New Delhi. There is big news for millions of businessmen in the country. Even if you get a refund of input tax credit (ITC) on the wrong GST number (GSTIN), the department cannot reject it and you will have to pay the full amount. Allahabad High Court has also given its decision in this matter. The court has said that if the businessman has fulfilled all the rules and compliances on his part, then he is entitled to get a refund.

This case is My Auto World (Kanpur) Private Limited vs Union of India and 5 others. A very interesting case came up in this case heard in Allahabad High Court. In this case, the court ruled that taxpayers should be given the benefit of ITC in the case where a GST invoice is generated on different GSTINs in the same state.

What was the whole matter?
In this case that reached the High Court, the petitioner was given two GST numbers by the GST department, which were issued on the same PAN. When the petitioner claimed ITC on his business, the supplier issued a refund on the GSTN that had been closed or on which ITC could not be claimed. GST officials later rejected the ITC claim and demanded the outstanding tax from the petitioner.

Citing the rules in the court,
the petitioner cited the GST rules in the High Court citing a decision of the Allahabad High Court itself. He told the court that according to the circular issued by the GST department, even if the ITC refund has been made on the wrong GSTN by the supplier, the businessman is entitled to get the full amount. This money can be adjusted in the demand sent by the department.

What decision did the High Court give?
In the latest case, the High Court clearly said that the GST circular clearly states that taxpayers who follow all the compliances should not face any problems. If a duplicate GSTN has been issued to a businessman, then the ITC amount should be given to him after adjusting it. The GST law has been made only to ensure compliance, not to create problems.