- The Sikkim High Court ruled that refund of unutilized Input Tax Credit is allowed if a business closes.
- There is no explicit prohibition in the CGST Act against such refunds.
- Section 54(3) of the CGST Act lists scenarios for refunds but does not prevent refunds in case of business closure.
- The Court stated that tax retention without legal basis is not permitted, supporting the right to a refund.
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.
