Case LawSPECIAL LEAVE PETITION (CIVIL) Diary No.31632/2025
Union of India & Ors. Vs Tirth Agro Technology Pvt. Ltd
- Court:
- Supreme Court
- Date:
- July 18, 2025
- Type:
- Special Leave Petition
- Members:
- MANOJ MISRA, UJJAL BHUYAN
Subject
Retrospective GST Refund Formula for Inverted Duty Structure Upheld
Input Tax CreditRefundInverted Duty Structure
Summary
This batch of writ petitions challenges the rejection of refund applications based on Section 54(3) of the GST Act read with Rule 89(5) of the GST Rules. The petitioners, who had filed refund applications for unutilized Input Tax Credit (ITC) under a…
Judgement
Rule. 89(5) of the CGST Rules, 2017 In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:- Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods and services. Explanation: For the purposes of this sub…