Delhi HC directs Processing of ₹14.10 Lakh GST ITC Refund under Inverted Tax Structure within Three Weeks with Interest [Read Order]

The High Court of Delhi, directed the Department to process a Goods and Services Tax (GST) refund of ₹14.10 lakh claimed by the petitioner under the inverted tax structure and credit the amount along with interest within three weeks.

Prem Polymers, petitioner-assessee, had filed a petition seeking processing of a refund of ₹14,10,742 for excess Input Tax Credit (ITC) for the period from April 2024 through Form GST RFD-01. The refund claim was based on ITC accumulated due to an inverted tax structure under Section 54 of the CGST Act, 2017.

Form GST RFD-01 is the official online application used to claim refunds under the Goods and Services Tax (GST) framework. Prescribed under the Central Goods and Services Tax (CGST) Rules, 2017, it allows taxpayers to electronically request refunds for excess tax, interest, penalty, fees, or any other amounts paid.

All registered taxpayers can file this form, including regular taxpayers and casual taxable persons. In certain cases, even unregistered persons may be eligible, depending on the type of refund being claimed.

The petitioner stated that multiple communications were sent to the Department on 7th September 2024, 17th September 2024, 2nd December 2024, and 25th May 2025 requesting the refund, but no action was taken. As a result, the present petition was filed seeking processing and release of the refund.

Justice Prathiba M Singh and Justice Shail Jain directed the Department to process the refund and credit the amount to the petitioner as per the timelines under Section 54 of the CGST Act. It also directed that the refund order be issued within three weeks and the amount be released to the petitioner along with interest.

The petition was accordingly disposed of by the Delhi High Court.

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