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GST Update: Weekly Goods and Service Tax latest News – March 2025

 GST WEEKLY UPDATE : 48/2024-25 (03.03.2025)

1. GSTN; Implementation of Phase III for reporting of HSN codes in GSTR-1/1A has likely been deferred:

Update on HSN Code Reporting in GSTR-1/1A: The implementation of Phase III for reporting of HSN codes in GSTR-1/1A has likely been deferred.

2. The Rajasthan GST Department vide Order No. F.17 ACCT/GST/20 /286 dated February 20, 2025 has issued guidelines for virtual hearings in all taxation-related cases, including GST, VAT, and others, to ease business operations:

Hearings will be mandatory in virtual mode, with in-person appearances allowed only with prior permission. Taxpayers will receive hearing details and links via registered email or mobile number. Representatives must submit authorization letters and photo IDs in advance. Virtual hearings will be conducted through specified applications, with tele-conferencing as a backup for technical issues. Submissions will be noted and uploaded in PDF format on the Boweb portal. Documents can be submitted digitally or physically at district facilitation desks. These guidelines apply to all acts administered by the Commercial Taxes Department and are effective immediately.

Provisions for opportunity of hearing have been made in various sections of the RGST/CGST Act, 2017 specially those pertaining to adjudication, determination of tax and appeals under the said Acts.

During the proceedings in any case pertaining to the said Acts, all hearings shall mandatorily be carried out in virtual mode and no person shall be required to appear in person for personal hearing except with the prior permission of the concerned Additional Commissioner in cases where the taxpayer or his authorized representative has requested in writing for an in-person personal hearing.

The date and time of hearing along with a link for the virtual hearing shall be informed well in advance to the taxpayer or his authorized representative through the registered email id or mobile number giving the details of Proper Officer who shall be conducting the virtual hearing and the application or facility through which the virtual hearing shall be carried out. This link shall not be shared with any other person without the consent of the said officer.

In case of any authorized representative representing the taxpayer in virtual hearing, he shall be required to submit his vakalatnama or authorization letter along with the copy of his photo-id card and contact details well in advance to the said officer, devoid of which he shall not be allowed to represent the taxpayer.

The Virtual hearing shall be held from the office of the Proper Officer through the pre-intimated application and link provided for the same. The taxpayer or his authorized representative shall be required to download the required application on their computer system/ laptop/ mobile phone beforehand and be ready with appropriate network connectivity and bandwidth for the virtual hearing and join the same at the time and date allocated to them.

In case of any technical issue in connecting for the virtual hearing, the taxpayer or his authorized representative may be joined through tele-conferencing through mobile phone for which they shall be required to keep their phone(s) available for incoming calls.

All persons participating in the virtual hearing shall be appropriately dressed and shall be required to maintain the decorum and dignity at all times.

The submissions made by the taxpayer or his authorized representative through the virtual hearing shall be noted in writing and a statement of the same shall be prepared so as to be uploaded in PDF format under the respective ‘Proceedings’ tab on the Boweb portal.

In addition to the virtual hearing, in case the taxpayer or his authorized representative need to submit any documents during the proceedings of the case, the same shall be submitted digitally through the registered Email id and no physical submission of documents shall be sought for.

In cases of requirement of submission of physical set of documents the same shall be submitted after due attestation by the taxpayer or his authorized representative on every page, to the Nodal Officer at the facilitation desk at the respective district Headquarter during working hours. The Nodal Officer shall issue receipt for the documents so receipt physically and also verity that the documents submitted are in parity with the documents required by the Proper Officer. The list of the said Nodal Officers is enclosed herewith as Annexure-I.

3. AAR & Important Judgements:

(i) Supreme Court upholds Arrest Powers under Customs and GST Acts with Robust Safeguards:

(Applicant – Radhika Agarwal)

  • The Court upheld the amended arrest powers under Section 104 of the Customs Act and Section 69 of the CGST Act.
  • The challenge to Sections 69 and 70 of the CGST Act was rejected. The Court held that Article 246A grants Parliament comprehensive power to legislate on GST, including ancillary powers to prevent evasion through arrest and summons. These provisions are within legislative competence and align with the doctrine of pith and substance.
  • The Court mandated strict compliance with safeguards:
  • Officers must record “reasons to believe” based on explicit, credible material.
  • Arrestees must be informed of grounds of arrest in writing, per Article 22(1) and D.K. Basu guidelines.
  • Customs officers, though not police officers, must maintain records akin to case diaries.
  • Arrested persons have the right to meet an advocate during interrogation, within visual but not hearing distance.
  • The Court endorsed CBIC Instruction No. 02/2022-23 (GST-Investigation) dated 17.08.2022, requiring justification for arrests beyond legal pre-requisites, such as the risk of tampering evidence or absconding. Also endorsed Instruction No. 01/2022-23 [GST – Investigation] dated 25.05.2022 on deposit of tax during the course of search, inspection or investigation.
  • The Court rejected the petitioners’ contention that arrests under the CGST Act require a prior assessment order. Arrests can proceed if there is sufficient certainty of a non-bailable offence under Section 132, provided reasons are recorded. However, the benefit of the doubt applies, and arrests should not be routine.
  • The Court found merit in allegations of coerced tax payments. Recovery requires adjudication (Section 79 CGST Act), not coercion during the investigation. Under Section 74(5), voluntary payments are permissible but must not involve force. Assessees can seek refunds if coerced, and officers face action for violations.

(ii) AAAR On Time of supply for mobilization advance in construction services is date of receipt of such advance:

(Applicant – S.P Singh Constructions Pvt Ltd)

In the Case of S.P. Singh Constructions Pvt. Ltd., decided on 30-12-2024.(THE GUJARAT APPELLATE AUTHORITY FOR ADVANCE RULING UNDER GST: Where in terms of EPC contract, Government authority gives an interest bearing advance equal to 10 per cent of contract price for mobilization expenses, time of supply in respect of mobilization advance/advance payment received in respect of supply of construction service is date of receipt of such advance.

Sections 2(31) and 13, of Central Goods and Services Tax Act, 2017.


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