Article
Hard-locking GSTR-3B: A new compliance milestone and its pitfalls
GSTN has recently announced that, beginning with the July 2025 tax period, outward liability in GSTR-3B—auto-populated from GSTR-1/IFF—will be non-editable. The article in this issue of Indirect Tax Amicus analyses the legal and operational challenges posed by the proposed hard-locking of GSTR-3B data, while highlighting the lack of clarity surrounding its extent. The authors (Sahana Rajkumar and Derlene Joshna) raise a question as to whether GSTN advisories are evolving into a legislative instrument, introducing a new class of ‘portal-enforced compliance’ without statutory authority. They also note that the change will significantly constrain a taxpayer’s ability to rectify inadvertent errors prior to filing GSTR-3B and would result in a surge of litigation relating to revision of returns. According to them, for hard-locking to work well, it needs proper changes in the law, smooth portal experience, and clear rules.
Classification of goods – Recent WCO Rulings, Opinions, and HSN Explanatory Notes changes
The second article, authored by Srinidhi Ganesha and Neha Agrawal, summarises the 75th Session of the World Customs Organisation’s (‘WCO’) Harmonized System Committee which was held in March 2025. The Rulings, opinions, changes suggested therein have been recently released by the WCO. The Update covers WCO Rulings on some 20 products, WCO Opinions on 11 products and some 8 changes in the HSN Explanatory Notes.
Goods and Services Tax (GST)
Notifications and Circulars
- Quoting of DIN on communications with RFN is not mandatory
Ratio decidendi
- Refund of IGST on exports – Rule 96(10) stands omitted prospectively but is not applicable to pending proceedings/cases – Gujarat High Court
- Refund – Relevant date for limitation is date of communication of conciliation agreement which is equivalent to decree of Civil Court – Delhi High Court
- Circulars issued by CBIC are not binding on State Tax Officers – Order issued by State officer without DIN is valid – Gujarat High Court
- Service of notices, orders, etc. – Department directed to create SOP for uploading on the portal and sending by email – Delhi High Court
- Service of notice – Department should explore possibilities of sending notices through other modes if assessee not responding by one mode – Madras High Court
- Service of notice/order can be affected by any of the modes provided for in clauses (a) to (f) of Section 169(1) – Service through portal is valid – Calcutta High Court
- Fixed mark-up does not make an independent service provider an agent of foreign recipient – Bombay High Court
- Refund of ITC is available on closure of business – No express prohibition in Section 49(6) read with Section 54(3) – Sikkim High Court
- Power of rectification can be invoked suo motu by GST officer if an error is brought to its notice or becomes apparent on the face of the record – Kerala High Court
- Inadvertent error in GST DRC 03 can be permitted to be corrected – Non mention of FY in the form while reversing ITC, is not fatal – Calcutta High Court
- E-Way Bill – Clerical error in description of goods – Burden of proof of intention to evade is on tax authorities – Karnataka High Court
- Vehicle is not to be detained when there is no movement of goods – Possession of invoice and e-way bill is not material – Madras High Court
- Penalty – Abatement of proceedings under Section 74 does not abate independent proceedings under Section 122 – Allahabad High Court
- Penalty – Proceedings under Section 122 to be adjudicated by proper officer and not by criminal courts – Allahabad High Court
Customs and FTP
Notifications and Circulars
- Export examination now not requires any paper documents – ICETAB extended to exports from 19 June 2025
- Alcoholic beverages bottled in origin and in bulk – NOC under FSS (Import) Regulations to have validity of 1 year
- Colloidal precious metals, and compounds and amalgams of precious metals – Imports restricted
- Palladium, Rhodium and Iridium alloys consisting of gold more than 1% by weight – Imports restricted
- Sugar – Export of pharma grade sugar permitted under Restricted Export Authorisation
Ratio decidendi
- Valuation – Rejection of transaction value under Rule 12 is pre-requisite for determining value under any other rule – CESTAT New Delhi
- No confiscation under Section 111(m) simply if classification and exemption entries in BE do not correspond to Revenue department’s views – CESTAT New Delhi
- ‘Foreign going vessel’ – Scope – No necessary requirement of active participation and continuous presence outside territorial waters – Kerala High Court
- Software Technology Parks – Imports prior to the date of final approval for setting up STP when not wrong – Madras High Court
- Blower, Filter, Water Valve Assembly, Control Panel, Module JCBHP and Thermostat are not classifiable as parts of air-conditioner – Note 2(a) and not Note 2(b) to Section XVI is applicable – CESTAT New Delhi
- Refund – Amendment under Section 149 by itself cannot lead to refund, original assessment is to be reversed – CESTAT Kolkata
- Packing material is not the foolproof criteria to decide the country of origin of goods – CESTAT Mumbai
- Re-assessment of shipping bills once the goods have already been exported is not permissible – CESTAT New Delhi
- Confiscation of exports – DRI’s, Audit’s or Preventive department’s subsequent view on classification do not make the goods liable to confiscation – CESTAT New Delhi
- SAFTA imports – Non-indication of value addition figures in Country-of-Origin certificates is not fatal – CESTAT Kolkata
- Removal of goods without Out-of-Charge order when not liable for penalty – CESTAT Kolkata
Central Excise, Service Tax & VAT
Ratio decidendi
- Facilitating booking of hotel rooms through online portal is covered under Tour Operator service – 90% abatement available – Supreme Court
- Pendency of show cause notice for long is arbitrary and offending under Article 14 of the Constitution – Madras High Court
- Rebate when eligible on CIF value of exports – Gujarat High Court
- Mailing List Compilation and Mailing Service – Mere receiving, segregating and delivering are not covered – CESTAT Bengaluru
- No service tax on royalty received for grant of licence to use a trademark for 99 years – CESTAT New Delhi
- Renting of immovable property service – Mere use of premises for job works exclusively for a principal, who has right to inspect, not amounts to renting – CESTAT New Delhi
- ‘Lease’ for the purpose of Ind-AS-17 will not be ‘lease’ under Finance Act, 1994 or Transfer of Property Act – CESTAT New Delhi
