Inverted Tax Refund – foundation shaken by Judiciary!

by | Aug 20, 2020 | Articles

NITYA Tax Associates is proud to present their recent write-up in the ‘Article’ series on trending indirect tax issues. A gist of the next article in the series is as under:

Article 46 – “Inverted Tax Refund – foundation shaken by Judiciary!”

Section 54 of the Central Goods and Services Tax Act, 2017 deals with refund. Section 54(3) allows taxpayer to claim refund of unutilized Input Tax Credit (‘ITC’) where rate of tax on inputs exceeds rate of tax on output. Rule 89(5) of the Central Goods and Services Tax Rules, 2017 prescribes formulae to compute refund of unutilized ITC due to inverted tax structure (‘ITS’). The validity of Rule 89(5) was challenged before the Gujarat High Court in the case of VKC Footsteps India Pvt. Ltd. vs. UOI to the extent it denied refund of unutilized ITC on input services due to ITS.

Through this article, our Managing Partner, Mr. Puneet Bansal and Associate Director, Mr. Gaurav Narula have discussed far-reaching implications of Hon’ble High Court judgement on ITS refund claims along with time limit restrictions.

Please click below to read our article titled Inverted Tax Refund – foundation shaken by Judiciary! on the issue.

NITYA I Article 46 I Inverted Tax Refund – foundation shaken by Judiciary!

Trust you find this to be an interesting read.

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