Now Reading: SC: Pending IGST refund claims valid after rule omission
-
01
SC: Pending IGST refund claims valid after rule omission
The Supreme Court has ruled that exporters whose IGST refund applications were pending when the government omitted Rule 96(10) of the CGST Rules in October 2024 are entitled to a refund without…
The Story in Brief
The Supreme Court has ruled that exporters whose IGST refund applications were pending when the government omitted Rule 96(10) of the CGST Rules in October 2024 are entitled to a refund without any restrictions. The court observed that the rule, which had barred refunds for those availing exemption schemes like Advance Authorisation and EPCG, was removed without a saving clause, meaning it effectively never existed. Consequently, pending claims cannot be denied.
A bench of Justices JB Pardiwala and K Vinod Chandran directed that the order be circulated to all High Courts, where conflicting decisions on the issue had been passed. The court expressed hope that this judgment would bring quietus to the controversy. Livelaw reports that many proceedings were pending across various high courts on this matter.
The Indian Opinion
Lazy narratives will paint this as either a giveaway to exporters or proof that the government is anti-business. Neither holds up. The court noted the rule caused 'unnecessary complications', a view the government itself endorsed by omitting it without a saving clause. The test now is how quickly High Courts clear the backlog of pending cases. Will the government tighten other rules to compensate? That question matters more than finger-pointing.
Source: livelaw.in
This story was synthesised by AI from the source linked above.
