GST on settlement payments turns on real supply, not rebranding damages as forbearance or litigation withdrawal.
GST on settlement payments made in satisfaction of an arbitral award cannot be sustained by recharacterising the withdrawal of enforcement proceedings as toleration of breach or forbearance. The Bombay High Court held that payment made under the award and consent terms did not amount to supply under Section 7 of the CGST Act, because the consent terms did not create an independent commercial bargain for a taxable service and withdrawal of proceedings was only a legal consequence of satisfaction of the award. Entry 5(e) of Schedule II cannot independently create taxability where supply is absent. (AI Summary)

MRP revision compliance: temporary relaxations permit stickered or stamped price changes with original MRP visible and communication duties.
Temporary relaxations allow revision of Maximum Retail Price (MRP) on unsold stock after GST rate changes by stamping, affixing a sticker, or online printing, provided the original MRP remains visible and the revised price strictly reflects the GST change. Manufacturers, packers and importers must communicate revised rates to dealers, retailers and Legal Metrology authorities by circulars (newspaper publication waived). Existing packaging with old MRP may be used until March 31, 2026, or until stocks are exhausted. Mandatory legal metrology labelling requirements continue to apply. (AI Summary)

Input Tax Credit relief: taxpayers who filed GSTR 3B by the deadline can claim prior-year ITC despite earlier limitation objections.
Registered taxpayers may claim Input Tax Credit for FYs 2017 18 to 2020 21 where GSTR 3B returns were filed on or before 30 November 2021; assessment orders denying ITC solely on limitation grounds were quashed, recovery restrained, and refunds/re credits ordered, while tax authorities remain entitled to examine non limitation defects such as fake invoices or excess claims. (AI Summary)

Blocking Input Tax Credit undermines GST neutrality and reintroduces embedded taxation, raising compliance and litigation risks.
Blocking Input Tax Credit for nil rated or exempt healthcare products and insurance under GST 2.0 breaks the seamless credit chain, converting input taxes into embedded costs and reintroducing tax on tax. This change creates ITC apportionment and reversal obligations, classification and valuation disputes, refund denials, anti profiteering investigations, and contract disputes, increasing compliance burdens, litigation risk and business distortions while undermining GST neutrality and competitiveness. (AI Summary)

Director personal liability under GST: accountability for unpaid tax where misfeasance, breach of duty or gross negligence is found.
GST compliance forms seven principal risk categories-compliance, cash flow, operational, audit/inspection, regulatory, supply chain, and ITC mismatch-that materially affect corporate finances and reputation. Directors face personal liability across statutes: officers in default under the Companies Act, joint and several liability for private company tax dues under the Income Tax Act unless due diligence is shown, and personal recovery under section 89 of the CGST Act for unpaid GST, interest and penalties where misfeasance, breach of duty or gross negligence are established. Risk management requires automation, reconciliation, audits, board oversight and proactive engagement with authorities. (AI Summary)

Corporate Social Responsibility obligation requires eligible companies to adopt policies, spend mandated funds and report compliance.
Section 135 mandates that companies meeting prescribed financial thresholds form a CSR Committee to draft and recommend a CSR policy aligned with Schedule VII activities, recommend expenditure, and monitor implementation. The Board must approve, disclose and ensure execution of the policy and ensure annual spending of the prescribed portion of average net profits, with specific rules for surplus utilisation, local-area preference, and disclosure in board reports and statutory filings; non-compliance attracts penalties and officer liability. (AI Summary)

Deemed receipt under ex works: recipient can claim input tax credit when goods are handed to transporter at supplier gate.
Circular No. 241/35/2024 holds that under Ex Works contracts goods are deemed received by the buyer when the supplier hands them to a transporter at the supplier's factory gate, transferring ownership and completing the supplier's delivery obligation; the recipient may claim Input Tax Credit from that deemed receipt subject to section 16(1) conditions. The circular is silent on place of supply, generating debate whether EXW supplies should be treated as having the supplier's location as place of supply (CGST+SGST) or determined by where movement of goods terminates for delivery to the recipient. (AI Summary)