Gajraj Vahan Private Limited Vs State of Jharkhand (Jharkhand High Court)
As per the amended Rule 89 (1A) of CGST Rules, 2017 and Circular dated 25.09.2021, the limitation period for seeking refund would be two years from the date of the instant notification i.e. 24.09.2021. However, in the face of rejection order, petitioner cannot make a fresh application, though the instant amendment and the notification beneficially applies to his case also.
FULL TEXT OF THE JUDGMENT/ORDER OF JHARKHAND HIGH COURT
Learned counsel for the petitioner has placed a circular no. 162/18/2021-GST dated 25.09.2021 issued by the CBIC on the subject – clarification in respect of refund of tax specified in section 77(1) of the CGST Act and Section 19(1) of IGST Act-Reg. Learned counsel for the petitioner submits that Sub Rule (1A) has been added to Rule 89 of CGST Rules, 2017 which reads as under:
“(1A) Any person, claiming refund under section 77 of the Act of any tax paid by him, in respect of a transaction considered by him to be an intra-State supply, which is subsequently held to be an inter-State supply, may, before the expiry of a period of two years from the date of payment of the tax on the inter-State supply, file an application electronically in FORM GST RFD-01 through the common portal, either directly or through a Facilitation Centre notified by the Commissioner:
Provided that the said application may, as regard to any payment of tax on inter-State supply before coming into force of this sub-rule, be filed before the expiry of a period of two years from the date on which this sub-rule comes into force.”
2. Petitioner in this case had deposited the tax on 14.02.2020 whose refund was rejected as time barred by the impugned order dated 24.04.2020. The instant circular gives answers to different illustrations of facts scenario under para 4.3 which is quoted hereunder:
“4.3 Application of sub-rule (1A) of rule 89 rad with section 77 of CGST Act/section 19 of the IGST Act is explained through following illustrations.
A taxpayer “A” has issued the invoice dated 10.03.2018 charging CGST and SGST on a transaction and accordingly paid the applicable tax (CGST and SGST) in the return for March, 2018 tax period. The following scenarios are explained hereunder:
