 "SC upholds Madras High Court's restriction of input tax refunds on services")
The Supreme Court has upheld the Madras High Court order of restricting input tax refunds for services used by industries facing inverted duty structure under the goods and services tax (GST) regime. The order may affect cash flow of pharma, fertiliser, footwear and textile industries.
In this connection, the apex court quashed the Gujarat high court judgement.
The two lower courts had earlier given contradictory judgements.
While the Madras high court had upheld the Rule 89 (5) inserted by the government under the CGST Act on restricting such input tax refunds as valid. It was contrary to Gujarat high court
