This circular provides clarifications on certain refund-related issues to ensure uniform implementation of GST provisions across field formations.

It clarifies that the time limit prescribed under section 54(1) of the CGST Act for filing refund applications does not apply to refunds of excess balance lying in the electronic cash ledger. Further, in such cases, taxpayers are not required to furnish declarations or certificates under Rules 89(2)(l) or 89(2)(m), as the principle of unjust enrichment is not applicable to refunds of cash balance.

The circular also explains that amounts credited to the electronic cash ledger on account of TDS or TCS under sections 51 or 52 of the CGST Act are equivalent to cash deposits. Taxpayers are free to utilise such amounts either for payment of tax liabilities or leave them unutilised. Any unutilised balance remaining in the electronic cash ledger after discharge of tax and other dues can be claimed as refund in accordance with the Act and rules.

With respect to refunds relating to deemed exports, it is clarified that the relevant date for filing refund claims shall be determined as per Explanation (2)(b) to section 54 of the CGST Act. Accordingly, the relevant date is the date on which the return relating to such deemed export supplies is furnished by the supplier, irrespective of whether the refund claim is filed by the supplier or the recipient.