Gujarat HC Permits Second GST Refund Application for Same Period

“Gujarat HC allows a second GST refund application for the same period in the case of Shree Renuka Sugars Ltd. Learn about the ruling’s implications, including situations for reapplication and key insights from the case. Understand the importance of meeting all conditions for a successful refund application. Stay informed with the latest updates.”

Gujarat High Court Ruling Allows Taxpayers to File Second GST Refund Application for the Same Period in the case of Shree Renuka Sugars Ltd.

Is it possible to file a GST refund application for the same period again after the first application has been approved once?

Examples of situations to file another refund application for the same period:

• Inadvertently missed out on some ITC or errors took place in first refund application.
• Changes in circumstances and entitled for higher refund.

Excerpts from case law : Shree Renuka Sugars Ltd, Special Civil Application No. 22339 of 2022

Facts :

• Shree Renuka Sugars Ltd, while filing GST refund application has missed out to claim an eligible refund amount of Rs. 10,20,28,733 due to arithmetical error occurred.
• Upon realized this, the company has filed another refund application for the same period under “ any other” category.
• GST officer had rejected the Refund application.

Order of Honourable Gujarat High Court:

The petition was allowed and Instructed GST officers to accept the GST refund applications subject to satisfaction of other conditions such as time limit and ITC eligibility etc..

It is settled law that the benefit which otherwise a person is entitled to once the substantive conditions are satisfied cannot be denied due to a technical error or lacunae in the electronic system.

Concluding Remarks:

This decision is significant because it clarifies that taxpayers are not barred from filing a second GST refund application for the same period even if the first application has been approved. However, it is important to note that the taxpayer must still meet all of the other conditions for filing a refund application, such as the time limit and ITC eligibility.