Refund claim should not be rejected due to deficiency of GST network/software

Last updated: 04 January 2023
Quick Summary
The Gujarat High Court has ruled that businesses should not have their Goods and Services Tax (GST) refund claims rejected because of technical deficiencies or errors within the GST Network (GSTN) software. In a case involving Aartos International LLP, the court found that the Revenue Department's software limitations should not prevent an assessee from receiving their rightful refund. Consequently, the court ordered the refund of IGST amounting to INR 19,94,994/- along with 6% interest.

Court :
Gujarat High Court

Brief :
The Hon'ble Gujarat High Court in Aartos International LLP v. Deputy Commissioner (Customs) [R/Special Civil Application No. 14649 of 2022, dated December 2, 2022] has held that the Assessees are not to be dragged to the Court when in fact there is nothing for the Court to adjudicate except pointing out to the limitation of the software of the Revenue Department, in a matter challenging the non-issuance of the refund. Further held that, refund claim should not be rejected due to the deficiency of Goods and Service Tax Network ("GSTN") and thus allowed the refund claim of the Integrated Goods and Services Tax ("IGST") with interest at the rate of 6 percent.

Citation :
R/Special Civil Application No. 14649 of 2022, dated December 2, 2022

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Bimal Jain
Published in GST
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