Author: Pushkar Mer

CBDT has entered into 174 APAs with Indian taxpayers in FY 2024-25. These includes UAPAs, BAPAs and Multilateral APAs (MAPAs). With this, the total number of APAs since the inception of the programme has reached 815, comprising 615 UAPAs, 199 BAPAs and 1 MAPA. This marks the highest number of APAs signed in a single FY since the programme’s launch. Of the 174 APAs signed, 65 were BAPAs, the highest number of BAPAs finalized in any year so far. These were a result of Mutual Agreements with India’s treaty partners, including Australia, Japan, South Korea, Netherlands, New Zealand, Singapore, UK and the USA. CBDT has maintained a consistent pace in concluding APAs, having signed 125 in FY 2023-24 and 95 in FY 2022-23. Notably, this year also saw the signing of India’s first-ever MAPA. Additionally, on 27th March 2025 a record 34 APAs were signed on a single day

(Press Release issued by CBDT on 31^st March, 2025)

Currently many litigations are going on. Many tax payers filed appeal before GST Commissioner (Appeal) which had been rejected. Now such tax payers are waiting for GST Appellate Tribunal to be operational so that they can file appeal and proceed further. Currently if any tax payer didn’t get favorable judgement by GST Commissioner (Appeal), then they have to wait for filing appeal because GST Appellate Tribunal (GSTAT) is next authority where appeal can be filed against decision of Commissioner (Appeal).

Now, rules have been introduced for regulating the powers, procedures and functioning of GSTAT.

(Notification dated Apr 24, 2025)

In case of Solvi Enterprises Vs Additional Commissioner (GST) honourable Allahabad High Court made a judgement that the assessee cannot be held liable for the subsequent cancellation of the selling dealer’s registration, as all transactions were duly reflected in Form GSTR-2A at the time of claiming ITC. Consequently, the demand order issued under Section 74 of the CGST Act, 2017, has been set aside.   

In case of Zhuzoor Infratech Pvt Ltd Vs Additional Commissioner (GST) honorable Allahabad High Court made a judgement that technical error in shipping address on e-way bill cannot justify seizure or penalty when no discrepancy exists in quantity or quality of goods.

Honorable Madras High Court made a judgement in case of DSM Soft Pvt Ltd Vs Additional Commissioner of GST (Appeal) that Crediting Electronic Cash Ledger with 10% of disputed tax constituted substantial compliance with pre-deposit requirement, despite non-generation of DRC-03 challan, which was merely a technical violation.

Honourable Orissa High Court made a judgement in case of Bipin Kumar Agrawal that The Central GST authority cannot issue a show cause notice if the State authority has already initiated an audit and included the observations in the audit report, as the subject matter of both proceedings is the same.

Enhancement of credit availability with guarantee cover for MSMEs

Enterprise	Credit Guarantee Cover
	Current	Revised
MSEs	INR 5 Crore	INR 10 Crore
Startups	INR 10 Crore	INR 20 Crore
Exporter MSMEs	For term loans upto INR 20 Crore

Revision in classification criteria for MSMEs

Enterprise	Investment		Turnover
	Current	Revised	Current	Revised
Micro	INR 1 Crore	INR 2.5 Crore	INR 5 Crore	INR 10 Crore
Small	INR 10 Crore	INR 25 Crore	INR 50 Crore	INR 100 Crore
Medium	INR 50 Crore	INR 125 Crore	INR 250 Crore	INR 500 Crore

Honourable Andhra Pradesh High Court made a judgement in case of Sugna Sponge & Power Pvt Ltd that Rule 86A of the CGST Rules, 2017, permits blocking ITC that was fraudulently availed, irrespective of whether it is currently available in electronic credit ledger. The term “such ITC” in Rule 86A refers to ITC availed wrongfully, not just ITC currently available in ledger.

As per notification No. 04/2025- Central Tax (Rate) dated January 16, 2025, 18% GST shall be levied on margin of sale of old and used vehicles.

In case of Atharvan Minerals Pvt Ltd, honourable Bombay High Court made a judgement that extraordinary jurisdiction under Article 226 cannot be exercised to bypass statutory remedies and mandatory pre-deposit requirements under CGST Act, 2017