Supreme Court allows govt appeal against giving Airtel Rs 923 crore as GST refund
The Supreme Court on Thursday allowed the Government's appeal against the Delhi High Court's 2020 order which allowed the telco to claim Rs923 crore refund by rectifying its GST returns for July to September 2017.
The government had moved the Supreme Court against Delhi High Court’s May 5 order which allowed Bharti Airtel to claim Rs 923 crore as refund of excess Goods and Services Tax (GST) returns filed by the telecom company in July-September 2017.
The petition has been filed against four respondents -- Bharti Airtel, the GST Council through its secretary, commissioner through the finance ministry's department of revenue commissioner and the Central Board of Indirect Taxes and Customs (CBIC) via its chairman.
In May, the HC had directed the government to verify the excess GST claim within two weeks of the order and refund the amount to Bharti Airtel.
The Sunil Mittal-led carrier had pleaded that it had paid an excess amount of Rs 923 crore as tax since the GSTR-2A form was not operational during the error period. However, the government claims that Airtel had under-reported input tax credit from July to September 2017.
“Since there were no checks on Form GSTR-3B, which was manually filled by the petitioner, the excess payment of tax went unnoticed,” said a copy of the high court order delivered May 5. It added that Airtel “desires to correct its returns,” but is being prevented from doing so as there is no enabling statutory procedure implemented by the government.
Accordingly, the high court has directed that on the filing of a rectified Form GSTR-3B, “the respondents (read: Union of India) shall within two weeks, verify the (Airtel's) claim” and give effect to the same once verified”.
