Ministry of Finance, through the Central Board of Indirect Taxes and Customs (CBIC), has issued a corrigendum to Circular No. 237/31/2024-GST dated October 15, 2024. This corrigendum, dated October 25, 2024, introduces a clarification regarding refund restrictions under Section 150 of the Finance (No. 2) Act, 2024. According to this clarification, the restriction on refunds does not apply to amounts paid by taxpayers as a pre-deposit under the Central Goods and Services Tax (CGST) Act. Specifically, if a taxpayer has made a pre-deposit at the time of filing an appeal, as mandated under Section 107(6) or Section 112(8) of the CGST Act, and the appeal is subsequently decided in the taxpayer’s favor, they are entitled to a refund of the pre-deposited amount.
F. No. CBIC-20001/6/2024-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing, New Delhi
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Corrigendum to Circular No. 237/31/2024-GST, Dated: 25th October, 2024
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/
Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Corrigendum to Circular No. 237/31/2024-GST dated 15th October, 2024 issued vide F. No. CBIC-20001/6/2024-GST-reg.
In the said circular, following shall be inserted at the end of para 4:
“However, it is clarified that said restriction on refund under section 150 of the Finance (No. 2) Act, 2024 will not apply to the refund of an amount paid as pre-deposit by the taxpayer as per sub-section (6) of section 107 or sub-section (8) of section 112 of the CGST Act, at the time of filing of an appeal, where such appeals are decided in favor of the said taxpayer.”
(Sanjay Mangal)
Principal Commissioner (GST)
