Appeal against GST Partial Refund/Rejection Order.

[I Bhasin]

Dear Experts,

Need your expert advise.

We applied for GST refund for our input credit for period of 09-2017 to 03-2018 on 3rd December 2019 for which a DM was issued requesting for more documents. Our CA filed a fresh refund application on 31st December. We were issued a partial refund and for period of 09-2017 to 12-2017 was rejected citing the reason TIME BAR on 28th February. We have recently noticed that the refund issued to us was not right because the considered input tax was actually 40% lower than what it actually is reflecting in our ledger.

Can we file an appeal now because of delay due to COVID? Or if we ask for the rejected amount to be re-credited then would we allowed to utilise this future adjustments.

Thanks,

Bhasin

[KASTURI SETHI]

Request for re-credit is better and easier option. No use of filing appeal against the Order-in-Original wherein refund claim has been rejected on time-bar issue. You will get re-credit immediately whereas time will be consumed in appeal. Moreover, your claim/case is weak on time-bar basis.

[I Bhasin]

Thanks for your guidance Mr Sethi.

Now, if we get the rejected amount re-credited to our electronic ledger, is there any time limit to utilise that amount or that is also TIME BARRED?

[KASTURI SETHI]

Sh.Bhasin Ji,

There is no time limit for utilization of ITC. Time limitation is only for availing ITC. This has been the position since implementation of Modvat Credit/Cenvat Credit/ITC facility.

[AFREEN SHAIKH]

after crediting the rejected itc. can we charge igst on ecport and pay the liability through igst and take refund of those igst???

will they give refund?

AI Summary

Time-bar on GST refund: requesting re-credit of rejected ITC preferred over appeal; re-credited ITC remains usable for liabilities. A taxpayer received partial GST refund and a time-bar rejection for earlier periods; advisers recommended seeking administrative re-credit of the rejected ITC to the electronic ledger rather than filing an appeal, because re-credit is quicker and appeals are weak where time-bar is asserted. It was noted that utilisation of Input Tax Credit is not time-barred, so re-credited ITC may be applied against future tax liabilities. A further query questions whether such re-credited ITC can be used to pay IGST on exports and then claim refund of those IGST payments.