Clarification related to GST Refund - ITC populated in GSTR 2A

Clarification related to the processing of GST Refund - Restricted to ITC populated in GSTR 2A

The Central Board of Indirect Taxes and Customs (CBIC) had issued Master Circular on Refunds No. 125/44/2019-GST dated 18.11.2019 rescinding all earlier circulars.

Recently CBIC has issued Circular No 135/05/2020 - GST dated 31st March, 2020 clarifying additional issues in claiming GST Refund. The Circular proposed to restrict the refund of accumulated ITC, the details of which are not uploaded by the supplier in FORM GSTR-1 and hence same are reflected in the FORM GSTR-2A of the applicant.

The refund sanctioning authorities started rejecting the refund in 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.

To overcome the aforesaid issue, CBIC has issued clarification vide Circular No. 139/09/2020- GST dated 10th June, 2020 which is summarized below –

The Circular clarifies that the earlier Circular No. 135/05/2020- GST dated 31st March, 2020 aforesaid 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 been further clarified 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.

Refund of ITC invoices relating to imports, ISD invoices and the inward supplies liable to Reverse Charge (RCM supplies) will be processed based on other means of verification and not be restricted if the same is not appearing in GSTR 2A of the applicant.