Several landmark GST rulings, in a major development for taxpayers, in February 2026, have significantly clarified key issues relating to Input Tax Credit (ITC), refunds and the doctrine of mutuality.
The Kerala High Court delivered a crucial verdict by striking down provisions that sought to tax member-only welfare schemes under GST. The Court reaffirmed the doctrine of mutuality, holding that transactions between associations and their members cannot be treated as taxable supplies.
In another significant ruling, the Delhi High Court allowed ITC claims despite clerical errors such as incorrect GSTIN mentioned in invoices, emphasizing that genuine transactions should not be denied credit on technical grounds. Similarly, courts reiterated that ITC cannot be denied to bona fide purchasers merely due to supplier defaults in depositing tax.
On the refund front, the Supreme Court upheld taxpayers' rights by ruling that accumulated ITC prior to July 18, 2022, cannot be denied based on the date of filing refund applications. Courts also rejected additional procedural conditions imposed by tax authorities that are not backed by law.
Further, multiple High Courts recognized the impact of retrospective amendments under the Finance Act, 2024, allowing reconsideration of previously denied ITC claims due to time limits.
These rulings collectively strengthen taxpayer rights, limit arbitrary actions by authorities, and bring greater clarity to GST compliance and litigation in India.
Click here to download the compilation on Significant Judicial and Advance Rulings in GST
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