QUESTION

Whether two year time limit under Section 54 (1) applicable While filing of GSTR-9C for F.Y 2017-18 on 05-02-2020, it is found that the Company has paid Rs. 16,525/- on advance amount received as well as Rs. 16,525/- when sales invoices were raised during July-17 to Sept-17. The company has not adjusted such GST amount paid on the advances received which has resulted in double payment of GST to that extent. In this view, on 19-03-2020 we successfully applied on-line for refund claim for such excess paid GST during the period July-17, Aug-17 and Sept-17 after two years. Acknowledgment RFD-02 also issued for July-17 on 20-04-2020 and for Aug-17 RFD-02 issued on 21-03-2020. For Sept-17 RFD-02 yet not issued Thereafter, SCN RFD-08 U/r 92(3) is online issued on 27-04-2020 for July-17 and Aug-17 refund, for which due date of reply is 12-05-2020, but we have yet not replied. However, it is found that in SCN in-eligible amount is NIL but reason for rejection shown as “your application is beyond time limit so clarify the matter” is mentioned. Kindly advice whether (i) limitation of two year U/s 54 (1) applicable (ii) kindly provide any favourable case law / provision to get such refund claim (iii) whether can we file reply till 30-06-2020 due to relaxation under covid-19 situation.

ANSWER

Facts of the case:  While filing of GSTR-9C for F.Y 2017-18 on 05-02-2020, it is found that the Company has paid Rs. 16,525/- on advance amount received as well as Rs. 16,525/- when sales invoices were raised during July-17 to Sept-17. The company has not adjusted such GST amount paid on the advances received which has resulted in double payment of GST to that extent and on 19-03-2020 applied on-line for refund claim for such excess paid GST during the period July-17, Aug-17 and Sept-17 after two years. Thereafter, SCN RFD-08 U/r 92(3) is online issued on 27-04-2020 for July-17 and Aug-17 refund, for which due date of reply is 12-05-2020.

Law Applicable: SECTION 54 OF CGST ACT
1) 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:

Explanation: (2) '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,''
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h) in any other case, the date of payment of tax.

Interpretation: As per section 54 application for claiming refund of any tax can be made before the expiry of two years from relevant date. Relevant date in your case is the date of payment of tax  i.e. July 17 to September 17 . Therefore refund can be filed before July 19 to September 19 for Tax paid during July 17 to September 17 respectively.

Thus application of refund filed on 19.03.2020 i.e. after two years is time barred.

Conclusion: Refund applied on 19.03.2020 for Tax paid during July 17 to September 17 is time barred.(Reply dt.12-05-2020)