Transitional Input Tax Credit reopened as a one time filing window to claim or revise carried forward pre GST credits.
Transitional Input Tax Credit can be claimed or revised through a one time reopening of TRAN 1 and TRAN 2 on the GST portal; TRAN 2 access requires prior TRAN 1 and specific declarations, previously filed forms need not be refiled unless revised, submissions must be authenticated by DSC or EVC, supporting documents uploaded, and credits will be reflected in the Electronic Credit Ledger only after verification by the jurisdictional tax officer who will examine claims and pass orders after affording a reasonable opportunity. (AI Summary)

Regulatory licensing principle: GST registration cancelled amid licence dispute remains cancelled until licensing authority determines entitlement.
The High Court held that GST registration cancelled after a licence dispute between co owners cannot be revoked solely because the property is undivided; licensing and registration decisions should be left to the designated authority to determine which party meets statutory criteria. The court did not adjudicate the underlying property dispute, noted the online cancellation process and procedural safeguards, and indicated the pending appeal to the appropriate administrative forum is the proper channel to challenge the cancellation. The registration remained cancelled and the restaurant was restrained from operating until a licence is lawfully granted to the entitled party. (AI Summary)

GST classification of non alcoholic malt fruit drinks: carbonated fruit beverages attract the applicable GST rate and cess.
The beverage contains barley malt but a higher proportion of mixed fruit juice and is non fermented; under the predominant substance rule it is a carbonated fruit drink, not a non alcoholic beer, and must be classified under the tariff heading for carbonated fruit beverages, attracting the GST rate and applicable cess for that heading. Market description as a non alcoholic beer is not decisive for classification. (AI Summary)

TDS obligation: employers must treat non qualifying LTC as taxable salary and deduct tax at source accordingly.
Employers must identify taxable elements of Leave Travel Concession when exemption conditions are not met and deduct tax at source on that taxable salary portion; LTC exemption applies only to travel within India by the shortest route, and allowing foreign legs while claiming full exemption does not relieve the employer of its statutory duty to estimate income and deduct TDS where facts are available at settlement of LTC claims. (AI Summary)

Blocking of Input Tax Credit: electronic credit ledger need not have a positive balance to restrict ineligible or fraudulently availed credits.
Rule 86A is to be read so that credits "available in the electronic credit ledger" that "has been fraudulently availed or is ineligible" may be blocked from debit without requiring a separate statutory requirement of a prior positive or sufficient balance in the ledger; the provision operates as a regulatory restriction to curb fraudulent or ineligible credits rather than as a recovery mechanism, and the statute does not contemplate a "negative balance" precondition. (AI Summary)

Time limit under Section 130A(4) treated as directory; tribunal delay does not bar High Court reference of legal questions.
The issue is whether the 120 day period in Section 130A(4) for the Tribunal to draw up and refer a statement of case to the High Court is mandatory or directory. The Bombay High Court construed the period as directory, stressing that treating it as mandatory could deprive a party of the statutory right to have a question of law considered when delay results from Tribunal inaction beyond the party's control. The court directed the Tribunal to file the statement and required the Department to provide outstanding papers, preserving the party's right to seek return or substitution of security if undue delay continues. (AI Summary)

Portal filing date treated as start of limitation period for refund claims under Section 54.
The operative legal principle is that filing a refund application on the common portal, evidenced by generation of an acknowledgement or application reference, constitutes the relevant filing date for limitation purposes under the GST refund regime; administrative circulars requiring subsequent physical submission cannot operate as a delimiting condition to displace the statutory commencement of the limitation period for zero rated supply refund claims. (AI Summary)

Liberal construction of constitutional taxing powers expands scope while charging provisions remain strictly construed.
Words of a taxing statute are to be read in their ordinary, natural and grammatical meaning, while words of a constitutional enactment conferring legislative power merit a liberal construction to give them effect in their widest amplitude; measures beyond constitutional grants may be held ultra vires, and charging provisions are generally strictly construed whereas other tax provisions may admit purposive or wider readings. (AI Summary)

Right to livelihood as basis to permit revival of GST registration subject to filing returns and paying dues.
The operative regulatory approach permits a pragmatic, conditional restoration pathway for taxable persons whose registration was cancelled under Section 29(2)(c) for non-filing: outstanding returns for the pre-cancellation period may be filed and outstanding tax, interest, statutory charges and late fees may be discharged within a specified sixty day period from receipt of the cancellation notice, subject to procedural compliance. (AI Summary)

Provident fund priority: admitted PF claims are not part of the corporate debtor's assets and require full payment under insolvency distribution rules.
Section 11(2) priority deems provident fund dues a first charge such that, in insolvency proceedings, admitted provident fund claims verified by the resolution professional are not assets of the corporate debtor and are not subject to pro rata distribution; resolution plans that fail to provide full payment of such admitted PF dues are inconsistent with the statutory priority and the Code's exclusionary distribution scheme and thus require the balance of admitted PF claims to be satisfied by the successful resolution applicant. (AI Summary)

Interest on customs deposit entitlement from deposit to refund affirmed, relying on appellate precedent and statutory interest rule.
The appellate tribunal held that when a provisional pre-deposit is refunded after an appeal, statutory interest is payable from the date of deposit until the date of refund under Section 129EE, overruling narrower allowance of interest under Section 27A and relying on precedent recognizing interest on tax refunds. (AI Summary)

Mandatory registration of foreign food manufacturing facilities required; affected food imports permitted only through designated FSSAI managed ports.
Registration of foreign food manufacturing facilities is mandatory for exporters of specified categories (milk and milk products; meat and meat products including poultry and fish; egg powder; infant foods; nutraceuticals) and must be submitted in the prescribed format through the regulator's portal and designated channels. Imports of these covered items will be allowed entry only through prescribed designated ports where regulator officials perform checks, and non compliance may lead to delayed or rejected clearance. (AI Summary)

Interest on net cash GST liability applies retrospectively; interest leviable only on cash component, not on input offsets.
The proviso to Section 50 was amended to make interest on delayed GST payable only on the net cash tax liability (the cash component debited from the electronic cash ledger), effective retrospectively from July 1, 2017, except where the return is filed after the commencement of anti evasion proceedings. An appellate authority must reexamine a taxpayer's entitlement to this relief, provide a hearing, and decide within four months, with the prior appellate order set aside for fresh consideration. (AI Summary)

Summons under GST: use as last resort, require prior authorization and avoid routine summons of senior management.
Statement contents recorded by GST officers may have evidentiary value because GST officers are not equated with police officers, subject to statutory safeguards. Issuance of summons should be a last resort after informal requests fail, require prior written permission with reasons (or contemporaneous oral permission reduced to writing), and mandate a report of proceedings. Senior management should not be routinely summoned and should be called only when investigation indicates decision making involvement causing revenue loss; summons language should avoid harassment. (AI Summary)

PLI Scheme for Telecom strengthens domestic 5G manufacturing through productivity linked incentives tied to incremental investment and sales.
The PLI Scheme for Telecom creates a five year, fiscally capped incentive programme to boost domestic manufacture of specified telecom and networking products for the 5G ecosystem by linking disbursement to incremental investments and net sales of eligible products, excluding land and building from eligible investment, requiring statutory auditor certification for R&D claims, and mandating online application, PMA verification, and oversight by an Empowered Group which may revise incentive parameters and eligibility. (AI Summary)

Independent appeal function protects taxpayer rights by correcting manifest administrative errors and ensuring fair hearings.
The article emphasises that an independent appeal function separate from compliance bodies must resolve tax controversies impartially, ensure consistent application of tax law, and protect public confidence. It stresses the centrality of personal hearing rights as core to natural justice, and identifies systemic causes of repeated appeals-hasty assessments, lack of judicial mind, procedural violations and over technicality-urging appellate authorities to exercise independent, critical review and proactive courage to correct manifest errors and deliver lasting justice. (AI Summary)

Refunds under GST: amended refund formula applies prospectively and transitional credit verification now follows prescribed officer procedures.
CBIC guidance clarifies that the amended refund computation under Rule 89(5) and restrictions on refunds for specified goods apply prospectively to refund applications filed after their respective operative dates, while refund claims filed earlier follow the prior rule. Detailed procedures require jurisdictional officers to verify TRAN 1/TRAN 2 claims using declarations and back office data, reject unchanged repeat filings after hearing, and issue reasoned orders quantifying transitional credit for upload to the common portal within prescribed timelines. (AI Summary)

Startup seed funding support via incubators enables milestone-linked grants and convertible instruments to validate and commercialize ideas.
The Startup India Seed Fund Scheme channels early-stage financial support to DPIIT-recognized startups through eligible incubators for proof of concept, prototype development, product trials, market entry, commercialization, and scaling. Incubators evaluate applicants, execute legal agreements with milestone-based disbursements comprising grants for validation and debt/convertible instruments for commercialization, and monitor utilization through final reports and audited certificates under the oversight of an Experts Advisory Committee. (AI Summary)

Input Tax Credit availability on mandatory CSR expenditure affirmed as incurred in furtherance of business.
The AAR held that taxes paid on purchases made to satisfy statutory CSR obligations are eligible for Input Tax Credit because mandatory CSR spending imposed by statute is an expenditure incurred in furtherance of business and distinct from voluntary gifts. (AI Summary)

Misleading advertisement prevention tightens endorsement, surrogate, free-claims and children-targeted advertising rules to protect consumers from deceptive practices.
The Guidelines impose comprehensive standards on advertisers, manufacturers, service providers and endorsers to prevent deceptive advertising across all media. They prohibit surrogate advertisements that circumvent legal restrictions, regulate bait advertising by requiring adequate supply and clear disclosures, and bar misleading free-claims that hide consumer costs or reduce quality. Advertisements must be truthful, substantiated, avoid exaggeration, comply with sectoral laws, and include prominent disclaimers. Special protections govern children-targeted ads, banning exploitation of credulity or unsubstantiated health claims. Endorsements must be genuine and based on adequate information or experience. (AI Summary)