Gujarat HC reads down Explanation to GST Rule denying Refund of ‘Unutilized Input Tax’ paid on ‘Input Services’ as part of ITC

A two-judge bench of the  Gujarat High Court  has categorically held that the Explanation (a) to Rule 89(5) of the CGST Rules which denies the refund of “unutilized input tax” paid on “input services” as part of “ input tax credit ” accumulated on account of inverted duty structure is ultra vires the provision of Section 54(3) of the CGST Act, 2017. The bench further noted that the net &…