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May 22, 2025
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Ease in GST appeal: Now you can make pre-deposit payment for through input tax credit, rules Supreme Court, know who will benefit from it
In what may be termed as an important judgement for Goods and Services Tax (GST) registered taxpayers, the Supreme Court on May 19, 2025, allowed using input tax credit (ITC) to pay the mandatory pre-deposit amount required for filing an GST litigation case appeal. In technical terms, the Supreme Court rejected the petition filed by the government that challenged the Gujarat High Court’s judgement which allowed using electronic credit ledger (ECL) for paying the mandatory pre-deposit amount.
According to the official GST website, in the Electronic Credit Ledger (ECL), all input tax credits accrued on account of inward supplies made by a taxpayer within a tax period are accumulated. Interestingly the Gujarat High Court cited the precedent set by the Bombay High Court in the case of Oasis Realty and said when that judgement is read along with a GST Policy wing circular issued on July 6, 2022, the matter becomes clear.
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