Application of SC’s Order on Time Limitation of GST Refunds or not?

An eligible person can file a GST refund under section 54(1) of the CGST Act within a period of 2 years from a relevant date. Many taxpayers could not file the applications due to pandemic. The CBIC from time to time had extended time of limitation. The Hon’ble Supreme Court had also issued orders from time to time to extend time of limitation for judicial and quasi-judicial proceedings. According to a latest order, period from 15.03.2020 till 28.02.2022 shall not be counted under time of limitation.

According to recent judgements of Hon’ble Bombay High Court and Hon’ble Madras High Court, order of SC shall also apply to GST refund applications. Hence, one may take a view of these judgements and may try to file their refund applications till 28.02.2022.

Chain of events

23.03.2020

• The Honorable Apex Court directed extension of the period of limitation in all proceedings before the Courts/ Tribunals including Supreme Court w.e.f. 15.03.2020. To mitigate this difficulty under any general or special laws in respect of all judicial or quasi-judicial proceedings, whether condonable or not, shall stand extended till further orders.

08.03.2021

• Seeing the normalcy being restored in business, the Hon’ble court issued an order on 08.03.2021 stating that time of limitation expiring between 15.03.2020 till 14.03.2021, notwithstanding the actual balance period of limitation remaining is less, shall be extended by 90 days from 15.03.2021.

10.03.2022

• The Apex Court in MISCELLANEOUS APPLICATION NO. 21 OF 2022 of SUO MOTU WRIT PETITION (C) NO. 3 OF 2020 pronounced, that the period from 03.2020 till 28.02.2022 shall stand excluded for the purposes of limitation as may be prescribed under any general or special laws in respect of all judicial or quasi-judicial proceedings. Consequently, the balance period of limitation remaining as of 03.10.2021, if any, shall become available with effect from 01.03.2022.