GST WEEKLY UPDATE : 18/2025-26 (13.08.2025)
1. GSTAT appeal process & timeline:
On April 24, 2025, the Ministry of Finance (Department of Revenue) issued Notification G.S.R. 256(E), which introduced the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025. These rules, established under Section 111 of the Central Goods and Services Tax Act, 2017, are designed to govern the operations and procedures of the GSTAT.
Initiating an Appeal: Essential Steps and Timelines
Appeals are filed when taxpayers disagree with orders from the Appellate or Adjudicating Authority. The GST Act specifies key timelines for filing an appeal:
- Prescribed Time Limit for Filing
Appeals must be filed within 3 months from the date the order is communicated to the appellant. Failing to meet this timeline can result in rejection, unless the delay is condoned with valid reasons.
- Permissible Extension of Time Limit
The GSTAT can extend the filing period by up to 3 months if the appellant provides a valid reason. This extension is not automatic and requires a compelling explanation for the delay.
- Designated Form for Appeal
Appeals must be filed using a prescribed form available on the official GST portal. This form requires detailed information about the appellant, the order under appeal, the grounds for appeal, and the relief sought.
- Required Accompanying Documents
Supporting documents, such as a certified copy of the contested order, relevant documents from the original proceedings, and a statement of grounds for appeal, must be submitted along with the appeal.
Read Also: New GST Mandates from April 2025: MFA, E-Invoicing & More
Cross-Objections and Replies
Once an appeal is filed, the opposite party can file cross-objections. Both the taxpayer and the department have a uniform deadline of forty-five days from the date of receiving the notice.
Following this, the respondent’s reply to the appeal must be submitted within one month of receipt. This ensures a prompt exchange of arguments and evidence from both sides.
Rejoinders and Rectification Requests
After receiving the respondent’s reply, the appellant may file a rejoinder. This must be submitted within one month, or as specified by the Bench.
In situations where errors or omissions are found in the final order, a rectification application can be made by either party. This must be done within one month from the date of the final order.
Timelines for Disposal and Pronouncement
The GSTAT aims to dispose of cases as far as possible, within one year from the date of filing. This guideline is applicable to both taxpayers and the department, reinforcing the Tribunal’s commitment to timely resolution.
Moreover, once the final hearing is concluded, the order must be pronounced within thirty days, ensuring judicial efficiency and avoiding unnecessary delays.
Post-Order Proceedings
In addition to rectification applications, parties may also seek rectification of orders within three months from the original order. Furthermore, if there is a need to amend any part of the proceedings, such amendments must be initiated within thirty days from the completion of pleadings.
A continuance application, used in cases such as death or change in representation, must be filed within sixty days from the event occurrence.
Document Compliance and Urgent Hearings
To maintain procedural hygiene, any defective documents must be rectified within seven working days from the date of return, with a maximum extension of thirty days.
2. AAR & Important Judgements:
(i) Hon’ble Supreme Court Decision Regarding mobile telecom towers to be ‘plant and machinery’, thereby allowing input tax credit (ITC):
(Applicant – Bharti Airtel)
In a major relief to the telecom industry, the Supreme Court on Friday (August 8) dismissed the Revenue Department’s Special Leave Petition (SLP) challenging a Delhi High Court ruling that had held mobile telecom towers to be ‘plant and machinery’, thereby allowing input tax credit (ITC) under the Goods and Services Tax (GST) regime.
The crux of the dispute was whether telecom towers, often affixed to land or rooftops, qualify as immovable property, which is blocked from ITC under Section 17(5) of the CGST Act, 2017, or as plant and machinery, which is specifically excluded from the definition of blocked credit.
The Delhi High Court had earlier ruled in favour of Bharti Airtel and other petitioners, holding that telecom towers fall within the scope of plant and machinery and are eligible for ITC. The Revenue had denied this benefit, arguing that the towers were immovable in nature and thus ineligible for credit.
Senior Advocate argued that the legislative intent, both in the pre-GST and post-GST regime, has been consistent in denying ITC only in respect of immovable property — a category that telecom towers do not fall under. He also pointed out that the issue had already been settled by the Supreme Court in the context of service tax in Bharti Airtel’s own case.
Read Also: GSTN Postpones Non-Editable Table 3.2 in GSTR-3B After Taxpayers’ Grievances
(ii) AAAR Regarding inputs and input services used for construction of concrete tower to support and erect the VCV lines at the factory of the applicant for manufacture of EHV cable in terms of the explanation to section 17 (5Xd) of the CGST Act 2017:
(Applicant – KEI Industries Ltd)
The Gujarat Appellate Authority of Advance Ruling (AAR) has ruled that Input Tax Credit (ITC) can be availed on inputs and input services used for construction of concrete tower to support and erect the VCV lines at the factory of the applicant for manufacture of EHV cable in terms of the explanation to section 17 (5Xd) of the CGST Act 2017.
The AAR’s ruling observed that when ITC is not restricted even in respect of ducts and manhole used in OFCs under section 17(5) of the CGST Act, 2017, the ITC, on inputs and input services used for construction of concrete tower to support and erect the VCV lines, for manufacture of EHV cables also, similarly, cannot be restricted.
The appellant is engaged in the manufacture & supply of extra high voltage [EHV], medium voltage [MV] and low voltage [LV] cables upto 400 KV. Presently, they manufacture EHV cable using the continuous catenary vulcanization [CCV] process. However, the appellant has collaborated with M/s. Brugg Kabel AG, a Swiss company, to upgrade its technology to manufacture EHV cables upto 400 KV by setting up a new manufacturing plant in Gujarat for manufacturing HV/EHV cables using the vertical continuous vulcanization [VCV] process.
The applicant sought the advance ruling on the issue whether the applicant is eligible to quail ITC on inputs and input services used for construction of concrete tower to support and erect the vcv lines at the factory of the applicant for manufacture of EHV cables in terms of Section 7 7(5)(c) and (d) of the CGST 2017?
The AAR held that the applicant is not eligible to avail ITC on inputs and input services used for construction of concrete tower to support and erect the VCV lines at the factory of the applicant for manufacture of EHV cables n terms of Section I 7(5)(c) and (d) of the CGST Act 2017.
The applicant stated that consequent to the judgment of Safari Retreats, Legislature amended retrospectively. The term ‘plant & machinery’ defined in the explanation to section 17 is applicable to both its clauses (c) & (d); that the inward supplies provided by M/s. Suraj Buildcon are in the nature of works contract; that the inputs & input services procured by the appellant for construction of concrete tower to support & erect VCV lines at the factory of the appellant is in the course or furtherance of business.
Read Also: GSTAT: Centre Notifies New Rules For GST Appellate Tribunal
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