Cooperative Housing Societies Granted GST Refund Rights on Leasehold Premium Under Section 54 of CGST Act

HC ruled cooperative housing societies can apply for GST refund on leasehold premium paid to CIDCO under section 54 of CGST Act. Court directed petitioners to file refund applications within 4 weeks, and tax authorities to respond within 6 weeks. The judgment affirms petitioners' right to seek refund and mandates timely processing by authorities.

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Issues involved:
The issue involves the liability of cooperative housing societies to pay GST on leasehold premium paid to CIDCO, and the right of the petitioners to claim refund under section 54 of the Central Goods and Services Tax Act, 2017.

Judgment Summary:

Issue 1: Liability to pay GST on leasehold premium
The petitioners, cooperative housing societies, had paid leasehold premium to CIDCO on which GST was charged. The petitioners contended that they were not liable to pay the GST and requested CIDCO to apply for a refund of the GST paid. Despite communications to CIDCO requesting a refund, CIDCO did not apply for the refund. The petitioners argued that they were not liable to pay GST and should be refunded.

Issue 2: Right to claim refund under section 54 of the CGST Act
The petitioners also sought to claim a refund under section 54 of the CGST Act, which allows any person to claim a refund of tax paid. The petitioners' counsel highlighted the provisions of the Act, specifically referring to clause 2(g) of the second Explanation of section 54, which sets a limitation period for claiming a refund. The petitioners expressed dissatisfaction that their request under these provisions had not been considered by the Tax Authorities, as the communications were not directly addressed to them.

The petitioners' counsel stated that the petitioners would now apply to the Tax Authorities under section 54 of the Act to claim a refund. While the Tax Authorities contended that the petitioners may not be entitled to apply under section 54, the court held that it was for the petitioners to make the application and for the authorities to process it in accordance with the law.

Therefore, the writ petitions were disposed of, with the court directing the petitioners to make refund applications within four weeks. The concerned authorities were instructed to communicate their decision to the petitioners within six weeks from the date of the application, subject to time-bound commitments.

In conclusion, the writ petitions were disposed of, allowing the petitioners to apply for a refund under section 54 of the CGST Act, with a timeline set for the authorities to process and communicate their decision.

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