CBIC notifies Exclusion of Pandemic Period from Calculating Limitation Period for Refund Claims [Read Notification]

In a major relief to businesses hit by pandemic, the Central Board of Indirect taxes and Customs (CBIC) has notified the extended dates of specified compliances in exercise of powers under section 168A of Central GST Act, 2017.

The 47th GST Council meeting concluded today at Chandigarh has decided to exempt the time period from 01.03.2020 to 28.02.2022 from the calculation of the limitation period to file refund claims under sections 54 and 55 of the Central GST Act, 2017. “The time period from 01.03.2020 to 28.02.2022 to be excluded from the calculation of the limitation period for filing a refund claim by an applicant under sections 54 and 55 of CGST Act, as well as for the issuance of demand/ order (by a proper officer) in respect of erroneous refunds under section 73 of CGST Act.

A notification issued on 5^th July stated that “the Government, on the recommendations of the Council, hereby,- (i) extends the time limit specified under sub-section (10) of section 73 for issuance of order under subsection (9) of section 73 of the said Act, for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilized, in respect of a tax period for the financial year 2017-18, up to the 30th day of September, 2023; (ii) excludes the period from the 1 st day of March, 2020 to the 28th day of February, 2022 for computation of period of limitation under sub-section (10) of section 73 of the said Act for issuance of order under subsection (9) of section 73 of the said Act, for recovery of erroneous refund; (iii) excludes the period from the 1 st day of March, 2020 to the 28th day of February, 2022 for computation of period of limitation for filing refund application under section 54 or section 55 of the said Act.

“Further, the limitation under section 73 for FY 2017-18 for issuance of an order in respect of other demands linked with due date of annual return, to be extended till 30th September 2023,” the Government said.

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