IMPORTANT GST CASE LAWS 11.01.2026 Relevant Section Case Law Title Core Ruling / Summary Citation Section 16(5) Srinivasa Pharmacy v. Superintendent [Retrospective ITC] Section 16(5) (inserted by Finance Act 2024) allows ITC for FY 2017-18 to 2020-21 if the return was filed by 30.11.2021. This retrospective relief overrides any past time-bar denials u/s 16(4). Click… Read More »

Inverted Duty Structure Refund When Input and Output Tax Rates are Same 1. The Core Issue: Technical Mismatch vs. Functional Inversion The petitioner, a trader in edible oils (Sunflower, Rice bran, Palm oil, etc.), faced a common GST hurdle. They purchased bulk oil at 5% GST and sold it in smaller retail packs (250ml to… Read More »

Real Estate Anti-Profiteering & The Area-Based Computation Mandate 1. The Core Issue: Flawed Methodology vs. Area-Based Approach The investigation into the respondent’s construction project initially followed the standard “ITC-to-Turnover” ratio. However, a landmark Delhi High Court ruling intervened, fundamentally changing how profiteering is calculated for the real estate sector. The Old Approach (Rejected): Comparing the… Read More »

Jurisdictional Bar on Composite Show Cause Notices for Multiple Financial Years 1. The Core Dispute: Consolidated vs. Year-Wise Notices The Revenue issued a single, composite Show Cause Notice (SCN) under Section 74 covering a four-year block (April 2019 to March 2023). The notice alleged suppression of taxable value and wrongful availment of Input Tax Credit… Read More »

Writ Jurisdiction Barred Following the Operationalization of GSTAT 1. Issue Whether a writ petition challenging a GST demand affirmed by the first appellate authority is maintainable under Article 226 when the Goods and Services Tax Appellate Tribunal (GSTAT) has been constituted and made functional with specific timelines for electronic filing. 2. Facts Case Background: The… Read More »

Invalidation of “Negative Blocking” in the Electronic Credit Ledger 1. The Core Issue: Limits of Rule 86A Powers The primary legal dispute focused on whether tax authorities could create a “negative balance” in a taxpayer’s Electronic Credit Ledger (ECL). This occurred when authorities blocked a specific amount (alleged to be ineligible or fraudulent) even though… Read More »

Educational Consultancy to Foreign Universities Classified as Export of Service 1. Issue Whether the counseling and recruitment services provided by an Indian educational consultancy to foreign universities qualify as an “Export of Services” under Section 2(6) of the IGST Act, or an “Intermediary Service” under Section 2(13), where the place of supply would be within… Read More »

GST Exemption for Transfer of Water Supply Digitization Business as a Going Concern 1. The Issue The case involved two primary questions regarding the provision of technological and data management services for the Public Health Engineering Directorate (PHED) of West Bengal: Business Takeover: Whether the transfer of assets and liabilities from a sole proprietorship (M/s.… Read More »

Retrospective Relief for Time-Barred ITC Claims under Section 16(5) 1. Issue The primary legal question was whether Input Tax Credit (ITC) for the financial years 2017-18 through 2020-21, which was previously denied as time-barred under Section 16(4), could now be allowed in light of the retrospective insertion of Section 16(5). 2. Facts The assessee’s ITC… Read More »