Inverted Rate GST ITC Refund Allowed on Traded Goods

The Gauhati High Court observed existence of a conflict between Section 54(3) of CGST Act and Circular No.135/05/2020-GST. Consequently, it held that paragraph 3.2 of the aforesaid circular should be ignored. This ruling would be helpful especially for taxpayers who faced significant changes in tax rates during the first two years under the GST regime.