GST WEEKLY UPDATE :4/2026-27 (26.04.2026) By CA Vipul Khandhar

-By CA Vipul Khandhar

1. GSTN Introduces Excel-Based IMS Offline Tool to Streamline Invoice Management:

In a continuous effort to enhance taxpayer convenience and facilitate ease of compliance, the Goods and Services Tax Network (GSTN) has officially launched the Invoice Management System (IMS) Offline Tool. Following the initial rollout of the online IMS dashboard in October 2024, this new utility enables taxpayers to manage their inward supplies with greater efficiency, allowing for actions on both individual and bulk invoices.

The Evolution of Invoice Management

The IMS was established to give recipient taxpayers a formal mechanism to take actions on invoices uploaded by suppliers via GSTR-1, GSTR-1A, or IFF. The system allows taxpayers to Accept, Reject, or Keep Pending these records.

The newly introduced IMS Offline Tool is an Excel-based utility designed to handle these actions in an offline environment, making it particularly useful for businesses with high invoice volumes.

Key Features and Validations

• Bulk Action Capability: The tool enables efficient processing of bulk invoices.
• Uniform Validations: The offline tool follows the same business rules and validations as the online IMS dashboard.
• Incremental Updates: Uploading a JSON file incrementally adds records to those previously uploaded; however, pre-existing records for the same GSTIN will be replaced or updated.
• Data Filters: The tool provides options to filter invoices based on relevant parameters, though these filters are cleared during the “Validate Sheet” action.

Workflow: How to Use the IMS Offline Tool

The process follows a structured “Download-Action-Upload” cycle:

1. Download and Setup

• Acquire the Tool: Navigate to Downloads > Offline Tools > IMS Offline Tool on the GST Portal.
• Prepare the File: The tool downloads as a zip file. Extract it, right-click the file properties to select “Unblock,” and enable macros upon opening the Excel utility.

• Download IMS Data: On the GST Portal, go to Services > Returns > IMS Dashboard > Offline to generate and download your IMS data JSON file.

2. Import and Action

• Import Data: Open the offline tool and click “Open Downloaded IMS JSON File” to auto-populate the invoice data.
• Take Action: For each record, select a status: Accept, Reject, Pending, or No Action. You may also add remarks where applicable.
• Validate: Click the “Validate Sheet” button to check for errors in each worksheet.

3. Generate and Upload

• Generate JSON: Once validated, click “Generate JSON File to Upload”. Note that if no changes were made to the imported records, the generated JSON will be empty.
• Upload to Portal: Log in to the GST Portal, navigate back to the IMS Dashboard > Offline section, and use the “Upload” tab to submit your generated file.

Handling Errors

If the portal identifies errors after an upload, the status will show as “Processed with Error”. Taxpayers can download this specific error report, open it in the offline tool to correct the highlighted records, and re-upload the corrected data.

System Requirement Note: As the tool is macro-enabled, users must ensure they are using a compatible version of Microsoft Excel and have enabled the necessary security permissions for the file to function.

Link of offline tool : https://www.gst.gov.in/download/ims

2. Navigating the GST Appellate Tribunal (GSTAT): A Step-by-Step Procedural Timeline:

The long-awaited operationalization of the GST Appellate Tribunal (GSTAT) marks a significant milestone in the GST dispute resolution framework. For taxpayers and practitioners, understanding the rigid timelines is critical to ensuring that substantive rights are not lost to procedural lapses.

Based on the latest procedural norms, here is a comprehensive guide to the GSTAT litigation lifecycle.

The Pre-Hearing Phase: Filing and Scrutiny

The journey begins once an order from the First Appellate Authority is received. The initial steps focus on the “perfecting” of the appeal.

1. Filing of Appeal (Form GST APL-05): The taxpayer must file the appeal on the GST Portal within 3 months from the date of the communication of the order being appealed.
2. Scrutiny & Defect Notice: Upon filing, the Registry/Registrar scrutinizes the documents. If any discrepancies are found, a notice for defects is issued.
3. Defect Compliance: The appellant is granted a window of 7 working days to rectify the defects mentioned in the scrutiny notice.
4. Extension for Rectification: If the defects are complex, the Registrar has the discretion to grant an extension for document rectification, up to a maximum limit of 30 days from the initial filing of the appeal.

The Pleadings Phase: Exchange of Documents

Once the appeal is admitted, the “battle of the briefs” commences between the Petitioner (taxpayer) and the Respondent (Revenue).

Contingency Procedures

The law accounts for specific situational changes that may occur during the pendency of the litigation:

• Death or Insolvency (Stage 8): In the unfortunate event of the death or insolvency of a party, an application to substitute the legal representative or assignee must be made within 60 days of the event.
• Rectification of Order (Stage 9): If there is a “mistake apparent from the record” in the final Tribunal order, an application for rectification can be filed within 1 month from the date of the final order.

The Final Outcome

Stage 10: Pronouncement of Order

After the final hearing is concluded, the Tribunal is mandated to pronounce its order within 30 days. It is important to note that this period excludes official court vacations.

3. Key Takeaways for Practitioners:

Strict Interpretation of “Working Days”: As per the GST law, “Working Days” specifically exclude Saturdays, Sundays, and notified holidays. Accuracy in calculating these dates is paramount to avoid the dismissal of appeals on limitation grounds.

Citation: The Hon’ble Gujarat High Court has clarified the scope of Section 17(5)(d) of the CGST Act, ruling that Input Tax Credit (ITC) cannot be blocked if no “construction activity” is undertaken. The Court quashed a Section 74 notice, holding that charges paid for the sub-division and transfer of leasehold rights are eligible for ITC when they are not linked to the construction of immovable property. Case Title: Niket Bipinbhai Patel v. Assistant Commissioner (A.E.) CGST Citation: [R/Special Civil Application No. 18068 of 2025]

1. Factual Matrix

• Business Activity: The Petitioner, a Non-Resident Indian (NRI), acquired leasehold rights for a GIDC plot to undertake sub-plotting and subsequent transfer of those rights to purchasers.
• Input Expenses: To facilitate the transfer, the Petitioner paid various statutory dues to GIDC, including sub-divisional charges, administrative charges, and transfer fees, all of which attracted GST.

• Compliance: The Petitioner discharged significant output GST liability (totaling ₹6.57 crores) in cash. A small amount of ITC (₹38.60 lakh) inadvertently utilized was voluntarily reversed via Form DRC-03.
• Departmental Action: The Revenue issued a Show Cause Notice (SCN) under Section 74(1), alleging that ITC on GIDC charges constituted “blocked credit” under Section 17(5)(d) and blocked ₹98,11,678 in the Petitioner’s Electronic Credit Ledger (ECL).

2. Core Issue

Whether ITC on GIDC charges for sub-division/transfer of leasehold rights is barred under Section 17(5)(d) in the absence of construction activity, and whether Section 74 proceedings were legally sustainable?

3. Observations & Findings of the Court

A. Misapplication of Section 17(5)(d)

The Court emphasized that a plain reading of Section 17(5)(d) restricts ITC only on goods or services received “for construction of an immovable property.” * It was undisputed that the Petitioner’s activity was limited to acquiring and transferring leasehold rights.

• Since the Revenue failed to establish any construction activity, the Court held that the restriction did not “even remotely” apply.
• The allegation was deemed a result of a “complete non-application of mind” by the authorities.

B. Invalid Invocation of Section 74

Section 74 requires the presence of fraud, willful misstatement, or suppression of facts to sustain a demand.

• The Petitioner had disclosed all transactions and even reversed inadvertently used credit via DRC-03 before the SCN was issued.
• The Revenue failed to prove any fraudulent intent; thus, the invocation of the extended period/penalty under Section 74 was unjustified.

4. Final Order:The Hon’ble High Court exercised its writ jurisdiction under Article 226 to:

1. Quash and set aside the SCN dated October 28, 2025.
2. Direct the Respondent to unblock the ITC of ₹98,11,678 in the Electronic Credit Ledger within three weeks.

Key Takeaway for Practitioners

This judgment reinforces that Section 17(5)(d) is not a blanket prohibition on ITC for all expenses related to immovable property. It is strictly tied to “construction.” Expenses incurred for administrative, statutory, or transfer purposes—where no building or structure is erected—remain eligible for ITC, provided they are in the furtherance of business.

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.