🚨 Landmark GST Refund Judgment by Sikkim High Court 🚨

📜 Case: SICPA India Private Limited & Another vs. Union of India

⚖️ Held: Refund of unutilized GST Input Tax Credit (ITC) on business closure allowed

In a significant ruling, the Hon’ble High Court of Sikkim has upheld the right to claim a refund of unutilized ITC when a business ceases operations. This decision clarifies that after settling all liabilities—such as capital asset reversals and other adjustments—businesses can claim a refund of remaining ITC under Section 49(6) of the CGST Act.

🔍 Key Takeaways:

✅ Businesses discontinuing operations can apply for ITC refunds

✅ The ruling sets a precedent for similar cases across India

✅ Ensures fair treatment of tax credits upon business closure

This judgment is a game-changer for businesses navigating GST compliance during closure.

If you or your clients are in a similar situation, this ruling could be crucial in securing rightful refunds.