https://www.taxtmi.com/caselaws?id=436020 The Karnataka HC declared Rule 89(4)(C) of CGST Rules, 2017 as amended by Notification 16/2020-CT ultra vires and invalid. The court held that restricting refund of unutilized input tax credit for zero-rated supplies by imposing artificial limitations would obliterate the entire refund concept for exporters. Such restrictions were deemed arbitrary, unreasonable, and discriminatory, undermining the government's zero-rating policy for exports. The court emphasized that exporters factor these incentives into pricing mechanisms, and restrictions would cause grave hardship while defeating the objective that taxes should not be exported. The petition was allowed. en-us Thu, 16 Feb 2023 00:00:00 +0530 Thu, 25 Jun 2026 12:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=436020 The Karnataka HC declared Rule 89(4)(C) of CGST Rules, 2017 as amended by Notification 16/2020-CT ultra vires and invalid. The court held that restricting refund of unutilized input tax credit for zero-rated supplies by imposing artificial limitations would obliterate the entire refund concept for exporters. Such restrictions were deemed arbitrary, unreasonable, and discriminatory, undermining the government's zero-rating policy for exports. The court emphasized that exporters factor these incentives into pricing mechanisms, and restrictions would cause grave hardship while defeating the objective that taxes should not be exported. The petition was allowed. Case-Laws GST Thu, 16 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=436020