Claiming GST Input Tax Credit

[Asked by Guest]

Dear All,

I am a exporter of services (without payment of GST) and as such I have some accumulated ITC which I am looking to file a refund claim.

My questions:

1. Can I file a refund claim of ITC for FY 2017-18 if I file the claim today?

2. Will the refund be based on GSTR-3B of GSTR-2A as in the initial months I have not claimed the input credit, however it is showing in GSTR-2A

3. A bank has deducted GST for services (2018-19) however it was uploaded by them in GST portal in next financial year (2018-20), In such case shall I file refund claim for this amounts in 2018-19?

[KASTURI SETHI]

Dear Mr. Vikash Agarwal Ji,

You need to peruse the definition of 'relevant date' defined under Explanation 2 (e) to Section 54 of CGST which stands amended w.e.f. 1.2.19. However, in my view, you cannot file refund claim now for 17-18 and 18-19.

[Kashish Gupta]

Dear Vikash Ji

The refund is claimed for the tax period in which credit has been availed by way of filing Form GSTR-3B. This availment of credit is subject to the time limits specified under section 16(4) of the GST Act i.e. on or before due date of filing return for the month of September following the end of financial year to which such invoice pertains. Therefore, the answer to queries are as under:

1. Check the tax period in which credit was availed and count 2 years from the date of issue of invoice for export or receipt of payment in convertible foreign exchange, whichever is later. If todays date is falling within the calculation done above, please file the claim for refund.
2. ITC has to be availed in Form GSTR-3B
3. File claim for tax period in which credit has been claimed by you.

Kindly note that the period of compliance for the due dates falling between the period 20.03.2020 to 30.08.2020 has been extended to 31.08.2020. Therefore, kindly keep this thing in mind while deciding eligibility to file refund claim in terms of time.

[Mahadev R]

Dear Mr.Vikas,

Refund of GST paid on procurements can be claimed for which time limit of 2 years would be applicable. If there are old credits for which time limit lapsed, you could consider the option of paying GST on exports by utilising the old credits accumulated and file refund application for refund of GST paid on exports.- Section 54

Credits to be claimed in 3B. Entries only in 2A would not be sufficient compliance. You may have to go by entries for credits in 3B and not based on entries in 2A.

[KASTURI SETHI]

Para No.36 of Circular No.125/44/2019-GST dated 18.11.19 has been modified vide Circular No.135/05/2020-GST dated 31.3.2020 (Para No.5.2)

"5.2 The matter has been examined and it has been decided that the refund of accumulated ITC shall be restricted to the ITC as per those invoices, the details of which are uploaded by the supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant. Accordingly, para 36 of the Circular No.125/44/2019-GST dated 18.11.19 stands modified to that extent."

Thus in terms of Circular No.135/05/2020-GST dated 31.3.2020, if the details of invoices of inward supply are not reflected in GSTR 2A, refund will not be admissible.

So entries in GSTR 2A is an absolutely must for sanction of refund claim.

AI Summary

GST input tax credit refund limited to ITC availed in GSTR 3B and invoices reflected in GSTR 2A, subject to time limits.
Exporters can claim refund of accumulated input tax credit only for tax periods in which credit was actually availed in Form GSTR 3B, subject to statutory time limits measured from invoice issue or receipt of foreign exchange; credits not availed within the limitation cannot be claimed, though they may be utilised to pay tax on exports and then refunded. Refunds are restricted to invoices uploaded by suppliers in GSTR 1 and reflected in the claimant's GSTR 2A, so absence of such entries generally bars refund sanction.