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TMI BlogIs amendment in time limit for refund under sec 54 retrospectiveX X X X Extracts X X X X X X X X Extracts X X X X ..... One of my clients refund application (Inverted duty structure) was rejected on the ground that it is time barred. Central Goods Service Tax Amendment Act, 2018 has substituted the clause (e) of 2nd Explanation to Section 54 of the CGST Act, 2017 , w.e.f. 01 .02.2019, which defines the relevant date for filling application for refund of unutilized input tax credit The said clause prior to its substitution read as hereunder: (e) in the case of refund of unutilized input tax credit under sub-section (3), the end of the financial year in which such claim for refund arises Whereas w.e.f. 01.02.2019, CGST Amendment Act, 2018 has substituted the above said clause with the clause reproduced as hereunder: (e) in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f refund of unutilized input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return under section 39 for the period in which such claim for refund arises. Now, the basic question that is whether the substituted clause will have application only in relation to refund application filled for the tax period reckoning from the February, 2019 onwards or will also hit the refund application filled after the date 01.02.2019 even pertaining to the tax period(s) prior to February, 2019. Please give your valuable views - Reply By KASTURI SETHI - The Reply = The amended Section will also hit the refund claim filed on or after the date 01.02.2019 even to the claim pertaining to the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period(s) prior to 1.2.19. For example; if any tax payer intended to file refund claim for January, 2019, the refund claim should have been filed on or before 20.2.19, it being last date for furnishing the return. Effective date of amendment i.e.1.2.19 does not mean that it will effect the refund claim arising from Feb., 19. - Reply By KASTURI SETHI - The Reply = The earlier words, '(e) in the case of refund of unutilized input tax credit under sub-section (3), the end of the financial year in which such claim for refund arises'. will not be effective for refund claim pertaining to the period prior to February, 19. - Reply By Rajagopalan Ranganathan - The Reply = Sir, The amendment is effective from 01.02.2019. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is prospective. It is applicable only to refund claims filed on or after 01.02.2019. - Reply By Kishore Dintakurthi - The Reply = Dear sir Are there any case laws to submit our views as part of reply to show cause that it is prospective and prepare for nss for appeal - Reply By Kishore Dintakurthi - The Reply = * grounds for appeal - Reply By KASTURI SETHI - The Reply = I am repeating if you file refund claim for January, 19, you will file by the due date in February, 19. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = I endorse the views of Shri Rajagopalan. - Reply By KASTURI SETHI - The Reply = Dear Kishore Dintakurthi, Your case is at which stage whether at adjudication stag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or appellate stage ? You are in search of case laws supporting the grounds of appeal. You have also mentioned about SCN. Will you please clarify ? - Reply By Kishore Dintakurthi - The Reply = Dear Sir My case is at adjudication stage. RFD 08 is served. We need to give reply in RFD-09 . And it seems that chances of refund rejection is higher. So we are proposing to give reply in such a manner that keeping strong grounds for appeal for further stages - Reply By KASTURI SETHI - The Reply = Dear Sir, Can you email scanned copy of SCN ? My email ID is in my profile in TMI. - Reply By Bharat Garg - The Reply = Hi Kishore, I beleive that the amendment should not affect the refunds pertaining to periods ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rlier than Feb 20. This is so because once the amendment nowhere specifies to be applicable to past period refunds and hence, any subsitution/repeal changes should be treated to be prospective and not be imposing additional burden/taking away benefits from taxpayers. Moreover, you can also try to take an argument saying that once taxpayer becomes entitled to a refund, timing is only a procedural aspect, which cannot take away the vested right to refund - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = It is prospective. However as suggested by Shri Sethi copy of SCN may be sent to him to his personal email id. He will clear your doubts. - Reply By Bharat Garg - The Reply = Hi Kishore, I am also facing a similar situation. While I a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m trying to build some legal arguments to claim earlier months refunds, wanted to check if you also have something made for this situation which could be useful before the tax authorities. If yes, would it be possible for you to share at [email protected]. Thanks - Reply By durairaj sethuraman - The Reply = The amendment modifies accrued rights and creates new disability. It has to be taken as prospective. ITC accumulated or refund accruing prior to 1.2.2019 will continue to be governed by the erstwhile Explantation 2(e). Please refer to case law ASHISH KATIYAR VERSUS U.O.I. THRU. REVENUE SECY. MINISTRY OF FINANCE NEW DELHI ORS - 2019 (11) TMI 1246 - ALLAHABAD HIGH COURT . Naveena Advocate - Reply By KASTURI SETHI - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply = Timing can never be considered as procedural aspect. It is requirement of CGST Act . - Reply By SHARAD ANADA - The Reply = Substitution of a provision results in its replacement by the new provision. Pl refer Doosan Infracore India Private Limited Vs. The Assistant Commissioner, = 2020 (8) TMI 138 - MADRAS HIGH COURT - Reply By A I - The Reply = Do we have any solution as to whether the change in time limit for filing refund claim would also apply to refund claims pertaining to period before 01.02.2019 BUT filed after 01.02.2019. - Reply By DAULAT SINGHVI - The Reply = Recently I found a circular from Supreme Court applicable for all judicial courts, authorities which says the period starting from March 20 to Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch 21 , covid period, shall be excluded for calculation of limitation period. I put my query whether it will help in claim for refund of invertes ITC. - Reply By Manohara Madineni - The Reply = To the best of my knowledge it should be only prospective, because the vested right of the assesse cannot be taken away. If you need more details you can reach out to the in the mail I'd given in my profile - Reply By Pankaj Shah - The Reply = So sir for GST Refund on account of inverted duty structure the last date to apply for refund application for the period 2019-20 from April to March the date applicable for it is 20-05-2021 or 20-05-2022 - Is amendment in time limit for refund under sec 54 retrospective - Query Started By: - Kishor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Dintakurthi Dated:- 8-8-2020 Goods and Services Tax - GST - Got 20 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management 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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