ThynkTax /Tax Reference /Case Laws /VKC Footsteps (Inverted duty refund)

VKC Footsteps (Inverted duty refund)

Supreme Court of India·2021·GST
Facts

Refund of unutilised ITC where input GST rate exceeds output GST rate (inverted duty structure).

Issue

Whether ITC accumulated on input services is refundable along with that on input goods?

Held

No. Section 54(3) limits refund of unutilised ITC to that arising on input goods alone, not input services.

Ratio

Statutory restriction on refund cannot be rewritten by courts.

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