GST Update

 Desk of CA. Praveen Sharma – 992 Series (CAPS) 

DELHI HIGH COURT IN THE CASE OF Gitwako Farms India Private Limited 

In a recent case, a supplier provided frozen meat to the Indian Army and paid GST on those supplies. However, the Army refused to reimburse the GST amount, claiming that the goods were exempt based on internal clarifications.

The supplier argued that GST was correctly paid as per official rulings, and therefore reimbursement should be made.

The Court examined the matter and found that earlier rulings had already confirmed that such supplies were taxable and not exempt. Since the supplier had followed those rulings and deposited GST, denying reimbursement was not justified.

Accordingly, the Court directed the authorities to repay the GST amount to the supplier within a specified time. It was also stated that if payment is delayed, interest will be applicable.

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Regards
CAPS