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A taxpayers is prevented from claiming refunds when individual components (minor heads) of a demand showed negative balances and the overall cumulative balance was zero or positive. Now, the changes has been implemented wherein refund can be allowed irrespective of overall positive balance..
The Hon’ble Gujarat High Court in Atul Limited & Anr held that refund of unutilised compensation cess on coal used in the manufacture of exported goods is admissible, even where IGST was paid on such exports.
The Hon’ble Calcutta High Court in DYS Impex Private Limited held that refund denial based on Section 16(4) of the CGST/ WBGST Act could not be sustained in light of the retrospective insertion of Section 16(5), which extended the timeline for availing input tax credit (ITC) for initial 4 FYs, starting from 2017-18 to 2020-21 up to November 30, 2021.
The Hon’ble Supreme Court in the case of Union of India & Ors. held that no interference was warranted with the Gujarat High Court’s judgment granting refund based on the modified formula of Inverted Duty Structure (IDS) Refund under Rule 89(5) of the CGST Rules.
The Hon’ble Supreme Court in UOI& Ors. dismissed the SLP against Delhi High Court’s ruling that revisionary powers under Section 108 of the CGST Act cannot be exercised to stay refund orders, absent a finding of error or impropriety.
The Hon’ble Delhi High Court in the case of Delhi Metro Rail Corporation Ltd. held that where excess GST becomes ascertainable only after a conciliation settlement having the force of a decree, the limitation for refund runs from the date of such settlement under Explanation 2(d) to Section 54; hence, rejection of DMRC’s refund claim as time‑barred was unsustainable.
Zero-rating is an often misunderstood concept, and it is much wider than merely not charging or collecting tax on an event. Zero-rating aims to eliminate not only the tax on the output, but also the taxes paid on the input, and zero-rating of exports is permissible under World Trade Organization (WTO) regulations.
The Hon’ble Delhi High Court in the case of Ramesh Kumar Wadhera held that where serious allegations of fraudulent availment of IGST refunds are levelled against the Petitioner, and opportunity of hearing was available but not availed, writ jurisdiction under Article 226 could not be invoked and the Petitioner must approach the appellate authority under Section 107 of the CGST Act.
5 edition, 2025 Book : GST Refund a Practical Guide by Commercial Law Publishers is available now
DGTS Delhi Zone Unit is conducting and inviting you to PAN India Webinar on topic “Refund under GST & Customs” by Faculty CA Adv Arup Dasgupta on 25.06.2025 at 3 PM
