GST DAILY – 436 : Refund of interest and penalty ordered as ITC was allowed for delayed filing of return as per amendment made by Finance Act, 2024: HC

THE HON’BLE JHARKHAND HIGH COURT IN THE CASE OF Ram Constructions V/s Union of India

, decided on 7-12-2024

👉 Issue:-

✔️ Can Refund of interest and penalty would be allowed if ITC was allowed for delayed filing of return as per amendment made under clause (5) of section 16?

👉 The Hon’ble High Court Judgement:-

✔️ In view of clause (5) of section 16 inserted by Finance (No. 2) Act, 2024, with effect from 1-7-2017, an assessee would be eligible to take Input Tax Credit in respect of delayed returns filed for financial year 2017-18; interest and penalty levied on petitioner by respondents were to be refunded with 6 per cent interest from date of such collection till date of repayment.

Section 16 read with Rule 61 of Central Goods and Services Tax, 2017