RELEVANT DATE- GST REFUND

[Richa Goyal]

SIR,

The interest and penalty was paid on 17.10.2017 and the final order setting aside the order was issued on the year 2019.. what would be the relevant date to file the refund of the interest and penalty paid? 2017 or 2019?

Kindly guide.

[Rajagopalan Ranganathan]

Sir/Madam,

According to Explanation (2) (d) under sub-section 14 of Section 54 of CGST Act, 2017, "in case where the tax becomes refundable as a consequence of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court, the date of communication of such judgment, decree, order or direction."

According to sub-section (1) of Section 54 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."

Therefore you have to claim the refund within two year from the date of communication of the order setting aside the said interest and penalty.

[KASTURI SETHI]

I support the views of Sh.Ranganathan, Sir.

AI Summary

GST Refund for Interest and Penalty: Claim Within Two Years from 2019 Order Communication per CGST Act. A query was raised regarding the relevant date for filing a GST refund for interest and penalty paid. The interest and penalty were paid in 2017, and the final order setting aside the payment was issued in 2019. The response clarified that, according to the CGST Act, the refund must be claimed within two years from the date of communication of the order that set aside the interest and penalty. Another participant agreed with this interpretation, supporting the view that the relevant date is when the order was communicated in 2019.