IMPORTANT GST CASE LAWS 13.01.2026 Relevant Section Case Law Title Core Ruling / Summary Citation Section 16 Goexotic Plus91 Motors (P) Ltd., In re [ITC for Used Car Dealers] A dealer in second-hand vehicles is eligible for full ITC on repairs, spare parts, and overheads (rent, ads) if they enhance market value without changing the… Read More »

Reconciliation Errors and the Mandate of Post-Decisional Hearings 1. The Core Issue: Technical Deficiencies in Reconciliation The dispute arose from a mismatch between the figures reported in GSTR-1 (Outward Supplies) and GSTR-3B (Summary Return). The Adjudicating Authority (AO) determined a short payment of tax, which the assessee claimed was merely a reporting error in March’s… Read More »

GST Liability on Foreign Patent Filing Costs 1. The Core Dispute: Service vs. Pass-Through Reimbursement The applicant, an Indian tech startup, engaged an Indian intermediary (Seenergi IPR) to manage patent filings in Japan, the USA, and the UK. The intermediary issued an invoice divided into: Part A: Fees paid to foreign patent attorneys and government… Read More »

High Court Quashes “Negative Blocking” of Electronic Credit Ledger 1. The Core Dispute: “Negative Blocking” Beyond Available Credit The tax authorities used Rule 86A to block the Electronic Credit Ledger (ECL) of several taxpayers. However, since the petitioners had little or no balance in their ledgers at the time, the officers created an artificial negative… Read More »

Input Tax Credit Eligibility for Second-Hand Motor Vehicle Dealers 1. The Core Dispute: Defining the Scope of ITC Restrictions The applicant, a dealer in second-hand motor vehicles, purchases used cars from both registered and unregistered persons. To enhance market value, the dealer performs minor repairs and refurbishment (replacing spare parts, painting, etc.) and incurs various… Read More »

Denial of IGST Exemption Correction and Bill of Entry Amendment 1. The Core Dispute: Wrongful Exemption Claim on Imported Dates The petitioners, GST-registered importers, imported semi-dried dates but wrongly claimed an IGST exemption intended only for fresh dates. The Error: Consignments were cleared with Nil IGST based on this misdeclaration. The Audit: A post-clearance audit… Read More »

Inefficacy of Exclusive Portal-Based Notice Service 1. The Core Issue: Procedural Formality vs. Effective Communication The petitioner challenged an ex parte assessment order on the grounds that the department failed to provide actual notice or a personal hearing. All communications, including the Show Cause Notice (SCN), were exclusively uploaded to the GST Common Portal. Taxpayer’s… Read More »

Quashing of Best Judgment Assessment Based on Identity Confusion 1. The Core Issue: Portal-Based Data vs. Actual Identity The petitioner, a former works contractor, had closed his business in 2016 (pre-GST era) and therefore never registered under GST. However, the tax department initiated Best Judgment Assessment under Section 63, which is specifically designed for unregistered… Read More »