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Tamil Nadu GST Appeals: More Forums, but When Will Taxpayers Get Relief?

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Tamil Nadu’s G.O.(Ms) No.158 dated 16 October 2026 sanctions 10 additional first appellate forums for three years under Section 107—a welcome response to an overloaded appeal system. But the Government’s own figures raise a larger question: will additional forums merely slow the growing queue, or finally deliver timely relief? What the figures reveal The G.O. records 84,707 pending appeals involving ₹31,398.25 crore in disputed revenue as at 27 July 2026, against average disposal of 1,159 appeals a month during January–June 2026. The State’s Commercial Taxes Policy Note provides an earlier benchmark, allowing the scale of the problem to be measured. Will ten more be enough? Adding ten forums to the existing fifteen represents a 66.7% increase in forum numbers, once operational. If aggregate output rises proportionately at unchanged average productivity, annual disposals would increase from 13,908 to approximately 23,180; yet the G.O. anticipates 25,000–30,000 fresh appeals annually. On...
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Amul’s ₹43.43 Crore GST Demand Quashed: Gujarat High Court on Cross-Charging, Nil Valuation and Section 74

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Gujarat High Court sets aside GST demand on head-office services In an important decision concerning GST on services shared between a head office and its branches, the Gujarat High Court has set aside an adjudication order confirming an IGST demand of ₹43,43,12,441, together with interest and penalty, against Gujarat Co-operative Milk Marketing Federation Limited, popularly known as Amul. The judgment was delivered on 14 October 2026 by the Division Bench comprising Justice A.S. Supehia and Justice Vaibhavi D. Nanavati in M/s Gujarat Co-operative Milk Marketing Federation Limited v. Union of India & Ors., Special Civil Application No. 7085 of 2025. The dispute concerned July 2017 to March 2019. Background of the dispute The Federation’s head office at Anand incurred common corporate expenditure, including advertisement and publicity costs, IT infrastructure expenses, annual maintenance charges, legal fees and litigation expenses. These services benefited the Federation and its bran...
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57th GST Council Meeting: Encouraging Reforms, but Important Concerns Remain

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  The 57th GST Council meeting held on 8 October 2026 marks a welcome shift towards simplification , taxpayer safeguards and working-capital relief. Its recommendations address several persistent business concerns, but some proposals introduce fresh compliance obligations or leave important issues unresolved. The real test will be how these recommendations translate into legislation, notifications and day-to-day administration. What is encouraging? Reduced coercive enforcement: The proposed removal of GST arrest powers and increase in the prosecution threshold from ₹1 crore to ₹5 crore could significantly reduce the threat of criminal proceedings in tax disputes. Narrowing specified offences is also a positive step towards more proportionate enforcement. Relief from small-value disputes and penalties: The proposed ₹10,000 threshold for show-cause notices, corresponding relief for qualifying pending matters, and reduction of the maxi...
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Independence of Section 74 Proceedings from Section 67 Actions under CGST Act – A Strategic Perspective

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In a significant ruling, the Karnataka High Court in Writ Appeal No. 101 of 2025 (T-Res) dated 11.03.2025 reaffirmed a critical principle under GST law: proceedings under Section 74 of the CGST Act, 2017 are independent of actions under Section 67. This judgment has far-reaching implications for taxpayers, especially in high-stake fraud and ITC matters. Background of the Case The Mangaluru Commissionerate initiated search and seizure operations alleging GST evasion through invoice and e-way bill manipulation. Subsequently, the Bengaluru Commissionerate issued a show cause notice under Section 74 based on these findings. The Single Judge quashed the notice citing lack of jurisdiction and ordered refund and return of seized documents. However, the Revenue successfully challenged this before the Division Bench. Core Legal Position The central issue was whether a Section 74 notice becomes invalid if based on material collected through an allegedly illegal or jurisdictionally flawed search....
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NIL Demand Orders, Portal Glitches and the Vanishing 90 Days: A Silent Threat to GST Appeals

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  The GST Network has recently acknowledged a serious technical issue that directly affects a taxpayer’s right to appeal under section 107 of the CGST Act. Many taxpayers are finding themselves unable to file appeals on the portal where the adjudication order shows a “NIL” demand, even though a genuine dispute on tax liability still exists. This situation typically arises when a taxpayer makes payment of tax, interest or penalty at the Show Cause Notice (SCN) stage. Such payments are often made to avoid further litigation, interest or coercive recovery, and do not necessarily amount to admission of liability. Yet, when the final order is passed, adjudicating authorities sometimes mechanically treat this pre‑deposit as full satisfaction of demand and record the liability as completely discharged. The result: the order reflects a “NIL” demand. Once the order shows NIL, the GST portal auto‑populates the Demand and Collection Register with “zero” liability. When the taxpayer then attem...
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Inter‑State GST Transit Under Scrutiny: AP High Court Draws a Clear Line on State Officers’ Powers

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Andhra Pradesh High Court’s ruling in Golden Traders offers a strong precedent against overreach by State GST officers in cases of pure transit/inter‑State movement of goods, and it will be frequently cited in future detention/confiscation disputes. Context and factual background In Golden Traders & Others v. Deputy Assistant Commissioner of State Tax (WP No. 541/2026, AP High Court, order dated 01‑04‑2026), multiple consignments were intercepted while moving between two States outside Andhra Pradesh but physically passing through AP as a transit State. The vehicles carried valid tax invoices and e‑way bills, yet State officers invoked Sections 129 and 130 of the CGST/APGST Acts alleging undervaluation and possible tax evasion, and proceeded to issue MOV‑06/MOV‑10/MOV‑11 orders proposing confiscation and penalty. Petitioners argued that the movement was an inter‑State supply governed by the IGST Act 2017 and that AP officers, appointed under the APGST Act, had no jurisdiction over...
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GST Refund Framework: When Clarity in Law Meets Chaos in Practice

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 GST refunds were envisioned to be seamless — system-driven, timely, and transparent. Yet, any exporter or service provider today, and a familiar theme emerges: refunds have become the most unpredictable part of GST compliance. What was promised as a straightforward credit-release mechanism now often feels like a slow-burn suspense drama — the law may be clear, but the outcome rarely is. And while businesses wait, working capital remains locked, confidence strained, and planning reduced to hoping that relief arrives before liquidity runs out. This note continues as our earlier observations on refund challenges  https://ldrgst.blogspot.com/2024/03/taxpayers-encouraged-to-quote-these.html . One growing trend is rejection of refund applications on grounds already clarified by statute, circulars, and case law. This leads to re-litigation of settled issues, unnecessary dispute cycles, and prolonged withholding of funds legitimately due to taxpayers. While appeals exist under Sectio...
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