GST Refund Application U/S 54 Beyond Relevant Date Liable for Rejection

Cherish India Exports Vs Assistant Commissioner of State Tax and Others (Andhra Pradesh High Court)

Andhra Pradesh High Court held that application for refund of unutilised input tax credit under section 54 of the Central Goods and Services Tax Act [CGST Act] is to be filed within 2 years from relevant date i.e. date on which vessels carrying goods is exported. Here, since application filed beyond relevant date is liable to be rejected.

Facts- The petitioner, who is involved in the export of rough granite, is also registered under the Central Goods and Services Tax Act, 2017.

The petitioner had exported certain rough granite blocks, during the period January, 2022 to March, Subsequently, he moved an application for refund of an amount of Rs.11,26,953/-, dated 21.03.2024. This application is said to have been made under Section 54 of the CGST Act. The 1^st respondent rejected this application, by an order, dated 03.04.2024, on the ground that, the application is filed beyond time.

Aggrieved by the said order, the petitioner has approached this Court, by way of the present Writ Petition.

Conclusion- Section 54 (1) of the CGST Act stipulates that the person who is entitled to refund of tax, can make an application for refund of such tax, within two years from the relevant date. The term “relevant date” was also defined in the explanation set out in Section 54 (14). The relevant date, which would arise in the present case, would be the date on which the vessel, carrying granite blocks, is exported by the petitioner. This is because the granite blocks, which had been exported by the petitioner, were zero rated goods and consequently, the relevant date would be explanation 2 (a) (i) to Section 54 (14) of the CGST Act.