CGST | Business Upturn

CEAT wins favourable ruling in Rs 276.7 crore excise duty case

Arunika Jain — Sat, 25 Apr 2026 11:08:59 +0000

CEAT has secured a favourable ruling from the Commissioner of CGST & Central Excise, Mumbai Central, Maharashtra, in a significant excise duty case. The company had been facing allegations regarding the classification of its tyre assembly activities as ‘manufacture’ under the Central Excise Act, which could have resulted in a substantial financial liability.

The case revolved around four Show Cause cum Demand Notices issued by the DGCEI, Mumbai, covering the period from April 2016 to May 2019. These notices alleged that the company’s process of assembling tyre sets, which involves inserting tubes and flaps and strapping them, qualified as manufacturing or pre-packaged commodities under the Central Excise Act and the Legal Metrology Act, 2009. Consequently, a differential duty of ₹276.7 crore was demanded for the period between March 2011 and June 2017.

In a significant development, the competent authority has quashed the proceedings initiated through these four notices, ruling in favour of CEAT. This decision means that there will be no tax demand, interest, or penal consequences for the company.

CEAT received the communication regarding this decision on April 24, 2026. The ruling ensures that there will be no impact on the company’s financials, operations, or other activities, as the potential liability was not defined.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

ACC faces Rs 59.8 crore order under CGST/KSGST Act

Arunika Jain — Sat, 11 Apr 2026 09:37:08 +0000

ACC has received an order under Section 74 of the CGST/KSGST Act, 2017, amounting to ₹59,80,58,854, which includes interest and penalties. The order was issued by the Joint Commissioner Taxpayer Services Circle in Thalassery, Kannur, Kerala. ACC plans to contest the order before the appropriate authorities within the prescribed timeline.

The order, received on April 10, 2026, alleges several contraventions, including excess availment of Input Tax Credit (ITC) in GSTR 3B compared to GSTR 2A, irregular deduction of post-supply discounts, availment of blocked ITC under Section 17(5) of the CGST Act, 2017, and non-reversal of ITC on goods lost where insurance compensation was received.

Despite the significant amount involved, ACC has stated that it does not foresee any material impact on its financial, operational, or other activities as a result of this order. The company is taking appropriate steps to appeal against the demand imposed by the order.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Deepak Nitrite faces ₹2.15 crore penalty from GST authorities

Business Desk — Wed, 01 Apr 2026 05:32:10 +0000

Deepak Nitrite Limited’s wholly owned subsidiary, Deepak Phenolics Limited (DPL), has been ordered to pay a penalty of ₹2,15,34,798 by the Commissioner (Appeal), CGST & Central Excise (Appeals), Vadodara, Gujarat. The order, dated 6th March 2026, was downloaded on 31st March 2026, and pertains to the recovery of ineligible Input Tax Credit (ITC) under the CGST and SGST Acts.

The GST authorities have rejected DPL’s appeal and upheld the order for the recovery of the ineligible ITC amounting to ₹1,07,67,399 for both CGST and SGST, along with applicable interest under Section 74(1) read with Section 50(3) of the CGST Act, 2017. Additionally, a penalty of the same amount has been imposed under Section 74(1) of the CGST Act, 2017.

DPL maintains that it has availed input tax credit in accordance with the applicable provisions of GST Laws and plans to pursue all appropriate legal remedies. This includes filing an appeal against the order before the relevant appellate authority as prescribed under the GST Law.

The company has stated that there will be no material financial impact except for the amounts mentioned in the order. The order reflects the ongoing scrutiny and enforcement of GST compliance among Indian corporates.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Balkrishna Industries faces Rs 93.73 lakh tax demand for FY20 and FY21

Kinjal — Tue, 31 Mar 2026 09:30:13 +0000

Balkrishna Industries has been issued an adjudication order by the Assistant Commissioner of CGST for the financial years 2019-20 and 2020-21, confirming a tax demand of Rs 93.73 lakh. The order, received on 30th March 2026, includes an equivalent penalty due to the disallowance of input tax credit under section 74(1) of the CGST Act, 2017.

The adjudication order was issued under the provisions of the CGST Act, 2017, along with corresponding regulations of the Gujarat State GST Act, 2017, and Section 20 of the IGST Act, 2017. Despite the significant tax demand, Balkrishna Industries has stated that there will be no impact on its financial, operational, or other activities.

The company has indicated its intention to contest the order at a higher appellate level, as the order is appealable. Balkrishna Industries is in the process of preparing for an appeal to challenge the tax demand and associated penalty.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Cummins India faces Rs 105 crore tax and penalty demand from CGST

Yash Agarwal — Sun, 29 Mar 2026 10:01:47 +0000

Cummins India has been ordered to pay a substantial tax demand and penalty by the Additional Commissioner of CGST, Pune-II Commissionerate. The order, received on 28 March 2026, levies a tax demand of ₹52,55,51,043 and a penalty of ₹52,55,76,043 under Section 74 of the Central Goods and Services Tax Act. This action pertains to the financial years 2019-20, 2020-21, and 2021-22.

The order alleges that Cummins India treated a leave and license agreement as a finance lease arrangement, which effectively amounted to the transfer of proprietary interest in the leased property. The company has announced its intention to appeal the order with the appropriate authority.

Despite the significant figures involved, Cummins India has stated that the penalty will not have a material impact on its financials or operational activities.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Bajaj Electricals faces Rs 4.60 lakh demand after partial acceptance of GST appeal

Kinjal — Thu, 26 Mar 2026 05:47:45 +0000

Bajaj Electricals Limited has received an Appeal Order dated 13 March 2026, which was delivered on 25 March 2026, from the Office of the Commissioner, Appeals-I, CGST & CX, Mumbai. The order partially accepts the company’s submissions concerning a GST input mismatch issue.

The Appeal Order, issued under Section 107 of the CGST Act 2017, has resulted in a gross demand of ₹4.60 lakh, including a general penalty of ₹0.87 lakh. This development follows previous communications from the company regarding the initial assessment order and subsequent partial acceptance of the demand.

The management of Bajaj Electricals is currently assessing its legal options, which may include filing an appeal with the appropriate appellate tribunal or submitting a writ petition to the High Court. The financial impact of the order, should it materialise, will be limited to the demand and penalty specified.

Importantly, Bajaj Electricals has stated that this order will not affect the company’s operational, financial, or other activities.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

DOMS faces ₹10.45 lakh penalty for wrongful ITC claim

Business Desk — Sat, 21 Mar 2026 12:18:49 +0000

DOMS Industries has disclosed that its subsidiary, Uniclan Healthcare, has received an order from the Office of Superintendent of Central Taxes (CGST) in Thane regarding the wrongful availment of Input Tax Credit (ITC). The order, issued under Section 74 and 122 of the CGST Act and relevant sections of the MGST Act, 2017, pertains to the financial year 2021-22.

The order, received on 20 March 2026, demands recovery of inadmissible ITC amounting to ₹5,22,692. Additionally, a penalty of ₹10,45,384 has been levied, along with interest calculated under Section 50 of the CGST Act, 2017.

Despite the financial implications of the order, DOMS Industries has stated that there is no material impact on its financial, operational, or other activities. The company’s subsidiary is currently evaluating appropriate legal remedies and plans to respond to the order within the prescribed time limit.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Patanjali Foods loses CGST appeal; Penalty imposed on MD and CFO

Business Desk — Mon, 09 Mar 2026 11:23:12 +0000

Patanjali Foods has received an adverse order from the Office of the Commissioner, Central Goods and Service Taxes (Appeals), Meerut, dated January 29, 2026. The appellate authority upheld an order-in-original from January 10, 2025, rejecting both the company’s appeal and that filed by the Principal Commissioner, CGST, Uttar Pradesh.

The CGST (Appeals) authority has imposed a penalty of ₹10,000 each on Shri Ram Bharat, Managing Director, and Shri Kumar Rajesh, Chief Financial Officer. The order relates to a GST demand specified in the original order issued by the ADC, Central Goods and Service Taxes, Meerut.

According to the company’s regulatory disclosure, the penalty imposed on the two executives will not have any financial impact on the company’s operations or activities. Patanjali Foods stated that it does not expect any financial liability from the order. The company indicated it will take necessary action to defend its case before the appropriate appellate authority.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

This article is written by Business Desk and reviewed by Aditya Bhagchandani before publication.

Decoding GST cess in India: Understanding the impacts and mechanisms

Finance Desk — Fri, 23 Feb 2024 10:01:51 +0000

Navigating the intricate web of taxation in India, the Goods and Services Tax (GST) emerges as a transformative reform, simplifying the indirect tax structure. Launched in July 2017, GST replaced a convoluted system of central and state taxes, envisioning a unified market across the country. Within this comprehensive framework, the GST cess plays a pivotal role, introducing an additional layer to the taxation landscape.

GST cess, introduced as part of the GST regime, is an extra levy imposed on specific goods and services in addition to the standard GST. Unlike GST, which serves to fund both central and state operations, the revenue generated from GST cess is earmarked for specific purposes. It is designed to compensate states for revenue loss incurred due to GST implementation or to fund specific projects and sectors.

The GST regime, in its pursuit of a single market, led to the elimination of certain revenue streams for states. To address this, the GST Compensation Cess was introduced for a transitional period of five years, ensuring states did not face financial setbacks. This cess fund guaranteed a 14 percent growth in tax revenue for states under the new indirect tax regime until June 30, 2022.

The COVID-19 pandemic disrupted GST collections, impacting the cess fund. To ensure state compensation, the central government borrowed substantial amounts in FY21 and FY22. While states were compensated until June 2022, the decision to extend GST cess until March 31, 2026, was made to facilitate the repayment of back-to-back loans.

The application of GST cess involves identifying specific goods and services subject to this additional levy. The GST Council, a constitutional body overseeing GST decisions, determines the applicable cess rate and the items attracting the cess. Typically, demerit or luxury goods, including tobacco products, aerated drinks, automobiles, and certain luxury items, fall under the ambit of GST cess.

The imposition of GST cess has far-reaching implications for various stakeholders. Consumers may experience higher prices for goods and services subject to GST cess, as businesses often transfer the cess burden to them. For businesses involved in the production or sale of goods and services subject to GST cess, compliance requirements become more intricate. Accurate calculation and collection of cess, in addition to regular GST, are essential to ensure adherence to regulatory guidelines.

GST Revenue Collection for April 2023 highest ever at nearly $1.87 trillion

Sakshi Vats — Mon, 01 May 2023 14:18:12 +0000

The total GST revenue collected in April 2023 was $1,87,035; of this, the CGST portion was Rs. 38,440 crore, the SGST section was Rs. 47,412 crore, the IGST section was Rs. 89,158 crore (including $34,972 crore collected on import of goods), and the cess section was $12,025 crore (including 901 crore collected on import of goods).

The government has paid Rs. 37,959 crore in SGST and Rs. 45,864 crore in CGST from IGST. After normal settlement, the Centre and the States will have earned a combined amount of Rs. 84,304 crore for the CGST and Rs. 85,371 crore for the SGST in the month of April 2023.

For the first time, the total GST collection exceeded Rs. 1.75 lakh crore. The total number of e-way bills issued in March 2023 was 9.0 crore, 11% more than the 8.1 crore e-way bills produced in February 2023.

On April 20, 2023, tax collections reached their peak ever in the month of April 2023. 9. 8 lakh transactions totaling to Rs. 68,228 crore were made on April 20, 2023. Last year (on the same date), the largest single day payment was 9.6 lakh transactions totaling 57,846 billion were made.

GST collection in June surges 56% to Rs 1.44 lakh crore

United News of India (UNI) — Fri, 01 Jul 2022 09:59:04 +0000

New Delhi, July 1: On the back of economic recovery and anti-evasion drive among other factors, the goods and services tax (GST) collection in the month of June 2022 surged 56% year-on-year to Rs 1,44,616 crore.

Most of the states saw high double-digit growth in GST revenue indicating broad-based economic recovery and expansion.

The gross GST collection in June 2022 is the second highest collection. Next to the April 2022 collection of Rs 1,67,540 crore.

“The gross GST revenue collected in the month of June 2022 is Rs 1,44,616 crore of. Which CGST is Rs 25,306 crore, SGST is Rs 32,406 crore. IGST is Rs 75,887 crore (including Rs 40,102 crore collected on import of goods). And cess is Rs 11,018 crore (including Rs 1,197 crore collected on import of goods)”. Said a Finance Ministry media release.

The government settled Rs 29,588 crore to CGST and Rs 24,235 crore to SGST from IGST. In addition, Centre also settled Rs 27,000 crore of IGST on ad-hoc basis in the ratio of 50:50. Between Centre and States/UTs in this month.

“The total revenue of Centre and the States in the month of June 2022 after regular. And ad-hoc settlement is Rs 68,394 crore for CGST and Rs 70,141 crore for the SGST.

During the month of June, revenue from import of goods was 55% higher and the revenue from domestic transaction (including import of services) is 56% higher than the revenues from these sources during the same month last year.

The GST mop-up in June is the fifth time the monthly GST collection has crossed Rs 1.40 lakh crore mark since inception of GST and fourth month at a stretch since March 2022.

“The collection in June’2022 is not only the second highest but also has broken the trend of being low collection month as observed in the past. Total number of e-way bills generated in the month of May 2022 was 7.3 crore. Which is 2% less than 7.4 crore e-way bills generated in the month of April 2022,” the official statement said.

As per the official data. The average monthly gross GST collection for the first quarter of the FY 2022-23 has been Rs 1.51 lakh crore. Against the average monthly collection of Rs 1.10 lakh crore in the first quarter of the last financial year showing an increase of 37%.

(Except for the headline. This story has not been edited by Business Upturn staff and is published from a syndicated feed.)

GST collection in March reached all-time high to Rs 1.42 lakh crore

United News of India (UNI) — Fri, 01 Apr 2022 11:16:49 +0000

New Delhi, April 1: On the back of strong rebound in economic activities and anti-evasion drive, goods and services tax (GST) collection reached all-time high to Rs 1.42 lakh crore in March, 2022. The revenues for the month of March 2022 are 15% higher than the GST revenues in the same month last year and 46% higher than the GST revenues in March 2020. As March is the last month of the financial year, most companies try to maximise their business during this period. This also leads to higher collection in the fiscal year-end. “I think the trend would be quite good going forward too as the economy has stabilised”. Said MS Mani, Partner, Deloitte India.

As per the official data, out of the gross GST revenue collected in the month of March 2022, CGST was Rs 25,830 crore, SGST stood at Rs 32,378 crore, IGST was Rs 74,470 crore (including Rs 39,131 crore collected on import of goods) and cess was Rs 9,417 crore (including Rs 981 crore collected on import of goods). “The gross GST collection in March’ 2022 is all time high breaching earlier record of Rs 1,40,986 crore collected in the Month of January 2022,” Finance Ministry said in a statement. The government settled Rs 29,816 crore to CGST and Rs 25,032 crore to SGST from IGST as regular settlement. In addition, Centre has also settled Rs 20,000 crore of IGST on ad-hoc basis in the ratio of 50:50 between Centre and States/UTs in this month.

“The total revenue of Centre and the States in the month of March 2022 after regular and ad-hoc settlements is Rs 65,646 crore for CGST and Rs 67,410 crore for the SGST. Centre also released GST compensation of Rs 18,252 crore to States/UTs during the month,” the Ministry said. The average monthly gross GST collection for the last quarter of the FY 2021-22 stood at Rs 1.38 lakh crore against the average monthly collection of Rs 1.10 lakh crore, Rs 1.15 lakh crore and 1.30 lakh crore in the first, second and third quarters respectively. “Coupled with economic recovery, anti-evasion activities, especially action against fake billers have been contributing to the enhanced GST. The improvement in revenue has also been due to various rate rationalization measures. Undertaken by the Council to correct inverted duty structure,” Finance Ministry noted.

GST collections surge to ₹1.30 lakh crore in October

News Desk — Mon, 01 Nov 2021 12:04:55 +0000

The GST revenues for October have been the second-highest ever since the introduction of GST, second only to the highest recorded at Rs 1.41 Lakh in April this year, suggesting economic revival in the second half of the fiscal year 2021-22.

Out of the total gross revenue Rs 1,30,127 Cr collected in October, Central GST is Rs 23,861 Cr, State GST is Rs 30,421 Cr and Integrated GST is Rs 67,361 Cr and Cess collected at Rs 8,484 crore. The revenues for October 2021 are 24% higher than the GST revenues in the same month last year and 36% over the level of 2019-20.

“This is very much in line with the trend in economic recovery. This is evident from the trend in the e- way bills generated every month since the second wave,” the Finance Ministry, said in a statement. It further stated that revenues would have been higher if sales of cars and other products had not been affected on account of disruption in the supply of semiconductors. Efforts of Central and State governments tax administration and increased compliance of taxpayers boosted the revenues.

“The impressive GST collections have resulted from a combination of sustained economic growth and continuing policy initiatives to improve compliance and discourage evasion,” said MS Mani, Senior Director, Deloitte India.

Adding further he went on to say If the robust GST collections seen in the current fiscal continue on the back of sustained growth of the economy, it is likely to exceed the year-end targets providing fiscal space to absorb the increased government’s expenditure.

GST collection for May 2021 reaches Rs 1.02 lakh crore; 65% higher than previous year

Govindraj Muttepawar — Sat, 05 Jun 2021 16:12:42 +0000

Goods and Services Tax (GST) revenue collections for the month of May declined from April. It stood at Rs 1.02 trillion for May against a record-high of 1.41 trillion in the month of April. However, when compared with the last year period, the revenues are 65 per cent higher.

This would be the eighth month in a row that GST revenues have crossed Rs 1 lakh crore mark. This is despite the fact that most of the States have been under strict lockdown due to the pandemic. During the month of May, revenues from import of goods were 56 per cent higher. Revenues from domestic transaction including import of services are 69 per cent higher than the revenues from these sources during the same month last year.

The GST collections directly reflect the state of economic activity. The gross GST revenue collected in May is Rs 1,02,709 crore of which CGST is Rs 17,592 crore, SGST is Rs 22,653, IGST is Rs 53,199 crore including Rs 26,002 crore collected on import of goods and Cess is Rs 9,265 crore including Rs 868 crore collected on import of goods, according to government data released on Saturday.

The figures include GST collection from domestic transactions till June 4 since taxpayers were given various relief measures in the form of waiver/reduction in interest on delayed return filing for 15 days for the return filing month of May’21 in the wake of the second COVID-19 wave. During this month the government has settled Rs 15,014 crore to CGST and Rs 11,653 crore to SGST from IGST as regular settlement.

GST revenue crosses ₹1 lakh crore mark in FY21

Shlok Arya — Sun, 01 Nov 2020 08:17:34 +0000

₹1.05 lakh crore Good and Service Tax (GST) was collected for the first time in FY21. The Ministry of Finance in a statement said, “The GST revenue collections for the month were ₹1,05,155 crore, which is 10% higher than October 2019.”

In October 2020, Central GST was ₹19,193 crore, State GST was ₹25,411 crore, Integrated GST was ₹52,540 crore and, cess was ₹8,011 crore. The ministry said, “The total revenue earned by Central Government and the State Government after regular settlement in October 2020 is ₹44,285 crore for Central GST and ₹44,839 crore for the State GST.”

In February 2020, the GST collection was ₹1,05,366 crores. In the regular settlement of October 2020, the central government settled ₹25,091 crore to CGST and ₹9,427 crore to SGST from IGST as regular settlement.

The finance ministry said, “The growth in GST revenue as compared to that in July, August and September 2020 of -14%, -8% and 5% respectively clearly shows the trajectory of recovery of the economy and revenues.

80 lakh GSTR-3B returns were filed in October, said the finance ministry.

Delhi HC issues notice to Centre on a petition challenging CGST provisions

Anjana Krishna — Tue, 01 Sep 2020 07:24:14 +0000

The Delhi High Court issued notices to Centre and other respondents on a plea challenging the CGST provisions filed by Bharti Airtel Ltd.

The petitioner had challenged an inquiry letter and subsequent proceedings thereunder, as also the legality of explanation to Section 17(5)(d) of the Central Goods and Services Tax Act, 2017 (CGST Act) and the

Section 17(5)(d) of the CGST Act, to the extent it debars input tax credit on construction of immovable property. The order was passed on Monday.

The court said that it would not be interfering in the proceeding detailed in the inquiry letter and there is no stay either but it would be examining the legality and validity of explanation to Section 17(5)(d) of the CGST Act along with similar writ petitions. The petitioners will be filing their affidavits in four weeks and re-joinder affidavits will be filed before the next date of hearing, November 20.