101st Amendment and the GST Council's role violated the basic structure by abdicating Parliament's legislative function; the High Court dismissed the petition for lack of locus, holding the petitioner lacked standing and that transitioned VAT dealers were not a marginalized class unable to litigate their rights. (AI Summary)

Customs duty remedies: appeal or Section 149 amendment for reassessment and TR-6 payment allows IGST credit claim.
Excess Customs Duty can be remedied by appeal to the Commissioner (Appeals) seeking reassessment and refund or by applying for amendment of the bill of entry under Section 149 where documentary evidence existing at clearance justifies correction. Short payments may be regularised by paying differential duty and IGST via TR-6 challan, and input tax credit of incremental IGST can be claimed under Rule 36 as TR-6 qualifies as a similar prescribed document; the CGST time limit for invoices does not bar ITC on bills of entry or TR-6, though administrative difficulties may persist when BOE data is not reflected in GST systems. (AI Summary)

Good faith immunity: statutory officers may invoke the defence in proceedings; premature judicial conclusions on applicability are improper.
Section 157 provides a limited good faith immunity for statutory functionaries for acts done honestly and in furtherance of statutory purposes; the availability of the defence must be pleaded and adjudicated in legal proceedings based on facts and circumstances. Tentative judicial observations on the applicability of the clause before initiation of proceedings can prejudice subsequent adjudication and are inappropriate, especially where the action arguably departs from statutory authorisation. (AI Summary)

Accounting scope: a cross sector information system enabling financial reporting, auditing and tax compliance for decision making.
Accounting is a comprehensive information system used across businesses, government, non trading institutions, professionals and individuals to record, analyse and report financial and non financial transactions, providing financial statements that enable stakeholders to assess financial position and inform decisions. It underpins bookkeeping, auditing for accuracy and compliance, tax accounting for statutory filings, and public sector budgetary analysis, while technological developments expand its applications without changing core functions of recording, classification, aggregation and reporting. (AI Summary)

GST on employer provided canteen: recoveries from permanent employees not taxable, recoveries from non permanent workers taxable.
Amounts recovered from permanent employees for subsidised employer provided canteen services are not taxable supplies under GST and the employer may claim ITC on the tax paid to the canteen service provider to the extent of cost borne for permanent employees. Recoveries from temporary or non permanent workers, deputed employees and those on business travel are taxable and ITC is not available for those portions. ITC is also not available on inputs such as equipment and kitchen utensils. (AI Summary)

Net GST collection should be reported net of Input Tax Credit liability to reflect the true fiscal position.
Authorities publish gross GST receipts without disclosing accumulated Input Tax Credit (ITC) liabilities, which can materially reduce net GST when credits are availed or refunded. Common causes of ITC accumulation include rate structure, exports, large capital expenditure, inventory increases, seasonal industries and long-duration projects. The author reports lack of consolidated national or state-wise ITC liability data and urges routine publication of net GST collection or accumulated ITC to present an accurate fiscal position and acknowledge businesses' contribution to tax receipts. (AI Summary)

Erroneous credit note reporting precludes a tax demand where no revenue loss is established, prompting reassessment.
The court examined an assessment raised when negative taxable and invoice values resulted from credit notes being reported under a B2C heading instead of the designated ITC heading; the taxpayer explained the error, submitted a CA certificate, and asserted no revenue impact. The revenue officer raised a demand based on the reporting mismatch without reconciling ITC entries against the credit note values to determine excess availment. The court concluded that, absent a verification showing loss to revenue, the assessment could not rest solely on the reporting discrepancy and remitted the matter for reconsideration with directions to verify reconciliation and documentary compliance. (AI Summary)

Trust registration secures legal recognition and tax advantages while enabling public, private, charitable, implied, and express trust structures.
A trust is a legal arrangement vesting assets in a trustee to benefit designated beneficiaries; recognized forms include public, private, special, charitable, implied, and express trusts. Registered trusts gain enforceability, statutory protection and potential tax exemptions; trustees must administer assets per the trust instrument and purpose. Trusts serve tax planning, asset protection, succession and charitable functions, and proper drafting and selection of the trust category determine regulatory obligations and benefits. (AI Summary)

Reverse charge IGST on FOB and CIF contract services invalidated after notification held ultra vires, SCNs unsupported.
The Bombay High Court held that IGST under the reverse charge mechanism cannot be imposed on services connected to FOB (and CIF) contracts by reliance on Notification No. 08/2017 because the Notification has been declared ultra vires by higher courts. Consequently, show cause notices issued invoking that Notification lack jurisdiction, and taxpayers affected may seek refund of tax paid under protest with interest after filing the requisite refund application. (AI Summary)