Union of India & Ors. Vs Tirth Agro Technology Pvt. Ltd
Date: July 18, 2025
Court: Supreme Court
Type: Special Leave Petition
Judge(s)/Member(s): MANOJ MISRA, UJJAL BHUYAN
Subject Matter
Retrospective GST Refund Formula for Inverted Duty Structure Upheld
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…
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…