GST DAILY – 498 : Refund under inverted duty structure cannot be denied merely due to the same rate on principal input and output: HC

THE HON’BLE KARNATAKA HIGH COURT IN THE CASE OF Indian Oil Corporation Ltd. V/s Assistant Commissioner of Central Tax, decided on 20-8-2024

 👉 Issue:-

✔️ Can Refund under inverted duty structure would be denied merely due to the same rate on principal input and output?

👉 The Hon’ble High Court Judgement:-

✔️ Where accumulated ITC results from any inputs being taxed at higher rates than output supplies, refund under Section 54(3)(ii) cannot be denied merely because principal input and output attract same tax rate.

Section 54 of Central Goods and Services Tax Act, 2017