Tobacco Excise Overhaul: Capacity-Based Levy and Revised Rates Effective Feb 2026 1. Capacity-Based Levy Reintroduced Section 3A Notification: The government has notified chewing tobacco, Jarda scented tobacco, and Gutkha under Section 3A of the Central Excise Act, 1944. This mandates that excise duty for these products will be levied based on the production capacity of… Read More »
Zero Compensation Cess: Major Shift for Pan Masala & Tobacco Government Notification Issued The Central Government, through Notification No. 03/2025-Compensation Cess (Rate) dated December 31, 2025, has officially notified the reduction of the Goods and Services Tax (Compensation to States) Cess to “Nil” for specified pan masala and tobacco products. Effective Date This new “Nil”… Read More »
Government Notifies CGST (Fifth Amendment) Rules, 2025: Introduction of Retail Sale Price-Based Valuation 1. Introduction of Rule 31D for Valuation New Valuation Method: A new Rule 31D has been inserted into the CGST Rules, 2017. Basis of Valuation: For notified goods, the value of supply shall be deemed to be the Retail Sale Price (RSP)… Read More »
Tobacco GST Overhaul: Rates Rationalised from Feb 2026 New GST Rate for Biris The notification includes Biris falling under tariff headings 2403 19 21 and 2403 19 29 in Schedule II, attracting a GST rate of 9%. Major Additions to the 20% Tax Slab Several tobacco and related products have been moved to Schedule III,… Read More »
New National Security & Health Cess Act Enforced from February 2026 Official Enforcement Date The Central Government has officially notified that the provisions of the Health Security se National Security Cess Act, 2025 will come into force starting February 1, 2026. Legislative Background This enforcement follows Notification No. F. No. 25014/2/2025-DS(ST)-DOR(Pt.5) issued by the… Read More »
IMPORTANT GST CASE LAWS 02.01.2026 Relevant Act Section Case Law Title Brief Summary Citation CGST Act, 2017 Section 16 (ITC Eligibility) Pazhassi Motors v. State of Kerala Assessee is entitled to claim ITC if the return was submitted before the cut-off date contemplated under Section 16(5) (introduced by Finance Act 2024), even if it was… Read More »
Availability of Alternative Remedy: Writ Petition Dismissed as GST Appellate Tribunal (GSTAT) becomes Functional; Assessee Directed to File Statutory Appeal and Make Pre-Deposit ISSUE Whether a Writ Petition is maintainable against an appellate order on the ground that the GST Appellate Tribunal (GSTAT) is not functional, especially when the Government has subsequently notified the… Read More »
Section 75(4) Mandate: Personal Hearing Must be Granted Before Passing Any Adverse Order, Even if Assessee Did Not Request It ISSUE Whether the Adjudicating Authority is required to grant an opportunity of personal hearing to the assessee under Section 75(4) before passing an adverse order, even if the assessee has not specifically requested such… Read More »
Violation of Natural Justice: Fixing Date of Personal Hearing on the Same Day as Deadline for Reply is Impermissible; Order Remanded ISSUE Whether the Adjudicating Authority can fix the date and time of personal hearing on the exact same date and time stipulated for submitting the reply to the Show Cause Notice (SCN). Whether… Read More »
Order Quashed for Violation of Natural Justice: SCN Uploaded in ‘Additional Notices’ Tab Without Personal Hearing; Matter Remanded Subject to Cost ISSUE Whether an adjudication order passed pursuant to a Show Cause Notice (SCN) uploaded solely on the “Additional Notices” tab of the GST portal, without granting a proper opportunity of hearing or noticing the… Read More »