Relevant date for filing of each kind of refund needs to be defined separately. GST on Sale/transfer/disposal of Capital Goods – A new pandora box under GST! MORE than four years ago, in DDT 1077 dated 24.03.2009 we carried this story: . However to claim refund under GST taxpayers has to file refund application in prescribed period of time i.e. Notification: GST Refunds Automation for Exporters and Suppliers to SEZ may Start from June. The GST law requires that every claim for refund is to be filed within 2 years from the relevant date. It is worthwhile to mention that the time limit for any compliance which falls during the period from 20th day of March, 2020 to the 30th day of Aug, 2020 is extended till 31st August, 2020 vide Notification No. (e) in the case of refund of unutilised input tax credit under sub-section (3), the end of the financial year in which such claim for refund arises. Hence, refund of accumulated Input Tax Credit for Financial year 2017-18 can be filed up to 31 March 2020. or. Is there any specified format for sanction of refund claim? The time limit for claiming the GST refund is 2 years from the relevant date. The Government vide Notification No. Denial of ITC (inverted duty structure) invalid; Rule 89(5) ultra vires section 54(3) Provisions: Gujarat HC. notified under section 55. 31st August, 2020 – Last date to file GST refund on account of Inverted Duty Structure for FY 2017-18? notified under section 55 shall apply the refund through GST Form GST RFD-10 before the expiry of six months from the last day of the quarter in which such supply was received. The change in said section only shortens the time limit for filing refund claim which is not beneficial to the taxpayer and is onerous thereby the change in time limit for filing refund claim can’t have retrospective effect. However, claim of refund of balance in electronic cash ledger can be claimed through furnishing of monthly/quarterly returns in Form GSTR 3, GSTR 4 or GSTR 7, as the case may be, of the relevant period. Notification to extend the due date for filing FORM GSTR-4 for ... was paid on 17.10.2017 and the final order setting aside the order was issued on the year 2019.. what would be the relevant date to file the refund of the interest and penalty paid? The Relevant date is different in different scenarios. The exporters of goods or/and service along with suppliers to Special Economic Zone (SEZ) units or developers may receive GST refunds automatically from June. Two years from the end of Financial Year in which claim for such accumulated credit arises. The relevant statutory text of section 54(1) is reproduced as follows: –. In case if the goods are exported by land. What is the meaning of relevant date for refund under GST? within relevant date Section 54 of CGST Act has prescribed the definition of relevant date and such relevant date plays a crucial role in claiming GST refund. 33. TIOL-DDT 2108 20.05.2013 Monday . Under GST any person claiming the refund of the tax, or the interest paid should make an application within a period of two years from the relevant date using the Form GST RFD-01 electronically. So this article “All About Refund under GST” covers Definition, Reference to Law, Situations, Restrictions, Time Limit, Concept of Unjust Enrichment, Impact of Newly issued Circular No.135/05/2020 on GST refund etc. The relevant date of issue of invoice, where payment for the service had been received in advance prior to the date of issue of the invoice. The author may be reached at [email protected], Also Read- Denial of ITC (inverted duty structure) invalid; Rule 89(5) ultra vires section 54(3) Provisions: Gujarat HC, Your email address will not be published. In view of the author, reliance is placed upon the judgment in the case of Mcdonalds India Pvt Ltd vs Delhi 2019 wherein the double bench of CESTAT, Delhi held the following: –, “the basic principle for ascertaining the retrospectivity of legislation is a principle of ‘fairness’. In the case where tax is paid provisionally under this Act or the rules made there under, the relevant date is the date of adjustment of tax after the final assessment thereof; In the case of a person, other than the supplier, the relevant date is the date of receipt of goods or services by such person. As per section 54(3) (ii), refund of unutilised input tax credit shall be where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council. 11/2019 No. FD 48 CSL 2017. Dear Sir, Thanks for your reply Sir! Every refund claim filed on or after 01st Feb 2019 will be governed by amended section 54 of CGST Act 2017 even if the refund claim pertains to period prior to 1st Feb, 2019. “However, a clarification from the Government for time limit in this regard would be a magical bullet for both the taxpayers as well as the Department in order to avoid numerous litigations and proceedings in future.”. Budget 2021: GST Audit by professionals scrapped? 55/2020- Central Tax in order to avoid any legal dispute with the department in future.”. Good news for taxpayers – Much awaited option “Consolidated Debit/Credit note” enabled on GST portal, Budget 2021: Amendments proposed in Section 74, 107, 151, 152 & 168 of CGST Act, 2017, Proposed prosecution amendments under GST vide Budget 2021, Extended power under Section 83 of CGST Act, 2017 by Finance Bill, 2021, Amount received for security services including amount of wages for guards taxable @18%, Fino Payments Bank Limited included in Second Schedule of RBI Act, 1934, SOP for Vehicle Location Tracking, registration & activation in VAHAN, Physical hearing by NCLT Benches w.e.f. When the person claiming refund is not the supplier, then relevant date shall be the date at which the goods are received by such person. Relevance of relevant date for refund under Rule 5 for export of services . Disclaimer: The views presented are in personal and generic form and not as a legal advice. In case if the goods are exported by post, The relevant date in the case of services exported out of, is the inputs or input services used in such services. Practically, in current scenario, some Refund Processing Officers under GST are not granting refund for the period July, 2017 to Jan, 2018 by issuing Show Cause Notice in Form GST RFD-08 on the ground that it is time barred on account of lapse of prescribed two years from the relevant due date of furnishing return under section 39 of CGST Act, 2017 i.e., 25-08-2019 for July, 2017 and 20-02-2020 for Jan, 2018. Such supply … Let us understand the concept of relevant date. First of all, you should know that under the GST, all types of GST refund claims should be filed within 2 years from the relevant date of refund. (2.) 17/2009-S.T., dated 7-7-2009 - Regarding. Required fields are marked *, Notice: It seems you have Javascript disabled in your Browser. D. Time Period and GST Form for apply of refund by the person ( UNO etc. ) 49/2019-GST dated 09.10.2019, various references have been received from the field formations regarding admissibility of refund of the ITC availed on the invoices which are not reflecting in the FORM GSTR-2A of the applicant. Maintained by V2Technosys.com, Taxguru Consultancy & Online Publication LLP, 509, Swapna Siddhi, Akurli Road, Near Railway Station, Kandivali (East). 01.03.2021, Formats Resolutions related to Banking Operations, Interesting facts about education loans that you may not know, Submit Letter of Undertaking (LUT) for FY 2021-22 by 31.03.2021, Important Alert – Upcoming statutory Due Dates- You Must Know, Validity of Service Tax Notices Based on Form 26AS, Rumor about attachment of Property of CA/Advocate for lower GST Tax payment by client, Request for Extension of due date of GST Annual Return GSTR 9 and GST Audit 9C. There have been demands to extend the date for two reasons: first, the pandemic, and second, the due date for annual returns for FY19-20 is December 31. Further, reliance is also placed upon judgment of Hon’ble Tribunal’s Larger bench order in the case of CELLULOSE PRODUCTS OF INDIA LTD. 1993 (64) E.L.T. A statement containing the number and date of shipping bills or export bills and the number and date of the corresponding export invoices, along with the invoice. In the case of refund of unutilized input tax credit, the relevant date is the end of the financial year in which such claim for refund arises. Ans. 01.02.2019 is The end of financial year due date of furnishing of return under section 39 for the period vide clause 23 (b) (ii) of CGST Amendment Act, 2018, w.e.f. In other words, whether this amendment in said section would apply prospectively or retrospectively. GSTR-9 is an annual return to be filed yearly by taxpayers registered under GST. 01-02-2019. The meaning of relevant date is very important in regard to refund provisions under GST. Recent Amendments in refund Provisions: As inserted by Notification No. Is interest on claimed amount of GST amount paid, if refund is delayed after 60 days afer passing of the final order for refund? any person claiming refund may make an application before the expiry of two years from the relevant date Online Procedure and documentation for Export Refund application under GST from April 2020. In the case of services exported out of India and where a refund of tax paid is available to the applicant in respect of services themselves or, as the case may be, the inputs or input services used in such services. the last date of payment of tax. Thus, legislations which modified accrued rights or which imposes obligations or imposes new duties or attach a new disability have to be treated as prospective unless the legislative intent is clear to give the enactment a retrospective effect.”. 9 May 2020. 54 of CGST Act, 2017, “relevant date” means – a) in the case of goods exported out of India where a refund of tax paid is available in respect of goods themselves or, as the case may be, the inputs or input services used in such goods, - 5.0 Relevant date in case of GST refund due to consequence of judgement. Section 54(1) of CGST Act 2017 provides the time limit of two years from the relevant date within which refund can be filed by registered taxable person. 13/2017- Central Tax dated 28-06-2017 has prescribed, on the recommendation of the Council, 6% as the rate of interest for a refund withheld under sub-section (11) of section 54. ... the tax payer must make application of refund of tax and interest in the prescribed form within 2 years from relevant date. Practically, in current scenario, some Refund Processing Officers under GST are not granting refund for the period July, 2017 to Jan, 2018 by issuing Show Cause Notice in Form GST RFD-08 on the ground that it is time barred on account of lapse of prescribed two years from the relevant due date of furnishing return under section 39 of CGST Act, 2017 i.e., 25-08-2019 … 5 of above, refund can be apply with in 6 months from the last day of quarter in which such supply was received. Learn about companies, trademarks, GST and other business problems. I have a query regarding relevant date for filling of application for GST Refund, for this purpose of relevant date explained in explanation to section 54 clause (2), sub clause (e) shall be read as: “In the case of refund of unutilised input tax credit under sub-section (3), the end of the financial year in which such claim for refund arises;" All Rights Reserved. 16/2020 dated 23rd March, 2020. However, as we delve deeper into the issue, the question arises whether the change in time limit for filing refund claim would apply only for the tax period reckoning from the February, 2019 onwards or will also hit the refund application filed after 01.02.2019 but pertaining to the tax period(s) prior to February, 2019. Notification; Recent Posts. In case where the tax becomes refundable as a consequence of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any Court, the date of communication of such judgment, decree, order or direction. For all other cases, relevant date … Q 24. In case if the goods are exported by sea or air. Any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed: In order to have a clear understanding, Clause (e) to explanation (2) to section 54(14) which defines the ‘relevant date’ is reproduced below: “Explanation – For the purpose of this section, —. This is because the section 54 of CGST states that any person claiming refund may make an application before the expiry of two years from the relevant date. But a registered taxpayer may convince the concerned RPO, by drafting a proper reply along with required documents and the strong grounds in Form GST RFD-09 online on the portal within 15 days of issuance of notice, for granting refund arises due to inverted duty structure for the period July, 2017 to Jan, 2018. “Moreover, it is advisable that the registered taxpayers should file a refund claim on account of inverted duty structure for the period Feb,18 to July,18 on or before 31st Aug, 20 which is within the amended time limit as provided under section 54 of CGST Act 2017 and the benefit given vide Notification No. 2017-18 i.e.. Two years from the due date for furnishing GSTR-3B for the m/o July, 2017 i.e.. Earlier, the due date was December 31. The meaning of relevant date is very important in regard to refund provisions under GST. 55/2020- Central Tax dated 27-06-2020. 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