Patna High Court: GST Refund Period Starts from Correct Tax Payment Date

• Patna High Court ruled that GST refund limitation starts from the date of correct tax payment.
• A taxpayer mistakenly deposited GST under the wrong head for the financial year 2017-18.
• The taxpayer corrected the mistake and applied for a refund, which was initially rejected due to the limitation period.
• The court decided the limitation period should start from the correct tax payment date, not the mistaken one.
• The taxpayer is entitled to a refund with 6 percent annual interest from three months after the refund application.
• The government plans to simplify the GST structure by reducing tax slabs to 5 percent and 18 percent.

Source: a2ztaxcorp.net

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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