Reversal of Input Tax Credit (ITC) at midnight during search and seizure cannot be treated as voluntary payment of GST dues, the Gujarat High Court has said. It has also asked the tax department to issue a refund along with interest at 6 per cent. Experts feel such an action by the official was complete violation of CBIC circular and it should be avoided.
Advertisements
“We can notice that the action of the petitioner is termed to be voluntary and not have any element of voluntariness,” a division bench of Justices Sonia Gandhi and Sandeep N Bhatt said while disposing a petition by Shree Ganesh Molasses Trading Limited.
Read more at: THE HINDU business line
Share this content: