IGST Refund on Ocean Freight Allowed if Filed Post-Notification Struck Down
The Gujarat High Court, in H K Enterprise v. Union of India & Ors (R/Special Civil Application No. 14119 of 2024, dated November 27, 2024), ruled that refund applications for IGST paid on ocean freight under the Reverse Charge Mechanism (RCM) can be processed even if filed after the statutory time limit, following the Supreme Court’s Mohit Minerals judgment striking down Notification No. 10/2017-IT (Rate).
Key Takeaways:
Reverse Charge Notification Struck Down: The Supreme Court invalidated the Notification in May 2022.
Reasonable Time Allowed: Refund claims filed after this judgment, within a reasonable timeframe, cannot be rejected as time-barred.
Taxpayer’s Rights Upheld: The Court quashed the rejection of the refund for June 2018, ensuring fair treatment.
SEO Optimized Summary:
Taxpayers can now claim IGST refunds on ocean freight paid under RCM if filed after the Notification was struck down, as per the Gujarat High Court. Filing refunds within a reasonable time following the Mohit Minerals ruling ensures compliance without statutory time barriers.
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