Un-utilized Input Tax Credit (ITC) remaining after payment of all tax, interest, and penalties must be refunded to the taxpayer upon closure of business: Sikkim High Court
In a significant ruling, the Hon’ble High Court of Sikkim has held that unutilized Input Tax Credit (ITC) remaining after payment of all tax, interest, and penalties must be refunded to the taxpayer upon closure of business, in line with Section 49(6) read with Section 54 of the CGST Act.
This judgment brings long-awaited relief to businesses that had to forgo their accumulated ITC in case of closure.
A welcome move that reinforces taxpayer rights and brings greater clarity to GST refund provisions.
Order attached for reference.
The copy of the order is as under:
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