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Published on 4 August 2025

GST Weekly Update: Virtual Hearing Guidelines and Legal Insights

GST Weekly Catch-Up: What’s New, What’s Delayed, and What You Really Need to Know

Pull up a chair—here’s what’s been happening in the world of GST this week. Whether you’re dealing with HSN code compliance, working out of Rajasthan, or navigating mobilization advances under EPC contracts, there’s something in here that’ll likely impact how your team works.

A Little Extra Time on HSN Code Reporting

Let’s start with a small but welcome breather: the mandatory Phase III rollout for HSN code reporting has been pushed back by a month. Instead of kicking in for the April 2025 tax period, you’ll now need to start complying with the new format from May 2025 returns onward.

So what exactly changes? This isn’t just a cosmetic update. You’ll now be reporting HSN details separately for B2B and B2C supplies. No more manual data entry either—HSN codes will be selected from a dropdown menu, which should reduce typos and make the process more consistent across taxpayers.

Also, Table 13 is about to get stricter: every document—invoices, credit notes, debit notes—must be reported. It's all about sharper compliance and traceability, so expect more eyes on the numbers.

Rajasthan Goes Fully Digital for GST Hearings

If you fall under Rajasthan’s GST or VAT jurisdiction, here’s a big shift: starting February 20, 2025, all tax hearings in the state are to be conducted virtually. In-person hearings are now the exception—not the rule—and even those require written clearance from an Additional Commissioner.

A few key points to keep in mind:

  • The department will send out hearing links well in advance—look out for them via email or SMS.
  • If you’re having someone else represent you, make sure their authorisation letter and ID reach the department ahead of time.
  • If the video call fails? There’s a teleconference backup ready to go.
  • You can submit documents online, or in-person at your district facilitation centre if absolutely needed.
  • Every hearing’s file, transcript, or statement will be uploaded as a PDF to the Boweb portal—handy for those who need airtight records.

This system isn’t just a department initiative—it’s backed by Section 168 of the RGST Act and aligns with national rules around digital legal documentation. In short: this is the default mode going forward for all matters under Rajasthan’s Commercial Taxes Department. Make sure your team is ready for the shift.

Supreme Court Gives Clarity on Arrest Powers Under GST & Customs

The Supreme Court’s recent decision in the Radhika Agarwal case has stirred some serious discussion. Here’s the crux: the Court upheld that the government does have the constitutional power to arrest under Section 104 of the Customs Act and Section 69 of the CGST Act—but there are clear rules around how it’s to be used.

Here’s what you need to know:

  • Arrests must follow CrPC protocols, including production before a magistrate within 24 hours and informing family members.
  • There must be actual material evidence in the officer’s possession—no going on hunches or “suspicion alone.”
  • A written copy of the grounds of arrest must be given to the accused to ensure they can seek bail or legal aid.
  • Legal counsel is allowed to be present during questioning (with reasonable limitations).
  • Most importantly: the Court warned against misuse—officers using arrest as a way to forcibly extract taxes can be challenged, and victims are entitled to refunds and officer accountability.

And yes, even if assessment isn’t finished yet, a non-bailable offense backed by solid evidence is enough for an arrest. But that threshold is now crystal clear—protecting both taxpayers and officials from overreach.

EPC Contracts: AAAR Clarifies When GST Applies on Mobilization Advances

If you’re in the infrastructure or engineering space, this one’s important: Gujarat’s Appellate Authority for Advance Ruling (AAAR) has clarified how GST applies on mobilization advances—thanks to the case involving S.P. Singla Construction Pvt. Ltd.

Their ruling? GST becomes applicable the moment you receive the mobilization advance—not when you later adjust it against invoices.

Here’s why:

  • Under Section 2(31), an advance is “consideration” for future supply.
  • And Section 13 says GST liability arises at the earlier of payment receipt or invoice issuance.
  • Simply calling it a “deposit” doesn’t cut it if it’s tied to a future supply. Once you receive it, tax liability kicks in.

This ruling will likely affect how you handle contract structures going forward, especially if you deal in large-scale EPC or government infrastructure work.

In Summary…

It’s been a week of practical shifts and heavyweight legal confirmations:

  • HSN code compliance is tightening, but you’ve got another month to prepare.
  • Rajasthan’s GST department is pushing everyone into the digital lane—get your systems and teams aligned.
  • The Supreme Court's arrest ruling sets clear boundaries, giving both power and protection.
  • And the AAAR advance ruling reaffirms that when it comes to GST, timing really is everything
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