Applicability of circular 135/05/2020 for refund period prior to Oct-2019

[NRSR CO]

Hi,

We have applied for the GST refund in case of export without payment of tax for the month of Septemeber 2019 in April 2020. Since the period is prior to 36(4) applicablity, we have claimed the refund of few invoice not appearing GSTR-2A. After the application many supplier filed the GSTR-1 and many of the invoices are now appearing in GSTR 2A. Now department sent SCN asking to repay the refund on erroneous refund basis. When rule 36(4) it self is not applicable for the period under question for availament, can the circular 135/05/2020 insist the GSTR-2A requirement for the invoices to claim refund?

AI Summary

Refund eligibility for pre-rule invoices questioned as administrative circular sought to impose post-period GSTR-2A requirement.
The department relies on an administrative circular to require that invoices appear in purchaser-facing returns for refund verification, and has issued a show cause notice seeking recovery of refunds claimed for a period before the investigatory verification rule took effect. The legal questions are whether the circular may impose stricter documentation conditions than statute permits for earlier periods, and whether statutory conditions for input tax credit must be satisfied before or may be satisfied after availing credit/refund; the circular's added verification requirement may be amenable to writ challenge.