Changes from the Tamil Nadu Commercial Taxes Department and rulings of the Madras High Court that matter to businesses here, newest first, each with what to do and the source.
GST
New GST appeal forums, and Tirupathur zone joins Vellore
Government orders of 16 October 2026 (G.O. (Ms) Nos. 157 and 158) add GST first appellate forums, including one at Kancheepuram, and merge four commercial-tax zones. Tirupathur zone is merged with Vellore, Kallakurichi with Villupuram, Mayiladuthurai with Thiruvarur and Tenkasi with Tirunelveli.
What to do: If you are in Ambur, Vaniyambadi or Tirupathur, expect GST correspondence from the Vellore zone. Appeals from the Kanchipuram area can now be heard in Kancheepuram.
Seized goods: the seizure cannot run on without confiscation proceedings
In Goal Closures v. State Tax Officer, the Madras High Court set aside seizure and prohibition orders made after a search, because the department had not proposed confiscation of the goods. A seizure has to be followed by confiscation proceedings to continue.
What to do: If goods have been held for long after a search, ask in writing whether confiscation has been proposed, and keep every letter.
Goods vehicles: no more random checks by roving squads
Under Circular No. 12/2026 of the Commercial Taxes Department (14 October 2026), roving squads become flying squads. A goods vehicle may be stopped only on specific intelligence, recorded in writing, and with the approval of an officer not below Joint Commissioner.
What to do: Keep the e-way bill and invoice with every load anyway; the documents still decide the outcome if a vehicle is stopped.
Late input credit for 2017-18 to 2020-21: relief where section 16(5) covers it
In Gold Youth Movement Recreation Club v. Assistant Commissioner (ST) (13 October 2026), the Madras High Court set aside a reversal of input tax credit on time-limit grounds because the claim fell within the extended period in section 16(5), and ordered the frozen bank account to be released. The department can still act on other issues such as excess or fake credit.
What to do: If you were asked to reverse credit for those years only because of the time limit, check the dates your returns were filed against the 30 November 2021 cut-off in section 16(5).
Return scrutiny: senior approval before suo motu notices and ex parte orders
Circular No. 07/2026-TNGST (25 June 2026) says suo motu scrutiny notices should not ordinarily be issued, except for cases like fake invoices or large mismatches. Before an ex parte order, the officer must try to reach the taxpayer by phone or email, send the notice by Speed Post, and get approval from a Deputy or Joint Commissioner above set amounts.
What to do: Keep the phone number and email on your GST registration current, so a notice reaches you before an order is passed.
