Gujarat HC Allows Refund of Inverted Duty Denied Due to Portal Limitation

Pee Gee Fabrics Private Limited Vs Union of India (Gujarat High Court) The Gujarat High Court, in the case of Pee Gee Fabrics Private Limited v. Union of India, has ruled in favor of the petitioner, quashing a pair of orders from tax authorities that had denied a Goods and Services Tax (GST) refund. The case centered on a dispute over a refund of Input Tax Credit (ITC) that accumulated due to an “inverted duty tax structure,” where the GST rate on inputs is higher than the rate on the final product. The court found that the tax authorities adopted a “pedantic approach” ...