2-year limitation period under Section 54 of the CGST Act not applicable to cases of refund of tax paid by mistake

Last updated: 06 November 2025

Court :
The Hon'ble Andhra Pradesh High Court in the case of Nspira Management Services Private Limited v. Assistant Deputy Commissioner of Central Tax [Writ Petition Nos.18287 & 14905 of 2024, order dated September 26, 2025] held that the two-year limitation period prescribed under Section 54 of the CGST Act, 2017 does not apply to refund applications for tax paid by mistake on exempt services, as such payment is not "due tax" but one made without authority of law by virtue of Article 265 of the Constitution.

Brief :
The Hon'ble Andhra Pradesh High Court in the case of Nspira Management Services Private Limited v. Assistant Deputy Commissioner of Central Tax [Writ Petition Nos.18287 & 14905 of 2024, order dated September 26, 2025] held that the two-year limitation period prescribed under Section 54 of the CGST Act, 2017 does not apply to refund applications for tax paid by mistake on exempt services, as such payment is not "due tax" but one made without authority of law by virtue of Article 265 of the Constitution.

Citation :
Writ Petition Nos.18287 & 14905 of 2024, order dated September 26, 2025