CBIC Faces Setback as SC Rejects SLP on ITC Refunds Under Rule 89(5)

The Central Board of Indirect Taxes and Customs (CBIC) has faced a significant legal challenge after the Supreme Court of India (SC) rejected its Special Leave Petition (SLP) regarding the interpretation of Rule 89(5) of the Central Goods and Services Tax (CGST) Rules. This ruling has reignited debates on the scope of Input Tax Credit (ITC) refunds, particularly for industries that rely heavily on inverted duty structures.