Page 47 - GSTL_2nd July 2020 _Vol 38_Part 1

2020 ] DENYING GST REFUND OF ITC NOT REFLECTED IN GSTR-2A — WHETHER VALID? J21

DENYING GST REFUND OF ITC NOT
REFLECTED IN GSTR-2A — WHETHER
VALID?
By
CA Venkat Prasad P.
PARTNER, HIREGANGE & ASSOCIATES

Introduction :
The spread of Corona Virus (COVID-19) has
caused immense loss of lives and impacted the trade and
industry adversely in an unprecedented manner. The Government has an-
nounced various relief measures relating to statutory and regulatory compliance
matters across sectors. Under GST, the Government [Notification No. 31/2020-
C.T., dated 3-4-2020] inter alia
• Expediting the processing of refunds to the exporters
• Deferment of Rule 36(4) for the period February, 2020 to August,
2020 and cumulative adjustment in September 2020 [Notification
No. 30/2020-C.T., dated 3-4-2020]
• Waiving/concessions in the interest on delayed GST remittance
• Postponing the various statutory compliances [Notification No.
35/2020-C.T., dated 3-4-2020]
The above measures are appreciable and welcome.
However, C.B.I. & C. has issued Circular No. 135/05/2020-GST, dated
31-3-2020 [2020 (35) G.S.T.L. C11] clarifying the certain issues relating to the re-
fund under GST. One among them is the denying ITC refund of invoices not re-
flected in GSTR-2A, and that the refund would be restricted to the extent of ITC
on the invoices reflected in GSTR-2A. In this article, an attempt is made to ana-
lyze the legal validity of the clarification.
The relevant portion of the circular mentioned above reads as under
(Para 5) :-
“5. Guidelines for refunds of Input Tax Credit under Section 54(3)
5.1 In terms of para 36 of circular No. 125/44/2019-GST, dated 18-11-2019,
the refund of ITC availed in respect of invoices not reflected in FORM GSTR-
2A was also admissible and copies of such invoices were required to be up-
loaded. However, in wake of insertion of sub-rule (4) to rule 36 of the CGST
Rules, 2017 vide notification No. 49/2019-GST, dated 9-10-2019, various ref-
erences have been received from the field formations regarding admissibility
of refund of the ITC availed on the invoices which are not reflecting in the
FORM GSTR-2A of the applicant.
5.2 The matter has been examined and it has been decided that the refund
of accumulated ITC shall be restricted to the ITC as per those invoices, the de-
tails of which are uploaded by the supplier in FORM GSTR-1 and are reflected in the
FORM GSTR-2A of the applicant. Accordingly, para 36 of the circular No.
125/44/2019-GST, dated 18-11-2019 stands modified to that extent.”

GST LAW TIMES  2nd July 2020  47