Union of India Vs VKC Footsteps India Pvt. Ltd.
Date: September 13, 2021
Court: Supreme Court
Type: Civil Appeal
Judge(s)/Member(s): Dr Dhananjaya Y Chandrachud, M R Shah
Subject Matter
Inverted duty refund only for inputs, not input services
Summary
The Division Bench of the Gujarat High Court having examined the provisions of Section 54(3) and Rule 89(5) held that the latter was ultra vires. In its decision in VKC Footsteps India Pvt. Ltd. (supra), the Gujarat High Court held that by prescribin…
A Introduction 1 Parliament while enacting the Central Goods and Services Tax Act 2017,1 has incorporated a provision for refund of tax in Section 54. Sub-Section (3) embodies a provision for refund of unutilised input tax credit2 in cases involving: (i) zero rated supplies made without payment of tax; and (ii) credit accumulation “on account of rate of tax on inputs being higher than rate o…