In view of the spread of COVID-19 pandemic across many countries of the world including India, the Central Government, vide Notification No. 46/2020 – Central Tax dated 09.06.2020 (effective from 20.03.2020) had extended the time limit for issuance of refund order under Section 54(5) of the CGST Act, 2017 upto 30.06.2020 in cases where notice for rejection of refund claim has been issued.
The said Notification stated that in cases where a notice has been issued for rejection of refund claim, in full or in part and where the time limit for issuance of order in terms of the provisions of sub-section (5), read with sub-section (7) of section 54 of the CGST Act falls during the period from the 20.03.2020 to 29.06.2020, in such cases the time limit for issuance of the said order shall be extended to fifteen days after the receipt of reply to the notice from the registered person or the 30.06.2020, whichever is later.
In simple words, If due date of issuance of refund order as per Section 54(7) of the CGST Act,2017 (i.e. 60 days from the receipt of application of refund, complete in all respects) falls between 20th March to 29th June 2020 in that case refund order can be issued within 75 days (i.e. 60 + 15 Days) of receipt of reply from the registered person against notice for rejection of refund claim or 30th June 2020, whichever is later.
It is important to note that the above time extension in issue of refund order is applicable only in cases where notice has been issued by proper officer for rejection of refund order.
Time limit for issue of refund order extended to 31.08.2020
Keeping in view that the COVID-19 pandemic is showing no signs of slowing down and is rather exploding, the Government has further extended the time within which refund order can be issued in above case.
Accordingly Notification No. 56/2020 – Central Tax dated 27.06.2020 has amended though Notification No.46/2020-Central Tax, dated 09.06.2020 by promulgating that in the said notification, in the first paragraph,–
(i) for the words, figures and letters “29th day of June, 2020”, the words, figures and letters “30th day of August, 2020” shall be substituted;
(ii) for the words, figures and letters “30th day of June, 2020”, the words, figures and letters “31st day of August, 2020” shall be substituted.
Considering the above amendment, Notification No.46/2020-Central Tax, dated 09.06.2020 now mandates that if due date of issuance of refund order as per Section 54(7) of the CGST Act,2017 (i.e. 60 days from the receipt of application of refund, complete in all respects) falls between 20th March to 30th August 2020 in that case refund order can be issued within 75 days (i.e. 60 + 15 Days) of receipt of reply from the registered person against notice for rejection of refund claim or 31st August, 2020, whichever is later.
For ready reference of our readers the Notification No. 56/2020- Central tax dated 27.06.2020 is as under:-
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