E-commerce cos fret over Madras HC ruling on GST refunds on service inputs

Businesses such as e-commerce, which face higher goods and services tax (GST) on raw materials than on finished goods, are now in a quandary over whether or not they will get refunds on taxes paid on services. Contrary to an earlier Gujarat verdict, the  Madras high court  has held rule 89(5) inserted by the government under the CGST Act on restricting such input tax refunds as valid. Th…