Author: Pushkar Mer

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

In case of Britannia Industries Ltd, honourable Calcutta High Court made a judgement where the matter involves complex question of fact and law, the registered person should first exhaust the statutory remedies available under the GST law before filing the writ petition.

The RoDTEP (Remission of Duties and Taxes on Exported Products) Scheme, which was introduced to promote exports by reimbursing embeded duties and taxes, has been temporarily extended to include goods covered under the Advance Authorisation, Export Oriented Units (EOU), and Special Economic Zones (SEZ) as per DGFT Notification No. 32/2024-25 dated 30^th September, 2024. This exemption was valid till 31^st December, 2024 only.

No further exemption is announced. Exporters are early waiting for further extension of RoDTEP scheme.

Taxpayers transporting goods via the Indian Railways FOIS must ensure the correct entry of the number or RR No./eT-RRs in the e-way bill system. The format for entering RR No./eT-RRs has been standardized to ensure consistency and accuracy. The correct format and other important steps have been provided in the advisory. (Advisory dated December 18, 2024)

In case of Bharti Airtel Ltd, honorable Delhi High Court made a remarkable judgement that Telecommunication towers do not meet the criteria of permanency. They are not permanently attached to the earth, as they can be dismantled and relocated. These towers are not erected with the intention of permanency, and their placement on concrete bases is merely to protect them from natural elements. Therefore, they can be classified as movable property, making them eligible for ITC.