gst refund on export of services

[Satbir singh wahi]

Refund for Export of Services was filed on 05/03/2021 . It was duly acknowledged vide FORM-GST-RFD-02 on 10/03/2021.Now after lapse of stipulated time period for issue of refund it has been wrongly rejected on 19/10/2021.pls guide.

[Shilpi Jain]

You can go on appeal against the order of refund..

[KASTURI SETHI]

Sh Satbir Singhwahi Ji,

What is the date of filing mentioned on ARN ? It is very very important before going ahead for filing an appeal.

Pl. go through Rule 90 (2) of CGST Rules.

[Satbir singh wahi]

Thanks sir , the date of ARN is 05.03.2021, but it relates to financial year 2017-18 , refund application was refiled on 05.03.2021, on rejection of old application.

[KASTURI SETHI]

Dear Sir,

Have you gone through para no.12 of Circular No.125/44/2019-GST dated 18.11.19 (as amended) ?

Para No.12

"It is also clarified that since a refund application filed after correction of deficiency is treated as a fresh refund application, such a rectified refund application, submitted after correction of deficiencies, shall also have to be submitted within 2 years of the relevant date, as defined in the explanation after sub-section (14) of section 54 of the CGST Act."

[Satbir singh wahi]

Thanks Sir, I understand para 12. Is there any remedy for this lapse.

[Shilpi Jain]

Since it is an export of service please also check when the consideration in foreign exchange was received. This date is important to check the the time limit for applying for refund

[Shilpi Jain]

Also, when the refund is filed after rejection of the original refund filed, the period between acknowledgement of submission of first application and rejection of the said application would be excluded while computing the time limit for applying for the refund.

Suggest that these points also be taken into account while checking whether the refund is time barred or not and timely appeal is filed if necessary

[Satbir singh wahi]

Thanks , I will check .

AI Summary

GST refund time-bar on export of services-check rectified-application two-year limit and foreign exchange receipt timing.
GST refund for export of services acknowledged on 05.03.2021 was later rejected; advisers advised appealing the rejection, verifying the ARN filing date, and noting that a rectified refund application is treated as a fresh claim subject to the two year submission limit from the relevant date. For export of services the date of receipt of consideration in foreign exchange affects the limitation period, and the period between acknowledgement of the first application and its rejection is excluded when computing the time limit.