Intro Paragraph:
ITC refund issues often confuse businesses offering both goods and services. A recent Andhra Pradesh High Court ruling clarifies that the absence of service details in a GST registration certificate does not disqualify a taxpayer from claiming refunds on zero-rated service exports.
What Was the Case About?
Alstom Transport India Ltd., initially registered under GST to supply goods, later amended its registration to include services. It provided engineering services for metro projects—classified as zero-rated supplies under GST—and paid IGST accordingly.
When it claimed a refund of unutilized Input Tax Credit (ITC) on these exports, both the assessing and appellate officers rejected the refund.
Why?
They argued that Alstom’s registration certificate only mentioned goods, not services.
Court’s Verdict: Registration Type Not a Barrier to ITC Refund
The Andhra Pradesh High Court disagreed with the department’s stand. Here’s the court’s reasoning:
- Zero-rated supplies under Section 16 of the IGST Act allow refunds of unutilized ITC.
Legal Basis Cited by the High Court
- Section 16(3) of the IGST Act: Refund of unutilized ITC on zero-rated supplies is permitted.
- Section 54 of the CGST Act: Allows refund of tax or ITC in prescribed situations.
✔️ Case Reference:
Alstom Transport India Ltd. v. Addl. Commissioner of Central Tax Appeals, Guntur
[Writ Petition Nos. 21164 & 21179 of 2021]
Practical Insights for Businesses
- Don’t delay registration amendment, but if you’ve paid tax on services, you can still claim refund.
- Ensure accurate GST filings and maintain proof of exports.
- Use GSTR-1 and GSTR-3B to reconcile your outward supplies and ITC.
- You can still claim refund even if RC wasn’t updated on time, provided services were actually supplied.
Expert View:
“This judgment sends a clear message—substance over form matters in GST compliance. If taxes are paid and services are exported, refund denial on technicalities can’t hold.”
— Efiletax GST Specialist
Summary for Google Snippet:
GST refund on export services can’t be denied just because the registration certificate lacks service details. AP High Court confirms eligibility if tax is paid and export is genuine.
FAQs
Q1. Can I claim GST refund without updating my RC to include services?
Yes, as long as you’ve paid IGST on exported services, refund can’t be denied.
Final Thoughts + CTA
This landmark ruling protects genuine exporters from unfair refund denials due to registration errors.
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