Question ID :
40827
REFUND FOR ZERO RATED SUPPLIES
our client has applied for their export refunds of oct-18,nov-18 and dec-18 for which department has issued scn informing to allow itc only for itc getting seen in 2A quoting circular 135
on close reading of 135 , it is found that restrictions for
refund is due to introduction of rule 36(4) , which itself is
introduced for eligible ITC vide notification 43/2019 dt. 09/10/2019, so in our view restricting ITC only as per 2(A) if at all is correct , needs to be applied only for such return period after 9/10/2019 , for eligible ITC , as in case of any earlier period , as 36(4) restrictions were inapplicable ,3B itc are fully eligible for refund and allowing ITC only for amount as seen in 2A for such period seems is a faulty application of law
2.also circular 135 mentions "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."
it does not specify for which period , so for such invoices if they may not be seen on those month's 2A but it is seen even in earlier or later months 2A , implying genuine credits , such ITC as seen in any 2A stands eligible for refund
Expert friends , Kindly share your views and opinions
vipul d jhaveri - mubai- vdjmum@gmail.com
Posted by
VIPUL JHAVERI
on
Sep 13, 2020
Filed Under
GST
Yes. If still the refund is restricted it can be challenged as discrimination.
Posted by
CA. SHILPI KATARIYA on
Jan 19, 2021