1. Introduction

It has come to the notice of GSTN that certain taxpayers are facing difficulties in filing appeals on the GST portal against demand orders wherein the demand amount is reflected as "NIL," despite the existence of a dispute regarding tax liability.
This situation generally arises in cases where the taxpayer has made payment of tax, interest, or penalty (fully or partially) at the stage of issuance of the Show Cause Notice (SCN), without admitting the liability, and the adjudicating authority has subsequently issued a demand order treating such payment as full discharge of the demand without explicitly determining and recording the liability.
2. System Behaviour on GST Portal (Demand and Collection Register – DCR)

When a demand order is issued by the tax officer, the GST portal creates a Demand ID in the Demand and Collection Register (DCR), also known as the liability ledger.

India's net Goods and Services Tax (GST) collection rose to Rs 1.78 lakh crore in March 2026, registering a growth of 8.2% compared to the same period last year, as per official data released on Wednesday.

Gross GST collections for the month of March reached over Rs 2 lakh crore, up 8.8% against Rs 1.83 lakh crore in March 2025.

Total refunds stood at Rs 0.22 lakh crore, rising 13.8% year-on-year, resulting in net GST revenue of Rs 1.78 lakh crore during the month.

The Gross Domestic Revenue stood at Rs 1.46 lakh crore, up 5.9%, while Gross Import Revenue stood at Rs 0.54 lakh crore, marking a sharp rise of 17.8% during the month.

For the full financial year 2025-26, gross GST collections rose 8.3% year-on-year to over Rs 22.27 lakh crore, while net GST revenue grew 7.1% to Rs 19.34 lakh crore.

State-wise post-settlement GST revenues showed a mixed picture. Industrialised states posted solid gains, while several others recorded contractions.

For years, GST-registered taxpayers found themselves stuck in a frustrating loop, paying tax once during investigation, and then being asked to pay again just to file an appeal. It wasn't a legal requirement. It wasn't even intentional. It was a system gap. Now, that gap has finally been closed.

In a move being widely seen as taxpayer-friendly, the Goods and Services Tax Network (GSTN) has fixed a long-standing technical issue that forced many businesses into effectively making double GST payments.

The solution comes in the form of a revamped mechanism using Form GST DRC-03A a tool that allows previously paid amounts to be properly adjusted against official tax demands.
The problem that refused to go away
Under GST rules, taxpayers filing an appeal against a tax order must deposit 10% of the disputed tax as a precondition.

High courts are increasingly tightening scrutiny over coercive goods and services tax (GST) enforcement measures like registration suspensions and bank account attachments, with tax experts saying the trend could push authorities towards greater procedural discipline. The Bombay High Court’s recent order in the case of Bi-Chem India Pvt Ltd is being seen as part of this wider judicial push.

The court on March 11 directed authorities to restore the company’s GST registration after the government informed the Bench that the suspension would be withdrawn and that further action would follow due process, including granting a hearing on the showcause notice. It also held that the recovery notice should not be acted upon until the lawful procedure was followed.

Legal experts note that several high courts across the country have, in recent years, set aside GST cancellations and enforcement actions where authorities issued vague notices, failed to provide a proper hearing, or passed non-speaking orders. For instance, the Allahabad High Court on February 27 set aside the cancellation of GST registration for denial of personal hearing and for passing a non-speaking order. The Punjab & Haryana High Court on February 25 quashed retrospective cancellation of registration because such a proposal was never made in the showcause notice. The Gujarat High Court on September 19, 2024, ruled that generic showcause notices lacking specific allegations were invalid; and the same high court on February 24, 2022, held that cancellation orders issued with vague and cryptic reasons were unsustainable.

1. In terms of the provisions of Section 50 of the Central Goods and Services Tax (CGST) Act, 2017, interest is payable where the tax liability pertaining to a previous tax period is discharged in a subsequent tax period. Accordingly, the tab “Tax Liability Breakup, As Applicable” in Form GSTR-3B is meant to capture the tax liability relating to supplies of previous tax periods which are being reported and discharged in the current tax period.

2. From the February 2026 tax period onwards, the GST Portal auto-populates the “Tax Liability Breakup, As Applicable” in GSTR-3B on the basis of the document dates of supplies reported in GSTR-1 / GSTR-1A / IFF, where such supplies pertain to any previous tax period but the corresponding tax liability is being discharged in the current period’s GSTR-3B.

3. Accordingly, from the February 2026 tax period, after offsetting the liability in GSTR-3B, taxpayers are required to click on the “Tax Liability Breakup, As Applicable” tab available on the payment page and confirm the breakup of tax liability by clicking the “SAVE” button or edit the same, if required.

4. Once the breakup of tax liability is confirmed and saved, the taxpayer will be able to proceed with filing Form GSTR-3B using EVC or DSC.

State moved to crack down on GST evasion by
event organisers and suppliers from other states who provide services at fashion shows, concerts, exhibitions, theatrical performances, beauty pageants and sports events. State tax commissioner Sarpreet Singh Gill issued a directive making venue operators and property owners directly liable for tax dues if they fail to report events organised on their premises to tax authoritie

Under the new directive, all property owners, even if they do not have a GST registration but permit their premises to be used for events, must submit the information to tax officials at least three days before the event.

The order, issued on March 10, covers a range of events, including fashion shows, celebrity events, musical nights, concerts, seminars, exhibitions, trade fairs, award functions, theatrical performances, pageants, sports events, circus shows, melas, and other similar activities involving the supply of goods or services.
Owners are also required to collect and verify the event organiser's PAN and ascertain whether the organiser holds a valid GSTIN in Goa.

Please click on the link below to view the Advisory on the Payment of pre-deposit while filing of appeal before First Appellate authority.

Businesses that have recently obtained a goods and services tax (GST) registration should ensure that their registered business address is correct and accessible. Tax experts warn that GST registrations may be suspended if the physical "welcome kit" sent by the tax department is returned undelivered.

“In many instances, in the case of new GST registrations, the welcome letter returns unserved. This is due to the fact that premises may be locked or the entity, being a new entity, may not yet be located at the premises. In such cases, many times a show-cause notice is served for cancellation of registration, as the department is of the view that such entities are fake or fictitious entities,” said Parag Mehta, Partner, Indirect Tax, NA Shah Associates LLP.

The issue surfaced after the introduction of a faster GST registration process under Rule 14A of the CGST Rules, which allows low-risk applicants to receive registration quickly through PAN and Aadhaar authentication.

The Bombay High Court on Tuesday quashed the seizure of Rs 1 crore by officers of the Directorate General of GST Intelligence (DGGI) from a businesswoman’s residence, holding that GST authorities have no power under the Central Goods and Services Tax (CGST) Act to seize cash.

A division bench of Justices G.S. Kulkarni and Aarti Sathe said the law permits officers to seize goods, documents, books or other things relevant to proceedings, but cash does not fall within this category.

“The seizure of the cash by the GST officials is without any authority of law and could have not been made under any of the provisions of the CGST Act,” the bench said, terming the action “completely illegal and not justified in law.”

The case arose from a June 2023 search operation by the DGGI at the premises of Smurti Waghdhare, proprietor of M/s Platinum International, which trades in ferrous and non-ferrous metals and scrap.

Non-alcoholic beverages such as mojito, rose lemonade, cucumber mint will attract 40 per cent GST, West Bengal’s Authority for Advance Ruling has said. However, iced tea preparation & extracts, essences and concentrates of tea, along with syrups and beverage concentrates, will be taxed at 5 per cent.

“Ready-to-drink non-alcoholic beverages such as mojito, rose lemonade, cucumber mint, and lychee vitamin water do not contain any fruit pulp or fruit juice. As such, they cannot be covered by tariff item no. 22029920 of the Customs Tariff Act, 1975, which pertains to ‘fruit pulp or fruit juice-based drinks’. The said non-alcoholic beverages are covered by tariff heading no. 2202, which includes waters- such as mIneral waters and aerated waters containing added sugar or other sweetening matter or flavouring, and other non-alcoholic beverages, excluding fruit, nut or vegetable juices of Heading 2009,” it said.

India's gross Goods and Services Tax (GST) collection rose to Rs 1.83 lakh crore in February 2026, reporting a rise of by 8.1% as compared to the same period last month, as per official data released on Sunday. The total gross GST revenue for FY26 as on February 28 stood at Rs 20.27 lakh crore, up 8.3% YoY.

Total refunds stood at Rs 22,595 crore, up by 10.2% YoY, resulting in net GST revenue of Rs 1.61 lakh crore in February.

The Gross Domestic Revenue stood at Rs 1.36 lakh crore, up 5.3% and Gross Import Revenue stood at Rs 47,837 crore, reporting a rise of 17.2% last month.

Net cess revenue was Rs 5,063 crore, down from Rs 13,481 crore in February last year.

GST compliance in India has moved well beyond return filing. Investigation authorities have sharpened their tools, the portal now auto-flags mismatches, and the consequences of non-compliance have escalated from interest and penalties to blocking of GST credit, freezing of bank accounts, and, in cases exceeding Rs 5 crore, arrests.

For listed companies, disclosure obligations add another layer of complexity, with material litigation, contingent liabilities, and regulatory proceedings required to be reported to exchanges.

The irony is that most of these risks are preventable. They do not usually arise from fraud or evasion, but from gaps in internal controls, ERP misconfigurations, and vendor management failures that go undetected.

A CEO does not need to understand the mechanics of GSTR-2B reconciliation. But a CEO who asks six questions once a quarter can ensure the team handling these mechanics is doing so with discipline.

GSTN has enabled a new online facility for eligible taxpayers to apply for withdrawal from the option availed under Rule 14A of the CGST Rules by filing Form GST REG-32 on the GST Portal.

1. Who can apply

• Active Taxpayers who are registered under Rule 14A, may apply for OPT OUT in accordance with the provisions of the law.
2. How to apply on the GST Portal

• After login, navigate to:
Services -> Registration -> Application for Withdrawal from Rule 14A
The link will be visible only if the taxpayer is registered under Rule 14A and is active.
• The field “Option for registration under Rule 14A” will be selected as “No” by default.
• Enter “Reason for withdrawal from Rule 14A”.
• Proceed to Aadhaar Authentication tab for Aadhaar Authentication of Primary Authorised Signatory and one Promoter/Partner.

In continuation to the advisory posted on the GST Portal on 30th January, 2026 on the above subject, it is hereby informed that the functionality to utilise CGST or SGST ITC for payment of IGST liability, in any order of payment after complete exhaustion of IGST Credit (ref point no 3 of the advisory), shall be available from February-2026 period.

The Centre is engaging with States on revamping the e-way bill framework, which will come up in the next meeting of the GST Council, a source said.The Economic Survey last week said that the next wave of GST reforms could focus on reimagining the e-way bill system as a facilitator of smooth logistics rather than only as a tool for enforcement and control. The e-way bill reforms would amount to a significant deregulation of the logistics ecosystem, reducing costs and delays for trade while maintaining effective, non-intrusive oversight for tax administration. “We are working with the states on e-way bill reform and will bring it before the GST Council,” the source said. The GST Council, chaired by union Finance Minister and comprising state ministers, last met on September 3, 2025, in which it decided to cut tax rates on 375 items and rationalise slabs.

Gross GST collections rise 6.2% in January to over Rs 1.93 lakh crore. The increase in January GST collection was mainly on higher revenues from imports, according to PTI. Total refunds declined 3.1% to Rs 22,665 crore. Net Goods and Services Tax (GST) revenues, however, grew 7.6% to about Rs 1.71 lakh crore in January. Cess collection (from tobacco products) in January stood at Rs 5,768 crore. This compares to Rs 13,009 crore in collections in January last year when a cess was levied on luxury, sin and demerit goods such as cars, and tobacco products. GST rationalisation dents domestic collections as import taxes rise The government had announced GST rationalisation, effective September 22, 2025. Under the rationalisation, GST rates on about 375 items were slashed, making goods cheaper. Also, a compensation cess is levied only on tobacco and related products, as opposed to luxury, sin and demerit goods earlier.

It is hereby informed that from January-2026 period onwards, few enhancements have been made in filing of GSTR-3B. For detailed advisory, kindly click on the link given below:

An advisory on reporting of taxable value and tax liability under RSP-based valuation in e-Invoice, e-Way Bill and GSTR-1 / GSTR-1A / IFF has been issued for the information and guidance of taxpayers. The advisory may be accessed through the link provided below.

The CBIC on Friday flagged fake GST notices being sent to businesses and asked taxpayers to report such frauds immediately. Replying to a social media user who complained on X about receiving a call from a purported GST officer, the Central Board of Indirect Taxes and Customs (CBIC) said fraudsters are sending fake summons mimicking official GST documents. They use the CGST logo and fake DIN numbers to make it look genuine, the CBIC said. The CBIC advised taxpayers to verify the Document Identification Number (DIN) mentioned in every communication on the CBIC portal. "If it's real you'll get a confirmation. If not, report it immediately," the CBIC said.

The relevant declarations issued vide Notification No. 05/2025 – Central Tax (Rate), dated 16th January 2025, are now made available electronically on the GST Portal. These declarations may be opted for and filed by persons who are applying for registration or are already registered and supplying hotel accommodation services by declaring the premises as “specified premises”. Kindly take note of the following key points: 1. Who may opt and file the declaration • Regular taxpayers (active and suspended) supplying hotel accommodation service who want to declare their premises to be a "specified premises" • Applicants for new GST registration who want to declare their premises to be a “Specified Premises” The facility is not applicable to composition taxpayers, TDS/TCS taxpayers, SEZ units/developers, casual taxpayers, or cancelled registrations. 2. Types of Declarations The following declarations are made available on the portal: 1. Annexure VII: Opt-In Declaration for Registered Person – For existing registered taxpayers opting to declare premises as specified premises for a succeeding financial year. 2. Annexure VIII: Opt-In Declaration for Person Applying for Registration – For persons applying for new registration, to declare premises as specified premises from the effective date of registration. (Annexure IX – Opt-Out Declaration will be made available separately in due course of time.)