GST Refund can not be rejected if Reasons not recorded I High Court

GST Refund Rejection if two years period expired

Facts of the Case

Refund of Unutilized ITC claimed by Taxpayer . Refund Of July 2018 and August 2018 was demanded on 19.04.2021

Refund Application rejected by GST Authroities on the ground that  “ refund applications should have been made within two years from the relevant date”

Taxpayers View : That reasons for rejection of refund should have been recorded in the impugned orders as that is a requirement ingrained in ‘Central Goods and Services Tax Rules, 2017’ if  the whole or any part of the amount claimed as refund is not admissible or is not payable to the applicant.

Decision of High Court

Due to Covid 19, Period of Limitation already gets extended by Supreme Court and CBIC for filing refund application.

orders are set aside solely on the ground that reasons for rejection of refund have not been recorded in writing in accordance with Rule CGST Rules.