Interest on delayed GST refunds should be auto-computed and paid promptly to restore taxpayer confidence systematically.
GSTN's GSTR-3B interest calculator auto-computes interest on delayed tax payments-charging interest on cash-paid current-period tax and on full liability for past-period amounts paid later. Taxpayers can edit computed values but receive warnings for downward edits. The author contrasts this with delayed and opaque refund processing, urging a time-bound refund mechanism with automated interest payments and clearer deficiency and portal procedures to protect taxpayer liquidity and confidence. (AI Summary)

Mandatory Aadhaar authentication reshapes GST refund and registration procedures, affecting refund claims and revocation of registration.
Section 16(2)(aa) and CGST Rule amendments condition input tax credit on supplier filing and communication of invoice details, preventing recipients from claiming ITC for invoices not reflected in outward-supply statements. Complementary changes include mandatory Aadhaar authentication for specified registration and refund procedures, amended refund documentation where Unique Identity Numbers are absent, extended annual return timelines for a specified year, and revised forms and rules aligning detention, seizure, auction recovery and attachment processes with shortened procedural timelines and increased enforcement powers. (AI Summary)

Pre-deposit from electronic credit ledger permissibility affects admissibility of GST appeals and ledger-payment practice.
The article examines whether the statutory pre-deposit for admission of a GST appeal can be discharged from the electronic credit ledger rather than the electronic cash ledger. It summarises the pre-deposit requirement, ledger-payment provisions distinguishing electronic cash and electronic credit ledgers, a High Court ruling disallowing credit-ledger debits for pre-deposit, and contrasting tribunal decisions and CBIC circulars and form entries indicating permissibility of using electronic credit ledger balances for tax liabilities. (AI Summary)

Input tax credit entitlement cannot be automatically denied for mismatches absent supplier non-payment or statutory amendment.
Mere non-reflection of supplier invoices in GSTR-2A does not automatically disqualify a recipient from claiming input tax credit; Section 16(2) prescribes possession of invoice, receipt of supply, tax being charged and paid by the supplier, and filing of returns as core conditions, while Section 42 requires matching, communication of discrepancies and a prescribed procedure before reversal. Rule 36(4) creates a restricted availment window for non-uploaded invoices but ties to Section 43A which is not yet in force. Judicial and policy statements discourage automatic reversal against bona fide recipients and prioritise recovery from suppliers except in narrow exceptional circumstances. (AI Summary)

Job work classification under GST challenged as supply of alcoholic liquor outside GST by contracting parties
The AAAR characterised PIL's manufacture and allied activities under a detailed manufacturing agreement as job work, applying GST on the basis that Crown dictated specifications, buyers and cost allocations; the author contends the statutory concept of job work is inapplicable because PIL procures inputs, invoices buyers, bears insurance and receives sale proceeds, indicating an independent supplier relationship and a principal-to-principal supply of alcoholic liquor outside GST. (AI Summary)

Separate state registration for multiple business locations creates transitional gaps requiring clear credit transfer and operational rules.
The amendment to section 25(2) allowing separate registration for each place of business creates a transition gap: taxpayers who obtain a new place-specific registration while an existing single registration remains operative must manage closing stocks, works in progress, goods in transit and ongoing production without prescribed transitional rules. This absence leaves unresolved entitlement to input tax credit and allocation of operations between two distinct GST registrations, risking concurrent operation disputes and necessitating transitional provisions similar to those in section 18 for transfer of unutilised credit. (AI Summary)

GST on directors' services: characterise employment versus professional status to determine reverse-charge taxability.
GST liability for a director's services depends on whether the director acts in the course of employment (Entry 1, Schedule III - not a supply) or in an individual/professional capacity (a supply). Notification No.13/2017 subjects director-supplied services to reverse charge, but RCM applies only if the service first qualifies as a supply under the CGST Act. Key indicia to distinguish employment from professional service include director type, board control, remuneration form, employment agreements, TDS/PF/ESI treatment, ROC filings and invoicing. (AI Summary)

Transitional input tax credit remains claimable despite missed filing deadline; limitation period governs entitlement for similarly situated taxpayers.
The Delhi High Court held that transitional input tax credit is a vested property right and Rule 117's 90 day filing prescription for Form GST TRAN 1 is directory; the Limitation Act governs the period to claim such credit and taxpayers who could not file due to broad "technical difficulty" reasons may file TRAN 1 within the extended window, with authorities directed to process claims in accordance with law. (AI Summary)

GST on donations: specific purpose or business linked donations can attract GST when payment is linked to supply.
GST hinges on whether a donation constitutes a supply and involves consideration or business nexus. Cash donations to funds are not supplies. Donations in kind by businesses are taxable if goods were business assets with input tax credit (Schedule I) or supplied at concessional rates in the course of business; input tax credit depends on whether tax is paid and section 17(5) restrictions. Donations raised from the public earmarked for supplying goods create consideration from third parties and may be taxable on aggregate value. Charitable organisations' general donations without nexus are not taxable, but specific direction donations and COVID related supplies fall outside the limited charitable exemption and remain taxable. (AI Summary)

Restriction on input tax credit refunds under inverted duty structure challenges executive rule limiting refunds and GSTN blocking credits.
The executive amendment limiting refunds under Rule 89(5) to inputs only is challenged as ultra vires and arbitrary because Section 54(3) vests a right to refund unutilised input tax credit for inverted duty supplies; likewise, notifications treating importers as reverse-charge payers for ocean freight are contested as lacking statutory basis where both provider and recipient of freight are outside India; and GSTN's state-restricted auto-population of GSTR-9 is criticised as an unauthorized administrative bar to claiming input tax credit irrespective of place of supply. (AI Summary)

Registration under GST requires registration when aggregate turnover exceeds the threshold; specifies application, verification, cancellation, and transitional rules.
Any person liable to tax must apply for GST registration within thirty days of becoming liable; aggregate turnover on an all-India basis determines threshold, excluding reverse charge and inward supplies. Certain classes (inter-state suppliers, casual and non-resident taxable persons, reverse-charge payers, electronic commerce operators, agents, Input Service Distributors and others notified) must register irrespective of turnover. Registration normally requires a Permanent Account Number, is subject to verification with deemed grant if no deficiency is communicated, and cannot be rejected without notice and an opportunity to be heard. (AI Summary)