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  In a case that is seen to have a significant impact on restaurant chains and bakery businesses as well as several industries that rely on the classification of food services under the goods and services tax, the Bombay High Court has said that for now no coercive action will be initiated against Mad Over Donuts by the tax authorities on the disputed classification.   The Bombay High Court has also granted the petitioner –Mad Over Donuts (Himesh Foods), the liberty to approach the bench in case any recovery actions are taken by the GST department. In its recent hearing, the Court has also directed the tax department to file its response by March 17. The matter is scheduled for further hearing on March 24.   The case pertains to notices for GST sent to Himesh Foods as well as several other donut and bakery chains seeking 18% GST on sale of donuts and bakery items. The challenge arose as these chains contend that GST is to be paid at 5% as the sale of these products fall u...

Summary Many students have reported discrepancies in their monthly canteen bills, with differences ranging from Rs 30 to Rs 150 between their actual purchases and the final amount charged. When questioned, canteen employees attributed these discrepancies to “service tax and 5 per cent GST”. Hostel residents at the Panjab University (PU) have raised concerns over being charged an additional 5 per cent Goods and Services Tax (GST) on their month-end canteen bills, effectively leading to payments exceeding the Maximum Retail Price (MRP) of packaged goods. Since MRP is inclusive of GST, retailers are legally prohibited from levying additional GST on such products. Students have accused canteen contractors of overcharging, non-compliance with metrology standards, and imposing unlawful charges. The hostel canteens supply both packaged items such as biscuits, chips, and chocolates, as well as freshly prepared food like paranthas and burgers. While some students accept GST on unpackaged food, ...

  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. Do...