Is amendment in time limit for refund under sec 54 retrospective, Goods and Services Tax - GST

[Kishore Dintakurthi]

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 of 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

Posts / Replies

[SHARAD ANADA]

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
 

[A I]

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.

[DAULAT SINGHVI]

Recently I found a circular from Supreme Court applicable for all judicial courts, authorities which says the period starting from March 20 to March 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.

[Manohara Madineni]

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

[Pankaj Shah]

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