GST Case laws 19.08.2026

Section	Case Law Title	Brief Summary	Citation	Relevant Act
Section 2	Torrent Power Ltd. v. Union of India	Corporate guarantees issued by parent companies for subsidiaries without consideration qualify as “business” under Section 2(17) and Schedule I; profit motive, continuity, or volume is immaterial.	Click Here	Central Goods and Services Tax Act, 2017
Section 7	Torrent Power Ltd. v. Union of India	Corporate guarantees furnished to banks for subsidiaries constitute taxable supplies between related persons under Section 7(1)(a) read with Schedule I, upholding GST levy.	Click Here	Central Goods and Services Tax Act, 2017
Section 7	Torrent Power Ltd. v. Union of India	Corporate guarantees are not actionable claims excluded under Schedule III because the guarantor’s liability is contingent and secondary, remaining liable to GST.	Click Here	Central Goods and Services Tax Act, 2017
Section 7	Torrent Power Ltd. v. Union of India	Extending a corporate guarantee secured by a share pledge is a taxable supply subject to 1% valuation under Rule 28(2), regardless of the pledge being a securities transaction.	Click Here	Central Goods and Services Tax Act, 2017
Section 11	Torrent Power Ltd. v. Union of India	Exempting government guarantees to PSUs and nil valuation of directors’ personal guarantees does not constitute hostile discrimination, as they rest on distinct public interest and RBI guidelines.	Click Here	Central Goods and Services Tax Act, 2017
Section 13	Torrent Power Ltd. v. Union of India	Time of supply for corporate guarantees arises annually under Section 13(2)(c) upon recognition in books; it is not a continuous supply of services under Section 2(33).	Click Here	Central Goods and Services Tax Act, 2017
Section 15	Torrent Power Ltd. v. Union of India	Deemed 1% valuation under Rule 28(2) cannot be applied retrospectively prior to 26-10-2023; guarantees to foreign subsidiaries remain governed by Circular No. 225/19/2024-GST.	Click Here	Central Goods and Services Tax Act, 2017
Section 15	Torrent Power Ltd. v. Union of India	Rule 28(2) prescribing 1% valuation is upheld, but the phrase “whichever is higher” is unconstitutional and struck down; valuation must follow actual consideration or deemed 1% value.	Click Here	Central Goods and Services Tax Act, 2017
Section 69	Rupender Singh Chhikara v. Union of India	Arrest of director for fraudulent ITC upheld where detailed supplier-wise particulars in annexure communicated grounds, statutory safeguards were met, and custody was justified.	Click Here	Central Goods and Services Tax Act, 2017
Section 73	Azad Enterprises v. State of Bihar	Tax determination order and bank attachment issued prior to the expiry of the annual return due date for FY 2022-23 is premature, unauthorized, and liable to be set aside.	Click Here	Central Goods and Services Tax Act, 2017
Section 74	Nesar Ahmed v. Assistant Commissioner of State Tax	Dropping of registration cancellation proceedings does not bar subsequent Section 74 adjudication for fraud/ITC; writ petition held not maintainable.	Click Here	Central Goods and Services Tax Act, 2017
Section 74	Torrent Power Ltd. v. Union of India	Section 74 cannot be invoked for corporate guarantees involving genuine interpretational disputes where facts were known; mere non-declaration without intent to evade is not wilful suppression.	Click Here	Central Goods and Services Tax Act, 2017
Section 107	Atharv Enterprises v. Joint Commissioner of Commercial Taxes (Appeal)	Appeal delay caused by pending rectification and personal exigencies condoned, restoring the appeal for adjudication on merits.	Click Here	Central Goods and Services Tax Act, 2017
Section 142	Basayya v. Assistant Commissioner of Commercial Taxes	For transitional works contracts spanning KVAT and GST regimes where tax was paid post-GST without collection, matter disposed in terms of Chandrashekaraiah precedent.	Click Here	Central Goods and Services Tax Act, 2017
Section 168	Torrent Power Ltd. v. Union of India	Board circulars cannot override statute; contrary clarifications in Circular Nos. 204/16/2023 and 225/19/2024-GST set aside following the reading down of Rule 28(2).	Click Here	Central Goods and Services Tax Act, 2017