Gujarat High Court Allows Refund of “Accumulated Credit on Input Service” in case of “Inverted Duty Structure”

The Landmark judgement by Gujarat High court on July 24, 2020, has come out with relief for many industries functioning in the field of textiles, railway locomotives and parts, handlooms, solar modules, e-commerce, etc. as it was held that by prescribing the formula in sub-rule 5 of Rule 89 of the CGST Rules,2017 to exclude refund of tax paid on ‘input service’ as part of the refund of unutilized input tax credit is contrary to the provisions of Sub-section 3 of Section 54 of the CGST Act,2017 which provides for a claim of refund of ‘any unutilized input tax credit’. For more details on the facts and decision, please refer to the attached note:- Gujarat High Court Judgement-Refund of Input Services in case of IDS


This document has been prepared in summary form by Dewan P. N. Chopra & Co. based on the High court judgement as indicated above. For further details, please refer to the said Judgement as per the link attached above. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of such information. Readers should conduct and rely upon their own examination, investigation, and analysis and are advised to seek their own professional advice. The information and data contained herein are not a substitute for the recipient’s independent evaluation and analysis. This document is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies on it.

This entry was posted in GST. Bookmark the permalink.