Time limit for GST refund, Goods and Services Tax - GST

[Mohideen A]

If a taxpayer seeking a GST refund under with payment mode for the period of April 2021. Notification No. 13/2022-Central Tax dated 05-12-2022, excluded the period from 01/03/2020 to 28/02/2022 for calculating the time limit to file refund applications under GST due to COVID-19.

1. In accordance with this notification, can we exclude the period between April 2021 and February 2022 for the purposes of filing a GST refund application?

2. Considering the above notification can the GST refund application for April 2021 be filed by February 2024?

Thanks

Posts / Replies

[KASTURI SETHI]

Sh.Mohideen A Ji,

Answer to Q.No. 1 is NO. Reason : The exclusion period is meant for those refund claims for which the date was to expire between 01.3.2020 to 28.2.2022.

Answer to Q.No.2 is NO. Reason given in answer to Q.No.1.

Notification No.13/22-CT dated 05.12.22 is not meant for the refund claims which are to be filed in routine manner. The purpose is for exceptional circumstances.

[KASTURI SETHI]

In continuation of my reply above, Notification No. 13/2022-CT dated 05.12.2022 is not 'a luxury' or 'comfort zone'.

[L D Raj & Co]

For the purposes calculating 2 years time limit, this period notified is to be ignored. So, yes to both of your questions. I humbly defer with Mr. Kasturi Sethi sir

[KASTURI SETHI]

M/s.L D Raj & Co.

Dear Sirs, You have fundamental right to express your views. There must be cogent reason for difference of opinion. Will you please elaborate your reply ? I am very eager to know for enrichment of my knowledge.

If you are very much confident with your opinion, then you must muster courage to let the date be crossed as opined by you .

The Notification referred to in the query is not a springboard to transcend the wall of time bar limit prescribed by the statute.

[Padmanathan Kollengode]

I am also of the following view:

1. Period from the 1st May 2021 to the 28th Feb 2022 (303 days or so) shall be excluded for calculating limitation period.

2. According refund can be filed upto 28th Feb 2024.

The relevant clause of Notification No 13/2022 reads as under:

(iii) excludes the period from the 1st day of March, 2020 to the 28th day of February, 2022 for computation of period of limitation for filing refund application under section 54 or section 55 of the said Act.

It does not restrict this extension to only those cases where limitation period ends within the covid period. Therefore, in any case where the limitation period falls under the above period, it shall be excluded and hence, equavalent number of days shall be available to the assessee.

To put it logically also,

1. Whether the limitation period ends during the covid period or it begins during covid period, the assessee would be restricted to make application during the said period. It is not the case that only the former is suffering;

2. in this particular case, from 1st may 2021 to 28th Feb 2022 ie 303 days, the assessee might be restricted to file refund application due to covid, hence the equivalent days are compensated to him so that he gets full 2 years as provided in section 54.

3. Since the language of notification doesnot make any classification, in my opinion one need not artificially make any distinction of the cases. The relevant clause of notification is clear and unambigious and it is benovalent notification to be understood purposively (Mother Superior Supreme Court).

[Amit Agrawal]

I agree with M/s L D Raj & Co. for views posted at serial no. 3 above, duly elaborated by Shri Padmanathan Ji in his post at serial No. 5.

These are ex facie views of mine and the same should not be construed as professional advice/suggestion.

[Ganeshan Kalyani]

Sir, I agree with the views of Sri Kasturi Sir. The Notification no. 13/2022 is a partial modification of Notification no. 35/2020 - CT dated 03.04.2020 and Notification no. 14/2021 - CT dated 01.05.2021. In both the notifications the wording as reproduced below appears -

"where, any time limit for completion or compliance of any action, by any authority or by any person, has been specified in, or prescribed or notified under the said Act, which falls during the period from the 20th day of March, 2020 to the 3[30th day of August, 2020..."

The word 'time limit for completion ' appearing in the above para indicates that the notification applies to those compliance of which the time line falls due for completion during the above stated period.

Since the notification under discussion is a further modification of these previous notifications the reason or the cause of time limit extension as was given in previous notifications applies to this notification under discussion as well.

Hence the refund application of which the timeline of completion falls during the period 01.03.2020 to 28.02.2022 is not to be considered.

[Amit Agrawal]

@ Shri Ganeshyam Kalyani Ji,

I respectfully disagree with the reasoning adopted by you in your post at serial No. 7 above.

This is mainly because "quoted Para" - by you - is not the part which was kept while modifying the earlier notifications via Notification No. 13/2022-CT dated 05.12.2022. And Notification No. 13/2022-CT dated 05.12.2022 is made effective from 01.03.2020.

Anyway, if your reasoning is correct, you are essentially saying that "the time limit specified under sub-section (10) of section 73 for issuance of order under sub-section (9) of section 73 of the said Act, for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilized, in respect of a tax period for ANY financial year/s under GST" is NEVER extended. This is because, as per your reasoning, 'time limit for completion' of such action NEVER fell between the period 01.03.2020 to 28.02.2022.

I got more reasons to disagree with your views. But, I will wait for your counter/s about "implications of your views as explained in above Para".

These are ex facie views of mine and the same should not be construed as professional advice/suggestion.