MDR on specified UPI transactions, if introduced, would ordinarily be a payment-processing charge collected from or deducted from the merchant's settlement, without necessarily creating a separate customer charge. GST, where applicable, would generally apply to the separate payment-processing or acquiring service and not to the amount transferred through UPI. The ultimate burden may be absorbed, renegotiated or reflected in prices. Eligible registered persons may claim input tax credit on GST charged on the service if statutory conditions are met, while composition taxpayers, unregistered persons and persons making exempt supplies may face unrecoverable costs.

Introduction The new Merchant Discount Rate (MDR) on specified UPI transactions is introduced by our government from 15th October 2026. In market, has triggered an important indirect tax question "if a merchant pays MDR on a transaction that already includes GST, and GST is then charged on the MDR, are we effectively paying "tax on tax"?", So, let's discuss this in detail Calculation and case study For example, suppose STS Ventures is charging Rs. 10,000 + 18% GST for a consultancy ... ... ...

The extra ordinary delay in making all the benches of GSTAT operational had already made severe damages to the taxpayer to an unimaginable level which facts are coming to light in public domain as the orders passed by the various division benches are posted appropriately in the portal. As I constantly update myself on all such orders, I had an occasion to see the order of the Division Bench of the GSTAT, Lucknow on 18/09/2026 within 24 hours. This relates to the tax period 01/07/2017 to 31/03/20... ... ...

The Hon'ble Allahabad High Court (Lucknow Bench) in M/s Vossloh Cogifer Turnouts India Pvt. Ltd. Thru. Authorised Signatory Pulipati Yadagiri Versus State Of U.P. Thru. Prin. Secy. Institutional Finance Lko. And Another - 2026 (8) TMI 986 - ALLAHABAD HIGH COURT directed the Revenue to disburse the sanctioned refund of Rs. 1,10,72,753/-, which was earlier directed to be re-credited as Input Tax Credit ("ITC") in the Electronic Credit Ledger ("ECrL"), in cash/ in the bank account of the assessee, ... ... ...

Time Extension Charges The expression 'time extension charges, generally refers to an amount collected by a developer, contractor or allottee seeks additional time to perform an obligation or complete a project beyond the originally agreed contractual period. Issue The issue to be discussed in this article is as to whether the time extension charges will be the part of the cost of corporate insolvency resolution process with reference to a decided case law. Case law In The Authori... ... ...

Detention and penalty under the GST framework for alleged reuse of invoices and e-way bills require a demonstrated contravention relating to the movement of goods. Where goods are accompanied by invoices and a valid e-way bill with no discrepancy in description, quantity, value, or ownership, toll-plaza photographs and vehicle-movement data alone do not prove that the same goods were previously delivered and re-transported. Independent, cogent evidence is required, including verification of explanations and documents concerning prior transport. Suspicion or presumed intent to evade tax cannot replace proof; unsupported detention and penalty proceedings are unsustainable.

Bail in CGST prosecution - Pre-trial detention - non-punitive character - Presumption of innocence and speedy trial Bail in CGST prosecution - Presumption of innocence - Delay in trial - Grant of bail to an accused facing alleged offences under section 132(1)(a), (b) and (i) of the CGST Act arising from the supply of areca nuts. - HELD THAT: - Pre-conviction detention is not punitive; its purpose is to secure the accused's presence at trial. Though the prosecution was independent of assessmen... ... ...

Acquiescence to tax demand under section 74 - Consequential liability to interest and penalty Voluntary payment of admitted tax liability - Consequential interest and penalty - Liability to interest and penalty following voluntary payment of tax under an unchallenged show-cause notice alleging fraudulent transactions. - HELD THAT: - The voluntary payment of the tax demanded, without objection to the allegations or invocation of section 74, constituted acquiescence to the show-cause notice. It... ... ...

Successive writ petition after withdrawal without liberty Successive writ petition after withdrawal without liberty - Maintainability of a successive writ petition challenging the same GST adjudication order after withdrawal of an earlier writ petition without liberty to institute a fresh petition. - HELD THAT: - The public-policy principle underlying Order XXIII Rule 1 of the Code of Civil Procedure applies to writ proceedings: withdrawal of a writ petition without liberty to file afresh amo... ... ...

Opportunity to reply to show-cause notice - Personal hearing in GST adjudication Opportunity to reply to show-cause notice - Personal hearing in GST adjudication - Validity of the GST adjudication order where the show-cause notice was served on the additional notices portal and the assessee did not effectively receive an opportunity to reply or place supporting documents. - HELD THAT: - As the show-cause notice was served on the additional notices portal and the notice did not specify a perso... ... ...

Withdrawal of a writ petition without liberty to file afresh abandons the Article 226 remedy for the same cause of action, although it does not create res judicata. Applying the public-policy principle underlying Order XXIII Rule 1 CPC to writ proceedings, the High Court treated a later GST challenge seeking substantially identical relief against the same adjudication order as non-maintainable. Altering the grounds did not create a fresh basis for relief. The unavailed statutory appellate remedy and unexplained delay in invoking writ jurisdiction further supported dismissal; pending interlocutory applications were disposed of.

Voluntary payment of tax demanded under an unchallenged show-cause notice alleging fraudulent transactions amounts to acquiescence in the notice and admission of its allegations. Once tax is paid without objection to the invocation of section 74, no separate finding of fraud is required for consequential interest and penalty. Payment does not permit the taxpayer to later deny that liability, and the procedure does not breach section 74(5). The interest and penalty demand therefore remains enforceable.

Pre-trial detention in CGST prosecutions is non-punitive and serves to secure the accused's attendance at trial, subject to the presumption of innocence and the right to a speedy trial. Bail may be appropriate where investigation is complete, a complaint has been filed, no criminal antecedents or risks of absconding, witness intimidation or evidence tampering are shown, and trial completion is unlikely within a reasonable time. Parity with co-accused already released on bail may also support release. Bail conditions should secure attendance and preserve trial integrity.

Alleged re-use of an e-way bill and intent to evade tax require cogent evidence; toll-plaza movement records, photographs, and suspicion cannot replace proof. Where accompanying invoices, e-invoices, and e-way bills show no discrepancy in the goods' description, quantity, value, or ownership, and no independent evidence proves an earlier completed journey or delivery, the contravention remains unproved. Failure to verify material showing that a prior trip carried different goods further undermines the allegation. Detention-based tax and penalty were set aside, with refund of deposited amounts in accordance with law.

MVAT assessment and recovery of tax dues - Clean-slate effect of an approved insolvency resolution plan on MVAT dues - Refund of MVAT appellate pre-deposit after full settlement of tax dues Continuation of MVAT appellate assessment and tax-recovery proceedings after approval of a clean-slate resolution plan settling the tax department's dues - HELD THAT: - Approval of the resolution plan under Section 31 of the IBC bound the tax authorities. Claims not forming part of the plan stood extin... ... ...

Service-tax valuation of commercial or industrial construction service-free supplies by service recipient Inclusion of steel and cement supplied free of cost by the service recipient in the gross value of commercial or industrial construction service for denial of the notified abatement - HELD THAT: - Whether the cost of materials supplied free of cost will form part of the gross value for determination of service tax liability, which stands settled in the case of CST Vs. Bhayana Builders (P)... ... ...

Works contract service - composite construction contracts not taxable as commercial or industrial construction service - Penalty for service tax on goods transport agency services under reverse charge Classification of composite construction contracts as works contract service - Commercial or industrial construction service - Service-taxability of composite construction contracts executed with materials under the head of Commercial or Industrial Construction Service - HELD THAT: - Applying CC... ... ...

Maintainability of Writ jurisdiction despite alternate statutory remedy - Prospective operation of foreign-exchange seizure power - Seizure for suspected foreign-exchange contravention - Recorded reasons and reason to believe - No-objection certificate for overseas investment - Reasoned administrative decision-making Alternative remedy and writ jurisdiction - Jurisdictional challenge to seizure power - Maintainability of the writ petitions despite the statutory mechanism under the foreign-exc... ... ...

Post-admission settlement and withdrawal of corporate insolvency resolution process - Statutory bar on withdrawal before constitution of committee of creditors Whether, in view of the settlement having been arrived at after admission of the Section 9 application and commencement of CIRP, this Appellate Tribunal can, in exercise of its jurisdiction under Rule 11 of the NCLAT Rules, 2016, itself set aside the admission order and bring the CIRP to an end? - HELD THAT: - The amended statutory sch... ... ...

Retroactive exclusion of interim moratorium for personal guarantors - Written and reasoned interim orders in securitisation proceedings - Natural justice for auction purchasers - Oral directions by adjudicatory tribunals Retroactive application of Section 96(4) of the Insolvency and Bankruptcy Code - Interim moratorium for personal guarantors - Vested rights in procedural protections - Applicability of Section 96(4) of the Insolvency and Bankruptcy Code to pending applications for insolvency ... ... ...