XYZ is a Commercial Cooperative Society. One of the Consulates is members of this society and having their office in their building. Society is not charging GST as they were under wrong impression that it is exempted. As per Section 54(2) of CGST Act, 2017, XYZ need to first pay GST and then the consulate is required to claim refund within 18 months from the last date of the quarter in which the supply was received as provided under Notification No. 20/2018-CT dated 28-3-2018. Now in today’s date if XYZ pays GST with interest from July’17 onwards till date, can the consulate claim refund of the same?
Strictly as pointed by you the rfeund application can be filed within 18 mths of the last date of quarter in which supply was received, which time has already lapsed. However consulate may file refund claim arguing that they have paid the tax now and thus refund could not have been sought earlier. Further this period of 18 months should be seen from the date of payment.
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