GST Refund Application

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This discussion addresses two key queries regarding GST refund applications. Firstly, it clarifies that while Section 54 of the CGST Act states a two-year time limit for filing, judicial rulings, particularly from the Madras High Court, suggest this limit is often directory, not mandatory. This means applications can be accepted after two years if there's a justifiable reason, like delays due to appeals. Secondly, it confirms that you can file separate GST refund applications for different financial years (e.g., 22-23 and 23-24) based on separate appeal orders, even before receiving acknowledgement for the first application.

Pooja Mehta

Pooja Mehta (Querist)
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11 October 2025 Dear Members,
Query 1- I want to apply for GST refund application for order passed on account of appeal. The date of order is 05/01/2023 therefore, 2 years time limit has lapsed. Can i file because under section 54 it is said "Any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed ("may make" it is written right, it is not compulsory)?

Query 2- In another case, If i file 1 GST Refund application for order passed on account of appeal for F.Y. 22-23, can i file another GST refund application for order passed on account of appeal for next year F.Y. 23-24, before Acknowledgement is received for 1st year (22-23)? or should i wait for acknowledgement?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 October 2025 The two-year time limit for filing a GST refund application under Section 54(1) of the CGST Act is generally considered directory and not strictly mandatory, according to recent judicial rulings. The use of "may make" in the statute has been interpreted by courts (particularly the Madras High Court) to mean that, in appropriate cases, refund applications can be accepted even after the two-year period. Thus, if there is a justifiable reason (such as delay due to appeal or other legitimate cause), an application for a GST refund can still be filed after the two-year period, and authorities are advised not to reject the claim solely on the ground of limitation.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 October 2025 It is permissible to file separate GST refund applications for different financial years based on different orders passed on account of appeal, even if the acknowledgement for the earlier year’s application has not yet been received. There is no restriction in the law that compels waiting for the acknowledgement of one application before filing another for a subsequent year, as long as the refund claims are for different periods and each application is complete as per requirements.

Pooja Mehta

Pooja Mehta (Querist)
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13 October 2025 Thank you Sir for your prompt reply

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 October 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 November 2025 Good luck...

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