CBIC notifies to extend certain timelines and the limitation period to issue orders and filing refund applications
Recently, The GST Council had made the recommendations to extend limitation under Section 73 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) for the financial year 2017-18 for issuance of order in respect of other demands linked with due date of annual return till September 30, 2023, in its 47th meeting held in Chandigarh on 28-29th June 2022 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.
Also The GST Council recommended to exclude time period from March 01, 2020 to February 28, 2022 from calculation of the limitation period for filing refund claim by an applicant under Section 54 and 55 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”), as well as for issuance of demand/ order (by proper officer) in respect of erroneous refunds under Section 73 of CGST Act.
The above recommendations have been notified by CBIC vide Notification No. 13/2022- Central Tax dated July 05, 2022 to be deemed to have come into force with effect from the 1st day of March, 2020, to
1. extend the time limit specified under sub-section (10) of section 73 for issuance of order under subsection (9) of section 73 of the CGST 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;
2. exclude the period from the 1st 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 CGST Act for issuance of order under subsection (9) of section 73 of the said Act, for recovery of erroneous refund;
3. exclude the period from the 1st 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 CGST Act.
It is to be noted that the GST Council recommended to extend limitation period to issue order under Section 73 of the CGST Act in respect of other demands linked with due date of annual return only however, the notification issued in this regard has extended limitation period for all demands.
