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SC asks GST Council to look into anomalies related to refund assessment formula

SC asks GST Council to look into anomalies related to refund assessment formula

The Supreme Court (SC) has asked the Goods and Services Tax (GST) Council to take note of anomalies in the present act and look into the assessment formula for claiming refunds.


While pronouncing its judgement, the SC said, “Provisions of Article 246a are available to both parliament and state. Article 246a embodies the constitutional principle of simultaneous levy.”

“Cannot expand the regime beyond what the legislature has provided. Anomalies in the law is a matter of legislative policy. GST council should take note of the anomalies,” the court added.

The case is primarily related to claims of GST refunds and unutilised input tax credit (ITC). Citing the law under the GST Act, the court said refund of the input tax credit will be in specific conditions.

The court said that the legislature has made the distinction for claims of refunds clear and added: “With reference to exports, the ITC on input goods and input services brought in the fold of the Act in contrast with domestic supplies.”

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