Directed department to process and credit petitioner's excess input tax credit refund under Section 54 CGST Act

HC directed the Department to process the petitioner's refund application for excess input tax credit and to credit the refund, finding the timelines under Section 54 of the CGST Act applicable; the petition was disposed of.

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Petitioner Prem Polymers filed W.P.(C) 12255/2025 seeking processing of a refund claim filed in Form GST RFD-01 for Rs. 14,10,742/- representing "excess Input Tax Credit (ITC)" accumulated due to the "inverted tax structure" under Section 54 of the Central Goods and Service Tax Act, 2017. Petitioner alleged multiple communications to the Department (7 Sep 2024; 17 Sep 2024; 2 Dec 2024; 25 May 2025) without processing of the refund. The court directed relief based on the timelines in Section 54: "The Department is directed to process the refund and credit the same to the Petitioner." Further, "The order on refund shall be passed within three weeks. Immediately, thereafter, the refund shall also be credited to the Petitioner, along with interest." Petition disposed accordingly; exemption application for documents was allowed.

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