The Jharkhand High Court declared the amendment to Clause 7.5 of The Jharkhand Industrial Investment and Promotion Policy, 2016, which restricts reimbursement of State GST paid on goods if Input Tax Credit is claimed by subsequent taxable persons, as arbitrary and without jurisdiction. The court held that such conditions destroy the acquired right of the petitioner and make the incentive illusory, leading to a lack of confidence among investors. This condition was inserted by several states in their policies post-GST implementation, resulting in non-payment of incentives. The court’s decision is expected to revive such cases.
Source Darda Advisors LLP
