DOCTRINE OF UNJUST ENRICHMENT AND ITS RELEVANCE TO INPUT TAX CREDIT (ITC) CLAIMS UNDER GST LAW

AUTHORS – AASTHA DIXIT* & DR. ANUJ KUMAR SHARMA**

* STUDENT, AMITY UNIVERSITY

** ASSISTANT PROFESSOR, AMITY UNIVERSITY

BEST CITATION – AASTHA DIXIT & DR. ANUJ KUMAR SHARMA, DOCTRINE OF UNJUST ENRICHMENT AND ITS RELEVANCE TO INPUT TAX CREDIT (ITC) CLAIMS UNDER GST LAW, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (7) OF 2025, PG. 172-179, APIS – 3920 – 0001 & ISSN – 2583-2344

Abstract

The introduction of the Goods and Services Tax (GST) marked a significant shift in India’s indirect taxation system, especially concerning the mechanism of Input Tax Credit (ITC). While ITC is intended to eliminate the cascading effect of taxes and promote seamless credit flow, refund claims under GST are often scrutinized through the lens of the doctrine of unjust enrichment. This doctrine, deeply rooted in equitable principles, prevents a taxpayer from obtaining a refund if the burden of tax has already been passed on to another party, typically the consumer. This paper explores the legal foundations of the doctrine, its application within the GST framework, key judicial pronouncements, and its impact on refund claims involving ITC. It also highlights practical and procedural challenges faced by taxpayers in establishing eligibility for refunds and proposes legal reforms to strike a balance between taxpayer rights and revenue protection.