Is amendment in time limit for refund under sec 54 retrospective

[Kishore Dintakurthi]

One of my clients refund application (Inverted duty structure) was rejected on the ground that it is time barred.

Central Goods & Service Tax Amendment Act, 2018 has substituted the clause (e) of 2nd Explanation to Section 54 of the CGST Act, 2017, w.e.f. 01 .02.2019, which defines the relevant date for filling application for refund of unutilized input tax credit

The said clause prior to its substitution read as hereunder:

(e) in the case of refund of unutilized input tax credit under sub-section (3), the end of the financial year in which such claim for refund arises

“Whereas w.e.f. 01.02.2019, CGST Amendment Act, 2018 has substituted the above said clause with the clause reproduced as hereunder:

“(e) in the case of refund of unutilized input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return under section 39 for the period in which such claim for refund arises.”

Now, the basic question that is whether the substituted clause will have application only in relation to refund application filled for the tax period reckoning from the February, 2019 onwards or will also hit the refund application filled after the date 01.02.2019 even pertaining to the tax period(s) prior to February, 2019.

Please give your valuable views

AI Summary

Debate on Whether Section 54 CGST Amendment Affects Pre-February 2019 Refund Claims Filed Later A discussion on a forum addresses whether the amendment to Section 54 of the CGST Act, effective from February 1, 2019, applies retrospectively to refund claims of unutilized input tax credit filed after this date but pertaining to periods before it. Opinions are divided; some argue the amendment is prospective and applies only to claims filed post-amendment, while others suggest it affects all claims filed after February 1, 2019, regardless of the period they pertain to. Participants discuss legal arguments and case laws to support their positions, with some seeking advice on preparing for appeals.