Transitional ITC Carried U/s. 140 Not Refundable Under Section 54(3): Gujarat HC

Dilip Babubhai Patel Vs State of Gujarat & Anr. (Gujarat High Court) The petitioner sought a direction for refund of ₹18,74,676 along with interest and re-credit of the same amount to its Electronic Credit Ledger (ECL). The petitioner had accumulated Input Tax Credit (ITC) under the Gujarat VAT Act, which was carried forward into the GST regime through Form GST TRAN-1 under Section 140 of the GST Acts. The transitional credit was reflected in the ECL from July 2017. During the GST regime, the petitioner continued to accumulate ITC owing to an inverted duty structure and filed a refund ap...