ITC for different financial years can be clubbed together for claiming refund under Rule 89(4) of the CGST Rules

Last updated: 04 January 2024

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The Bombay High Court has ruled that businesses can combine Input Tax Credit (ITC) from different financial years when claiming refunds under Rule 89(4) of the CGST Rules. This decision follows a case where a company was initially ordered to repay a sanctioned refund. The court referenced Circular 135/05/2020-GST, which clarifies that restrictions on grouping refund claims across financial years do not apply. Consequently, the earlier order against the company was set aside, and the appeal was to be reconsidered.

Court :
Bombay High Court

Brief :
The Hon'ble Bombay High Court in the case of M/s. Sine Automation and Integration (P.) Ltd v. Union of India [Writ Petition No. 4655 of 2023 dated November 29, 2023] allowed the writ petition and held that, as per Circular 135/05/2020-GST, dated March 31, 2020, ITC for different financial years can be clubbed together for claiming refund under Rule 89(4) of the Central Goods and Services Tax Rules, 2017 ("the CGST Rules").

Citation :
Writ Petition No. 4655 of 2023 dated November 29, 2023

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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