Weekly GST & Tax Communique – May 05, 2025
Keeping up with weekly GST updates and direct tax developments is crucial for every Indian taxpayer and consultant. Here’s a simplified roundup of key developments from April 29 to May 05, 2025—covering new notifications, case laws, and practical tax implications.
CBIC Notifications & GST Clarifications
1. Clarification on Restaurant Services in Hotels
- Notification No. 05/2025-CT (Rate) clarified GST at 5% applies only if:
- Restaurant is inside a hotel with declared room tariff > ₹7,500, and
- The restaurant does not charge room rent separately.
- If the restaurant is open to the public or located in a mixed-use space: 18% GST applies.
2. GST Appeal Filing Fee under Rule 110(5)
- New rule inserted via Notification No. 20/2025 – CT dated 30.04.2025.
- Appeal fee before GSTAT set at ₹1,000 per ₹1 lakh tax involved (max ₹25,000).
- Example: Appeal for ₹1 crore demand = ₹25,000 fee + pre-deposit of 10% (₹10 lakh).
Expert View: The non-refundable fee adds burden to taxpayers already arranging pre-deposit. For small businesses, GSTAT access may become financially unviable.
Key Judgments & Legal Rulings
3. Supreme Court: MADA Mining Royalty is Not GST Taxable
- Case: M/s Mineral Area Development Authority (MADA)
- Verdict: Royalty paid under mining lease is a sovereign function, not a “service”.
- Impact: CBIC’s earlier circulars demanding GST may not hold post this ruling.
Practical Takeaway: Taxpayers in coal, iron ore, and mining sectors may re-evaluate GST demands post this judgment.
4. Gujarat HC: GST Refund Claim Not Barred by Circular
- Case: M/s Rajesh Oils
- Court ruled that CBIC Circular 181/13/2022-GST can’t override the CGST Act.
- Refund for accumulated ITC due to export of edible oil was wrongly denied.
- Circular treated as ultra vires for placing extra-legal restrictions.
Legal Basis: Refund rights arise under Section 54 of CGST Act, not circulars.
Compliance Reminders for May 2025
- GSTR-1 (April 2025): Due by 11th May 2025
- GSTR-3B (April 2025): Due by 20th May 2025
- CMP-08 (Q1 for Composition Dealers): Due by 18th July 2025
Tip: Use Efiletax’s reminder tool to avoid interest/penalty for late filing.
Expert Tip of the Week
“Always verify refund rejections against bare law, not just circulars. Courts continue to strike down overreach.”
Weekly GST updates for May 05, 2025 include CBIC’s restaurant clarification, GSTAT appeal fee rules, MADA mining royalty verdict, and Gujarat HC’s ruling against refund denial circular. Know how these developments affect your filings, refunds, and future compliance.