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TMI BlogRefund of IGST paid on export of servicesX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts Please suggest if there is any way to file refund of IGST if two years have expired from the date of receiving the amount in foreign currency or is there any extension for filing refund if two years expired in February 2020. Please reply. Regards Archna Gupta - Reply By Mahir S - The Reply = The 2 year period is to be counted from the relevant date. - Reply By KASTURI SETHI - The Reply = No hope. Govt. is very strict regarding time bar limit. - Reply By Mahir S - The Reply = As of now, there is no way of filing such refunds. However, you may keep yourself updated on any latest case law pertaining to the said issue or any clarification/circular from the department in the future. - Reply By KASTURI SETHI - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = This claim cannot be covered by even relaxation granted due to Covid-19. I do not think any case law or circular will help. - Reply By Ganeshan Kalyani - The Reply = Sir, it is a bitter truth that ignorance of law is not an excuse . If by any way you justify that two years time limit to file refund application was not known, the law is not going to help. It is on a very rare and exceptional cases the relief is given. Like in the case of M/s. Bharti Airtel Limited = 2020 (5) TMI 169 - DELHI HIGH COURT , the Honorable High Court of New Delhi has allowed the petitioner to revise GSTR-3B for initial period of GST. - Reply By Ganeshan Kalyani - The Reply = Sir, due to this current situation, Govt. has relaxed the compliance (exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt some) falling between 20.03.2020 to 30.08.2020. However, the compliance need to be done on 31.08.2020. - Reply By KASTURI SETHI - The Reply = But in this situation the date of filing claim expired in Feb.,20 before the Covid 19. - Reply By KASTURI SETHI - The Reply = If the party decides to file refund claim which is time barred, the matter travel to the Supreme Court. - Reply By Alkesh Jani - The Reply = Shri All the experts have explained the situation very well and I agree with the views. however, if the amount is considerable, you may file appeal to HC with proper ground and challenging the provisions of two years being ultra vires. - Reply By Ganeshan Kalyani - The Reply = Yes, sir the time period elapsed of the querist d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oes not fall between the relaxation period. - Reply By rajkumar shukla - The Reply = some experts are of view that section 54(3) does not talk about relevant date therefore for claiming refund of IGST ,relevant date will not apply.Whatever be the relevant date,for claiming refund exports, since it is not mentioned in 54(3) , it will not apply.it will apply only where it is mentioned like 54(1) . refund can be claimed at the end of ANY TAX PERIOD.Relevant date is only for section 54(1) - Reply By KASTURI SETHI - The Reply = No. Sir. Pl. read Explanation below sub-section (14) of Section 54 of CGST Act . Emphasis is on the words, purposes and This Section . It is not 'purpose' rather it is 'purpose s '. Thus t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he words, 'this section' and 'purposes' relate to all sub-sections/clauses of Section 54 . This section means the whole Section 54 . One cannot read sub Sections (1) and (3) 54 in isolation. The period of two years is for all types of refunds/rebates. The method of computation of two years differs but the refund claim has to be filed within is two years from the relevant date. In this context, it is also expedient and necessary to go through the definition of 'refund'. Refund is also covered by Section 20 (xiii) of IGST Act which makes IGST applicable to CGST Act . Explanation. - For the purposes of this section, - (1) refund includes refund of tax paid on zero-rated supplies of goods or s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilised input tax credit as provided under sub-section (3). (2) relevant date means - (a) ------------------ (i) ---------------- (ii) ------------------------ (iii) ----------------- (b) ------------------- c) in the case of services exported out of India where a refund of tax paid is available in respect of services themselves or, as the case may be, the inputs or input services used in such services, the date of - (i) receipt of payment in convertible foreign exchange [or in Indian rupees wherever permitted by the Reserve Bank of India], where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the supply of services had been completed prior to the receipt of such payment; or (ii) issue of invoice, where payment for the services had been received in advance prior to the date of issue of the invoice; - Reply By rajkumar shukla - The Reply = The issue is still debatable one..the implication of relevant date would be those sections where ever it appears.words End of any tax period .repeat ANY loose relevance if two year period limitation is in voked. - Reply By Alkesh Jani - The Reply = Dear Experts, The issue or query raised is with regards to IGST Paid on export of service, while Section 54(3) deals with refund of unutilized ITC, which is not applicable in the instant case. Therefore, Section 54(1) is applicable in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the instant case and time limit of two years is applicable from the relevant date. - Reply By rajkumar shukla - The Reply = Agreed,and sorry.i missed this important aspect that question relates to simple refund of IGST. - Reply By KASTURI SETHI - The Reply = Refund/rebate claim of IGST paid on export of services is admissible as per Section 16(3)(b) of IGST Act . As per Section 16(3)(b) of IGST Act , such refund is to be claimed/sanctioned in accordance with Section 54 of CGST Act or the rules made thereunder. The provisions of CGST Act and Rules made thereunder have made applicable to IGST Act by virtue of Section 20 of IGST Act . - Reply By Alkesh Jani - The Reply = Shri Rajkumar Sire, You don't need to be sorry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in fact, it was over sighted. To err is human and seldom people accept their mistake, this clearly reflects your greatness and it is said Great man makes everyone feel great and I am feeling great. With due regards - Reply By Mahir S - The Reply = Well said Alkeshji...Proud of U.. - Reply By Mahir S - The Reply = The Chhattisgarh High Court has asked the local GST Commissioner to refer the matter of granting more time to file claim for transitional credit to those assessees who could not do it in time due to technical glitches to the GST Council. Transitional credit, or CENVAT credit, refers to the use of tax credit accumulated up to June 30, 2017, the last day of the erstwhile Central excise and service tax regime. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... event, if the Commissioner, Commercial Tax, makes a reference to the GST Council, it is expected that the Council also, in turn, takes an early decision on the reference made by the Commissioner preferably within a period of 90 days from the date of receipt of reference by the Commissioner, a single judge bench said in its ruling. Under the GST law, Section 117(1)A , the GST Council has been empowered to extend the date for submission of the declaration electronically in Form GST TRAN-1 for those persons who could not submit it by the due date on account of technical difficulties on the portal. In a petition , petitioner Dhamtari Krishi Kendra said he tried to file claim for CENVAT credit before due date of December 27, 2017, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could not do so because of technical glitches. Immediately, he reported the matter to the tax department. He subsequently submitted the return manually in January, 2018 and also sent a copy through post. Both were not accepted by the department which made him approach the high court. The court subsequently asked him to approach the Nodal Officer. He, however he was denied permission to submit the claim. So, he went back to the court. The court took note of elements which Tax Commissioner overlooked. These include proofs supporting the petitioner s claim of not able to file the return due to technical glitch, the submission of complaint before due date and submission of the form manually and also through the post within three weeks from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due date. Accordingly, this court remits the matter back to the Commissioner, Commercial Tax, for a reconsideration and for passing of a fresh order, the ruling said while adding he/she should keep all the documents submitted by the petitioner in the mind and decide within 60 days. If required, the Commissioner can refer the matter to the GST Council, the court said. Divakar Vijayasarathy, Founder and Managing Partner of DVS Advisors LLP, said the decision highlights the apathy in the system which refuses to be tax-payer friendly. As much as we need to respect law, circumstances like these need to be viewed from the spirit rather than the letter alone. Further inability to comply with for reasons beyond the control of the tax payer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should always be viewed from a benign perspective. With a legal system which is saddled with a huge backlog and an archaic executive framework, the country needs significant reforms to get anywhere close to our ambition of being business friendly, he said. - Reply By SURAJ SHARMA - The Reply = Hi Archan, it would better help, if you send request to IECgate customer id with mentioned your compnay IEC number and GST numbre. You will get solution next 24hrs from them. Regards Suraj Sharma - Refund of IGST paid on export of services - Query Started By: - Archna Gupta Dated:- 23-7-2020 Goods and Services Tax - GST - Got 20 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Managem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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