Monthly Archives: January 2026

Rectification rejection set aside as authority ignored submitted FIRC documents and precedent   Issue Whether the Appellate Authority (Second Respondent) was justified in rejecting the assessee’s rectification application under Section 161 by claiming non-submission of documents, despite the assessee having submitted proof of Foreign Inward Remittance (FIRC) and Bank Realization Certificates (BRC), and whether the… Read More »

Mandatory same-month ITC distribution under Rule 39(1)(a) is ultra vires Section 20 of CGST Act   Issue Validity of Rule: Whether Rule 39(1)(a) of the CGST Rules, 2017, is ultra vires (beyond the legal power of) Section 20 of the CGST Act to the extent it mandates that an Input Service Distributor (ISD) must distribute… Read More »

Notification clarifying place of supply for clinical trials held retrospective, confirming export status   Issue Whether Notification No. 04/2019-Integrated Tax, which excluded clinical R&D services from the “performance-based” place of supply rule, is prospective or retrospective in nature, determining if such services rendered prior to the notification qualify as ‘export of services’. Facts Nature of… Read More »

SCN under Section 122 quashed; Notification 2/2017 defined territory, not penalty jurisdiction   Issue Whether the Additional Commissioner of Central Tax, Guntur, was competent to issue a Show Cause Notice (SCN) for penalties under Section 122 of the CGST Act to an assessee located in Krishna District, relying on Notification No. 2/2017-Central Tax, or if… Read More »

Writ jurisdiction barred as GSTAT becomes functional; statutory appeal with pre-deposit mandatory   Issue Whether a Writ Petition is maintainable to challenge an appellate order on the ground of the non-constitution of the GST Appellate Tribunal (GSTAT), now that the Tribunal has been constituted and specific timelines (up to June 2026) have been notified for… Read More »

CGST Delhi South Commissionerate arrests two people for fraudulent availment of Input Tax Credit (ITC) of around ₹8.52 crore through bogus invoices of ₹199.90 crore Posted On: 15 JAN 2026 4:30PM by PIB Delhi The Anti-Evasion Branch of the Central Goods & Services Tax (CGST) Delhi South Commissionerate has arrested the key persons for fraudulent… Read More »

ICMAI Releases Handbook on Invoice Management System (IMS) under GST   The Institute of Cost Accountants of India (ICMAI) has released the “Handbook on Invoice Management System under GST” (December 2025 Edition) to guide taxpayers through the new active invoice validation framework. Key Highlights of the Handbook: Active ITC Validation: Explains the shift from passive… Read More »

ICMAI Releases Second Edition of “Handbook on GST Department Audit”   The Institute of Cost Accountants of India (ICMAI) has released the updated Second Edition of the Handbook on GST Department Audit (January 2026) to assist taxpayers and professionals in navigating the increasingly data-driven audit landscape. Key Highlights of the Handbook: Updated Framework: Incorporates the… Read More »

IMPORTANT GST CASE LAWS 15.01.2026 Relevant Act Section Case Law Title Brief Summary Citation CGST Act, 2017 Section 7 (Composite Supply) Escorts Heart Institute and Research Centre Ltd. v. Addl. Comm., CGST Audit [Healthcare Composite Supply] The High Court allowed adjudication to continue regarding whether medicines/consumables given to in-patients (without separate GST charge) are taxable… Read More »

GST demand based on inflated income tax figures remitted for forensic audit and fresh adjudication   Issue Whether a GST demand can be sustained solely based on turnover figures declared on the Income Tax portal, which the assessee claims were inflated for tender eligibility, when actual bank receipts are significantly lower, and whether a forensic… Read More »