SC on GST Refunds: No Refund if Tax Incidence is Passed on 17.02.2026

In a significant ruling impacting GST refund jurisprudence, the Supreme Court of India in Union of India & Anr. vs Torrent Power Ltd. has reaffirmed that refund is payable to the applicant only when the incidence of tax has not been passed on. The Court held that courts cannot create refund mechanisms contrary to the explicit statutory framework under Section 54 of the Central Goods and Services Tax Act. Facts of the Case Torrent Power Ltd., engaged in electricity generation and distribution in Gujarat, collected IGST from consumers pursuant to Notification No. 10/2017–Integrated Tax (R...