Case Laws

CIRCULARS

Circular No.	Subject
Circular No.56/30/2018-GST, dt.24.08.2018	Clarification regarding removal of restriction of refund of accumulated ITC on fabrics.
Circular No. 181/13/2022-GST dt.10/11/2022	Clarification on refund related issues
Circular No. 173/05/2022-GST dt.06/07/2022	Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification
Circular No.18/18/2017-GST dt.16.11.2017	Clarification on refund of unutilized input tax credit of GST paid on inputs in respect of exporters of fabrics

COMMUNITY INSIGHT

Topics

Publish Date

Rule 89(5) Refund Formula Under GST: From Litigation to Resolution?

The Goods and Services Tax (GST) framework in India is designed to avoid cascading taxes and enable smooth flow of input tax credit (ITC). However, refund mechanisms—particularly under inverted duty structures—have witnessed considerable litigation. At the centre of this controversy lies Rule 89(5) of the CGST Rules and its retrospective amendments, raising critical questions about fairness, legislative intent, and taxpayer rights..................... Read More

31.05.2025

Concept of Inverted Duty Structure

Under GST law there are different types of GST rates like 5%, 12%, 18% & 28% etc. The applicable rate of tax on specific goods would depend upon the description of the goods/products. Similarly there are different rates of tax which are applicable of services depending upon the services. Since there are different type of rates, hence sometime the situation arises where the rate of tax on purchases of inputs are higher than the applicable........... Read More

25.07.2024

CASE LAWS

Authority	One liner
2025(02)LCX0357 Gujarat High Court Patanjali Foods Limited	Court struck down para 2 of the Circular No. 181/13/2022-GST dated 10.11.2022 as discriminatory and ultra vires, holding that the assessee's refund application, filed within the statutory period, cannot be denied due to the notification's prospect
2024(07)LCX0058 Madras High Court Eveready Spinning Mills Private Limited	Refund under the Inverted Duty Structure rejected by relying on para 3.2 of Circular No.135/05/2020-GST is unsustainable due to its strike down as ultra vires.
2024(01)LCX0275 Kerala High Court Malabar Fuel Corporation	Refund of credit accumulated to a dealer as a result of higher tax on inputs than the output supplies, even when the input and output supplies are one and the same
2021(09)LCX0015 Gauhati High Court BMG Informatics Pvt Ltd
2021(09)LCX0011 Supreme court of india VKC Footsteps India Pvt Ltd