Duty-Free Shops Entitled to ITC Refund Before Feb 28, 2021; GST Payable from March 1, 2021, Refunds Allowed per CGST Act.

The Madras HC ruled that the petitioner, operating duty-free shops, is not liable to pay GST on concession fees before February 28, 2021, and is entitled to an Input Tax Credit (ITC) refund. From March 1, 2021, GST must be paid, with refunds claimable under Section 54 of the CGST Act. The court ordered the refund of GST paid by the airport authority during the period the petitioner did not pay, affirming the petitioner's rights to ITC and refund under GST laws, aligning with prior rulings on duty-free shops' eligibility for ITC refunds.

---

---

Issues:
Applicability of Central Goods and Service Tax Act, 2017, Integrated Goods and Service Tax Act, 2017, and Tamil Nadu Goods and Service Tax Act, 2017 on concession fees paid by a company operating duty free shops at Trichy International Airport.

Analysis:
The petitioner, a company operating duty free shops, raised a question regarding the applicability of GST Acts on concession fees paid to the airport authority. An interim injunction was granted in February 2018, restraining the airport authority from collecting GST. The petitioner had initially paid both concession fees and GST but stopped paying GST post the interim order. A similar issue was considered by the Bombay High Court and Kerala High Court, where it was held that duty-free shops are entitled to refund of Input Tax Credit (ITC) on GST paid. The Kerala High Court specified the procedure for claiming ITC and refund under the GST Acts.

The Madras High Court, following the approach of the Kerala High Court, ruled that the petitioner need not pay GST for the period before February 28, 2021, as they are entitled to refund of ITC. However, the petitioner must pay GST on concession fees from March 1, 2021, and claim a refund as per Section 54 of the CGST Act. The court also directed the refund of GST paid by the airport authority for the period when the petitioner did not pay, emphasizing the entitlement to ITC and refund as per the GST laws.

In conclusion, the judgment clarified the petitioner's obligations regarding GST payment on concession fees, emphasizing the entitlement to claim ITC and refunds under the GST Acts. The court's decision aligned with previous rulings on duty-free shops' eligibility for ITC refund, providing a structured approach for GST compliance and refund procedures in such cases.

---