CBIC Circular on Refunding Unutilised GST ITC u/r 89(5) Not Prospective: Supreme Court Dismisses Revenue SLP with ₹10K Costs

The Supreme Court has dismissed a revenue SLP, ruling that a "CBIC circular on refunding unutilised GST ITC" is "prospective." The court's decision, which is a significant victory for the company, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a tax authority can't add a tax to a company's account without a valid reason. The court's decision is a crucial reminder to all businesses that they must be diligent in their dealings. The court's decision is a significant step towards a more digitized and efficient tax system.