Summary
- The Gujarat High Court has directed the State of Gujarat to refund Rs.3,90,762/- in unutilised VAT input tax credit to Weatherproof Solution, despite the petitioner not carrying it forward into GST.
- The court ruled that the petitioner was deemed assessed under the VAT Act due to lack of notice for audit assessment, allowing the refund claim under Section 36 of the VAT Act.
- The court emphasized that it was not mandatory for the petitioner to file Form GST-TRAN-1 for this credit, as there was no subsequent VAT period after GST implementation.
- This ruling could set a precedent for similar claims regarding unutilised VAT credits transitioning into GST, potentially impacting many businesses affected by the migration process.
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