Circular No.: 139/09/2020-GST
Date of Circular: 10th June 2020
Relevant Sections and Rules:
- CGST Act, 2017:
- Section 54(3): Refund of unutilized input tax credit
- Section 168(1): Power to issue instructions
- CGST Rules, 2017:
- Rule 36(4): Restriction on ITC availment beyond GSTR-2A
- Referenced Circulars:
- Circular No. 125/44/2019-GST dated 18.11.2019
- Circular No. 135/05/2020-GST dated 31.03.2020
Summary of Circular in Paragraphs (One Clarification Each):
- Restriction of ITC Refund to GSTR-2A Reflected Invoices:
As clarified in Circular 135/05/2020, the refund of accumulated ITC under Section 54(3) is now restricted only to ITC from invoices uploaded by suppliers in GSTR-1 and appearing in GSTR-2A. Paragraph 36 of Circular 125/44/2019 stands modified accordingly—applicants cannot claim refund based solely on uploaded invoice copies if the details are missing from GSTR-2A. - Clarification on ITC for Imports, ISD Invoices, and RCM Supplies:
Field formations had misinterpreted the above clarification to reject ITC refund on:
- Import invoices
- Input Service Distributor (ISD) invoices
- Reverse charge mechanism (RCM) invoices
This circular clarifies that the restriction in Circular 135/05/2020 does not apply to these categories. Refund of ITC on such supplies will continue as per pre-existing procedure, even if such invoices do not appear in GSTR-2A.
Source: Circular No.: 139/09/2020-GST