GST

GST Implications on Leases in India

Summary: One of the most common commercial arrangements in India is leasing of land and structures thereon. However, its interplay with the Goods and Services Tax regime has led to certain interpretational and compliance challenges, particularly in determining whether specific leases constitute taxable supply or qualify for exemptions based on the nature of the property or its intended use. For stakeholders, including landlords, tenants, and developers, evaluating and understanding these implications is essential to mitigate any tax exposure. This blog gives an overview of the GST implications on leases and key considerations that stakeholders must consider.

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Summary: The 57th GST Council meeting has recommended a set of structural reforms aimed at addressing long-standing pain points in the GST framework that have constrained business operations. The recommendations collectively seek to unlock working capital by broadening the scope of creditable expenditure and expanding refund entitlements, reduce compliance friction in interstate commerce and cross-border service arrangements, and recalibrate the enforcement framework to ensure proportionality. While these measures represent a meaningful policy shift toward the original objectives of GST, their commercial impact will ultimately depend on the clarity of the legislative amendments that follow and the effectiveness of their administrative implementation.

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When a Promise Becomes Taxable: What the Torrent Power Judgment Really Means for Corporate Guarantees

Summary: The Gujarat High Court’s ruling on corporate guarantees is not merely about whether GST is payable. It is about the limits of statutory fiction, the sanctity of commercial reality and the constitutional discipline that must govern taxation.

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When Tax Chases Talent Across Borders: Huawei and the GST dilemma on secondments

Summary: Tax authorities have long sought to levy GST on cross-border secondment arrangements by characterising them as “import of manpower supply services” under the reverse-charge mechanism. The Karnataka HC’s ruling in Huawei offers significant relief by holding that where expatriate employees are genuinely integrated into the Indian entity’s operations, the arrangement constitutes an employer–employee relationship excluded from the definition of “supply” under the CGST Act. Unlike NOS, where economic control over the employees never truly migrated to the Indian entity, Huawei demonstrates that substance must prevail over structure.

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Summary: This blog unpacks the sweeping GST rate rationalisations announced by the 56th GST Council meeting, covering key sectors such as food, healthcare, FMCG, agriculture, consumer goods, automobiles, infrastructure, and more. Beyond listing rate changes, we analyse their policy intent, business impact, and compliance challenges, from ITC reversals and refund reforms to supply chain recalibration and pricing strategies. For businesses, this is not just about new tax slabs but about aligning operations and strategy with a shifting indirect tax landscape.

Continue Reading GST 2025: A Brave New Chapter in India’s Tax Reform
Treading a fine line: Extension is ultra-vires but valid?

Summary: This blog examines the ongoing judicial debate surrounding extensions of GST limitation periods in the wake of the pandemic and subsequent systemic challenges. It outlines the decision of the Hon’ble Madras High Court, which set aside Notification No. 56/2023 issued under Section 168A of the CGST Act, extending timelines for recovery orders for FY 2017-18, 2018-19, and 2019-20. The blog notes how this position differs from those adopted by the Hon’ble Guwahati, Telangana, and Bihar High Courts on the same matter, addresses the possible need for intervention by the Hon’ble Supreme Court, and outlines considerations for taxpayers.

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Global Business, Local Tax: The Infosys GST Controversy and its Wider Implications

In an increasingly globalised economy, business activities extend beyond physical borders and traverse geographical boundaries, leading to varied tax implications due to outdated tax legislations that do not fully address these changes. In the service sector, tax obligations can arise even without traveling to different countries. A case in point is the recent incident of the revenue serving Infosys with a INR 32,403 crore (US$ 3.8 Billion) pre-show cause notice, which was later transferred to the Directorate General of GST Intelligence (“DGGI”) for further investigation. Prima facie, the tax assessment seemed not only excessive but also conceptually flawed, as it exceeded the annual profit declared by Infosys. The DGGI later withdrew the said notice. While the dust has settled on this high-stakes incident, the lessons may reverberate across India, particularly for multinational service providers. The questions raised during the investigation will have lasting significance and warrant consideration, extending beyond a single company or tax notice.

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From courtrooms to clicks: Rethinking why simple GST rectifications require Court intervention

The Goods and Services Tax (“GST”) regime was introduced with the promise of a seamless, technology-driven tax system aimed at reducing cascading effects and ensuring smooth compliance. However, after seven years of its introduction, businesses and taxpayers have found themselves burdened with the rigidity of a tax regime, which makes the subsequent correction of even the smallest of clerical errors in returns quite difficult and requires litigation to have them rectified.

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GST liability on the benefits arising out of land: The conundrum continues

The applicability of Goods and Services Tax (“GST”) on various land-related rights has been a subject of ongoing debate, leading to uncertainty for businesses, developers, and policymakers. While the GST framework seeks to tax the supply of goods and services, transactions involving land and immovable property present unique challenges due to their distinct legal nature.

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Legal debate at tipping point over Notification extending GST deadline

The legal validity of the contentious CGST Notification No. 56/2023 (“Notification“), is facing challenges across multiple High Courts in India. The Notification, issued by the Central Board of Indirect Taxes and Customs (CBIC), extended the timeline for passing orders under Section 73(10) of the Central Goods and Services Tax Act, 2017 (“CGST Act“) for financial years 2018-19 and 2019-20.

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