STATUTORY FRAMEWORK OF SECTION 41, RULE 37A AND GSTR-2B

1. Observation in Para 74 in Maruti Enterprise  vs. Union of India [2026] 186 taxmann.com 90 (Gujarat)/[2026] [01-05-2026]

74. Section 16(2)(c) mandates that the recipient ensure tax is paid to the government, yet it does not explicitly stipulate that payment must occur via Form GSTR-3B. FORM GSTR-3B is a self-declared summary return used to report and pay taxes. While it acts as the official record of the taxpayer’s tax liability and payment, it does not automatically prove that a supplier has paid tax to the government as required by Section 16(2) (c). Instead, the recipient must verify this via GSTR-2B and temporarily reverse ITC in GSTR-3B Table 4(B)(2) if the supplier has not paid it. Effective October 1, 2022, Section 41(2) specifically requires the recipient to reverse Input Tax Credit (ITC), plus applicable interest, if the supplier fails to deposit the tax. However, the proviso also establishes a mechanism for reavailing this credit once the tax is eventually paid.

2. Affirmation in Bhandari Scrap Traders vs. Union of India [2026] 188 taxmann.com 986 (SC)[24-07-2026]

3. Further, the High Court of Gujarat has also referred to the provisions of Section 41 of the CGST Act and also Sections 73 and 74 thereof in the context of the purchasing dealer under the CGST regime being entitled to re-avail the reversed ITC after the supplier-dealer is made to discharge the tax liability.

3. Section 41- Availment of input tax credit

(2) The credit of input tax availed by a registered person under sub-section (1) in respect of such supplies of goods or services or both, the tax payable thereon has not been paid by the supplier, shall be reversed along with applicable interest, by the said person in such manner as may be prescribed:

Provided that where the said supplier makes payment of the tax payable in respect of the aforesaid supplies, the said registered person may re-avail the amount of credit reversed by him in such manner as may be prescribed.

4. Rule-37A-Reversal of input tax credit in the case of non-payment of tax by the supplier and re-availment thereof.Where input tax credit has been availed by a registered person in the return in FORM GSTR-3B for a tax period in respect of such invoice or debit note, the details of which have been furnished by the supplier in the statement of outward supplies in FORM GSTR-1, as amended in FORM GSTR-1A if any, or using the invoice furnishing facility, but the return in FORM GSTR-3B for the tax period corresponding to the said statement of outward supplies has not been furnished by such supplier till the 30th day of September following the end of financial year in which the input tax credit in respect of such invoice or debit note has been availed, the said amount of input tax credit shall be reversed by the said registered person, while furnishing a return in FORM GSTR-3B on or before the 30th day of November following the end of such financial year:

Provided….

Provided further that where the said supplier subsequently furnishes the return in FORM GSTR-3B for the said tax period, the said registered person may re-avail the amount of such credit in the return in FORM GSTR-3B for a tax period thereafter.

5.  Instruction No. 8 to GSTR-2B

8. Table 5 captures the summary of ITC to be reversed under Rule 37A on or before 30th November following the end of financial year in which the ITC in respect of such invoice or debit note has been availed and corresponding FORM GSTR-3B has not been furnished by the supplier. Credit auto populated in this table shall be reversed in FORM GSTR-3B but should be reported as ITC reversed in Table 4(B)(2) of FORM GSTR-3B. Table 5 shall be made available only in FORM GSTR 2B of the September of the next financial year (made available in October).

6.  Table 5 of GSTR-2B

5. ITC Reversal Summary (Rule 37A)

(Amount in ₹ in all sections)

7. Table-wise Instruction GSTR-2B

Kolkata: The West Bengal Appellate Authority for Advance Ruling has reaffirmed that the advance ruling mechanism under GST law is intended to provide certainty only for proposed or ongoing transactions, and cannot be used as a substitute for adjudication of completed transactions involving disputed questions of fact. The ruling, issued by SGST chief commissioner Khaled Anwar and CGST chief commissioner S Naik, has drawn attention in GST circles for its emphasis on the jurisdictional limits of the advance ruling framework. GST experts said the decision would effectively block attempts to use the mechanism to avoid penalties on past transactions. “People are coming up with new techniques to avoid penalties. This ruling would effectively block that,” said one expert, adding that without this check, the state exchequer could face revenue losses. The appellate authority held that questions such as whether an amount received under an arbitral award constitutes additional consideration, damages, compensation, reimbursement, interest or any other contractual entitlement require detailed examination of facts and evidence — an exercise that falls within the domain of the jurisdictional proper officer and not within advance ruling proceedings.

The Delhi High Court has ruled that advocates acting as insolvency professionals are liable to collect Goods and Services Tax (GST) from recipients of their services and deposit it with the government under the forward charge mechanism [Kanwal Chaudhary v. Insolvency and Bankruptcy Board of

India]. A Division Bench of Justices Prathiba M Singh and Shail Jain held that advocates providing insolvency and receivership services must obtain GST registration and comply with the requirements ap-plicable to insolvency professionals as a class. “An Advocate acting as an Insolvency Professional would,

therefore, be governed by the ‘forward charge mechanism’, which is applicable to Insolvency Profession-

als, as a class, and not by the ‘reverse charge mechanism’, which is otherwise applicable to Advocates

rendering legal services,” the Court said.

Madras High Court Enshrines Fair Hearing Right for Taxpayers in GST Matters

The impugned order dated 11.10.2023 is set aside and the matter is remanded for reconsideration. The petitioner is also permitted to submit a reply to the show cause notice within two weeks from the date of receipt of a copy of this order. Upon receipt of the petitioner’s reply, the first respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within three months from the date of receipt of petitioner’s reply. For the avoidance of doubt, it is made clear that the sum of Rs.2,00,000/- (Rupees two lakhs only), which was appropriated from the petitioner’s bank account, shall abide by the outcome of the remanded proceedings In view of the assessment order being set aside, the bank attachment is raised

Five individuals have been arrested for reportedly posing as GST officials and extorting Rs 29 lakh from a GST consultant in Noida, police confirmed on Wednesday (August 13). The incident occurred on July 20 when the GST consultant was travelling in his car along with his pet dog and laptop.

“The Bisrakh police have recovered the entire extorted amount, including Rs 24.50 lakh in cash and gold and silver jewellery worth Rs 4.50 lakh,” Central Noida DCP Shailendra Kumar Singh said. “The accused allegedly intercepted his vehicle near the S Aspire Society by blocking its path with their car. Posing as GST officials, they entered his vehicle and took him along while threatening him over alleged fake e-way bills of two firms,” he said.

Police stated that the accused allegedly threatened to have the victim jailed over a GST-related matter and demanded Rs 29 lakh in exchange. The money was reportedly brought in cash through the victim’s brother, after which the accused abandoned the victim along with his car and fled.

Also read: Karnataka Bandh today: Police issue BIG warning against forced participation, reveal what’s open in Bengaluru

The investigation revealed that the main accused, Kashish Chauhan, also known as Ishu, was already known to the victim, the two having been acquainted since 2021. Police said Chauhan was aware that the victim dealt with GST-related work and allegedly used this knowledge to target him.

According to police, the accused wore a police sub-inspector’s uniform along with a Delhi Civil Defence uniform while committing the crime. Two vehicles and seven mobile phones allegedly used in the offence have also been recovered.

Police added that Chauhan is employed as a DCPO (Driver-cum-Pump Operator) at Yashobhoomi, Dwarka, Delhi, while accused Rajesh Pawar is linked with Delhi Civil Defence. Vivek Sharma had worked at Escort, Manesar,

Ballabhgarh. Police also clarified that all those accused involved in the incident are not police personnel.

The other arrested accused have been identified as Ankit Shahi and Anshul, in addition to Chauhan, Pawar, and Sharma. The DCP said the accused were tracked down using surveillance, CCTV footage, and local intelligence, and were arrested near the ISKCON temple on Jaitpur Road. Along with recovering the entire Rs 29 lakh, police also seized the two vehicles, the police sub-inspector and Delhi Civil Defence uniforms, and seven mobile phones allegedly used in the crime. Police said they are verifying the criminal backgrounds of the accused.

A batch of writ petitions was filed before the Madras High Court challenging the rejection of their applications filed under the GST Amnesty Scheme introduced through Section 128A of the CGST/TNGST Acts. The Amnesty Scheme was enacted to provide relief from interest and penalty in respect of demands raised under Section 73 for the period from 1 July 2017 to 31 March 2020, provided the taxpayer paid the entire tax amount within the prescribed time.

The petitioners had filed applications in Forms GST SPL-01 or GST SPL-02 seeking waiver of interest and penalty after discharging the principal tax liability. However, their applications were rejected primarily on the ground that the underlying demand related to self-assessed tax liability arising from delayed filing of GSTR-3B returns, delayed reporting of outward supplies, or mismatches between GSTR-1 and GSTR-3B returns. The authorities relied heavily on Serial No. 4 of Circular No. 238/32/2024-GST dated 15.10.2024, which clarified that interest arising from self-assessed tax recoverable under Section 75(12) would not qualify for waiver under Section 128A.

In several cases, the taxpayers had initially succeeded in obtaining orders in Form GST SPL-05 granting waiver under Section 128A. Subsequently, the authorities issued separate “void orders” declaring the earlier approval orders ineffective on the ground that the demands related to self-assessed tax and were therefore not eligible for amnesty benefits. In some instances, the authorities also passed rejection orders beyond the timelines prescribed under Rule 164 of the GST Rules.

A separate category of petitions involved taxpayers who had filed waiver applications after the expiry of the prescribed period or had failed to make payment of tax within the time stipulated under the scheme. These taxpayers challenged the rejection of their applications by contending that the time limits prescribed under Rule 164 were merely directory and not mandatory.

The common grievance of the petitioners was that the GST authorities had adopted an unduly restrictive interpretation of Section 128A, thereby frustrating the very purpose of the Amnesty Scheme which was introduced to provide relief to taxpayers facing difficulties during the initial years of GST implementation.

Issue:

Whether demands relating to self-assessed tax liability recoverable under Section 75(12) of the GST Act were excluded from the scope of Section 128A and consequently disentitled from the benefit of waiver of interest and penalty under the Amnesty Scheme. Whether Circular No. 238/32/2024-GST could validly restrict the scope of Section 128A by excluding self-assessed tax cases from the scheme. Whether the time limits prescribed under Rule 164 for filing applications and for passing orders under the Amnesty Scheme were mandatory or merely directory.

Held That:

Whether demands relating to self-assessed tax liability recoverable under Section 75(12) of the GST Act were excluded from the scope of Section 128A and consequently disentitled from the benefit of waiver of interest and penalty under the Amnesty Scheme. Whether Circular No. 238/32/2024-GST could validly restrict the scope of Section 128A by excluding self-

assessed tax cases from the scheme. Whether the time limits prescribed under Rule 164 for filing applications and for passing orders under the Amnesty Scheme were mandatory or merely directory

Rejecting the Revenue’s principal argument, the Court held that there is no express or implied exclusion of self-assessed tax liabilities from the scope of Section 128A. The Court observed that Section 128A was enacted long after Section 75(12) and begins with a broad non obstante clause “notwithstanding anything to the contrary contained in this Act.” If Parliament intended to exclude self-assessed tax cases from the amnesty scheme, it could have expressly done so. The absence of such exclusion was considered significant. The Court emphasized that Section 75(12) merely enables direct recovery of admitted self-assessed tax under Section 79 without undergoing adjudication under Section 73. It does not create a statutory bar against availing the Amnesty Scheme where the Department itself has chosen to proceed under Section 73.

The Court further held that Circular No. 238/32/2024-GST could not curtail or restrict the scope of a statutory provision. Therefore, the clarification contained in the Circular excluding self-assessed tax cases from the benefit of Section 128A was held to be contrary to the statutory scheme and incapable of denying benefits otherwise available under the Act.

Further, the Court held that Rule 164 permits an order granting waiver in Form GST SPL-05 to become void only in the limited circumstances specified under sub-rules (16) and (17), namely where the taxpayer fails to pay certain additional amounts required under the scheme. Outside these expressly prescribed situations, neither Section 128A nor Rule 164 authorizes the GST authorities to issue a separate order declaring an already granted waiver order void. Consequently, the void orders issued by the authorities were held to be without jurisdiction and invalid.

At the same time, the Court clarified that where the authorities fail to pass an order within the time prescribed under Rule 164(13), the application would be deemed approved and proceedings deemed concluded under Rule 164(14), provided the applicant satisfies the substantive conditions contained in Section 128A.

Applying these principles, the Court set aside all rejection orders and void orders that were founded solely on the ground that the underlying demand pertained to self-assessed tax or delayed filing of returns. The Court held that such taxpayers were entitled to the benefit of waiver under Section 128A. However, the Court upheld the rejection of applications that were filed beyond the statutory time limit or where the requisite tax payment had not been made within the prescribed period, holding that such conditions were mandatory and constituted an essential part of the Amnesty Scheme.

Case Name: Incompressible Fluid Control System vs The Assistant Commissioner dated 28.07.2026

The Goods and Services Tax (GST) represents a landmark reform that has redefined India’s indirect tax framework. Beyond integrating multiple Central and State taxes, GST has simplified compliance, improved tax governance, broadened the tax base, and fostered greater economic integration across the country. Supported by continuous policy refinement and digital innovation, the GST framework has evolved into a dynamic system that balances revenue efficiency with taxpayer facilitation while contributing to
India’s sustained economic growth.

Keeping pace with the evolving GST ecosystem, the Institute of Chartered Accountants of India (ICAI), through its GST & Indirect Taxes Committee, has consistently played a proactive role in knowledge dissemination and capacity
building endeavors. As part of this commitment, the Committee has launched an Industry-Specific GST Publication Series, recognising that each sector presents unique GST implications due to their distinct business models and operational structures. These series aim to provide focused sector-specific guidance on key GST issues, addressing the practical challenges and
compliance requirements of different industries.

I am pleased to note that the Committee has released its second booklet
under this series titled “GST Sectoral Guide on Fast-Moving Consumer Goods”. The FMCG sector occupies a position of considerable significance in the daily life of the Indian consumer, encompassing a wide array of essential goods ranging from personal care products to food & beverages consumed across households on a regular basis. Beyond its consumer relevance, the sector contributes substantially to employment generation, retail expansion and rural market penetration, rendering its GST treatment a matter of considerable practical importance to manufacturers, traders and professionals.

My sincere appreciation to CA. Umesh Sharma, Chairman and CA. Rajendra Kumar P, Vice-Chairman, GST & Indirect Taxes Committee of ICAI along with all the members of the Committee for their initiative and dedication in developing this publication and their continued efforts in disseminating GST knowledge and providing practical guidance to members and stakeholders. I am confident that this publication will serve as a valuable resource for chartered accountants, tax professionals, and all stakeholders associated with the FMCG sector, facilitating a better understanding and application of GST provisions.

Sub: Single Unified Multi-Purpose Electronic Bond in Customs – “Ekal Anubandh” – reg.

Kind attention of all Importers, Exporters, Customs Brokers, and other stakeholders is invited to this office Public Notice No. 16/2025 dated 07.03.2025, issued in accordance with CBIC Circular No. 04/2025-Customs dated 17.02.2025 (F. No. 450/119/2021-Cus-IV), regarding the implementation of the Single Unified Multi-Purpose Electronic Bond (SEB) under the “Ekal Anubandh” initiative. A copy of the said Circular is enclosed herewith for ready reference.

2. It is observed that usage of e-Bond or e-Bank Guarantee has been very limited in this Commissionerate since the issuance of the above Public Notice. Accordingly, it is once again reiterated that all stakeholders are strongly encouraged to avail the SEB facility through the ICEGATE portal, which enables seamless, all-India electronic execution of Bonds and Bank Guarantees. This system is aimed at reducing transaction costs, improving transparency, and facilitating ease of doing business. The step-by-step procedure for execution of e-Bond and linking of e-BG is provided in the annexures to the Circular and Public Notice for ease of reference and compliance.

3. Importers and exporters currently need to submit separate bonds with security for each transaction at different ports under various customs scenarios, as mandated by multiple Board circulars. To streamline processes and to enhance efficiency and reduce the administrative load on businesses, CBIC has decided to introduce a project named “Ekal Anubandh”, vide Circular No. 04/2025-Customs dated 17.02.2025 wherein trade will be encouraged to use single All-India Multi-purpose Electronic Bond with end-to-end automation. As a first step, single All-India Multipurpose Bond for importers or exporters in lieu of the transaction-wise Bonds being submitted across different ports, thus offering significant potential to save both time and costs in trade procedures. 4. The Key features include:
i. Importer/Exporter can choose the obligations, he intends to undertake in the common bond format and submit at any port of importer’s choice electronically at ICEGATE.
ii. Option to include additional obligations or additional amount at the later stage is available at ICEGATE.
iii. Electronic Payment of stamp duty and electronic execution of Bond through integration with National E-Governance Services Limited (NeSL) by affixing electronic signature without any requirement for notary.

iv. Online linking End-to-End issued Electronic Bank Guarantee.
v. Verification of Bank Guarantee (BG) issued by issuing Bank.

5. The Procedures are explained in the annexures (refer to Board Circular No. 04/2025-Customs dated 17.02.2025) for Single Unified Multi-Purpose Electronic Bond (SEB) as detailed below:
i. The process of execution of bond electronically including the digital payment of stamp duty is elaborated in Annexure-A.
ii. Linking of e-Bank Guarantee is elaborated in Annexure-B.
iii. Format of the SEB is provided in Annexure-C.
iv. Format for Supplementary Bond for addition of new events is provided in Annexure-D.
v. Format for Supplementary Bond for addition of Amount is provided in Annexure-E.
vi. For the sake of uniformity, the quantum of Bank Guarantee to be provided in the different instances prescribed earlier through the Board circulars have been collated and made available in Annexure-F. The importer/exporter may also be able to select the quantum of bank guarantee applicable for different purposes like provisional assessment, EP schemes etc. Further, a separate option is also available in case there is a need for having different quantum of bank guarantee other than those specifically listed in Annexure-F.
vii. The list of States and UTs enabled at NeSL for e-BG and e-Customs Bond is enclosed as Annexure-G.
viii. Importer may approach any of the Banks listed in Annexure-H for issuance of e-BG in the format specified in Annexure-I.

6. With electronic bonds and bank guarantees, importers/exporters/customs brokers can manage and track documents in real time, ensuring greater security and transparency throughout transactions. The “Ekal Anubandh” project ensures that above digital solutions are environmentally friendly, cost-effective, and more convenient, as they eliminate the need for physical signatures and paperwork, allowing for faster approvals and fewer delays. Therefore, the importers and exporters are encouraged that, wherever required, importers/exporters/customs brokers may execute a single unified multi-purpose electronic bond and electronic bank guarantee.

7. For further details of the e-Bond and e-Bank Guarantee module, detailed Advisories issued by ICEGATE website may be referred to.

8. The Single All-India Multipurpose electronic Bond (SEB) under “Ekal Anubandh” project shall be implemented through detailed advisories being issued by DG Systems in a phased manner. User feedback will be suitably incorporated during implementation.

9. CBIC Circular No. 04/2025-Customs dated 17.02.2025 and ICEGATE User Manual e-bond registration are herewith enclosed for detailed reference.

10. This Public Notice shall be considered as a Standing Order for the purpose of officers and staff of the Commissionerate.

11. The facility for submission of e-Bond and e-Bank Guarantee is operational with immediate effect. Stakeholders are requested to discontinue the use of manual Bonds and BGs, as their acceptance will cease w.e.f. 24.08.2026, except in exceptional circumstances with prior approval of the Deputy/Asst. Commissioners of Customs of the respective sections of Chennai-II (Import). The format for seeking such manual approval is enclosed in Annexure III for reference. 12. Such manual filing of Bond/Bank Guarantee by Importers/Exporters shall be allowed only up to three occasions by the Deputy/Assistant Commissioners of respective sections and meanwhile efforts shall be taken to resolve the issues. Fourth occasion shall be permitted only with the permission of the concerned Additional/Joint Commissioner of Customs.

13. Difficulties faced, if any, may be brought to the notice of Deputy/Asst. Commissioner of Customs of the respective sections for necessary action.

This issues with the approval of Commissioner of Customs, Chennai-II (Import) Commissionerate.

Subject: Single Unified Multi-Purpose Electronic Bond in Customs – Ekal Anubandh – reg.

Madam/Sir,
CBIC’s ongoing initiatives to simplify trade processes, improve transparency, and adopt best practices have resulted in steady improvements across various trade facilitation metrics. Leveraging Information technology, many processes have become paperless and contactless, thus providing ease and less time consuming for the trade.

2. In the same direction, to enhance efficiency and reduce the administrative load on businesses, CBIC has decided to introduce a project named “Ekal Anubandh”, wherein trade will be encouraged to use single All-India Multi-purpose Electronic Bond with end-to-end automation. As a first step, single All-India Multipurpose Bond for importers or exporters in lieu of the transaction-wise Bonds being submitted across different ports, thus offering significant potential to save both time and costs in trade procedures.

3.1 At present, importer or exporter submits separate bonds along with security, for every transaction at each port for different scenarios as stipulated in the Board circulars given below:
i. Provisional Assessment Circular No. 38/2016 dt. 22.08.2016 and Circular 42/2020-Customs dated 29.09.2020
ii. Export Promotion Schemes – Circular 11A/2011-Customs dated 25.02.2011
iii. Warehousing under Section 59 Circular 18/2016-Custom dated 14.05.2016 and Circular 21/2016 – Customs dated 31.07.2016
iv. MOOWR in bonded warehouse under section 65 Circular 34/2019-Customs dated 01.10.2019
v. MOOWR in Special Warehouse under section 65 vide Circular 36/2020-Customs dated 17.08.2020-Customs.

3.2 The current practice is adding cost and time for the trade and customs and adds to the administrative burden of maintaining physical records. The status and retrieval also pose difficulties.

4.1 Single All-India Multipurpose electronic Bond (SEB):
To overcome above issues and to provide end-to-end digital solution, in lieu of submission of separate bonds, importer or exporter will have an option to submit a Single All-India Multipurpose electronic Bond (SEB) with following features:
(a) Importer/Exporter can choose the obligations, he intends to undertake in the common bond format and submit at any port of importer’s choice electronically at ICEGATE.
(b) Option to include additional obligations or additional amount at the later stage is available at ICEGATE
(c) Electronic Payment of stamp duty and electronic execution of Bond through integration with National E-Governance Services Limited (NeSL) by affixing electronic signature without any requirement for notary.
(d) Online linking End-to-End issued Electronic Bank Guarantee
(e) Verification of Bank Guarantee (BG) issued by issuing Bank

4.2 On the lines of the initiative of ‘Digital Document Execution or DDE for paperless execution and storage of financial contracts, through M/s National E-Governance Services Limited (NeSL) by Department of Financial Services (DFS), digital execution of customs bonds is being enabled. The process of execution of bond electronically including the digital payment of stamp duty is elaborated in Annexure-A. The Importer/exporter executing the bond may ensure that applicable stamp duty is paid.

4.3 In this regard, as clarified earlier vide Circular 11A/2011-Customs dated 25.02.2011 in respect of National Bond for EP Schemes, opinion of Law Ministry regarding the legal implications of a single bond across different customs locations is re-iterated as follows “since the Bond is executed in favour of President of India, the same is enforceable by any authorized Commissioner (Customs)”. Further, it also clarified that, in view of capability to identify the executants and time-stamping of the electronic signatures, there is no further requirement of notaries during SEB execution process.

4.4 Format of the SEB is provided in Annexure-C.

5. Submission of Bank Guarantee:
Along with the execution of Bond, procedure for submission of Bank Guarantees is also being streamlined. For the sake of uniformity, the quantum of Bank Guarantee to be provided in the different instances prescribed earlier through the Board circulars have been collated and made available in Annexure-F. The importer/exporter may also be able to select the quantum of bank guarantee applicable for different purposes like provisional assessment, EP schemes etc. Further, a separate option is also available in case there is a need for having different quantum of bank guarantee other than those specifically listed in Annexure F. The detailed procedure for linking of Bank guarantee with the bond is elaborated in Annexure-B.

6. With electronic bonds and bank guarantees, importers/exporters/customs brokers can manage and track documents in real time, ensuring greater security and transparency throughout transactions. The “Ekal Anubandh” project ensures that above digital solutions are environmentally friendly, cost-effective, and more convenient, as they eliminate the need for physical signatures and paperwork, allowing for faster approvals and fewer delays. Therefore, the importers and exporters are encouraged that, wherever required, importers/exporters/customs brokers may execute a single unified multi-purpose electronic bond and electronic bank guarantee.

7. For further details of the e-Bond and e-Bank Guarantee module, detailed Advisories issued by ICEGATE website may be referred to.

8. The Single All-India Multipurpose electronic Bond (SEB) under “Ekal Anubandh” project shall be implemented through detailed advisories being issued by DG Systems in a phased manner. User feedback will be suitably incorporated during implementation. 9. The Chief Commissioners of the Zones may sensitize the officers under their jurisdiction of the above changes to handhold the trade. Necessary Public Notice may be issued and outreach activities conducted with the relevant stakeholders. Difficulties, if any may be brought to the notice of the Board.

TYPE OF GST NOTICES

S Since 1962 & Co.

GST ON CHARITABLE TRUSTS

Agenda

• Applicability of GST in relation to Charitable Trusts
• Exemption relating to charitable activities
• Exemption relating to healthcare services
• Exemption relating to educational institutions
• Other relevant notable exemptions
• Taxability of supplies made free of cost
• Impact on ITC
• Registration requirements

GST on Charitable Trusts by Aditya Surte  |  08-Aug-2026

Applicability of GST to Charitable Trusts

Art. 366 (12A):

“goods and services tax” means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption

Sec. 7 of CGST Act:

“supply” includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business

Key Elements: consideration  |  person  |  business

2(84): Person includes –

• Individual, HUF, Company, Firm, LLP
• AOP or BOI, whether incorporated or not, in India or outside India
• Corporation established by or under any Central Act, State Act or Provincial Act or a Govt company as defined u/s 2(45) of the Companies Act, 2013
• Body corporate incorporated by or under the laws of a country outside India
• Co-operative society registered under any law relating to co-operative societies
• Local authority
• Central Govt or State Govt
• Society as defined under the Societies Registration Act, 1860
• Trust
• Every artificial juridical person, not falling within any of the above

2(17): Business includes –

(a) Any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not for pecuniary benefit;

(b) Any activity or transaction in connection with or incidental or ancillary to sub-clause (a);

(c) Any activity or transaction in the nature of trade, commerce, etc., whether or not there is volume, frequency, continuity or regularity of such transaction

For the purpose of ‘business’ u/s 2(17), it is immaterial whether such a trade or commerce or such activity is for pecuniary benefit or not.
— Nagri Eye Research Foundation v. UOI [2021] (54) G.S.T.L. 11 (Guj.)

Landmark judgement under BST Act, 1959

Where the main activity of the Trust does not fall within the meaning of “business”, any incidental or ancillary activity shall also not be considered as business.

• Trust was created with the primary object of spreading the message of Saibaba of Shirdi.
• In furtherance of and to accomplish the said object, trust published books, pamphlets & other literature containing Sai Baba’s message and sold at nominal charge to meet cost.
• Sale proceeds of publication formed the property of the trust, which could be utilised only for advancement of the objects of the trust.
• Specific provision in the trust deed that in the event of failure of the trust to carry on its objects, the remaining fund in its hands would be handed over to Sansthanam of Shirdi.
• SC: The question of profit-motive or no profit-motive would be relevant only where a person carries on trade, commerce, manufacture or adventure in the nature of trade, commerce, etc. On the facts and in the circumstances of the case, irrespective of the profit-motive, it could not be said that the Trust either was ‘dealer’ or was carrying on trade, commerce etc.

Notable AAR and AAAR (Business)

Shrimad Rajchandra Adhyatmik Satsang Sadhana Kendra (Maharashtra AAR & AAAR)

• Whether the sale of spiritual products such as books, DVDs, etc. could be treated as supply attracting GST?
• Applicant contended that the money earned from sale of such goods was used for main object, i.e., for charitable and religious purposes. Therefore, since the main activity is not business, ancillary activity cannot be treated as business.
• Applicant placed reliance on the Supreme Court ruling in the case of Sai Publication Fund and CIT v. Gujarat Maritime Board [2007] 14 SCC 704 (SC) wherein it was held that if the primary or predominant object of the trust is charitable, any other object which might not be charitable, but which is incidental or ancillary to the dominant object will also be considered as charitable.
• AAR held that that there was no specific exemption to registered charitable trusts for supply of such goods under GST. The sale of spiritual products which was incidental or ancillary to main charitable object of assessee could be said to be business. Therefore, the sale of spiritual products would be treated as supply attracting GST.
• Appellate AAR upheld the order of AAR.
• Applicant has moved the High Court of Judicature at Bombay by way of writ petition.

2(31): Consideration

Includes

• Any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person
• Monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person

Does not include

• Subsidy given by the Central Government or a State Government
• Deposit, unless the supplier applies such deposit as consideration for the supply

Donations received by Charitable Trusts

• Donations are gratuitous payments
• Not ‘consideration’ for supply
• Not liable to GST
• Unless the trust is obligated to provide something in return

Donations received by Charitable Trusts (Contd.)

CBIC Circular No. 116/35/2019-GST dated 11-10-2019:

“Where the name of the donor is displayed in recipient institution premises, in such a manner, which can be said to be an expression of gratitude and public recognition of donor’s act of philanthropy and is not aimed at giving publicity to the donor in such manner that it would be an advertising or promotion of his business, then it can be said that there is no supply of service for a consideration (in the form of donation). There is no obligation (quid pro quo) on part of the recipient of the donation or gift to do anything (supply a service). Therefore, there is no GST liability on such consideration.

Thus, where all the three conditions are satisfied namely, (i) the gift or donation is made to a charitable organisation, (ii) the payment has the character of gift or donation and (iii) the purpose is philanthropic (i.e. it leads to no commercial gain) and not advertisement, then GST is not leviable.”

Notable Adv. Ruling (Consideration):
Jayshankar Gramin and Adivasi Vikas Sanstha (MH AAR) [21-09-2022]

Where appellant receives grant from Government under ‘One stop crises centre’ scheme to render services to destitute women who are litigating divorcees, or homeless or victims of domestic violence, said activities/transactions undertaken by appellant could not be construed as supply in terms of Section 7(1) (a) as there is no element of consideration and said activities will not be subject to levy of GST.

Applicability of GST to Charitable Trusts

Person + Consideration + Business  ==>  GST Applicable (Unless specifically exempted)

Exemption to charitable activities – Criteria

• Services by an entity registered u/s 12AA or 12AB of the Income Tax Act, 1961
• By way of activities which are specifically defined as “charitable activities” in Para 2(r) of Notification No. 12/2017-CTR dt. 28-06-2017

Charitable Activities defined – Para 2(r)

1. Activities relating to public health by way of:
   • Care or counselling of terminally ill persons or persons with severe physical or mental disability
   • Persons afflicted with HIV or AIDS
   • Persons addicted to a dependence-forming substance such as narcotics drugs or alcohol
   • Public awareness of preventive health, family planning or prevention of HIV infection

2. Activities relating to advancement of religion, spirituality or yoga

3. Activities relating to advancement of educational programmes or skill development relating to:
   • Abandoned, orphaned or homeless children
   • Physically or mentally abused and traumatised persons
   • Prisoners
   • Persons over the age of 65 years residing in rural area*

4. Activities relating to preservation of environment including watershed, forests and wildlife

Rural area means the area comprised in a village as defined in land revenue records excluding the area under any municipal committee, municipal corporation, town area committee, cantonment board or notified area committee or any area that may be notified as an urban area by the Central Government or a State Government.

Notable Advance Rulings on “Charitable Activities”

Polaris Foundation (Tamil Nadu AAR) [06-06-2023]

Public charitable trust, registered under section 12AA of Income Tax Act, 1961, creating public awareness on COVID appropriate behavior, infection prevention and control, is covered under definition of ‘Charitable Activities’ in clause 2(r) in Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017, and will be exempt from GST under Sl. No. 1 thereof.

Notable Advance Rulings on “Charitable

Activities” (Contd.)

Dream Runners Foundation (Tamil Nadu AAR) [22-01-2019]

• Applicant-trust is registered u/s 12AA of the Income-tax Act and engaged in conducting public charitable activities such as healthcare, rural development, women empowerment, education facility etc., either directly or through various public charitable institutions.
• Applicant conducts a marathon named Dream Runners Half Marathon. It collects donations from the participating runners and corporate donations. The amount so received is utilised for the expenses required to conduct of the event and the balance amount is paid as donations to NGOs supporting the cause or directly to the beneficiaries.
• Held: The activity of conducting Marathon event does not fall under the definition for Charitable activities. Though the money collected from the participants may be donated or used for further charitable activities, organising marathon itself is a separate supply of service by the applicant for the various participants, individuals or runner groups etc.
• The money collected from the participants is a consideration towards the supply of service of organising and conducting the marathon for the participant’s conduct of marathon event and the same is liable to GST.

Notable Advance Rulings on “Charitable Activities” (Contd.)

Ecosan Services Foundation (Maharashtra AAR) [19-12-2018]

• Applicant is a NPO registered u/s 12AA and providing services of sanitation capacity building through training, piloting and demonstration, awareness raising, R&D and open dissemination of knowledge in sustainable sanitation and water management.
• Donations / grants are received from various companies and persons.
• Q. Whether the aforesaid services provided to NGOs registered u/s 12AA amounts to provision of service and whether donations received are liable to GST?
• Held: Services relating to sanitation provided to various entities including non-profit organisations by the applicant entity registered u/s 12AA are exempt as they are relating to preservation of environment.

Notable Advance Rulings on “Charitable Activities” (Contd.)

All India Disaster Mitigation Institute (Gujarat AAR) [11-09-2019]

• Applicant is a charitable trust established for community-based research, policy analysis, planning and technical assistance for the purpose of enhancing prevention, mitigation and management of disasters and reorientation of relief and reconstruction to local initiatives. It is registered under section 12AA and section 80G of the Income-tax Act.
• Held: Activities of the applicant relating to disaster prevention, disaster mitigation and disaster management are activities relating to preservation of environment. Thus, the activities of the applicant are considered as charitable activities.
• Applicant, being registered under section 12AA of the Income-tax Act, the activities are exempt from tax by virtue of Entry No. 1 of Notification No. 12/2017-CTR.

Activities relating to advancement of religion, spirituality or yoga

CBIC Circular No. 66/40/2018-GST dated 26-09-2018

Exempt

• Fee or consideration charged in any form from the participants for participating in a religious, Yoga or meditation programme or camp meant for advancement of religion, spirituality or yoga.
• Residential programmes or camps where the fee charged includes the cost of boarding and lodging so long as the primary or predominant activity, objective and purpose is advancement of religion, spirituality or yoga.

Taxable

• If charitable trusts merely or primarily provide accommodation or serve food and drinks against consideration in any form including donation.
• Activities such as holding fitness camps or classes such as those in aerobics, dance, music, etc.

Renting of religious precincts

Entry 13 (Heading 9963 / 9972 / 9995):

Services by a person by way of –
a) conduct of any religious ceremony
b) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust u/s 12AA/12AB or 10(23C)(v) or 10(23BBA).

Provided that nothing contained in entry (b) shall apply to –
• Renting of rooms where charges are Rs. 1,000 or more per day
• Renting of premises, community halls, kalyanmandapam or open area where charges are Rs. 10,000 or more per day
• Renting of shops or other spaces for business where charges are Rs. 10,000 or more per month

Nandini Ashram Trust (Gujarat AAR) [26-04-2023]

Providing accommodation to pilgrims visiting Ambaji Temple at Rs. 1,000/day. Not owned by managing trust of temple and rooms not located within precincts. Exemption under Serial No. 13 not applicable.

Health care services

Entry 74 (Heading 9993):

a) Services by way of health care services by a clinical establishment, an authorised medical practitioner or para-medics;
Excluding room charges exceeding Rs. 5,000 per day (other than ICU/CCU/ICCU/NICU).
b) Services by way of transportation of a patient in an ambulance.

Manthena Satyanarana Raju Charitable Trust v. UOI [2017 (3) G.S.T.L. 213 (A.P.)]

Naturopathy, food therapy, water therapy and yoga treatment provided by public charitable trust eligible for exemption.

Key Healthcare Rulings:

• KIMS Health Care (Kerala AAR): Medicines, consumables and implants used for in-patients form composite supply eligible for exemption.
• Terna Public Charitable Trust (MH AAR): In-patient pharmacy & food is composite exempt supply. Pharmacy sales to out-patients are taxable.
• Baroda Medicare / Oswal Industries (Gujarat AAAR): Occupational health check-ups exempt. Residential wellness packages driven by room selection are taxable accommodation.

Services by rehab professionals

Entry 74A (Heading 9993): Services provided by rehabilitation professionals recognized under RCI Act, 1992 by way of rehabilitation, therapy or counselling at medical establishments, educational institutions, or 12AA/12AB rehab centers are exempt.

Educational Institutions

Entry 66 (Heading 9992):
• Services provided by educational institution to students, faculty and staff (Exempt).
• Conduct of entrance exam against entrance fee (Exempt).
• Services TO educational institution: Transportation, catering/mid-day meals, security/cleaning/housekeeping, admission/examination conduct, online journals (Exempt for pre-school/higher secondary).

Other Notable Exemptions

Import of Services & Digitisation Impact

• Entry 10 of NN 9/2017-ITR: Services received from non-taxable territory by 12AA entity for charitable activities are EXEMPT (except OIDAR).
• OIDAR Services (Zoom, Canva, Cloud): Foreign supplier pays IGST if trust unregistered. If trust registered, GST applies under Reverse Charge Mechanism (RCM).

Hostel Accommodation Services

• 01.07.2017 to 17.07.2022: Exempt if tariff <= Rs. 1,000/day.
• 18.07.2022 to 14.07.2024: Entirely taxable.
• Post-15.07.2024 (Entry 12A): Exempt if value <= Rs. 20,000 per person per month AND continuous stay >= 90 days.
• Maharashtra Jain Education Society (MH AAR 2024): 10-month student stay exempt. Short-term stay (1-2 months) taxable.
• K.L.N. Sourashtra College (TN AAR 2025): Leasing hostel premises to another entity is Real Estate Service (Heading 9972), taxable at 18%.

Supplies FOC, ITC & Registration

• Free of Cost Supplies: Not taxable unless falling under Schedule I (permanent transfer of ITC assets or transactions with related/distinct persons).
• ITC Impact: Available on taxable supplies, NOT available on exempt supplies. Common ITC reversal as per Rule 42 & 43.
• Registration: Threshold Rs. 20L (services/goods) / Rs. 40L (goods). Sec 23 exempts entities exclusively in exempt supplies.

Travancore Devaswom Board (Kerala AAR) [04-03-2026]

ADVANCE RECEIVED IN GST – IS GST PAYABLE IMMEDIATELY?

A SMALL MISTAKE CAN COST INTEREST!

One of the most common questions I receive from clients is:

“We have received an advance from the customer,
but the invoice has not yet been raised. Do we have to pay GST?” ❓ The answer depends on whether you are supplying Goods or Services.

1.   ADVANCE RECEIVED FOR GOODS

Good news for businesses dealing in goods.

As per Notification No. 66/2017 – Central Tax dated 15.11.2017, registered persons supplying goods are not required to pay GST on advances received.

GST becomes payable only when the tax invoice is issued.

EXAMPLE

•  ABC Traders receives an advance of ₹5,00,000 on 5th August for the supply of machinery.

•  The machinery is supplied and the invoice is issued on 25th August.

GST will be payable in August when the invoice is issued, not when the advance was received.

2.   ADVANCE RECEIVED FOR SERVICES

The position is completely different for services.

As per Section 13 of the CGST Act, 2017 (Time of Supply of Services), GST becomes payable at the earlier of:

•  Date of issue of invoice, or

•  Date of receipt of payment.

Therefore, GST is payable as soon as the advance is received, even if the service is provided later.

EXAMPLE

•  A Chartered Accountant receives ₹2,00,000 as an advance on 10th August for an audit to be completed in September.

GST becomes payable in August itself, even though the audit will be completed later.

PRACTICAL TIP

Many businesses assume that GST is always payable only after raising the invoice. This is correct for goods (subject to Notification No. 66/2017) but not for services, where receipt of advance itself can trigger GST liability.

Ignoring this distinction may result in interest liability under Section 50 of the CGST Act.

FINAL THOUGHT

Before deciding the month in which GST is payable, ask yourself just one question:

“Am I supplying Goods or Services?”

The answer to this simple question can determine whether GST is payable today or next month.

Understanding the Time of Supply provisions under Sections 12 and 13 of the CGST Act helps businesses avoid unnecessary interest and ensures timely compliance.

• 30 Basic Accounting Terms Every Student Should Know
• This guide provides essential accounting terminology for students, entrepreneurs, and finance beginners to help establish a strong foundation.
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30 BASIC ACCOUNTING TERMS

EVERY STUDENT SHOULD KNOW

1. Account : A record to classify and summarize financial transactions.
2. Assets : Resources owned by the business that provide future economic benefit.
3. Liabilities : Amounts the business owes to outsiders arising from past events.
4. Equity : The owner’s interest in the business after deducting liabilities from assets.
5. Revenue : Income earned from normal business activities.
6. Expenses : Costs incurred to earn revenue.
7. Profit : Excess of revenue over expenses.
8. Loss : Excess of expenses over revenue.
9. Capital : Funds invested by the owner in the business.
10. Drawings : Money or goods withdrawn by the owner for personal use.
11. Purchase : Buying goods or services for business use.
12. Sales : Goods or services sold to customers.
13. Debtor : A person who owes money to the business.
14. Creditor : A person or business to whom money is owed.
15. Journal : The book of original entry of transactions.
16. Ledger : A book containing all accounts in detail.
17. Trial Balance : A statement listing all ledger balances to check equality.
18. Balance Sheet : Statement showing assets, liabilities and owner’s equity at a date.
19. Income Statement : Shows revenues, expenses and profit or loss for a period.
20. Cash : Money in hand or in the bank.
21. Bank : Money held in a financial institution.
22. Outstanding Expenses : Expenses incurred but not yet paid.
23. Prepaid Expenses : Expenses paid in advance before use.
24. Accrued Income : Income earned but not yet received.
25. Depreciation : Decrease in the value of an asset over time.
26. Provision : Amount set aside for future uncertain losses.
27. Discount : Reduction allowed in the price.
28. Interest : Cost of using borrowed money or return on investment.
29. Vouchers : Documentary evidence for every transaction.
30. Goodwill : The reputation and customer trust of a business.

GOLDEN RULES OF ACCOUNTING

Personal Account Rule
Debit the Receiver
Credit the Giver

Real Account Rule
Debit What Comes In
Credit What Goes Out

Nominal Account Rule
Debit All Expenses & Losses
Credit All Incomes & Gains

QUICK TIP: Accounting is the language of business. Understand it well, and you’ll always stay a step ahead!

GST & TDS Reconciliation – What Every Accountant Should Verify Before Closing the Month

Many accountants reconcile GSTR-3B with Tally, but one important step is often missed:

Electronic Cash Ledger & Electronic Credit Ledger Reconciliation.

Before closing the month, make sure these 6 reconciliations are complete:

• GSTR-1 ↔ Sales Register
• GSTR-2B ↔ Purchase Register
• GSTR-3B ↔ GST Ledgers
• Electronic Cash Ledger ↔ Tally
• Electronic Credit Ledger ↔ Tally
• 26AS / TRACES ↔ TDS Ledgers

A successful month-end closing isn’t just about passing entries—it’s about ensuring that your books and the government portals tell the same story.

Accounting Principle of the Day

“If it can’t be reconciled, it shouldn’t be closed.”

What is the most common reconciliation issue you encounter during month-end closing? Share your experience in the comments.

ACCOUNTING IN PRACTICE

— EPISODE 2 —

GST & TDS RECONCILIATION

What Every Accountant Should Verify Before Closing the Month

Portal vs Tally   |   Reconcile   |   Verify   |   Close with Confidence

CBIC issued Instruction regarding Coordination with State Mining Authorities for sharing information relating to illegal mining and transportation of minerals

The undersigned is directed to refer to the Draft Performance Audit Report of the Comptroller and Auditor General of India (C&AG) on “Assessment, Levy and Collection of GST on Minerals” wherein it has been observed that State Mining Authorities detect numerous instances of illegal mining, illegal transportation of minerals, seizure of minerals and vehicles, cancellation/suspension of mining leases, excess extraction of minerals, and other violations under the mining laws.

Filing an appeal against assessment demand order form gst APL-01

1. Who can file an appeal to the Appellate Authority?

Any taxpayer or an unregistered person aggrieved by any decision or order passed against him by an adjudicating authority, may appeal to the Appellate Authority, within three months from the date on which the said decision or order is communicated to such person.

2. What are the pre-conditions to file an appeal to the Appellate Authority?

Order must be passed by the adjudicating authority for the taxpayer or an unregistered person to file an appeal to the Appellate Authority.

3. From where can I file an appeal against Demand Order?

Navigate to  Services > User Services > My Applications > Application Type as Appeal to Appellate Authority > NEW APPLICATION button. Select the Order Type as Demand Order from the drop-down list.

4. What are the various Appeal statuses?

5. From where can I view submitted appeal against Demand Order?

Navigate to  Services > User Services > My Applications > Application Type as Appeal to Appellate Authority > From and To Date > SEARCH button.

6. What will happen if do not file appeal within the prescribed period?   

The appellate authority may condone delay for a period of maximum of 1 month, if he is satisfied that the taxpayer was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months and allow it to be presented within a period of one month after the expiry date of filing appeal.

7. When will I get final acknowledgment of the appeal filed?

Once an appeal against a demand order is filed, an email is sent to the taxpayer (or an unregistered person, as the case may be) and Appellate Authority. SMS is also sent to Taxpayer.
 
If the order is uploaded, Final Acknowledgement (APL-02) is issued by the Appellate Authority and the provisional acknowledgment date equals the filing date. 
 
If the order is not uploaded, a self-certified copy must be submitted within 7 days of filing APL-01. If submitted after 7 days, the submission date will be treated as the date of filing the appeal. The appeal is considered filed only when the final acknowledgment (APL-02) with an appeal number is issued. 
 
An appeal can be re-filed if rejected at the admission stage

8. Is it necessary to deposit 10% of the disputed tax?

Minimum of 10% of the disputed tax needs to be paid as pre-deposit (as per law) before filing an appeal. Lower percentage may be declared after approval from the competent authorities.

9. Is it necessary for me to have a DSC for filing the appeal?

You can file the appeal either through DSC or EVC. DSC is mandatory for companies and LLPs.

10. Whether the balance disputed amount is stayed on filing Appeal?

Yes, if Appeal filed is admitted, the GST Portal flags the balance disputed amount as non-recoverable.

11. Is it required to provide place of supply wise details for filing the appeal?

If a taxpayer has admitted any amount related to IGST head, then place of supply is required to be mentioned in the Appeal application. You can add place of supply details for more than one State.

12. Which type of Assessment Demand Orders are appealable by taxpayers?

A taxpayer can appeal against following types of Assessment Demand Orders:
•    Assessment order under section 62
•    Assessment order under section 63
•    Assessment order under section 64
•    Acceptance or Rejection of application filed under section 64 (2)
•    Withdrawal of Assessment order issued under section 64
•    Order under section 122,123,124,125 and 127 imposing penalty 
•    Order against remanded cases (DRC-07 also in case of remand under 73./74/76)
•    Assessment Order for the proceedings under section 73/74 /74A/76+ Summary of the order
•    Rectification of Order
•    Order of rejection of application for rectification  

13. Which type of Enforcement Orders are appealable by taxpayers?

A taxpayer can appeal against following types of Enforcement Orders:
•    Order of Demand of Tax and Penalty
•    Order of Confiscation of Goods and Conveyance and Demand of Tax, Fine and Penalty for proceeding under section 129
•    Order of Rectification/modification in DRC-08 for MOV-09/11
•    Order of Confiscation , Demand Order u/s 130 and GST DRC-07, 
•    Remand Back Orders

14. Can I withdraw an Appeal application after filing it?

A taxpayer can appeal against following types of Enforcement Orders:
•    Order of Demand of Tax and Penalty
•    Order of Confiscation of Goods and Conveyance and Demand of Tax, Fine and Penalty for proceeding under section 129
•    Order of Rectification/modification in DRC-08 for MOV-09/11
•    Order of Confiscation , Demand Order u/s 130 and GST DRC-07, 
•    Remand Back Orders

14. Can I withdraw an Appeal application after filing it?

Yes, an Appeal application can be withdrawn. To withdraw an Appeal application, click on to the Withdraw Appeal tab in the Case details page and select Withdraw Application from the Actions drop-down. A form will be displayed. Fill the form and click the Withdraw Appeal button. An appeal application can be withdrawn until a notice is issued or appeal order is passed. Once a notice has been issued, the application cannot be withdrawn.\

15. Can an Appeal application be filed again after withdrawal?

Yes, an appeal application can be filed one more time after its withdrawal. The Order ID will remain the same and a new ARN will be generated.

16. How many times can an Appeal application be withdrawn?

An Appeal application can be withdrawn twice.

17.   Can I file Appeal application after it has been rejected at admission stage?

Yes, an appeal application can be re-filed after it has been rejected at the admission stage. To file the application, navigate to the New application page. Select the Order type and enter the Order ID of the original application. Fill in the form and Submit the application.

18. How many times can I re-file an Appeal application?

After an Appeal application has been rejected, it can be filed once more by the taxpayer.

19. What will happen to the pre-deposit amount if I do not re-file an appeal application after its withdrawal?

Whatever amount is paid (admitted along with pre deposit) is set of against the demand ID. Taxpayer is only required to pay the remainder.

RERC Has Created A Landmark Regulatory Precedent Of “Symmetry” To Protect Consumers’ Interest By Transfer Of Tax Benefits On Imported Equipment To Distribution Companies- Power Sector News.

The Regulatory Matrix: At a Glance

In a move aimed at arresting slide in value of the Indian currency and to check massive flight of capital into overseas markets, Government of India today announced a complete tax holiday to foreign investors on the country’s sovereign debt. This waiver would be effective from April 1, 20.

Effective April 1, 20 The Principle of Regulatory Symmetry
RERC has intervened in the existing Power Purchase Agreements (PPA) of Developers for solar and wind power. The word “Change in Law” has been specifically defined in the RERC regulation. The huge hike in GST rate of solar and wind equipment in October 2021 was allowed to be charged in the tariff to protect the developer’s margin. Similarly, a decrease in tax rate needs to be passed on to consumer in terms of reduced tariff to protect their interest.

The nature of a regulatory event does not change whether rates are going up or coming down. While an increase in tax on the developer’s cost of equipment was allowed to be passed on in tariffs by increasing returns, a decrease in tax would also have to be passed on in decreasing returns. This is to protect the consumers’ pocket.

Applicability and Eligible Projects

To streamline execution and prevent overlapping claims, the Commission defined precise parameters for which green energy projects qualify for the pass-through:

Audit & Compliance Mandate

To ensure absolute transparency and prevent arbitrary or inflated benefit calculations, the RERC has placed a stringent verification mechanism on developers.

• Granular Submission: Developers must present project-by-project documentation detailing exact procurement dates, invoice values, and actual tax savings achieved.
• Third-Party Attestation: All financial submissions and clawback calculations must be certified by a Chartered Accountant or the statutory auditor of the developer before Discoms process the adjusted tariff payments.

Broader Alignment: This directive aligns Rajasthan with the Central Electricity Regulatory Commission’s (CERC) suo motu order of November 2025, significantly reducing the scope for protracted litigation and setting a clear roadmap for uniform pan-India implementation of green tax rollbacks.