CBIC has today issued two Circulars out of which one of which is Circular No. 139/09/2020-GST dated 10.06.2020 is regarding clarification on the refund related issues.
In said Circular it has been stated that representations have been received that in some cases, refund sanctioning authorities have rejected the refund of accumulated ITC is respect of ITC availed on Imports, ISD invoices, RCM etc. citing the above-mentioned Circular on the basis that the details of the said invoices/ documents are not reflected in FORM GSTR-2A of the applicant.
In this context it has been stated in the Circular that before the issuance of Circular No. 135/05/2020-
GST dated 31st March, 2020, refund was being granted even in respect of credit availed on the strength of missing invoices (not reflected in FORM GSTR-2A) which were uploaded by the applicant along with the refund application on the common portal.
However, vide Circular No.135/05/2020 – GST dated the 31st March, 2020, the refund related to these missing invoices not reflected in GSTR-2A has been restricted. Accordingly now, the refund of accumulated ITC shall be restricted to the ITC available on 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.
However it has been clarified that the aforesaid circular viz Circular No.135/05/2020 – GST does not in any way impact the refund of ITC availed on the invoices / documents relating to imports, ISD invoices and the inward supplies liable to Reverse Charge (RCM supplies) etc.
It has therefore been clarified vide Circular No. 135/05/2020-GST dated 31st March, 2020 that the treatment of refund of such ITC relating to imports, ISD invoices and the inward supplies liable to Reverse Charge (RCM supplies) will continue to be same as it was before the issuance of Circular No. 135/05/2020- GST dated 31st March, 2020. Thus refund of ITC relating to these will be eligible even if details of the invoices/ documents relating to these transactions are not reflected in FORM GSTR-2A of the applicant.
The issuance of above Circular is a welcomed and would curb the harassment being faced by tax payers wherein refund sanctioning authorities rejected the refund claims of accumulated ITC in respect of imports, ISD invoices , RCM etc on the basis that the details of said Invoice / documents are not reflected in GSTR-2A.
“Definitely a breather in the breathless times of COVID-19 pandemic”.
For ready reference of the readers the Circular is given below:
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