TaxTMI 
TaxTMI 
GST REFUND
X X X X Extracts X X X X
X X X X Extracts X X X X
....ST REFUND<br> Query (Issue) Started By: - NILESH PITALE Dated:- 12-5-2025 Last Reply Date:- 15-5-2025 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Dear Expert In the Case of our One Of The Client, We had Applied for The Refund for the Period July 17 to March-18, Which was Rejected, But ITC was not re-credited and mean time,Time has lapsed for Fresh Application and after Long Period ITC was Re-credited, After that we applied for New Refund Application For The Period April 18 to March 20 but in the same application we also claimed refund of ITC of July 17 to March-18 but Assessing officer passed the Refund for the Period April 18 to March 20, Now the case is in appeal Hearing. Can we get Refund for the Period July 17 to March-18,....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Any Case laws Please Guide Reply By Ganeshan Kalyani: The Reply: Seek suggestion from the Officer as regard applying for refund for period July 2017 to March 2018. Reply By YAGAY andSUN: The Reply: In the situation you've described, there are a few key points of concern related to the refund of ITC (Input Tax Credit) and the re-crediting of ITC in the context of GST (Goods and Services Tax) law. The facts you mentioned indicate that: * Initial Refund Rejection: The refund application for the period July 2017 to March 2018 was initially rejected, and ITC was not re-credited to the taxpayer's account. * Time-Lapse for Fresh Application: After the rejection, the prescribed time for filing a fresh refund application e....
X X X X Extracts X X X X
X X X X Extracts X X X X
....xpired. * ITC Re-credited after a Long Period: Later, the ITC for the period of July 2017 to March 2018 was re-credited, possibly due to some rectification or administrative process. * New Refund Application: A new refund application was filed for the period April 2018 to March 2020, but the refund for the earlier period July 2017 to March 2018 was also claimed in the same application. The Assessing Officer approved the refund for the new period (April 2018 to March 2020), but not for the earlier period (July 2017 to March 2018). * Appeal: The matter is now under appeal hearing. Key Considerations for Refund of ITC (July 17 to March 18) * Refund under Section 54 of the CGST Act, 2017: Under the GST law, a taxpayer can apply for a r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....efund of any unutilized ITC. The time frame for filing such an application is generally two years from the end of the financial year in which the refund arises. For the period July 2017 to March 2018, the time to apply for a refund (two years) expired in March 2020. However, since the ITC was not initially re-credited and only later was it credited back, the key issue is whether the ITC crediting should allow for the reapplication for refund despite the lapse of the standard two-year time period. Section 54 provides for a refund mechanism, but the process is tied to time-bound restrictions. * Refund Timeline: According to Section 54(1) and Rule 89(1) of the CGST Rules, a refund claim must generally be made within two years from the end o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the financial year in which the claim arises. This time frame is strict. However, if there was a delay in re-crediting the ITC, the question becomes whether the time limit for filing the refund application should be extended or waived due to the delay in crediting the ITC. * Re-credit of ITC and Appeal Process: * Since the ITC for the period July 17 to March 18 was only re-credited after the lapse of the time limit, the key question is whether the re-crediting of ITC is treated as a valid reason for a refund application to be considered, even after the usual time limit has expired. * If the re-crediting of ITC happened due to a rectification or an error by the GST authorities, the courts may allow exceptions based on the principle o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f equity or natural justice. If the taxpayer was deprived of their ITC due to administrative delay or error, it could justify extending the refund application period. * Doctrine of Laches and Equity: Sometimes, equity plays a role in allowing refunds even after a time-barred application, especially if the applicant was prejudiced by circumstances beyond their control (e.g., administrative delay in re-crediting the ITC). * Relevant Case Laws: Here are some cases and interpretations that could potentially support your position in the appeal: A) Lenovo (India) (P) Ltd. v. Commr. of GST (Appeals-I) - 2023 (11) TMI 774 - MADRAS HIGH COURT. B) ARS Energy (P) Ltd. v. Commr. (Appeals) - 2023 (12) TMI 233 - MADRAS HIG....
X X X X Extracts X X X X
X X X X Extracts X X X X
....H COURT. 6. Section 54(4) of the CGST Act and Rule 89(1): These provisions stipulate the procedure for filing the refund claim. However, time-barred claims may be accepted in cases where the delay is caused by administrative error or natural justice grounds (as noted in the above case laws). Can You Get Refund for the Period July 17 to March 18? Given that the time limit for claiming a refund has passed, the rejection of your earlier refund claim and the re-crediting of ITC after the time limit complicate the matter. However, there are possible avenues to challenge this: * Delay in Re-crediting ITC: You could argue that the delay in re-crediting the ITC was an error on the part of the authorities, and therefore, the time limit sho....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uld be waived or extended. Courts have been lenient in cases where the taxpayer was deprived of ITC due to the failure of the authorities to act in a timely manner. * Judicial Interpretation: Courts have sometimes allowed refunds after the time period has lapsed if the delay was not the taxpayer's fault and was caused by factors like administrative inaction or errors. * Principle of Natural Justice: Since the ITC was not re-credited initially, and this was outside the taxpayer's control, there may be a case for extending the deadline or re-allowing the refund. In the appeal hearing, you can focus on: * The administrative delay in re-crediting the ITC. * The equitable grounds for the claim, citing relevant case law where courts ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....have allowed refunds despite time-barred applications. * Evidence of the delay in re-crediting the ITC and how it affected the timely filing of the refund application. Recommendation: It is crucial to present strong arguments regarding the administrative error in not re-crediting the ITC on time, and how it affected the filing of the refund application. This will be your strongest case in the appeal hearing. If you haven't already, you may also want to present any documentation or correspondence that shows the delay in re-crediting ITC was due to the authorities' actions (or inaction). *** Reply By Shilpi Jain: The Reply: If you have exports see whether it is possible to do it with payment of tax which can also en-cash past accum....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ulated credits Reply By Shilpi Jain: The Reply: This option will keep the disputes away regarding other claiming refund for the said period.<br> Discussion Forum - Knowledge Sharing ....