The 15 Vital Recommendations for GST for Budget 2026 propose practical reforms to restore GST neutrality, reduce litigation, and unlock working capital. A key suggestion is to revisit Section 17(5) blocked credits and align them with Income-tax principles so that ITC is allowed for genuine business expenditures.
The court held that ITC reversal under Section 29(5) depends on a valid cancellation. Once registration is restored, the ITC demand collapses.
The wage definition under the new code is inclusive and anti-avoidance. Many allowances earlier excluded now count as wages, widening ESIC coverage.
The Supreme Court held that the mandatory GST appeal pre-deposit need not be paid only in cash. Valid input tax credit in the Electronic Credit Ledger can be used, easing cash-flow pressure on taxpayers.
MCA has intensified scrutiny of Cost Audit filings and is issuing notices (currently for FY 2020–21) under Section 148(7) of the Companies Act, 2013, seeking further information and explanations to verify the correctness of cost records and Cost Audit Reports filed in XBRL Form CRA-4.
The Bill proposes reducing net worth, turnover, and profit limits for mandatory CSR. This would bring a larger number of medium-sized companies within the CSR framework.
The court held that ITC cannot be denied to a genuine purchaser merely because the supplier failed to pay GST. Bona fide transactions without fraud or collusion must not attract reversal of credit.
SEZ clearances to the DTA attract customs duty on full value, including domestic addition. The takeaway is SEZs are disadvantaged versus EOUs and MOOWR units.
A surge in Section 143(2) notices was triggered by the June 2025 limitation deadline. This explains why cases were picked and how to respond effectively.
The tribunal held that reassessment initiated through a jurisdictional officer instead of the mandatory faceless mechanism was invalid. Notices under Section 148 issued after 01.04.2021 must follow the faceless scheme, failing which the entire assessment collapses.
