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  • Exporter entitled to IGST refund despite availing higher drawback rate; circula…

    Goods & Services Tax,Mar. 02, 2021

    The case involved an exporter, M/s Amit Cotton Industries, who had exported goods and paid Integrated Goods and Services Tax (IGST). They claimed a refund of the IGST paid but were denied by the customs authorities because they had availed a higher drawback rate. The High Court of Gujarat ruled in favor of the exporter, stating that availing a higher drawback rate was not a valid ground to withhold the IGST refund, and a circular issued by the gove…

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  • Gujarat HC rules - denying refund of unutilized input tax credit on input servi…

    Goods & Services Tax,Apr. 25, 2024

    The case revolves around several petitioners, including VKC Footsteps India Pvt. Ltd., who challenged the validity of Rule 89(5) of the Central Goods and Services Tax (CGST) Rules, 2017, which denied refund of unutilized input tax credit on input services in cases of inverted duty structure. The Gujarat High Court ruled in favor of the petitioners, holding that the restriction imposed by the Rule is ultra vires (beyond the scope) of Section 54(3) o…

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  • Delhi High Court acquits Assistant Commissioner of Sales Tax in bribery case, c…

    Goods & Services Tax,Mar. 03, 2021

    The Delhi High Court overturned the conviction of P.C. Mishra, an Assistant Commissioner of the Sales Tax Department, who was accused of demanding a bribe of Rs. 4,000 from a complainant, Gulshan Sikri, for favoring him in a pending appeal. The court found that the prosecution failed to prove the demand, acceptance, or recovery of the bribe from Mishra beyond a reasonable doubt.

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  • Goods & Services Tax,Apr. 11, 2024

    Deemed exports refer to the supply of goods manufactured in India that are treated as exports under GST, even though the goods do not physically leave the country. These supplies are notified by the government and must meet certain conditions, such as payment in Indian rupees or convertible foreign exchange. While deemed exports are not automatically zero-rated, suppliers can claim a refund of the GST paid on these supplies. The concept aims to pro…

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  • Goods & Services Tax,Mar. 08, 2024

    In a shocking turn of events, the Central Bureau of Investigation (CBI) has arrested a Central Goods and Services Tax (CGST) Inspector from Jaipur, along with two private individuals acting as middlemen. The trio stands accused of demanding and accepting a bribe of Rs. 10 lakh to resolve a pending matter within the CGST department. This case highlights the pervasive issue of corruption within government agencies and underscores the need for stringe…

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You can request a REFUND of accumulated ITC in cases where input tax rate is hi…

The Kerala High Court ruled in favor of Malabar Fuel Corporation, allowing them to claim a refund of accumulated input tax credit (ITC) under Section 54(3)(ii) of the Central Goods and Services Tax (CGST) Act. The court held that a refund cannot be denied solely because the input and output supplies are the same, as long as the input tax rate is higher than the output tax rate.

Goods & Services Tax,Apr. 11, 2024
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  • Goods & Services Tax,Apr. 25, 2024

    The case revolves around a registered dealer, M/s Alok Traders, who sought interest on a delayed refund of the amount deposited for the release of goods under Section 129 of the CGST Act, 2017. The Allahabad High Court ruled in favor of the assessee, directing the revenue authorities to pay interest for the period from September 9, 2018, to March 31, 2022, at the rate notified under Section 56 of the CGST Act.

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  • Goods & Services Tax,Feb. 20, 2021

    The Gujarat High Court dismissed a petition challenging the constitutional validity of Section 13(8)(b) of the Integrated Goods and Services Tax (IGST) Act, 2017. The petitioner, an association of recycling industries, argued that the provision, which treats the location of the service provider as the place of supply for intermediary services, is unconstitutional and ultra vires. However, the court upheld the provision, stating that it is within th…

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Goods & Services Tax,Apr. 25, 2024

The case involved a company, M/s Chromotolab and Biotech Solutions, that filed a refund claim electronically on the common portal within the prescribed time limit. However, the tax authorities rejected the claim as time-barred because the physical submission of the application and documents happened after the due date, as per a circular. The High Court of Gujarat ruled in favor of the company, directing the authorities to re-credit the refund amoun…

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Exporter allowed to claim GST refund for tax periods across two financial years…

The Delhi High Court ruled in favor of an exporter, M/s. Pitambra Books (P.) Ltd., allowing them to claim a GST refund for tax periods spanning two financial years. The court quashed a circular issued by the Central Board of Indirect Taxes and Customs (CBIC) that restricted refund claims to a single financial year, calling the restriction arbitrary and contrary to the GST law.

Goods & Services Tax,Feb. 25, 2021
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