ITAT exempts GST Refund from Tax

The Income Tax Appellate Tribunal, Bangalore Bench deleted an addition of ₹2.34 crore made by the Central Processing Centre under Section 143(1) in respect of a GST refund. 

The Tribunal held that where an assessee follows the exclusive method of accounting and records GST as a recoverable asset rather than an expense, the subsequent refund merely represents recovery of an existing receivable and does not constitute taxable income.