Job work classification: re-gasification of customer-owned LNG treated as taxable service under GST.
Re-gasification carried out on LNG belonging to another registered person, involving reception, custody transfer, storage, conversion and delivery under a tolling model, constitutes a service by way of Job Work and is classifiable under the Services Rate Notification; the AAR treated such activity as taxable under GST at the rate specified for job work services. (AI Summary)

GST on sub sub contractor services to sub contractor for irrigation works treated as ineligible for concessional entry, attracting standard rate.
Concessional coverage under the Services Rate Notification requires both that the works contract services relate to specified irrigation works and that the supplier be the main contractor to government or a sub contractor to that main contractor. A sub sub contractor satisfies the works nature criterion but not the contractual relationship criterion, and therefore its services to a sub contractor do not qualify for the concessional entry and fall within the general taxable category under the services rate framework. (AI Summary)

Royalty as tax: GST should not apply as tax-on-tax, or if applied, be treated as supply of goods.
Royalty for mining leases is characterised as a tax charged for use of land and the economic value of minerals, implying GST on royalty would be tax-on-tax. If GST applies, royalty should be treated as supply of goods because it is a charge linked to the ore or mineral extracted and removed; statutory provisions requiring royalty on minerals removed support treating the levy as a charge on goods rather than a service. (AI Summary)

Input Tax Credit matching linked to supplier communications, restricting ITC claims unless invoice details are communicated in outward supplies.
Amendments treat activities by non individuals to members as supply (deemed from July 2017), require that invoice details be furnished and communicated via outward supplies for Input Tax Credit eligibility, bar certain filings where summary returns are not filed, revise detention/seizure/confiscation penalties and timelines with pre deposit for appeals, expand attachment powers to include beneficiaries on initiation of proceedings, enlarge commissioner power to call information subject to hearing, mandate Aadhaar authentication for select filings, and adjust textile GST rates. (AI Summary)

Accommodation tariff threshold: accommodation below declared threshold is exempt while food supply attracts reduced GST without input tax credit.
The AAR found that separately invoiced accommodation and food services, with distinct charges and no bundled single price, are neither composite nor mixed supplies; accommodation whose declared tariff per unit falls below the statutory threshold is exempt from tax, while the food supply remains taxable at the concessional rate without input tax credit. (AI Summary)

GST on employer recoveries from employees deemed not supply, preserving ITC for obligatory canteen services.
The AAAR held that compensation or recoveries by an employer for notice pay do not constitute a taxable supply under Schedule III, so GST does not apply; facilitation of insurance and telephone services on an actual-cost pass-through basis likewise does not amount to supply. Canteen services provided free or where the employer merely collects employees' shares from a third-party provider are outside GST treatment. ITC on telephone and insurance is not available, but ITC on canteen services is admissible where provision of the canteen is obligatory under labour law. (AI Summary)

Regulatory reforms enabling fintech and manufacturing innovation expand incentives and reduce compliance burdens to attract investment.
Measures focus on nurturing a fintech cluster at IFSC GIFT City, incentivizing startups through dedicated funding schemes, liberalizing and regularly updating FDI policy to attract investors, and reducing compliance burdens via a centralized Regulatory Compliance Portal. Financial-sector innovation is supported by a Regulatory Sandbox and an Innovation Hub, while manufacturing competitiveness is promoted through the Production-Linked Incentive Scheme. Infrastructure and planning supports include a national multi-modal connectivity platform, a GIS-enabled industrial land bank, and a phased Industrial Corridor Programme to deliver plug-and-play industrial nodes. (AI Summary)

National database of unorganized workers enabling Aadhaar seeded registration, social security portability and accidental insurance access.
eSHRAM creates a centralized, Aadhaar seeded national database of unorganized workers to enable targeted delivery and portability of social security schemes. Eligible registrants are individuals aged 16-59 who are not members of statutory social security funds and are not income tax payers; agriculture labourers and landless farmers are eligible. Registration requires Aadhaar, an Aadhaar linked mobile number and a savings account with IFSC, with biometric CSC registration as a fallback. Each registrant receives a permanent 12 digit Universal Account Number; details may be updated and claims or grievances handled via the portal or CSCs. (AI Summary)

Inclusion of reimbursed utilities in value of supply: utility reimbursements treated as taxable consideration for rental services.
Reimbursements of electricity and water collected by a licensor who holds utility connections and pays providers in its own name are incidental to the taxable supply of renting immovable property. Without express authorization establishing the licensor as the occupier's pure agent, such utilities recovered at actuals are part of the consideration and must be included in the transaction value for GST. (AI Summary)

Input Tax Credit on CSR activities denied when activities fall outside normal course of business, provoking GST eligibility debate.
The AAR concluded that CSR activities are excluded from the company's normal course of business and therefore GST paid on supplies procured for CSR is not eligible as Input Tax Credit because such activities are not used in the course or furtherance of business. The commentary counters that mandatory statutory CSR obligations and the GST definition of business, which embraces incidental and ancillary activities, can render CSR expenditure integral to business and thus eligible for Input Tax Credit, citing a prior AAR supporting that view. (AI Summary)

Restraint on bank guarantee encashment is rare; injunctions permitted only for fraud or exceptional irretrievable harm.
Courts generally decline to grant injunctions restraining encashment of unconditional bank guarantees or letters of credit; banks must honor guarantees according to their terms irrespective of disputes between underlying parties. Judicial restraint applies except in two narrow exceptions: proven fraud connected with the guarantee, or exceptional, irretrievable harm or injustice that outweighs commercial prejudice. Applicants for injunctions must show a strong prima facie case, special equities, and that the balance of convenience favors restraint; mere contractual disputes do not suffice to restrain enforcement. (AI Summary)

Supply of goods: mere joint custody without transfer of ownership or risk does not constitute taxable supply under GST.
Mere acceptance of joint custody without transfer of ownership or risk does not amount to supply; when delivery is conditional on payment and instalments remain unpaid, the seller retains property and risk, and goods destroyed before delivery cannot constitute supply under the GST concept. Absence of invoice or completed delivery supports that joint custody alone does not trigger tax liability. (AI Summary)

GST on employee reimbursements: taxability affirmed for notice pay, telephone, insurance and canteen services, with ITC limits.
The AAR held that employer recoveries from employees for notice pay, telephone charges, and group medical insurance premiums, and provision of free canteen services, qualify as supply incidental or ancillary to the employer's business under Section 7 and Schedule II of the CGST Act, making the employer liable to GST; the AAR further held that input tax credit is not admissible in respect of canteen services. (AI Summary)

HSN summary optional in annual GST return, allowing taxpayers to omit HSN summary tables for that year.
Tables 17 and 18 of GSTR 9, requesting HSN wise summaries for outward and inward supplies (including UQC, quantity, taxable value, tax rates and tax components), are optional for the stated annual return year; taxpayers may skip these tables. Outward HSN is available from GSTR 1 filings, while inward HSN is often not maintained, so taxpayers should consider recording such details and updating accounting software because future years may require mandatory reporting. (AI Summary)

Enhanced penalties for detained goods increase recovery measures and permit sale or disposal if penalty remains unpaid.
The amendments replace prior tax-plus-penalty release rules with standalone enhanced penalties for detained goods, set minimum payments for exempted goods, remove provisional release on bond by omitting Section 129(2), impose statutory short timelines for issuance of notice and orders and require opportunity of hearing before determining penalty, delink detention proceedings from confiscation proceedings under Section 130, and permit sale or prescribed disposal of goods and capped release of conveyances where imposed penalty is not paid within the prescribed period. (AI Summary)

Self-assessed tax recovery: outward supplies shown in GSTR-1 but omitted from GSTR-3B may be recovered under Section 79.
An Explanation to Section 75(12) states that "self-assessed tax" includes tax payable on outward supplies declared in Form GSTR-1 but not included in the Form GSTR-3B return; accordingly, such liabilities may be recovered directly under Section 79 using the recovery mechanisms provided therein, notwithstanding the provisions of Sections 73 and 74. (AI Summary)

Pre-deposit requirement for appeals in seizure-related cases now conditions appellate access after specified penalty payment.
Notified amendments effective January 1, 2022: Explanation 1(ii) to Section 74 excludes seizure and confiscation proceedings under Sections 129 and 130 from deemed conclusion when tax-determination proceedings against the principal are concluded; a proviso to Section 107(6) requires a pre-deposit of part of the penalty before appealing orders under Section 129(3); Section 151 is substituted to enable the Commissioner or an authorised officer to order furnishing of information in prescribed time, form and manner; and Section 152(1) now bars use of information obtained under Sections 150 and 151 in proceedings without giving the person an opportunity to be heard. (AI Summary)

Input tax credit eligibility tied to supplier filing of outward supplies and GSTR 1 matching; noncompliance risks recovery proceedings.
An amendment to Section 16 requires that input tax credit is claimable only if the supplier has furnished invoice details in outward supplies and communicated them to the recipient; from January 2022 ITC entitlement is tied to supplier filed data (GSTR 2A/2B) and matching, Rule 36(4)'s excess allowance is curtailed, Rule 69 explains GSTR 2A as the matching source, and recovery provisions under section 79 may be invoked without a show cause notice where return discrepancies arise. (AI Summary)

Classification of car seat covers as automotive accessories makes them subject to the vehicle parts GST rate rather than seat heading.
The Authority for Advance Ruling concluded that car seat covers are accessories, not integral parts of seats, based on their protective, comfort and cosmetic functions and trade usage. Relying on prior adjudicatory and administrative guidance, the AAR held that seat covers are classifiable under the vehicle parts/accessories entry in Schedule IV of the GST rate notification, not under the seat heading created by the later amendment, and therefore the vehicle parts rate applies; the AAR noted the ruling's persuasive value though it binds only the applicant and jurisdictional authorities. (AI Summary)

Input Tax Credit availability requires supplier-furnished invoice details in outward supplies, changing when recipients may claim credit.
A recipient may claim Input Tax Credit only where the supplier has furnished the invoice or debit note details in the statement of outward supplies and those details have been communicated to the recipient via the portal; consequently, ITC entitlement requires possession of the invoice, receipt of goods/services, actual tax payment to government, and filing of the recipient's return, while the earlier 5% tolerance for non-uploaded invoices loses relevance after the effective date. (AI Summary)