Tax Rate Clarification on Fried Gram

[Rajendra Prasad]

Dear Sir,

As per the latest clarification given by the CBIC , Fried Gram is exempt from GST.

Can I claim the refund of the tax paid from GST Dept .

Supplies made during 2017-18

Supplies made during 2018-19

Supplies made during 2019-20

To get refund can I issue the credit note now.

My client is a factory owner and sells goods to retail shops in turn they will sell it to consumers.

Thanking you

[Rajagopalan Ranganathan]

Sir,

The clarification cited by you has been given by CBIC in its circular No. 113/32/2019-GST dated11.10.2019. Normally the clarifications issued by CBIC through its circular are prospective in nature unless the contrary is indicated in the circular itself. Therefore in my opinion you cannot claim refund of tax paid during 2017-18 cannot be claimed by now for the reason that according to Section 54 (1) of CGST Act, 2017 "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. In your case the relevant date is date of payment of tax.

In respect of years 2019-19 and 2019-20 you have to file separate refund claim for each month so that the refund claim is filed within prescribed time limit.

[Rajendra Prasad]

Dear Sir,

It is not a new rate notification . Can we consider the clarification is applicable from 1.7.2019 ?

[Rajendra Prasad]

Dear Sir ,

Please read the date as 1.7.2017 instead of 1.7.2019.

[KASTURI SETHI]

Board's Circular No. 113/32/2019-GST dated 11.10.2019 clarifies Notification Nos.1 & 2/17-CT(Rate) which existed as on the date of issuance of the notifications. So such clarification is applicable retrospectively. Otherwise also clarification is always retrospective as it explains the existing rule/notification etc. The problem for refund is only for the the year 17-18. As per Section 54 the refund has become time-barred as already opined by Sh.Ranganathan, Sir. Keeping in view the interpretational dispute/confusion, the Board considered it necessary to issue clarification by way of circular interpreting the notifications in question. You can take the shelter of this circular and apply for refund for the year 17-18 too. There is no harm in trying your luck. Chances are 50 : 50

[Ganeshan Kalyani]

Circular is applicable retrospectively and notification is applicable prospectively.

AI Summary

GST exemption retrospective application may permit refund claims, but statutory time bar can preclude older refunds. Circular No. 113/32/2019-GST clarifies that fried gram is exempt from GST and this clarification is treated by some as retrospective because it interprets existing rate notifications. Refund claims are subject to the statutory time limit measured from the relevant date (payment of tax); earlier period claims may be time barred, while claims for later periods should be filed separately and within prescribed time limits. The utility of issuing credit notes now to obtain refunds was queried but left unresolved.