Thryve Digital Health LLP Vs Joint Commissioner (Madras High Court)
Madras High Court has ruled that Special Economic Zone (SEZ) units are entitled to directly claim refunds of Integrated Goods and Services Tax (IGST) paid on services. This decision came in the case of Thryve Digital Health LLP Vs Joint Commissioner, where the petitioner challenged the rejection of their refund applications for the assessment years 2020-2021 and 2021-2022.
Thryve Digital Health LLP, an SEZ unit, had availed services from a supplier who levied and remitted IGST. The petitioner, considering their status as a zero-rated supply under the IGST Act, filed for a refund of unutilized Input Tax Credit. However, the respondent rejected these applications, contending that only the service supplier, not the SEZ unit, was eligible to claim the refund under Rule 89 of the CGST Rules, 2017.
The Madras High Court, however, referenced its own prior judgments on this matter. Specifically, the court cited Platinum Holdings Private Limited vs. Additional Commissioner and M/s. ATC Tires Private Limited Vs. Joint Commissioner of GST & Central Excise (Appeals) (2022 (4) TMI 1994 – Madras High Court, dated March 8, 2022). In these precedents, the court had consistently held that SEZ units are indeed entitled to file refund applications directly.
