Britannia Industries Ltd. v. Union of India [2020] 42 GSTL 3 (High Court – Gujarat)

Assessee can claim refund, if he is unable to file utilised ITC available in Electronic Credit Ledger.


Facts:
 The petitioner a limited company, which is situated in Special Economic Zone (SEZ) filed an application for refund in Form GST RFD-01A with regard to the credit of IGST distributed by Input Service Distributor (ISD) for the services pertaining to the SEZ unit for an amount of Rs. 99,05,156/-for the year 2018-2019. It is the case of the petitioner that being a SEZ unit making zero rated supplies under the GST, the petitioner was not able to utilize the credit of the Input Tax Credit of IGST from its ISD and it was lying unutilized in the Electronic Credit Ledger of the petitioner.

Held: The High Court has held that the petitioner is entitled to claim refund of the IGST lying in the Electronic Credit Ledger as there is no specific supplier who can claim the refund under the provisions of the CGST Act and the CGST Rules as input tax credit is distributed by the input service distributor.

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