Lawstreet Journal

Supreme Court disallows ₹923-crore GST refund to Bharti Airtel

Lawstreet Journal 9 Nov 2021 7:31pm

Image courtesy: Lawstreet Journal Business Supreme Court disallows ₹923-crore GST refund to Bharti Airtel

The Supreme Court has refused Bharti Airtel led by Sunil Bharti from claiming Goods and Service tax refund of Rs 923 crores, saying such refunds, based on ‘unilateral’ rectification of electronically-filed returns by a taxpayer on a self-assessment basis would lead to a ‘chaotic situation’ and have a cascading effect on the stakeholders in the relevant transaction chain.

BACKGROUND 

The tax department had appealed against the Delhi High Court’s May 2020 order which had allowed Bharti to rectify Form GSTR-3B for July to September 2017 , and in reply to this appeal the Supreme Court had set aside the order saying saying such directions “cannot be sustained.”

CONTENTIONS OF THE TAX DEPARTMENT 

The tax authorities had denied any refund alleging that the company had under-reported input tax credit during the period, the company claimed it had paid excess tax of Rs 923 crore on inputs based on estimates since the GSTR-2A form was not operational during the error period.

APPEAL AGAINST THE HIGH COURT’S ORDER 

The GST department had stated that the finding of the HC that there is no statutory provision permitting rectification of errors only in the return with respect to the month in which such error is noticed and not in the return with respect to the month in which the error relates, overlooks and directly contravenes the express wordings of Section 39(9) of the Central Goods and Services Tax Act, 2017.

JUDGEMENT OF THE SUPREME COURT 

The SC Bench agreed with the tax department’s stand that any indulgence shown contrary to… Continue Reading...


Tagged: Bharti Airtel  
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