HC: Gujarat HC allows refund of input services under inverted duty structure, reads down Explanation to Rule 89(5)
Gujarat HC reads down Explanation (a) to the Rule 89(5) to the extent it denies refund of ITC relatable to input services (by defining ‘Net ITC’ to mean input tax credit availed on inputs only) in case of inverted duty structure (IDS); Holds that the Explanation (a) of Rule 89(5) of the CGST Rules is contrary and ultra-vires to the provisions of Section 54(3) of the CGST Act; Notes that Petitioner is engaged in the business of manufacture and supply of...