Jharkhand HC Directs GST Dept to Refund INR 1.23 Crore to Tata Steel

The Jharkhand High Court has directed the department to refund Rs.1,23,22,617 in GST to Tata Steel, which operates the largest steel plant in Jamshedpur, Jharkhand.

The business claims the Input Tax Credit (ITC) on Compensation Cess paid for the purchase of coal, a vital raw material, under section 8(2) of the Goods and Services Tax (Compensation to States) Act, 2017.

Determining that the refund was refused by the State on extraneous grounds, the division bench of Chief Justice MS Ramachandra Rao and Justice Deepak Roshan ordered the company to be paid specified interest u/s 56 of the Central Goods and Services Tax Act, 2017.

5 reasons are provided by the respondent authorities on which the application of Tata for a refund was rejected.

Regarding the first point about the non-furnishing of the payment receipt within 180 days of export, the Jharkhand High Court noted that proof of payment is only necessary for the export of services, not for goods. This is in accordance with Rule 89(2)(b) and Rule 89(2)(c) of the CGST Rules.

Source : https://blog.saginfotech.com/jharkhand-hc-directs-gst-dept-refund-inr-1-23-crore-tata-steel#