Circular No.: 166/22/2021-GST
Date of Circular: 17th November 2021
Relevant Sections and Rules:
- CGST Act, 2017:
- Section 54(1): Refund application and time limit
- Section 54(6): Provisional refund
- Section 49(6): Electronic cash ledger refund
- Section 168(1): Power to issue instructions
- CGST Rules, 2017:
- Rule 89(2)(l), 89(2)(m): Certification of unjust enrichment
Summary of Clarifications Provided:
- Time Limit Not Applicable for Refund of Excess Balance in Electronic Cash Ledger:
The two-year limitation period under Section 54(1) does not apply to refund claims relating to excess balance in the electronic cash ledger. Such refunds can be claimed at any time, subject to availability of unutilized balance. - No Certification Needed Under Rule 89(2)(l) or (m) for Cash Ledger Refunds:
As unjust enrichment does not apply to refunds from the electronic cash ledger, the taxpayer need not furnish certification/declaration under Rule 89(2)(l) or 89(2)(m). - Refund of TDS/TCS Amount Credited to Electronic Cash Ledger is Permissible:
Amounts credited as TDS/TCS under Sections 51/52 are treated as cash deposited in the electronic cash ledger.
- Taxpayers can use these amounts freely for discharging tax liabilities or
- Claim a refund for any unutilized balance as per Section 54(1) proviso read with Section 49(6).
- Relevant Date for Deemed Export Refunds is Based on Supplier’s Return Filing:
For deemed exports, the relevant date for claiming refund—whether by the supplier or recipient—is the date of return filing by the supplier (as per Explanation 2(b) to Section 54), since the supplier pays the tax.
Source: Circular No.: 166/22/2021-GST