GST WEEKLY UPDATE :24/2026-27 (13.09.2026) By CA Vipul Khandhar

Reading Time: 13 minutes

-By CA Vipul Khandhar, Ahmedabad

1. GSTN Enables Filing of Appeals Against NIL or Zero Demand Orders: Enabling Filing of Appeals in Cases Involving NIL or Zero Demand Amount – Reg. Date: 7 September 2026:

Background

The Goods and Services Tax Network (GSTN) has introduced an important facilitation on the GST Portal concerning the filing of appeals against demand orders in cases where the demand amount is reflected as “NIL” or “Zero”, although a substantive dispute regarding tax liability exists.

The issue generally arises in cases where the taxpayer has paid the disputed amount prior to issuance of the demand order. Consequently, while the adjudicating authority determines or confirms the liability in the order, the amount appearing as outstanding demand may be reflected as NIL or Zero on the GST Portal.

Earlier Portal Validation

Previously, the GST Portal contained a validation that restricted taxpayers from filing an appeal against demand orders where the demand amount was reflected as NIL/Zero.

This created a practical difficulty in cases where the taxpayer continued to dispute the underlying determination of liability, notwithstanding the fact that the amount had already been paid before the demand order was issued.

Thus, the absence of an outstanding demand did not necessarily mean that the taxpayer had accepted the determination contained in the adjudication order. Nevertheless, the portal validation prevented the taxpayer from exercising the statutory appellate remedy electronically.

GSTN Facilitation

GSTN has now removed the aforesaid validation from the GST Portal.

Accordingly, taxpayers are now enabled to file an appeal in Form GST APL-01 even where the relevant demand order reflects a NIL or Zero demand amount, provided the taxpayer otherwise has a dispute or grievance against the order.

The facility is particularly relevant where payment has already been made by the taxpayer before issuance of the demand order and, as a consequence, the portal reflects no outstanding demand.

Practical Significance

The change is significant from the perspective of taxpayers who seek to challenge the determination of liability, rather than merely the recovery of an outstanding amount.

The existence of a NIL/Zero demand figure on the portal should not, by itself, be understood as extinguishing the taxpayer’s right to challenge an adjudication order where the taxpayer disputes the underlying tax liability, interest, penalty or other adverse findings contained therein.

The removal of the portal validation therefore addresses an important procedural and technological impediment and enables taxpayers to pursue

2. GSTN enables auto-population of registration details for additional GST registration under same PAN: GSTN Advisory dated 10-9-2026:

GST — Registration — Additional registration under same PAN — FORM GST REG-01 — Auto-population of details from existing active GSTIN — Facility available from 1-9-2026 — PAS authentication through OTP — Details editable after auto-population — HELD/CLARIFIED: Eligible applicants having an active GSTIN under same PAN can use existing registration data while applying for additional registration in same or another State

The Goods and Services Tax Network (GSTN) has introduced a new auto-population facility in FORM GST REG-01 to simplify the process of obtaining an additional GST registration for taxpayers who already possess an active GSTIN under the same PAN.

The facility has been made available on the GST Portal with effect from 1-9-2026 and is intended to reduce repetitive data entry and make the registration process faster, more convenient and less prone to manual errors.

Eligibility

The facility is available where the applicant already holds an active GSTIN under the same PAN and seeks another GST registration.

The additional registration may be required in the same State or in another State, subject to fulfilment of the applicable provisions and registration requirements under GST law.

Procedure for auto-population

While completing Part-B of FORM GST REG-01, an eligible applicant can select:

“Yes – Auto-Populate Details”

Upon selection of the facility, the GST system permits eligible information available against the applicant’s existing active GSTIN to be used for the new registration application.

As an authentication safeguard, the Primary Authorised Signatory (PAS) of the existing GSTIN.

3. 3. GSTN introduces contextual guidance in FORM GST REG-01 for simplified GST registration: GSTN Advisory dated 10-9-2026:

GST — Registration — FORM GST REG-01 — Contextual Guidance — Field-level information messages and tooltips introduced on GST Portal — Facility available from 1-9-2026 — Objective to facilitate accurate and user-friendly filing of registration application

The Goods and Services Tax Network (GSTN) has introduced a Contextual Guidance facility in FORM GST REG-01 with a view to simplifying the process of obtaining GST registration and assisting applicants in understanding the information required to be furnished in the registration application.

The facility has been made available on the GST Portal with effect from 1-9-2026.

Contextual guidance at relevant fields

Under the existing registration mechanism, applicants are required to furnish extensive information in FORM GST REG-01. In several cases, an applicant may require clarification regarding the nature or scope of information sought in a particular field.

With the introduction of contextual guidance, the GST Portal will now provide relevant information messages at appropriate fields while the applicant proceeds through FORM GST REG-01.

The guidance is embedded within the application itself and is intended to explain the information required to be furnished in the relevant field.

Thus, instead of requiring applicants to separately search for instructions or other reference material, the portal provides assistance at the point where the information is required to be entered.

Tooltip-based assistance

The facility also incorporates tooltips providing additional guidance.

Applicants can hover over the relevant field to obtain supplementary information concerning the requirement of that particular field.

The functionality therefore follows a simple approach of:

“Hover – Learn – Proceed”

The objective is to enable the applicant to understand the requirement before furnishing the relevant particulars and thereby reduce avoidable errors.

Applicability

The facility is available to applicants undertaking GST registration through FORM GST REG-01 on the GST Portal.

As the applicant proceeds through the registration application, contextual information is displayed against relevant portions of the form. Additional assistance can be obtained through the tooltips wherever provided.

The applicant can accordingly:

1. initiate the GST registration application in FORM GST REG-01;
2. review the contextual information displayed against relevant fields;
3. use the tooltip facility for additional clarification;
4. furnish the required particulars based on the guidance provided; and
5. complete and submit the registration application.

Objective of the facility

The principal objective of the facility is to provide field-level assistance within the registration application itself.

The initiative is expected to reduce ambiguity concerning the information sought in individual fields and assist applicants in furnishing complete and accurate particulars.

The facility may particularly benefit first-time registrants and applicants who are not familiar with the terminology or information requirements contained in FORM GST REG-01.

Reduction in filing errors

Incorrect or incomplete information at the registration stage can result in subsequent correspondence, clarification requirements and avoidable delays in processing.

By making relevant guidance available while the applicant is completing the form, GSTN seeks to improve the quality and accuracy of information furnished at the registration stage.

The functionality may consequently help in:

• reducing ambiguity regarding individual fields;
• minimising incorrect or incomplete entries;
• reducing repetitive clarification requirements;
• saving time for applicants;
• improving the quality of registration

4. GST Portal Introduces Geo-Coordinate Based Auto-Population of State and Centre Jurisdiction for Easier GST Registration:

GST—Registration—FORM GST REG-01—Geo-coordinate based jurisdiction identification—GSTN introduces facility for auto-population/recommendation of State and Centre Jurisdiction based on Principal Place of Business

GSTN facilitates jurisdiction selection through geo-coordinates

In a significant technology-driven initiative aimed at simplifying the GST registration process, the Goods and Services Tax Network (GSTN), vide advisory dated 10 September 2026, has introduced a Geo-Coordinate Based Auto-Population of State and Centre Jurisdiction facility in FORM GST REG-01 on the GST Portal. The functionality has been made live with effect from 1 September 2026.

The facility seeks to address a practical difficulty frequently encountered by applicants at the time of GST registration, namely, identification of the appropriate State Jurisdiction and Centre Jurisdiction applicable to the Principal Place of Business.

Jurisdiction identification based on location

While filing an application for registration in FORM GST REG-01, the applicant is required to furnish details relating to the Principal Place of Business. Under the newly introduced functionality, the GST Portal utilises the location details and corresponding latitude and longitude coordinates of the Principal Place of Business to identify the jurisdiction applicable to the applicant.

Based on the geo-coordinate information furnished through the registration process, the system refers to the applicable jurisdiction database and recommends the best-matched State and Centre Jurisdiction.

Thus, instead of requiring the applicant to independently ascertain the appropriate jurisdiction from available jurisdictional information, the GST Portal now provides system-generated assistance based on the geographical location of the business premises.

Applicant retains flexibility to modify jurisdiction

An important feature of the facility is that the jurisdiction recommended by the GST Portal is not final or irrevocable. The applicant can review the jurisdiction suggested by the system and, wherever necessary, select another available jurisdiction from the relevant drop-down menu.

Accordingly, the functionality combines automated technology-based assistance with applicant-level flexibility. The applicant can either accept the jurisdiction recommended by the Portal or make an appropriate alternative selection, where circumstances so warrant.

Reduction in errors and processing difficulties

Incorrect selection of jurisdiction has historically been one of the practical issues encountered during the GST registration process. Such errors may result in applications being subjected to avoidable clarification requirements or processing delays.

The new geo-coordinate based facility is expected to substantially reduce the possibility of such errors by providing applicants with a location-based recommendation at the registration stage itself.

The system-driven identification of jurisdiction may also bring greater uniformity and consistency in the manner in which jurisdiction is selected by taxpayers having their Principal Place of Business at different locations.

Technology-enabled GST registration

The introduction of geo-coordinate based jurisdiction identification represents another step in the GSTN’s evolution.

5.    Important Judgements:

1. DH Maintenance Ltd. — Actual-cost electricity recovery from commercial occupants, including HVAC and common-area electricity, is excludible from taxable value when recovered without markup:[2026] — GST — West Bengal AAR:DH Maintenance Ltd. — WBAAR 37 of 2025-26 — Ruling dated 1-9-2026

Headnote

GST — Valuation — Pure Agent — Electricity charges recovered from occupants of commercial building — Applicant providing common-area maintenance and facility-management services — Electricity charges paid to CESC Ltd. and proposed to be recovered from occupants at actual cost without markup or profit — Electricity consumed in individual premises, including HVAC and non-HVAC consumption, proposed to be recovered on basis of sub-meter readings — Electricity consumed in common areas proposed to be apportioned amongst occupants according to super-built-up area — Whether such electricity charges could be excluded from value of maintenance services — HELD: Yes.

Though electricity was an integral component of maintenance and facility-management services supplied by applicant and applicant did not strictly satisfy the conventional conditions of a “pure agent” under Rule 33, para 3.3 of Circular No. 206/18/2023-GST dated 31-10-2023 specifically provides for treatment of electricity charges recovered at actual cost as pure-agent recovery. Where amount recovered from occupants is exactly the amount charged by electricity distribution company, without any profit or markup, electricity charges are liable to be excluded from value of taxable maintenance services. The same treatment would apply not only to electricity consumed in individual units, including HVAC consumption, but also to electricity consumed in common areas and apportioned among occupants on prescribed basis. Accordingly, actual-cost electricity recovery would not attract GST under proposed arrangement. [Paras ___]

Circular No. 206/18/2023-GST dated 31-10-2023, para 3.3; CGST Act, 2017, section 15; CGST Rules, 2017, rule 33.

Facts

The applicant, DH Maintenance Ltd., was engaged in providing common-area maintenance and facility-management services in respect of a commercial building situated in Kolkata.

For providing the maintenance and facility-management services, the applicant incurred expenditure towards electricity consumed in the building. Electricity was supplied by CESC Ltd., and the applicant proposed to recover the electricity charges from the occupants of the commercial premises.

The applicant proposed a revised billing arrangement under which electricity consumed in individual office premises for normal consumption as well as for heating, ventilation and air-conditioning (HVAC) would be recovered on the basis of respective sub-meter readings.

As regards electricity consumed in the common areas, the applicant proposed to allocate the corresponding electricity cost amongst the occupants on the basis of the super-built-up area of their respective premises.

Importantly, the applicant proposed to recover electricity charges at actual cost, without adding any markup, margin or profit.

For January 2026, the CESC electricity bill amounted to approximately ₹20.19 lakh for 1,96,520 kWh. Out of the said amount, approximately ₹10.24 lakh represented non-HVAC consumption in individual offices, ₹6.35 lakh represented HVAC consumption and ₹3.61 lakh represented common-area consumption.

The applicant approached the West Bengal Authority for Advance Ruling seeking clarity regarding the GST treatment of such electricity recovery.

Issue for Determination

The principal issue before the Authority was:

Whether electricity charges recovered from occupants at actual cost, without any markup or profit, including electricity charges relating to HVAC, non-HVAC and common-area consumption, could be excluded from the value of the applicant’s taxable maintenance and facility-management services by treating the applicant as a pure agent?

Applicant’s Contention

The applicant contended that electricity charges were merely being recovered from the occupants at the same amount as charged by CESC Ltd. No profit or markup was proposed to be retained by the applicant.

Accordingly, the electricity component represented only a reimbursement of the actual electricity expenditure and ought not to form part of the value of the maintenance services.

The applicant relied, inter alia, upon Circular No. 206/18/2023-GST dated 31-10-2023, which specifically deals with the taxability of electricity charges recovered by suppliers of renting and maintenance services.

Revenue’s Objection

The issue of electricity recovery had also arisen in earlier adjudication proceedings concerning the applicant for the financial years 2018-19 and 2019-20.

The Revenue sought to rely upon the earlier proceedings and questioned the proposed treatment of electricity charges as pure-agent recovery.

The Authority, however, distinguished the earlier proceedings on the ground that those proceedings related to the applicant’s existing billing pattern, whereas the present advance ruling concerned the proposed billing arrangement based on actual electricity consumption and recovery of the corresponding cost without markup.

Observations and Findings of AAR

The Authority noted that electricity supplied along with maintenance and facility-management services would ordinarily form part of a composite supply, in which case the tax treatment of the principal supply could extend to the electricity component.

The Authority further observed that the applicant did not strictly satisfy all the conventional requirements of a pure agent contemplated under Rule 33 of the CGST Rules, 2017.

In particular, electricity was an integral component of the overall maintenance and facility-management arrangement and was not merely an incidental expense incurred independently on behalf of the occupants.

However, the Authority placed particular reliance upon para 3.3 of Circular No. 206/18/2023-GST dated 31-10-2023.

The Circular provides a specific treatment for electricity charges recovered from occupants/lessees where the amount recovered represents the actual amount charged by the electricity distribution company.

The Authority held that the specific clarification contained in the Circular operates as a deeming provision for treating such recovery as being made in the capacity of a pure agent.

Consequently, where the applicant recovered from occupants exactly the amount charged by CESC Ltd., without adding any profit or markup, the electricity component could be excluded from the value of the maintenance and facility-management services.

Common-area electricity

A significant aspect of the ruling concerns electricity consumed in common areas.

The Authority accepted the applicant’s proposal to distribute the common-area electricity expenditure among occupants according to their respective super-built-up areas.

Thus, the benefit of the pure-agent treatment was not restricted to electricity directly consumed within individual office premises.

The Authority extended the treatment to the common-area electricity charges, provided the amount recovered represented the corresponding actual electricity cost and no markup or profit was added.

Ruling

The West Bengal Authority for Advance Ruling held that:

1. Electricity charges recovered from occupants at actual cost, without any markup or profit, could be excluded from the value of the applicant’s taxable maintenance and facility-management services.
2. Electricity consumed in individual premises, including HVAC and non-HVAC consumption, recovered on the basis of sub-meter readings, would qualify for such treatment.
3. Electricity consumed in common areas, apportioned amongst occupants according to their respective area, would also qualify for exclusion where recovered without any markup or profit.
4. The applicant would be regarded as acting in the capacity of a pure agent for the electricity component by virtue of the specific treatment provided under Circular No. 206/18/2023-GST.
5. Consequently, the actual electricity charges recovered under the proposed arrangement would not be liable to GST as part of the taxable maintenance service value.

Ratio Decidendi

Where a commercial-building maintenance/service provider recovers electricity charges from occupants at exactly the amount charged by the electricity distribution company, without adding any markup or profit, such recovery is liable to be treated as pure-agent recovery in terms of para 3.3 of Circular No. 206/18/2023-GST, notwithstanding that the electricity may otherwise constitute an integral component of the maintenance service; accordingly, such actual-cost electricity recovery, including common-area electricity apportioned amongst occupants, is excludible from the taxable value.

Significance of the Ruling

The ruling is significant because the Authority has distinguished between the general requirements of a pure agent under Rule 33 and the specific treatment prescribed by Circular No. 206/18/2023-GST for electricity recovered at actual cost.

The ruling therefore provides useful support to commercial property owners, facility-management companies, business centres and other maintenance-service providers who recover electricity expenditure from occupants separately.

A particularly important aspect is the treatment of common-area electricity. The ruling accepts that common-area electricity need not necessarily become taxable merely because it cannot be identified with the consumption of a particular occupant, provided the recovery represents the actual electricity expenditure and no markup is charged.

However, the ruling should be applied with caution. The benefit is closely linked to the factual arrangement considered by the AAR — namely, recovery of the actual amount charged by the electricity distribution company without profit or markup. Any margin, administrative charge, handling charge or other amount recovered over and above the actual electricity cost may require separate examination.

Further, an advance ruling is binding only on the applicant and the concerned jurisdictional officer, subject to the statutory framework. The issue may therefore continue to be litigated in other cases.

Editorial Note

The ruling provides a favourable interpretation for the commercial real-estate and facility-management sector and reinforces the practical relevance of Circular No. 206/18/2023-GST. Its most notable feature is the extension of the actual-cost/pure-agent treatment to common-area electricity, in addition to metered HVAC and non-HVAC consumption. At the same time, taxpayers should maintain a clear documentary trail establishing the corresponding CESC/DISCOM invoice, consumption/apportionment methodology, occupant-wise recovery and absence of any markup, so as to substantiate the exclusion from taxable value in the event of departmental scrutiny.

2. Naroda Enviro Projects Ltd. v. Union of India & Ors.: Gujarat High Court | 2026 Supreme (Online) (Guj.) 23991.

GST — Exemption — Charitable activities — Preservation of environment — Effluent treatment services provided by entity registered under section 12AA of Income-tax Act — Applicability of Notification No. 12/2017-C.T. (Rate) — Department invoking section 74 alleging fraud, wilful misstatement and suppression — SCN covering period 1-7-2017 to 12-5-2022 — Whether services provided by petitioner qualified for exemption — HELD: Yes; dominant object of petitioner having already been judicially recognised as preservation of environment, its activities fell within expression “charitable activities”; Notification No. 12/2017 specifically exempted services by an entity registered under section 12AA by way of charitable activities, including preservation of environment; Revenue could not ignore binding finding of earlier High Court judgment while issuing SCN — Whether invocation of section 74 was sustainable — HELD: No; no material establishing fraud, wilful misstatement or suppression with intent to evade tax; mere non-payment of tax, in absence of positive act of suppression, could not justify invocation of extended provisions of section 74 — Impugned SCN quashed.

GST — Charitable institution — Environmental protection — Effluent treatment/common effluent treatment plant — Preservation of environment constituted charitable activity — Nil-rate exemption under Notification No. 12/2017 applicable.

GST — Demand — Section 74 — Fraud/suppression — Mere non-payment of tax — Not sufficient — Positive act necessary to establish suppression or wilful misstatement — SCN alleging intent to evade tax without supporting material — Proceedings under section 74 unsustainable.

[Section 74 of CGST Act, 2017; Notification Nos. 11/2017-C.T. (Rate) and 12/2017-C.T. (Rate); section 12AA of Income-tax Act, 1961]

Facts

The petitioner, Naroda Enviro Projects Ltd., was engaged in activities relating to effluent treatment and environmental protection through its common effluent treatment facilities.

The petitioner was registered under section 12AA of the Income-tax Act, 1961. In an earlier judgment, the Gujarat High Court had examined the objects and activities of the petitioner and had held that its dominant object was preservation of environment, which constituted a charitable activity within the meaning of the applicable provisions of the Income-tax law.

Subsequently, the GST authorities conducted proceedings in respect of the petitioner’s activities and issued a show-cause notice dated 5 September 2023 covering the period from 1 July 2017 to 12 May 2022.

The Revenue proposed levy of GST, interest and penalty on the effluent treatment services supplied by the petitioner. The services were classified under SAC 9994, relating, inter alia, to sewage and waste collection, treatment and disposal and other environmental protection service.

Disclaimer:

This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.