GST Refund of IGST on ocean freight is allowed if filed after the Notification was struck down

Last updated: 28 November 2024

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Quick Summary

The Gujarat High Court has ruled that a refund of Integrated Goods and Service Tax (IGST) paid on ocean freight is permissible, even if the refund application was filed after the statutory time limit. This decision applies when the tax was paid based on a notification that was later struck down by the Supreme Court. The court found that the refund application was filed within a reasonable time after the notification was invalidated, thus quashing the rejection orders.

Court :
Gujarat High Court

Brief :
The Hon'ble Gujarat High Court in the case of H K Enterprise v. Union of India & Ors [R/Special Civil Application No. 14119 of 2024 dated November 27, 2024] quashes rejection of refund application of Integrated Goods and Service Tax ("IGST") paid on ocean freight filed subsequent to Notification No.10/2017-IT (Rate) dated June 28, 2017("the Reverse Charge Notification") being struck down by Hon'ble Supreme Court in Mohit Minerals case on ground of time bar. Assessee's refund claim for the unutilized GST paid on Ocean Freight under the Reverse Charge Mechanism ("RCM") for June 2018 was rejected because it was found to be filed after the statutory two-year period from the relevant date, following judgment in Mohit Minerals case. Accordingly, it was held that the application for refund having been filed within a reasonable time thereafter, cannot be held to be time barred and the writ petition was allowed by quashing the orders.

Citation :
R/Special Civil Application No. 14119 of 2024 dated November 27, 2024

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