GST - Highlights / Catch Notes

Rejection of refund claim - Status of the Subsidiary as a ...

Court Overturns Refund Rejection, Affirms Distinct Entity Status for Software Exporter and Subsidiary Under GST Act.

May 6, 2024

Case Laws GST HC

Rejection of refund claim - Status of the Subsidiary as a Distinct Person - Export of software development services - The High Court examined the provisions of Section 2(6) of the IGST Act, 2017 and the arguments presented by both parties. It concluded that the interpretation placed by the first respondent was incorrect. The Court affirmed that the petitioner and its subsidiary are distinct entities, fulfilling the requirements of Section 2(6)(v) of the Act. - Regarding the status of the subsidiary, the Court noted that Circular No.161/17/2021-GST clarifies that a company incorporated in India and a foreign company are separate legal entities under the CGST Act. Thus, the Court held that the subsidiary should not be considered merely an establishment of a distinct person under Explanation 1 of Section 8 of the IGST Act, 2017. - Accordingly, the High Court set aside the impugned order and directed the second respondent to process the refund claim along with applicable interest.

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Rejection of refund claim - Status of the Subsidiary as a ...

Court Overturns Refund Rejection, Affirms Distinct Entity Status for Software Exporter and Subsidiary Under GST Act.

May 6, 2024

Case Laws GST HC

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