Delhi HC slams GST Department: Denying refund to widow after husband’s death, termed it is as “completely baseless“
The Delhi High Court recently in the case of Bhavna Luthra vs. The Assistant Commissioner, Range-8, CGST, Delhi & Ors. W.P.(C) 4551/2025 | Order dated April 11, 2025 has came down heavily on the GST Department for denying refund of ₹10.45 lakhs to Ms. Bhavna Luthra, the widow of a sole proprietor who had passed away.
Her late husband, Mr. Narain Das Luthra, was registered under GST. Post his demise, she applied for cancellation of registration and refund of excess balance in the Electronic Cash Ledger (ECL).
Despite a clear Court order in May 2024 directing refund/re-credit of the said amount, the GST Department failed to comply and shockingly passed an order refusing refund on the ground that she was “not a registered person.”
The High Court called the experience “harrowing” and the Department’s stand “completely baseless.” The Court observed as under:
“It is astonishing that despite the amount being in ECL, the refund has still not been given. The amount belongs to the Petitioner, and the GST Department cannot hold it back.”
The High Court directed the concerned GST officer to be physically present in Court on the next hearing (May 5, 2025). This case raises serious concerns about the lack of sensitivity and procedural fairness when dealing with refunds – especially involving legal heirs after a taxpayer’s death.
One may note that the Electronic Cash Ledger is a statutory instrument, and any legitimate balance therein must be refunded-even post-cancellation-when claimed by the legal heir.
The copy of the order is as under:
