Form GST DRC-26 enables restriction of debit from the electronic credit ledger where input tax credit appears to have been fraudulently availed or is ineligible. The proper officer may restrict debit up to the equivalent credit amount after recording the reasons. The restriction ends on the earlier of one year from issuance or a subsequent order allowing debit when the disallowance grounds no longer exist. Objections may be filed through Form GST DRC-27.

Internal Review Cell scrutiny treats orders passed during the quarter ending March 2025 as the opening balance, with subsequent monthly orders added as accrual. Refund sanction orders and orders where the final demand is lower than the show-cause liability require compulsory scrutiny. High-stake orders may be reviewed for omitted issues. First appeal is preferred against erroneous orders, while suo motu revision is reserved for orders erroneous and prejudicial to revenue. A monthly progress report records scrutiny, discrepancies, pending cases, and statutory remedies.

Three centrally issued GST circulars are adapted for application under the Odisha Goods and Services Tax Act, 2017, to promote uniform implementation. They clarify regularisation of GST on apportioned co-insurance premiums and reinsurance commission, GST applicability to certain services, and late fee applicability for delayed furnishing of FORM GSTR-9C. The clarifications are characterised as clarificatory.

Article 13 of the India-Mauritius tax treaty governs the claimed exemption of current-year long-term capital gains, while Section 74 governs set-off and carry-forward of long-term capital losses. Where those gains are exempt from Indian taxation under the treaty, no taxable capital gain exists for adjustment of brought-forward long-term capital losses; the losses therefore remain available for carry-forward in accordance with law. Treaty-exemption entitlement requires factual verification, with an opportunity of hearing, before this treatment applies.

GST exemption is considered for upfront consideration determined upfront but paid or payable in instalments for long-term leases of industrial or financial-infrastructure plots. Seed testing, inspection, certification and issuance of seed tags together form a composite exempt supply where the certification is legally required for consumer and public safety. Seed tags separately supplied by external departments or manufacturers are taxable goods, classified according to their predominant material.

GST registration is deemed cancelled upon submission of an application for cancellation, from the application date or the date from which cancellation is sought. Registration obtained under rule 14B is also deemed cancelled where the electronic commerce operator withdraws permission to supply goods through it from its warehouse, declared as the registrant's principal place of business, or the operator's registration, including its associated registration for collection of tax at source, is cancelled, and the registrant does not apply to amend registration details within 30 days of the relevant event. Cancellation does not affect liability for tax, other dues or obligations relating to any period before cancellation, whether the dues are determined before or after that date.

Changes to the effective date of GST registration cancellation are recorded in Form GST REG-37. The form identifies the show-cause notice, the reasons for changing the cancellation date and the revised effective date. The officer's assessment refers to available records and, where applicable, the reply and hearing submissions. A registered person furnishing returns under section 39(1) of the CGST Act, 2017 must furnish a final return in Form GSTR-10 within three months of the order. Pending returns must also be furnished. Cancellation does not affect liability for tax or other dues, or obligations relating to periods before cancellation.

Proceedings to change the effective date of GST registration cancellation may be vacated after consideration of the taxpayer's reply or hearing submissions, with reasons recorded in Form GST REG-36. Alternatively, the proceedings are deemed dropped under rule 20(19) if no order is issued within sixty days from the date of the show-cause notice. The resulting order is system-generated and requires no issuing authority signature.

Existing registered persons electing the concessional tax option must submit FORM GST CMP-02 under the indicated supplier category by 30 April 2019 and furnish FORM GST ITC-03. Eligible applicants for new registration may select the option in FORM GST REG-01. Election for one place of business extends to all registrations under the same Permanent Account Number and operates from the financial year's beginning or, for new registrations, the registration date.

GST REG-35 provides the format for a reply to a show cause notice concerning a change in the effective date of cancellation. The reply identifies the notice by its reference number and issue date and includes the GSTIN or UIN, legal business name, any trade name, the reply to the notice and a list of uploaded documents. The verification requires the declarant to affirm that the information supplied is true and correct to the best of their knowledge and belief and that nothing has been concealed.

The effective date of GST registration cancellation may be proposed for change through Form GST REG-34, with the applicable reasons identified. Grounds include registration obtained by fraud, wilful misstatement or suppression of facts; no business at the declared place; invoices or bills issued without supply of goods or services in violation of GST law; and failure to commence business within six months after voluntary registration under section 25(3). The notice requires a reply within thirty days of service and offers a personal hearing before the officer, in person or through an authorised representative, at the specified date and time. Failure to reply within the stipulated period or to attend the hearing results in an ex parte decision on available records and merits.

Death of a sole proprietor is treated as a transfer of business where a transferee or successor continues the business. Unutilized input tax credit in the deceased proprietor's electronic credit ledger may be transferred after the successor obtains registration and files FORM GST ITC-02 before cancellation of the deceased proprietor's registration. Legal heirs may apply for cancellation while linking the transferee's registration number. The transferee or successor is liable for tax, interest, and penalties due from the transferor.

Transfer of two GST-related writ petitions was sought so that they could be heard with an existing batch before another High Court. The request was confined to the identified writ petitions, and no objection to their transfer was raised by the appearing respondent. The proceedings were transferred for consolidated hearing with the pending batch, enabling common consideration of related anti-profiteering matters.

PSLCs traded between banks through the e-Kuber portal are treated as supplies of goods in the course of inter-State trade or commerce, requiring IGST for both relevant periods. For the earlier period, the seller bank pays GST under forward charge at 12 per cent; from 28 May 2018, the buyer bank bears liability under reverse charge. No additional IGST is required where the liable bank has already paid CGST/SGST or CGST/UTGST on the same supply.

Grant-funded research and development services supplied by specified Government entities and notified institutions may claim exemption on a certificate from the institution's head confirming that the activity is R&D rather than consultancy. Separately recovered registration, insurance, FASTag, and related expenses in motor-vehicle leases form part of the composite leasing supply and are taxable at the leasing-service rate. Notional interest under bank Fund Transfer Pricing for loans or advances falls within the interest exemption, while NBFC lending services to banks in co-lending arrangements are taxable at the contractually agreed value.

Complete GST registration cancellation applications in FORM GST REG-16 should be accepted within 30 days unless incomplete or, in a transfer, merger or amalgamation case, the successor entity is unregistered. Deficiencies require written intimation, time to respond, a hearing before rejection, and recorded reasons. Cancellation does not extinguish tax liabilities. The taxpayer must furnish FORM GSTR-10 and pay the higher of input tax attributable to closing stock and capital goods or output tax payable, with any shortfall paid in cash. Non-filing of the final return may result in notice and assessment.

Sublimation paper is classified under heading 4809 and attracts GST at 18%, while past disputes are recommended for regularisation on an "as is where is" basis. Toy entries cover all toys under heading 9503, with respective treatment for non-electronic and electronic toys. Under the old and used motor vehicle margin scheme, input tax credit restriction applies only to tax paid on procurement of second-hand vehicles; credit on other inputs and input services remains available subject to the CGST Act. Registered seaweed extract-based bio-stimulants are classified as fertilisers under heading 3101.

Following a deficiency memo in FORM GST RFD-03, taxpayers must rectify and resubmit the existing refund application under the original ARN, without re-credit of debited input tax credit through FORM GST RFD-01B. Exporters receiving capital goods under the Export Promotion Capital Goods Scheme remain eligible for IGST refund on exports after the amended restrictions took effect, whereas exporters importing goods under specified customs exemption arrangements are ineligible.

GST registration, amendment and cancellation applications may be rejected through Form GST REG-05A, effective 1 November 2026. Rejection grounds include failure to reply to a notice within the period specified under rule 19(2)(c) for amendment or rule 20(8) for cancellation, and unsuccessful completion of the rule 14B(5) process for physical verification of the principal place of business under rule 9, where verification has been conducted. Rejection may also follow where the applicant's selected home-State registration has been cancelled or the proposed address does not match the address for which the operator gave consent.

Time-expired drugs or medicines returned through the supply chain may be treated either as a fresh supply or through a credit note. Registered non-composition returners issue an invoice and may use the original supply value; recipients may avail input tax credit subject to applicable conditions. Composition returners issue a bill of supply, while unregistered persons use a commercial document without tax. Under the credit-note route, tax liability adjustment depends on compliance with the prescribed time limit and input tax credit conditions. Input tax credit reversal on destruction differs according to the route adopted.