“The order reinforces that such circular-based guidance cannot be disregarded in assessment proceedings,” said Amit Maheshwari, Managing Partner, AKM Global, a tax and consulting firm. He said that the stay will help preserve cash flows and reinforces the importance of consistent implementation of the circular, while the broader legal issue is being examined on meritsThe case came to the court a day after, the Bombay High Court also extended interim protection to Himesh Foods, the operator of the Mad Over Donuts chain in India, against a GST demand of ₹57.29 crore along with imposing additional penalties. The Directorate General of Goods and Services Tax Intelligence (DGGI) issued a show-cause notice alleging that over-the-counter sales of donuts could not be categorised as restaurant services. Thus, according to the tax authority, such sales were held liable to GST at 18%, instead of the 5% rate applied by the company.

Source: Indian Express January 24, 2026 13:28 UTC