This circular provides clarification on issues relating to refund of accumulated input tax credit (ITC), particularly where invoice details are not reflected in FORM GSTR-2A of the refund applicant.

It clarifies that, in terms of earlier instructions, refund of accumulated ITC is restricted only to the credit available in respect of invoices whose details have been uploaded by the supplier in FORM GSTR-1 and are reflected in the applicant’s FORM GSTR-2A. Accordingly, refund of ITC relating to invoices not appearing in FORM GSTR-2A is not admissible, and the earlier clarification allowing refund on the basis of uploaded copies of such invoices stands modified to this extent.

The circular further clarifies that this restriction does not apply to ITC availed on imports, ISD invoices, or inward supplies liable to reverse charge. Refund of ITC relating to such transactions will continue to be processed in the same manner as was followed prior to the issuance of the earlier circular dated 31 March 2020, even though these details do not reflect in FORM GSTR-2A.

The clarification aims to remove ambiguity and ensure uniformity in processing refund claims by field formations.