Introduction The recommendations cover a wide range of matters, including registration, returns, refunds, penalties, prosecution, e-commerce, exports, movement of goods and classification of particular goods and services. Principal recommendations • Withdrawal of GST-related arrest powers through the proposed omission of Section 69 of the CGST Act. • Increase in the monetary threshold for prosecution from Rs. 1 crore to Rs. 5 crore. • Reduction in the maximum gen... ... ...

GST return mismatches are identified as a recurrent basis for tax demands notwithstanding the need to establish actual short payment. An alternate mechanism for amendment of liability and input tax credit (ITC) in returns is proposed to take effect from the April 2027 return period. The mechanism is intended to enable correction and reconciliation of return data, reduce mismatch-based demand notices and system-generated intimations, and strengthen ITC integrity throughout the supply chain.

Twin Conditions Under Section 122(1A) and Section 132(1)--Manipulation of records: Removal of Power to Arrest Under Section 69(1) 1. In the formative phase of the Goods and Services Tax (GST) regime, departmental audits and enforcement actions predominantly tracked the paper trail of the formal registered entity. As circular trading cartels and paper-invoicing (bill trading) networks proliferated, the revenue administration recognized that the entities issuing invoices were frequently "dummy"... ... ...

Abbreviations used: ITA 1961 or 61 Act - The income-tax Act, 1961 ITA 2025 or 25 Act - The income-tax Act, 2025 ITR 1962 or 62 Rules - Income Tax Rules 1962 ITR 2026 Or Rules 2026- Income-tax rules 2026 PY - Previous year in ITA 1961 AY- Assessment year in ITA 1961. TY - Tax year in ITA 2025 ITA 2025 (one section 7) ITA 1961 (two sections 7 and 8) Remarks. 7. Income deemed to be received and dividend deemed to be income in a tax year. Income deemed to be recei... ... ...

Though the 57th meeting of the GST Council was held after a gap of one full year, one full month and a few days after the 56th GST Council meeting, there are reasons to cheer. Several proposals have been approved by the council and few of them are expected to be implemented with effect from 01/11/2026, few more with effect from 01/04/2027 and the rest of the proposals from a later date. Let us see the need as well as the effect of these proposals in a detailed manner being covered in three parts... ... ...

A Jurisdictional Objection Must Be Established, Not Merely Raised Confiscation under GST law can seriously affect a business. Goods and vehicles may be confiscated, penalties and fines may become payable, and deliveries or other commercial commitments may be interrupted. Therefore, it is necessary to examine whether the officer had the legal authority to act and whether the taxpayer had a fair opportunity to defend its case. However, the seriousness of the consequences alone does not justify ... ... ...

PGIRP -5 After the approval of the repayment plan by the Adjudicating Authority, the RP shall supervise the implementation of the repayment plan. The RP may apply to the Adjudicating Authority for directions, if necessary, in relation to any particular matter arising under the repayment plan. The Adjudicating Authority may issue directions to the resolution professional on the basis of an application filed by the RP. Section 117 of the Code provides that the RP shall within 14 days of... ... ...

Excise-duty liability cannot rest solely on a discrepancy in an ER-6 return where the corresponding ER-1 return is available but not examined and no independent evidence establishes unaccounted or clandestine clearance. The extended limitation period is unavailable where the relevant ER-6 return and the assessee's explanation were already within departmental knowledge, because suppression is not established. A show-cause notice issued after the normal period is therefore time-barred, leaving the related duty demand and penalty without an adequate evidentiary or limitation basis.

Extended limitation for central excise and erroneous-refund recovery requires suppression of facts with intent to evade duty. Below-cost cement sales under an area-based exemption, without evidence of additional consideration flowing back, do not by themselves establish suppressed value or evasion, particularly where refund claims underwent departmental verification. For freight transactions before 1 July 2012, service tax liability under the applicable rule is confined to freight actually paid; the excess collected from customers is transportation profit rather than taxable freight. Consequently, the excise, service-tax and refund-recovery demands, with related interest and penalties, were unsustainable, while the independent fixed penalty under Section 77 remained operative.

CENVAT credit on capital goods used for dutiable and exempted goods - Proportionate CENVAT credit on inputs and input services CENVAT credit on capital goods used for dutiable and exempted goods - Entitlement to CENVAT credit on capital goods used in manufacturing both dutiable and exempted biscuits and bakery products - HELD THAT: - CENVAT credit on capital goods is barred only where such goods are exclusively used in the manufacture of exempted finished goods. Since the appellant manufactur... ... ...

Service-tax demand against a subcontractor invoking extended period of limitation - Bona fide belief and absence of suppression Invocation of the extended period for a Service Tax demand on works contract services rendered by a subcontractor, where the main contractor had discharged tax on the full contract value - HELD THAT: - The taxability of a subcontractor was not free from doubt owing to conflicting judicial views. Since the main contractor had discharged Service Tax on the entire contr... ... ...

Service-tax reverse charge on State rural infrastructure levy and forest transit fee Characterisation of the rural infrastructure and road development levy and forest transit fee paid to the State Government as fees for services, rather than taxes, for service-tax reverse charge - HELD THAT: - Following South Eastern Coal Ltd. [2026 (5) TMI 1016 - MADHYA PRADESH HIGH COURT] the Tribunal held that both payments were fees for services and not taxes. As service tax paid under reverse charge woul... ... ...

Service tax on transportation of goods by road - Reverse charge liability of service recipient - Goods Transport Agency - absence of consignment note Service tax liability on transportation of LPG cylinders and petroleum products by road where the recipient discharged tax under reverse charge and the transporter issued no consignment note - HELD THAT: - The Tribunal found it undisputed that the appellant provided transport services to IOCL and that IOCL had discharged service tax under the re... ... ...

Service tax exemption for construction of a single residential unit - Service tax liability on a part of the consideration received under an agreement for construction of a single residential unit, treated as payment for other works solely because the service recipient did not explain the mode of payment HELD THAT: - Having noted that the entire consideration was received for residential construction under the agreement, the Tribunal held the construction service exempt under Sl. No. 14(b) of... ... ...

Transfer of right to use excavator - service tax liability - Supply of tangible goods service Service-taxability of lease charges for an excavator transferred with an exclusive right of use and subjected to VAT - HELD THAT: - The Tribunal noted that it was undisputed that VAT had been paid on the charges recovered for transfer of the right to use the equipment. Following its earlier decision M/S. GAINWELL COMMOSALES [2025 (8) TMI 931 - CESTAT KOLKATA] on the same point, it held that such tran... ... ...

Liquidated damages for short delivery by transporters - consideration for declared service - Service-tax penalties for non-payment and statutory compliance contraventions Liquidated damages for short delivery by transporters - Consideration for declared service - Service-taxability of amounts recovered from transporters as liquidated damages for short or damaged delivery of cement, treated as declared service - HELD THAT: - The recoveries were liquidated damages for loss caused by the transpo... ... ...

Goods transport agency service - reverse charge liability - Service-tax demand based on income-tax return data - Extended period of limitation - absence of suppression - Mandatory pre-show cause notice consultation - Penalty for service-tax non-payment - absence of suppression - Penalty for violation of statutory obligations Goods transport agency service - reverse charge liability - Liability for service tax on goods transport agency services where freight was paid by body-corporate service ... ... ...

Service tax demand - independent investigation and quantification - Compliance with remand directions - Reverse charge mechanism for manpower supply services - Works contract classification and partial reverse charge - SEZ service tax exemption - Mandatory pre-show cause notice consultation Service tax demand - independent investigation and quantification - Compliance with remand directions - Service tax demand founded on discrepancies between ST-3 returns and GAR-7 challans, without independ... ... ...

Equivalent-value attachment of proceeds of crime - Statements under Section 50 of PMLA - Reason to believe for provisional attachment - Burden to establish legitimate source of attached property - Attachment of proceeds of crime held by non-accused persons - Provisional attachment of property already seized or mortgaged Equivalent-value attachment of proceeds of crime - Statements under Section 50 of PMLA - Attachment of an FDR voluntarily offered in lieu of cash proceeds stated to have been ... ... ...

Clean slate principle under the IBC - Set-off of extinguished operational creditor's claim in arbitration - Exclusion of CIRP moratorium for arbitral limitation Clean slate principle under the IBC - Survival of corporate debtor's claims after resolution plan - Effect of an approved resolution plan on reciprocal claims arising from the construction contract between the corporate debtor and its operational creditor - HELD THAT: - The clean slate principle extinguishes claims against the... ... ...