GST Compendium August 2026



KEY DEVELOPMENTS

E-Way Bill enhancements deferred

GSTN has deferred the August 2026 changes, including Ship-To GSTIN validation and Closure. Pause related ERP work.

GSTAT appeal categories restructured

From 1 August 2026 appeals are reclassified, Bengaluru on three categories. Part-heard matters move, risking delays.

SIGNIFICANT JUDICIAL PRONOUNCEMENTS
SUPREME COURT

Section 74 notices need specific fraud allegations

In In G.R. Infra Projects: extended limitation needs clear facts in the SCN, not generic fraud claims.

SUPREME COURT

Merchant export concession strictly interpreted

In Time Technoplast: the 0.1% IGST benefit fails where goods route via a third-party facility.

ALLAHABAD HC

Portal-only service invalid after cancellation

Cancelled-registration taxpayers need not watch the portal; portal-only service may breach natural justice.

GSTAT

No Section 129 penalty on same-GSTIN transfers

Same-GSTIN stock transfers are not a supply, so the 200% detention penalty cannot apply.

GSTAT KOLKATA

Export ITC refunds upheld on documented exports

Documented exports keep their refunds; Revenue cannot raise new grounds beyond the SCN at the Tribunal.

RECOMMENDED ACTION POINTS
1

Hold E-Way Bill enhancement projects until GSTN issues revised timelines.

4

Review merchant export structures to ensure direct movement of goods.

2

Reassess pending GSTAT appeals under the new categorisation.

5

Examine ex-parte orders against cancelled registrations.

3

Review Section 74 notices issued after 28 February 2025.

6

Maintain export documentation to support ITC refund claims.

KEY ACTION

August 2026 saw important developments impacting GST litigation, merchant exports, procedural compliance and refund claims. Businesses should proactively review notices, appeal strategies and export structures to mitigate risk and preserve available tax benefits.