India: Sales Taxes: VAT, GST

The 57th meeting of the GST Council was held in New Delhi on 8 October 2026 under the chairpersonship of the Union Finance & Corporate Affairs Minister, Smt. Nirmala Sitharaman. While the 56th meeting focused on rate rationalisation and reduction of rates, the 57th meeting made recommendations on process reforms covering registration, returns, refunds and adjudication; clarifications on the applicability of GST to certain goods and services; and other trade facilitation measures.

The Lucknow Bench of the GSTAT has issued contrasting rulings in two cases involving goods transported without e-way bills, where the bills were generated only after interception. While one case saw penalties set aside due to procedural lapse in a genuine transaction, the other upheld penalties citing intent to evade tax, raising questions about consistency in judicial interpretation of e-way bill violations.

The Gauhati High Court has ruled on the scope and limitations of sealing powers under Section 67(4) of the CGST Act, clarifying when tax authorities can seal premises during search operations. The judgment addresses whether sealing can continue after search completion and examines what types of items qualify as goods liable to confiscation under GST law.

The Chennai Bench of CESTAT examined whether diagnostic kits using Enzyme-Linked Fluorescent Assay (ELFA) technology qualify for the same customs duty and IGST exemptions granted to Enzyme-Linked Immunosorbent Assay (ELISA) kits under Indian tax notifications.

The Supreme Court has ruled on whether the assembly of imported photocopier modules in warehouses constitutes 'manufacture' under the Central Excise Act, examining the distinction between customs duty classification and excise duty liability. This case addresses the critical question of when simple assembly operations cross the threshold into manufacturing activity for tax purposes.

The Calcutta High Court has ruled on a critical distinction in GST proceedings regarding the timing requirements for demand orders under Section 73 of the CGST Act. When an order is digitally signed within the limitation period but uploaded to the portal after the statutory deadline, does this constitute a valid issuance or a procedural violation that invalidates the demand?

Since its launch on 16 January 2016, the Startup India Scheme has become the cornerstone of India's entrepreneurship policy, offering tax holidays, funding access, and regulatory relief to eligible new-age businesses. For founders, understanding the legal architecture of this scheme — particularly Department for Promotion of Industry and Internal Trade (DPIIT) recognition — is essential to unlocking benefits worth lakhs, sometimes crores, in tax savings and compliance relief.

In Part I of the Article, we discussed the statutory framework governing post-sale (secondary) discounts and credit notes under the GST regime, especially the requirements of Section 15(3)(b) of the Central Goods and Services Tax Act, 2017 (Act) which proved difficult to reconcile with commercial practices, particularly in industries where discounts were determined after supply due to factors such as sales performance, market conditions or promotional schemes.

The Supreme Court has ruled on the classification of online gaming, fantasy sports, and casino activities under India's GST framework, determining whether these platforms constitute betting and gambling when players stake money on uncertain outcomes. This landmark decision addresses the constitutional validity of GST levy on actionable claims arising from such transactions and clarifies the legal treatment of contingent beneficial interests in movable property under the Transfer of Property Act, 1882.