GST Circular No 162/18/2021
Circular 162 – Clarification in respect of refund of tax specified in section 77(1) of the CGST Act and section 19(1) of the IGST Act.
Section 77(1) CGST Act and Section 19 of IGST act speaks about tax wrongfully collected and paid to Central Government or State Government In these section one term is used as “subsequently held” and for this term this circular clarifies that in both cases where taxpayer himself or tax officer in any proceedings subsequently found that wrong tax collection and tax payment happen then both cases accordingly, refund claim under the said sections can be claimed by the taxpayer, provided the taxpayer pays the required amount of tax in the correct head.
Clarification related to relevate date for claiming for refund under section 77 of CGST Act and section 19 of IGST Act is also provided based on new nitification issued 35/2021 dated 24-09-2021 Now the refund can be claimed within 2 years from date of payment of tax in correct head. If this application for claim is made before of this new notification 35/2021 then 2 yeays will be calculated from date of notification. And if this claim made after this notification date then 2 years will counted from date of payment of tax in correct head Also note that refund under section 77 of the CGST Act / section 19 of the IGST Act would not be available where the taxpayer has made tax adjustment through issuance of credit note under section 34 of the CGST Act in respect of the said transaction.
