GST Update: Weekly Goods and Service Tax latest News – November 2025

GST WEEKLY UPDATE : 34/2025-26 (27.11.2025)

1. Advisory on Furnishing Bank Account Details Under Rule 10A Of The CGST Rules, 2017:

Introduction

The Goods and Services Tax Network (GSTN) has issued a recent advisory highlighting the mandatory requirement for taxpayers to furnish their bank account details in accordance with Rule 10A of the Central Goods and Services Tax (CGST) Rules, 2017. This rule is aimed at ensuring authenticity, strengthening compliance, and preventing misuse of GST registrations.

With the GSTN set to implement certain system-level validations shortly, taxpayers who have not yet complied with this requirement are urged to act promptly to avoid adverse consequences.

Understanding Rule 10A

Rule 10A mandates that every registered taxpayer—except those registered under Tax Deducted at Source (TDS), Tax Collected at Source (TCS), or suo-moto registrations initiated by the tax authority—must furnish details of their bank account within 30 days from the date of grant of registration, or before filing their first GSTR-1 or Invoice Furnishing Facility (IFF), whichever is earlier.

The purpose of this rule is to:

• Authenticate the operational status of the business
• Ensure traceability of transactions
• Prevent shell entities from misusing GST credentials
• Strengthen the robustness of GST implementation

Upcoming Portal Changes

GSTN has announced that system changes to enforce Rule 10A compliance will be deployed soon on the GST Portal. Once implemented, the portal will automatically verify whether bank account details have been furnished by the taxpayer within the stipulated time.

Potential Consequences of Non-Compliance

If a taxpayer fails to furnish bank account details within the prescribed timeline:

• GST registration may be suspended
• Filing of returns may be restricted
• E-way bill and other compliance-related facilities may be impacted
• Business operations may face disruption due to inability to generate invoices or file returns

Action Required by Taxpayers

Taxpayers who have not yet provided their bank account details are strongly advised to update the same immediately to avoid any interruption in their GST compliance cycle.

How to Furnish Bank Account Details

Bank account information can be added or updated through Non-Core Amendment in the GST Registration module. The steps are as follows:

1. Log in to the GST Portal (www.gst.gov.in)
2. Navigate to:
   Services → Registration → Amendment of Registration (Non-Core Fields)
3. Enter the required bank details, including:
   • Account number
   • IFSC code
   • Supporting documents (e.g., cancelled cheque, bank statement, or passbook copy)
4. Submit the application and verify using OTP/e-sign/digital signature as applicable

Upon approval, the updated bank account details will reflect in the taxpayer’s registration profile.

Conclusion

Compliance with Rule 10A is not only a statutory obligation but also a crucial step toward maintaining the continuity of business operations under GST. With the upcoming implementation of system-based restrictions on the GST Portal, timely furnishing of bank account details has become more important than ever.

Taxpayers are encouraged to act proactively and update their records to ensure seamless compliance and uninterrupted business activities.

Read Also: GSTAT: Centre Notifies New Rules For GST Appellate Tribunal

2. CBIC Launches Enhanced Warehouse Licensing & MOOWR/MOOSWR Registration Module on ICEGATE 2.0:

Abstract

The Central Board of Indirect Taxes and Customs (CBIC) has introduced a significantly upgraded Warehouse Licensing and MOOWR/MOOSWR Registration Module on ICEGATE 2.0. The new digital system is designed to streamline the registration and licensing processes under Sections 57, 58, 58A and 65 of the Customs Act, 1962. By integrating user-friendly features, multi-factor authentication, structured digital forms, and end-to-end application tracking, the module enhances transparency, compliance, and ease of doing business for warehouse licensees across India.

1. Introduction

Customs warehousing has long been an essential enabler for trade and manufacturing, offering deferred duty benefits, inventory flexibility, and efficient supply chain operations. Recognizing the need for modernization and simplification, CBIC has launched an enhanced Warehouse Licensing and MOOWR/MOOSWR Registration Module within ICEGATE 2.0.
The fully digital module aims to reduce administrative burden, enhance accuracy, and ensure seamless interaction between applicants and customs authorities.

A comprehensive User Manual accompanies the launch, offering step-by-step guidance for users.

2. Scope and Applicability

The module supports:

• Licensing of warehouses under Sections 57, 58 and 58A of the Customs Act, 1962 (public, private, and special warehouses), and
• Registration applications under Section 65, governing MOOWR (Manufacture and Other Operations in Warehouse) and MOOSWR schemes.

Both new applicants and existing warehouse operators can utilize the module for registration, modification, or compliance-related submissions.

3. Five-Step Digital Registration Framework

The revamped system introduces a structured and intuitive five-stage process:

1. Role Selection
2. GSTIN Verification
3. User Details Verification
4. Mobile and Email OTP Authentication
5. Online Submission of Role Registration Form

This sequencing ensures secure on boarding and accuracy of applicant details, fetched directly from GSTN records.

4. Key Enhancements in the New Module

4.1 Smooth and Flexible Registration Process

Users can initiate a Fresh Registration or resume an application using an existing Reference ID. GSTIN-based contact details are auto-populated and digitally validated.

4.2 OTP-Based Two-Factor Authentication

A fortified authentication process requires verification through both email and mobile OTPs, each valid for 600 seconds, ensuring secure and reliable identity confirmation.

4.3 Auto-Generation of Reference ID

Upon successful initial verification, the system generates a unique 15-day valid Reference ID, facilitating completion of the application at the user’s convenience.

4.4 Comprehensive Digital Application Form

The Role Registration Form contains six structured segments requiring detailed information and document uploads.

Depending on the selected warehouse category, the system dynamically enables or disables fields, ensuring relevance and reducing errors.

Typical data requirements include:

• • Existing warehouse code
  • Date of licence issuance
  • Commissionerate file number
  • Warehouse boundaries and floor area
  • HSN-based classification of items
  • Nature of operations (e.g., ship stores, MOOWR activity, none)

Users can Preview, Validate, and Save Drafts before final submission.

5. Query Management and Application Lifecycle Tracking

The platform offers a dedicated Track Query Status feature, enabling applicants to:

• • View officer-raised queries
  • Upload replies and supporting documents
  • Track the status of applications in real time

Each submission requires mandatory comments, promoting clarity, record-keeping, and accountability. Once queries are resolved, the application automatically progresses to the next level of scrutiny or approval.

6. DigiLocker Integration for Paperless Processing

In line with the Government of India’s digital governance initiatives, the module guides users on linking and using DigiLocker for document validation. Aadhaar-authenticated documents stored in DigiLocker can be used to support applications, reducing reliance on physical documents.

Read Also: GST Revamp on the Horizon: What Businesses and Consumers Should Know

3. AAR & Important Judgements:

(i) Hon’ble Gujarat Highcourt Decision Regarding ITC  Insurance Services  Scope of Blocked Credit Under Section 17(5)(b)  Misclassification Of Policy  Jurisdictional Error

(Applicant – Arraycom (India) Limited)

The assessee claimed ITC on insurance policies covering stock-in-trade, plant, equipment, electrical installations, and business premises. The Revenue denied the credit by incorrectly treating the policies as motor vehicle insurance and invoked the bar under Section 17(5)(b) of the CGST Act. The adjudicating authority confirmed the demand through DRC-07 without considering the insurance policy documents submitted in response to the SCN and in DRC-06, and also initiated bank attachment.

Held: Blocked credit under Section 17(5)(b) is confined to motor vehicle–related expenses; insurance of stock and business assets does not fall within its ambit. The authority’s failure to consider valid documents and its misapplication of Section 17(5)(b) rendered the order arbitrary and without jurisdiction. Even though the appeal period had expired, the writ petition was maintainable, as the order suffered from a jurisdictional error.DRC-07 demand order and consequential bank attachment quashed.

(ii) Hon’ble Supreme Court Decision Regarding Service Tax — Real Estate Agent — Sale/Purchase of Land — Transfer Of Title — Not a Taxable Service — No Agency Relationship — Margin On Land Transactions Not “Commission” — Extended Limitation Not Invocable — Finance Act, 1994:

(Commissioner of Service Tax v. Ms Elegant Developers)

The assessee, a land developer, entered into MOUs with SICCL for purchase and development of land, earning a margin depending on acquisition price. The Revenue treated these transactions as “Real Estate Agent” services under Section 65(105)(v) read with Sections 65(88) & 65(89) of the Finance Act, 1994, alleging the assessee acted as facilitator for SICCL, charging commission disguised as price margin. A Show Cause Notice demanded Service Tax of ₹10.45 crore for 2004–07 with penalties. The Commissioner confirmed the demand; CESTAT set it aside.

Held, by the Supreme Court:

• MOUs did not establish any agency or consultancy arrangement; the assessee acted as principal, bearing procurement risks and having potential for operational losses.
• Profit/margin earned on land transactions was price difference, not commission for any service.
• Transactions constituted transfer of title in immovable property, expressly excluded from the definition of “service” under Section 65B(44)(ai); therefore, not exigible to Service Tax.
• No evidence of service rendered as real estate agent or consultant; CESTAT findings upheld.
• All transactions were disclosed in audited accounts and through banking channels; mere non-payment of tax is not suppression.

Extended period under proviso to Section 73 not invocable in absence of fraud, collusion, or wilful misstatement.

Revenue’s appeal dismissed. CESTAT order affirmed; tax demand and penalties quashed.

(iii) Hon’ble Gujarat Highcourt Decision Regarding GST — Exemption — Cotton Seed Oil Cake — Cattle Feed — Entry 102 of Notification No. 2/2017 — Supply to Traders — End-Use Based Exemption — No GST Liability — Orders Quashed:

(Dharti Industries v. Office of Commissioner (Appeal) & Ors)

The assessee, a manufacturer of cotton seed oil cake used exclusively as cattle feed, claimed exemption under Entry 102 of Notification No. 2/2017-CTR. During audit, the Department alleged that supplies made to traders were not eligible for exemption, contending that only direct supplies for cattle feed qualified and that sales to traders constituted mere trading activity.

Held, by the Gujarat High Court:

• Cotton seed oil cake has no commercial use other than as cattle feed, consistent with the VAT-era position; this continued under GST through Entry 102.
• The exemption is end-use based; the supply chain (whether to traders or end users) is irrelevant so long as the product is used as cattle feed.
• Traders themselves refused to pay GST, consistently asserting that the product was exclusively used as cattle feed; Revenue failed to show any alternative use.
• Exemption available to the assessee from July 1, 2017, and reinforced from September 22, 2017 by Entry 102A inserted through Notification No. 28/2017.

Orders-in-original and appellate orders levying GST were arbitrary and unsustainable; accordingly quashed.

Read Also: GSTN Postpones Non-Editable Table 3.2 in GSTR-3B After Taxpayers’ Grievances

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