Two-Year Limitation for filing refund application in GST is Mandatory; Delay Condonable Only via Article 226 Subject to Statutory Safeguards

Last updated: 01 June 2026

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The Karnataka High Court has confirmed that the two-year time limit for filing GST refund applications under Section 54 of the CGST Act is mandatory. While the Act itself doesn't provide a mechanism to condone delays, the court stated that in specific, deserving circumstances, a delay can be excused by invoking writ jurisdiction under Article 226 of the Constitution. This is subject to conditions that ensure fairness to the revenue authorities.

Court :
Karnataka High Court

Brief :
The Hon'ble Karnataka High Court in the case of Assistant Commissioner of Central Taxes & Ors. v. Merck Life Science Pvt. Ltd. [Writ Appeal No. 110 OF 2026 and Ors, order dated March 17, 2026] held that the two-year limitation period under Section 54 of the CGST Act for filing refund claims is mandatory; however, in deserving cases, delay may be condoned only through exercise of writ jurisdiction under Article 226, subject to conditions ensuring parity with statutory timelines.

Citation :
Writ Appeal No. 110 OF 2026 and Ors, order dated March 17, 2026

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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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Attached File : 671907_5995_merck_life.pdf

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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