India: Tax

A comprehensive guide to GST refunds for exporters covering zero-rated supplies, ITC refunds, IGST, LUT/Bond, export of services, and GST compliance.

Income Tax Act, 1961 (‘the Act’) is governed by the fundamental rule that an assessee is required to pay only such tax as is lawfully due; the principle emanates from the mandate of Article 265 of the Constitution of India which provides that no tax can be recovered/ retained contrary to the provisions of the statute. This legal doctrine has found repeated acceptance and reiteration by the Apex Court in cases such as Mafatlal Industries and Shelly Products.

Supreme Court holds that, by virtue of omission of rule 96(10) of the Central Goods and Services Tax Rules, 2017 (CGST Rules) (which restricted assessees availing benefit of certain duty exemption schemes on import of goods, from undertaking export on payment of IGST and claiming refund thereof), all pending proceedings shall stand concluded; observes that the rule resulted in unnecessary complications and its omission must not result in such complications being kept alive, insofar as the pending proceedings were concerned.