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

Refund limitation: claim refund for interest or penalty within the statutory two year period from communication of the order.
Where tax, interest or penalty is rendered refundable by a judgment, decree, order or direction of an appellate authority or court, the relevant date for the refund limitation period is the date of communication of that judgment, and the refund must be claimed within the prescribed two year period from that communication.