Denial of ITC refund on the grounds of technical glitches in GSTN software is unfair

Last updated: 14 May 2021

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in Tvl. Mehar Tex v. the Commissioner of CGST & Ors. [W.P.(MD) Nos. 22996, 22999 & 23001 of 2019 and W.M.P.(MD) Nos. 19733, 19736 & 19739 of 2019 dated March,18 2021] set aside the order rejecting refund claim of CGST and IGST of the assessee wherein, the entire refund liability of Input Tax Credit ('ITC') got auto populated under a single head i.e. State Goods and Services Tax ('SGST') instead of SGST, Central Goods and Service Tax ('CGST') and Integrated Goods and Services Tax ('IGST'). Held that, if the assessee was otherwise eligible to refund, the refund claim ought not to be denied on the ground of technical glitches and error occurred due to auto-population in Goods and Service Tax Network ('GSTN') software. Nothing can be more unfair.

Citation :
W.P.(MD) Nos. 22996, 22999 & 23001 of 2019 and W.M.P.(MD) Nos. 19733, 19736 & 19739 of 2019 dated March,18 2021