GST Council classification authority questioned; court stayed enforcement pending security deposit and barred action without permission.
The question whether the GST Council can reclassify a product and the legal effect of circulars following its recommendations arises from Revenue show cause notices challenging the taxpayer's tariff classification; the High Court suspended operation of the circular and notices on terms requiring a security deposit in a separate account and a bank guarantee for the balance, permitted adjudication to proceed but prohibited enforcement without court permission, leaving the substantive validity of the Council's recommendations and circulars for later determination. (AI Summary)

GST valuation of online gaming set as total player payments, with new e-invoice and attachment compliance implications.
CBIC introduced valuation rules making the value of supply for online money gaming and casino actionable claims the total amount paid or payable by or on behalf of the player, including virtual digital assets, with refunds and internally reused winnings not deductible; commencement dates are to be notified. Kerala issued mandatory call book procedures for cases stayed or under appeal. CBIC clarified that provisional attachment under section 83(2) ceases as per the attachment order and required Commissioners to notify banks/authorities and taxpayers of release. E-invoice reporting will be limited to thirty days and two-factor authentication made mandatory for specified turnover brackets. (AI Summary)

SEZ developer services exemption upheld for services to units within SEZ, subject to SEZ Act conditions.
The tribunal concluded that taxable services rendered by an SEZ developer to a SEZ unit for authorized operations within the SEZ are exempt from service tax under the SEZ Act, and that the exemption notifications operate under the Finance Act; accordingly, revenue lacks authority to collect service tax on such services provided the SEZ Act conditions are not violated. (AI Summary)

Deduction mismatch notice: respond by providing evidence or revising return within timeframe to avoid penalties.
Where an ITR claims higher deductions than Form 16 (notably HRA, Chapter VI-A deductions, or home loan interest), the department issues a discrepancy notice. Taxpayers should either supply supporting documents to corroborate claims or file a revised return within the prescribed period (commonly about fifteen days) so the return aligns with verified records; failure to respond can delay processing, forfeit refunds, trigger additional notices, and result in penalties. (AI Summary)

Composite supply classification enables GST exemption when goods content in milling and fortification remains below the permitted threshold.
The authority treated crushing and fortification of wheat supplied by the State as a composite supply with the principal supply being the crushing service, and applied precedent holding that retained by-products and non-cash components form part of the consideration for valuation. As the value of goods in the composite supply fell within the exemption entry's permitted limit, the applicant was held eligible for exemption under the service exemption notification. (AI Summary)

Right to cross-examine limited to parties with adverse interest; absence of opposing interest negates cross-examination right.
The Evidence Act distinguishes examination-in-chief, cross-examination, and re-examination and confines the statutory right to cross-examine to an adverse party; adverse status is determined by the pleadings and the parties' interests, and where no clash of interest exists (as with co-parties or defendants accepting the plaintiff's case) there is no right to cross-examine. (AI Summary)

Cosmetic classification based on primary function test: product labelled for skin care is treated as cosmetic, not medicament.
The AAR applied the primary function test and, relying on product labelling promoting skin care and routine topical use, concluded the oil's dominant purpose is care not cure; accordingly it is a cosmetic preparation classified under HSN 3304. (AI Summary)

Reverse charge mechanism credit: entitlement arises on payment and limitation runs from self-invoice date of payment.
ITC under Reverse Charge Mechanism is available only upon possession of the prescribed document - notably a self-invoice under section 31(3)(f) - and after payment of the tax. The limitation period in section 16(4) is to be computed from the date the conditions for entitlement are met, i.e., the date of the self-invoice and payment, so that availment is not time-barred prior to satisfaction of those conditions. (AI Summary)

Appeal procedure under FEMA requires strict filing formalities, potential delay condonation, and prescribed deposit conditions.
The Appellate Tribunal under the Foreign Exchange Management framework exercises designated jurisdiction; appeals must meet filing formalities including timely presentation or a demonstrated sufficient cause for delay, triplicate filings with supporting documents and prescribed fees, and deposit of penalties subject to Tribunal discretion. The Tribunal transmits appeals to enforcement authorities, issues notices, conducts hearings with representation permitted, may decide on merits in absence of parties, issues reasoned signed orders, seeks expeditious disposal with reasons if delayed, may call records suo motu, and service of notices follows prescribed personal, postal, affixation, or publication methods. (AI Summary)

Audit jurisdiction limited to registered businesses; closed entities are outside audit scope but face assessment proceedings.
Section 65 confines audit powers to registered persons, tying the statutory audit mechanism to an operational, registered business; once registration is cancelled due to business closure, the audit procedure under Section 65 does not apply. The audit requirements-notice, place, time limits and reporting-therefore operate only for extant registered concerns. Tax authorities, however, remain able to invoke assessment and recovery provisions of the GST framework to determine and collect any tax liabilities arising from closed entities. (AI Summary)

Location of Constituent Entities determines which jurisdictions receive GloBE income allocation and top-up tax obligations.
Location of Constituent Entities and PEs determines jurisdictions for jurisdictional blending of GloBE Income or Loss and allocation of top-up tax. Non-flow-through Entities use tax residence (place of management, place of creation); where none, place of incorporation applies. Flow-through Entities that are the UPE or required to apply an IIR locate where created; other transparent entities are stateless and assessed standalone. PEs locate by treaty, domestic law, or physical location, with limited stateless PE situations. Tie-breaker Rules resolve dual-location by treaty deemed-residence, most Covered Taxes paid (excluding CFC taxes), greater substance via Substance-based Income Exclusion, or statelessness with a UPE exception. (AI Summary)

ITR U updated return enables correction of prior returns and late filing after paying outstanding taxes and e verification.
ITR U allows correction or addition of omitted income by filing an updated return within 24 months from the end of the relevant assessment year. Eligible filers include those correcting original, belated, or revised returns. The filing process requires selecting the correct ITR form, compiling Form 16, Form 26AS and bank records, completing income and deduction entries, computing tax liability, paying outstanding taxes, generating and uploading the JSON file on the tax portal, and e verifying the return. (AI Summary)

GST cancellation responsibilities: directors ensure compliance and decision-making; shareholders vote and communicate to facilitate orderly deregistration.
The document explains GST cancellation as the revocation of registration that relieves a company of ongoing GST obligations upon meeting statutory conditions and notifying authorities. Directors must ensure compliance until cancellation, assess and document reasons and impacts, lead decision-making, and submit required applications and documentation. Shareholders contribute by voting on the cancellation, communicating concerns to the board, and promoting transparency. Coordinated action between directors and shareholders-covering compliance management, regulatory notification, corporate decision documentation, and stakeholder communication-facilitates orderly revocation and discharge of tax-related duties. (AI Summary)

Source of funds requirement under Section 68 now mandates explaining the creditor's source before treating loans as explained.
The law now requires that loans, borrowings or other liabilities be treated as explained only if the creditor's source of funds is shown; previously identity, capacity and genuineness of the creditor sufficed. Where the assessee supplies lender particulars, confirmations and bank records, the assessing officer must verify those creditors and cannot make additions on mere suspicion. If funds pass through conduit entities, the assessee must prove conduit status and trace funds, demonstrating identity, capacity and creditworthiness to rebut allegations of bogus or accommodation entries. (AI Summary)

Non constitution of GST appellate body undermines statutory appeal route, forcing costly High Court litigation and inconsistent interim deposits.
Non constitution of the GST Appellate Tribunal has redirected statutory second appeals to High Courts, causing access to justice and cost problems. Technical GST disputes-input tax credit conditions, transitional credit, place of supply errors, and return reconciliation differences-are fact intensive and suited to tribunal adjudication. Statutory pre deposit rules tied to appeals become problematic while the Tribunal is unconstituted, and High Courts have issued divergent interim deposit/stay approaches, highlighting the need for constitution of the Tribunal and clearer governance guidance. (AI Summary)

Service via common GST portal recognised as an effective statutory mode, imposing a duty on taxpayers to monitor portal communications.
Availability of an assessment order on the common GST portal is an authorised mode of service under Section 169(1)(d) of the CGST Act. The statutory list of delivery methods includes portal publication as an effective mechanism for communicating decisions, orders and notices. Taxpayers have a concomitant duty to monitor and verify the common GST portal for communications from the revenue; failure to do so means service effected through the portal operates as valid service for statutory purposes. (AI Summary)

Letter of Undertaking allows registered exporters to export without paying integrated tax when furnished online and duly authenticated.
Filing a Letter of Undertaking (LUT) in Form RFD-11 on the GST portal permits registered exporters not disqualified by criminal or tax-evasion allegations to export goods or services without payment of integrated tax for the financial year; disqualified exporters must instead furnish an export bond. The online process requires selection of the LETTER OF UNDERTAKING option, selection of the financial year, witness details, optional prior-year LUT attachment, and authentication by electronic verification code or recognised digital signature certificate, with certain supporting documents attached. (AI Summary)

Sale treatment for separately invoiced repair parts excludes those charges from service tax when VAT is paid.
Where goods used in motor-vehicle servicing are separately invoiced and Sales Tax/Value Added Tax has been paid on them, the transfer of those goods is to be treated as a sale of goods and their value is not includible in the assessable value for service tax; the tribunal applied this principle following prior authority concerning consumables and component parts used in repairs. (AI Summary)

Taxation of online gaming: amended GST rules fix value of supply and require registration with compliance measures.
The amended indirect tax statutes tax online gaming uniformly, define online gaming and online money gaming, require registration for foreign suppliers serving Indian players, and create special IGST provisions including single-registration compliance measures. Rule 31B sets the value of supply for online gaming as the total amount paid or deposited with the supplier, including virtual digital assets, disallowing deduction for refunds and treating redeployed winnings as not fresh amounts. Rule 31C similarly fixes casino actionable-claim value as amounts paid for tokens or participation, with like non-deduction rules. These provisions are effective from notified dates. (AI Summary)

Bank account de-freezing on initial installment payment allowed, conditional on paying tax in equal installments and interest rules.
The court required the taxpayer to pay the tax liability in equal installments and to make an initial installment payment within a short prescribed period; upon that payment the revenue was ordered to unfreeze the account pending final disposal. The tax portion was to be paid in equal installments and interest would be considered after payment of the tax liability, with compliance with the installment schedule being a condition for de-freezing. (AI Summary)