GST / Indirect Tax : Principles of Refund and Interest under the CGST Act, 2017

GST / Indirect Tax : Principles of Refund and Interest under the CGST Act, 2017 

In case of Lenovo (I) Pvt Ltd v. Joint Commissioner of GST [2023] GCtR 2504 (Madras) it was held that a reading of the Section 54 (1) of CGST Act, 2017 would make it clear that the assessee can make the application within two years. 

It was held that the terms used in said Section ''may make application before two years from the relevant date in such form and manner as may be prescribed'', which means that the assessee may make application within two years and it is not mandatory that the application has to be made within two years and in appropriate cases, refund application can be made even beyond two years. The time limit fixed under Section 54 (1) is directory in nature and it is not mandatory. Therefore, even if the application is filed beyond the period of two years, the legitimate claim of refund by the assessee cannot be denied in appropriate cases.