Archive · 12 Sep 2025
Karnataka HC Orders Tax Refund for Flipkart
Imagine Flipkart, an online store, had a disagreement with the government about taxes.
The government wanted a lot of money, so Flipkart paid some while they argued.
The court said the government was wrong and ordered them to give the money back.
The government tried to give back some of the money, but not all, because of how Flipkart paid.
The court has now clarified that all of the money, including the part paid in a special way, must be returned.
They also have to pay extra money because it took a while to give the money back.
Karnataka High Court ordered tax department to refund INR 16.11 Cr to Flipkart.
The dispute concerned the tax classification of phone chargers.
Flipkart had initially paid INR 23.01 Cr as a pre-deposit.
The tax department withheld the ITC portion of the pre-deposit.
The court clarified refunds must be in cash, including ITC.
- Who
- Karnataka High Court and Flipkart
- What
- Directed the tax department to refund INR 16.11 Cr to Flipkart.
- When
- July ruling
- Where
- Karnataka, India
- Why
- To correct the tax department's withholding of the ITC portion of a pre-deposit.
- Amount Refunded
- INR 16.11 Cr
- Original Tax Demand
- INR 23.01 Cr
- Tax Period
- 2011-12 to 2014-15
- Issue
- Classification of phone chargers as unscheduled commodity
- Court Directives
- Refund in cash with interest
- Pre-deposit Method
- INR 6.90 Cr cash, INR 16.11 Cr ITC