CBIC Circular on refunding unutilised ITC under Rule 89(5) is not prospective: Supreme Court dismisses Revenue Petition with ₹10,000 costs

Introduction The issue of refunding unutilised Input Tax Credit (ITC) under the inverted duty structure has long been contentious under GST. A key dispute arose around the July 2022 amendment to Rule 89(5), which corrected the refund formula to include both inputs and input …

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Refund plea filed beyond limitation period to be admitted in view of SC ruling in Mohit Minerals: Andhra Pradesh High Court (14 August 2025)

Introduction The Andhra Pradesh High Court, in its decision dated 14 August 2025, held that refund claims filed beyond the prescribed limitation period under the GST regime are to be entertained in certain circumstances, especially where such delay is attributable …

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Madras High Court Restores GST Registration Cancelled Due to Non-Compliance Caused by Director’s Ill Health, Subject to Strict Conditions

The Madras High Court, in its judgment dated 5 August 2025 in Chandrasekar Balasubramanian v. Superintendent of CGST & Central Excise (W.P. No. 29038 of 2025), addressed the issue of GST registration cancellation on account of prolonged non-filing of returns. The petitioner, a sole …

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Supreme Court Orders DGFT & CBIC to Upgrade Systems to Protect Exporters from Losing Benefits Due to Clerical Errors

The Supreme Court of India, in a significant ruling on 26 August 2025, has directed the Directorate General of Foreign Trade (DGFT) and the Central Board of Indirect Taxes and Customs (CBIC) to upgrade and align their technology systems so that genuine exporters are not …

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Separate GST registration in Odisha needed if HO is in Maharashtra but repair services & storage are provided in Odisha (AAR Odisha, 11 July 2025)

Odisha AAR held that a company with Head Office (HO) in Maharashtra must take separate GST registration in Odisha where its field service engineers (FSEs) operate and spare parts/tool-kits are stored for carrying out repair/maintenance services under AMCs/CMCs for Odisha customers. The ruling squarely turns on whether …

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Delhi High Court Rules: Appeal is the Correct Remedy in GST Demand Disputes, Not Writ Petition

The Delhi High Court has recently ruled that taxpayers disputing GST demand orders must seek relief through the statutory appellate process rather than filing writ petitions. In a case involving Rama Departmental Store, the Court emphasized that when a proper mechanism for appeal exists under …

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Next-Generation GST Reform: India Moves Towards Two-Slab System with Simplified Compliance

On 15 August 2025, during his Independence Day address, Prime Minister Narendra Modi announced a landmark reform of India’s Goods and Services Tax (GST) regime, positioning it as the “Next-Generation GST.” The reform aims to simplify India’s indirect tax system through structural …

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