The extension provided for filing of refund application vide N/N: 15/2021 of CGST Act dated 18.05.2021
Insertion of a proviso under Rule 90(3) of the CGST Rules: The time period from the date of filing of the refund claim in FORM GST RFD-01 till the date of communication of the deficiencies in FORM GST RFD-03 by the proper officer, is to be excluded from the period of 2 years in case fresh refund claim is filed after rectification of the deficiencies.
As per section 54 of the CGST Act, a refund application can be filed in GST RFD 01 within 2 years from the relevant date. Now suppose any deficiencies have been found during the verification of the refund application by the proper officer. Then he will issue the deficiency memo in RFD 03. Some days will be taken by him during this process and a proper officer has cancelled the refund application of the assessee.
Now the assessee needs to file a fresh application removing the deficiencies.
Prior to the amendment
This new application should have also been filed within the period of 2 years from the relevant date. If the first application was filed within the prescribed period and after the cancellation of the same if the new application filed after expiring of 2 years from the relevant date, then this new application was not entertained by the proper officer stating that the application has become time-barred.
Situation post amendment vide N/N 15/2021 of CGST Act dated 18.05.2021
Now if a fresh application is filed after the rejection of the old application, the time period from the date of issuance of deficiency memo till the date of filing of the new application shall be excluded while computing the time period of 2 years from the relevant date. The fresh application shall be deemed to have been filed on the same date on which the first application was filed.