GST UPDATE

???? ???????????????? ???????? ????????. ???????????????????????????? ???????????????????????? – ???????????? ???????????????????????? (????????????????) ????

????????????????????? ???????????????? ???????????????????? ???????? ???????????? ???????????????? ???????? ???????????????????? ???????????????????? ???????????????? ???????????????????????????????????????????? ????????????

 ????????????????????: Rejection of GST refund application by DMRC on grounds of limitation

?? ????????????????????????????????????????:

????????????????????????????? ????????????????????????????????: Delhi Metro Rail Corporation (DMRC) & M/s Kamal Sponge Steel and Power Ltd. (KSSPL)

?????????????????????????????: A rental agreement dated 08.05.2015 led to disagreements over lease amounts; dispute resolved through conciliation.

????????????????????????????? ???????? ????????????????????????????????????????????????: Lease rent for July 2017–March 2019 reduced by 40%. DMRC had paid GST on the original (higher) rent; claimed refund of excess tax amounting to ?83.36 lakhs.

????? ???????????????????????? ???????????????????? ????????????????????????????????:

????????????????????????????????????????????????? ????????????????????????????????????: 09.10.2020 (minutes); Settlement Agreement signed: 03.08.2021

????????????????????????? ????????????????????: 17.01.2021 and 21.03.2021

????????????????????????? ????????????????????????????????: On 03.03.2021 and 18.05.2021 by GST Department citing limitation (2 years from date of tax payment)

?? ???????????? ???????????????????? ????????????????????:

Which date determines the limitation period under Section 54 of CGST Act?

?????????????????’???? ????????????????????????????????: Limitation starts from conciliation agreement (Explanation 2(d): refund due to decree/order/settlement)

?????????????????????????????????????????’???? ????????????????????????????????: Limitation starts from tax payment date (Explanation 2(h): residual clause)

???? ????????????????????’???? ???????????????????????????????????????????????? & ????????????????????????:

?Conciliation agreement under Section 73 of Arbitration and Conciliation Act is equivalent to court decree (per Section 74).

?Explanation 2(d) to Section 54 applies — limitation begins from date of conciliation agreement, not original tax payment.

?Refund applications were well within the 2-year period from date of settlement.

?Refund rejection was unsustainable.

???? ???????????????????? ????????????????????:

?Impugned orders set aside.

?GST Department directed to process refund with applicable interest within 1 month.

?Petition disposed of accordingly.

? ???????????? ????????????????????????????????:

Refund arising out of a conciliated dispute settlement is to be treated akin to a court order under Section 54 explanation 2(d). Limitation starts from date of settlement—not original tax payment.

???????????????????????????? 

????????????????