Central Board of Indirect Taxes and Customs Vide it’s Circular No. 139/09/2020 dated 10th June 2020 has clarified in respect of invoices which are not appearing in the GSTR-2A of the Applicant who has filed refund application on account of accumulated ITC. The clarification has been issued to ensure uniformity in the implementation of the provisions of law.
Circular No. 135/05/2020-GST dated 31st March 2020, was issued and following was provided in this regard “It has been decided that the refund of accumulated ITC shall be restricted to the ITC as per those invoices, the details of which are uploaded by the supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant.” Consequent to the issuance of above-mentioned clarification, refund sanctioning authorities have rejected the refund of accumulated ITC in respect of ITC availed on Imports, ISD invoices, RCM etc. citing the above-mentioned Circular on the basis that the details of the said invoices/ documents are not reflected in FORM GSTR-2A of the applicant.
In this context, it is noteworthy that before the issuance of Circular No. 135/05/2020-GST dated 31st March 2020, the refund was being granted even in respect of credit availed on the strength of missing invoices (not reflected in FORM GSTR-2A) which were uploaded by the applicant along with the refund application on the common portal. The aforesaid circular does not in any way impact the refund of ITC availed on the invoices/documents relating to imports, ISD invoices and the inward supplies liable to Reverse Charge (RCM supplies) etc.
It is clarified by the recent circular that the treatment of refund of such ITC relating to imports, ISD invoices and the inward supplies liable to Reverse Charge (RCM supplies) will continue to be same as it was before the issuance of Circular No. 135/05/2020- GST dated 31st March 2020.
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