The Central Board of Indirect Taxes (CBIC) on Tuesday extended the period of 15 days or till June 30, 2020, whichever is later to pass the order under Section 54(7)(5) of the Central Goods and Service Tax (CGST) Act, 2017.
As per Section 54(3) of the CGST Act, 2017, a registered person may claim a refund of the unutilised input tax credit at the end of any tax period. A tax period is a period for which return is required to be furnished. Thus, a taxpayer can claim a refund of unutilised ITC on a monthly basis.
The circular notified that in the case where notice has been issued for the rejection of refund claim, in full or in part and where the time limit for the issuance of an order in terms of Section 54(7)(5) of the Central Goods and Service Tax (CGST) Act, 2017 falls during the period of March 20, 2020, to June 29, 2020, in such cases the time limit for issuance of the order shall be extended to 15 days after the receipt of the reply to the notice from the registered person or June 30, 2020, whichever is later.
“The notification shall come into force with effect from March 2020,” CBIC specified.
