After the order of the Supreme Court, edible oil entrepreneurs will be able to get the refund of crores of rupees.
On July 13, 2022, Sunil Gupta, Central Board of Indirect Taxes and Customs, had banned the GST from giving the Intake Duty Structure Refund in the case of edible oil on the business after July 18, 2022.
The Central Board of Indirect Taxes and Customs had issued an order on November 10, 2022 that no application after July 18, 2022 will be accepted. Along with this, orders were also issued to take back the refund that was given, pay interest and penalty on it. Entrepreneurs are following this order.
Went to the High Court against this. After the decision of the High Court in Andhra Pradesh came in favor of the entrepreneurs, the state tax department there went to the Supreme Court. Now after the order of the Supreme Court, entrepreneurs of every state are hopeful that they will get their refund soon.
The edible oil industry needs to buy crude oil, processing material and packing material. The tax rate on these items is 12% and 18%, while the tax rate on edible oil that is sold after production is just 5%.
After the Supreme Court’s decision in favor of entrepreneurs, the hope of refund increased.
The Central Board of Direct Taxes and Customs had imposed a ban from July 18, 2022
Therefore, entrepreneurs get more tax from GST and they are less able to adjust it. Edible oil entrepreneurs used to get inverted duty structure refunds in their bank accounts. Applications could be made for two years to get a refund and those who applied after 18 July 2022, their refunds were stopped.
Kanpur also has a large number of small entrepreneurs along with big edible oil industries like Kanpur Edible, Vaibhav Edible, Mantora Group. There was resentment among them that after 18 July
Do not give refund for business after 2022, but applications for refund of business till that time should be accepted and refund should be given.
Like the edible oil entrepreneurs of many other states, the entrepreneurs of Kanpur also filed a writ in the High Court. The Andhra Pradesh High Court ruled in favor of the entrepreneurs in the writ filed here that they are entitled to get a refund till July 18, 2022. The State Tax Department of Andhra Pradesh filed a special leave petition in the Supreme Court, but on May 9, 2025, the Supreme Court accepted the petition for consideration and said that there is no need to interfere in the decision of the High Court.
According to Santosh Gupta, Chairman of the GST Committee of the Merchants Chamber, the refund of crores of rupees of the manufacturers which was stuck due to this will now be available.
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