CBIC Circular No. 125/44/2019-GST dated 18.11.2019 had a restriction on bunching of refund claims across financial years. The taxpayers, especially merchant exporters faced a lot of issues because of this restriction.
Accordingly considering the requests of tax payers, Delhi High Court judgment in the case of M/s Pitambra Books Pvt Ltd and in view of fact that section 16(3) of the IGST Act, 2017 and section 54(3) of the CGST Act, there is no bar in claiming refund by clubbing different months across successive Financial Years, the restriction on clubbing of tax periods across Financial Years was removed by CBIC vide its Circular No. 135/05/2020 – GST dated 31.03.2020.
The GST portal has now allowed bunching of GST refund claims across financial years while filing refund application electronically in FORM GST RFD-01.
What bunching of refund claims across financial year means:
The enabling of facility of bunching on GST portal is a big relief for tax payers and now such tax payers can file Single refund application (FORM GST RFD-01) for claiming refund pertaining to multiple financial years.
While filing the GST RFD-01 on portal we need to select tax period for which the application is to be filed and such a period can span across multiple financial years. Even a note has been given below the tax period window stating that refund application in GST RFD-01 can be filed for periods relating to diffirent financial years in a single refund application.
The above can be understod by following example. A taxpayer can now file an single application for grant of GST refund for the period 01-01-2020 to 30-06-2020 (Jan 20 to June 20) which is covering TWO different financial years viz FY 2019-20 and FY 2020-21.
For ready reference of our readers the snap of the GST refund application containing window where the tax period is to be filled in is given below:
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