Document Fragment View
Fragment Information
Showing contexts for: IGST in M/S Merek Life Science Private Limited vs The Union Of India on 7 November, 2025Matching Fragments
- 14 -
NC: 2025:KHC:45573
HC-KAR AND 2 OTHERS
4. It is contented that the petitioner who is regularly filing its returns under GST Law was under the bonafide belief/impression that the services provided by them to the foreign entity qualified as export of services and accordingly, paid IGST in their GST or 3B returns filed for the periods November 2017, July, 2017, October, 2017, August, 2017 and September 2017 under the provisions of the Integrated Goods and Services Tax Act, 2017 ('IGST Act' for short). The petitioner paid the said IGST to the Central Government in December, 2017, July, 2017, October, 2017, August 2017 and September, 2017. Subsequently, the petitioner having realised that the services rendered by them did not qualify as export of services and that the same was not Inter-
intra-State or inter-State respectively by the tax officer in any proceeding. Accordingly, refund claim under the said sections can be claimed by the taxpayer in both the above mentioned situations, provided the taxpayer pays the required amount of tax in the correct head.
4. The relevant date for claiming refund under section 77 of the CGST Act/Section 19 of the IGST Act,
4.1 Section 77 of the CGST Act and Section 19 of the IGST Act, 2017 provide that in case a supply earlier considered by a taxpayer as intra-State or inter-State, is subsequently held as inter-State or intra-State respectively, the amount of central and state tax paid or integrated tax paid, as the case may be, on such supply shall be refunded in such manner and subject to such conditions as may be prescribed. In order to prescribe the manner and conditions for refund under section 77 of the CGST Act and section 19 of the IGST Act, sub-rule (1A) has been inserted after sub- rule (1) of rule 89 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as "CGST Rules") vide notification No. 35/2021-Central Tax dated 24.09.2021. The said sub-rule (1A) of rule 89 of CGST Rules, 2017 reads as follows:
March, 2018 tax period. The following scenarios are explained hereunder:
Sl.no. Scenario Last date for
filing the refund
claim
1 Having realized on his Since "A" has
own that the said paid the tax in
transaction is an inter- the correct head
State supply, "A" paid before issuance
IGSSSST in respect of the of notification
said transaction on No.35/2021-
10.05.2021 Central Tax,
dated
24.09.2021, the
last date for filing
refund
application in
FORM GST
RFD-01 would be
23.09.23 (two
years from date
of notification)
2 Having realized on his Since "A has
own that the said paid the correct
transaction is an inter- tax on
State supply, "A" paid 10.11.2021, in
IGST in respect of the terms of rule 89
said transaction on (1A) of the CGST
10.11.2021 ie., after Rules, the last
issuance of notification date for filing
No.35/2021-Central Tax refund
dated 24.09.2021 application in
FORM GST
RFD-01 would be
09.11.2023 (two
years from the
date of payment
of tax under the
correct head, i.e.
integrated tax)
3 Proper officer or Since "A has
adjudication authority or paid the tax in
appellate authority of "A" the correct head
has held the transaction, before issuance
as an inter-State supply of notification No.
and accordingly, "A has 35/2021-Central
- 65 -
NC: 2025:KHC:45573
HC-KAR AND 2 OTHERS
paid the IGST in respect Tax, dated
of the said transaction on 24.09.2021, the
10.05.2019 last date for fling
refund
application in
FORM GST
RFD-01 would be
23.09.23 (two
years from date
of notification)
4 Proper officer or Since "A has
adjudication authority or paid the correct
appellate authority of "A" tax on
has held the transaction 10.11.2022, in
as an inter-State supply terms of rule 89
and accordingly, "A has (1A) of the CGST
paid the IGST in respect Rules, the last
of the said transaction on date for filing
10.11.2022 i.e. after refund
issuance of notification application in
No. 35/2021-Central Tax FORM GST
dated 24.09.2021 RFD-01 would be
09.11.2024 (two
years from the
date of payment
of tax under the
correct head, i.e.,
integrated tax)
15. A similar provision exists in the IGST Act which relates to Inter-State supply and Section 19(1) of the IGST Act also contemplates that, if an Integrated Tax on a supply considered by the taxpayer to be an Inter-State supply is subsequently held to be an Inter-State supply, such taxpayer shall be granted refund of the amount of integrated tax so paid in such manner and subject to such conditions as may be prescribed.
16. Rule 89(1A) of the CGST Rules, 2017 stipulate that the refund claim under Section 77 of the CGST Act and Section 19 of the IGST Act would have to be made within a period of 2 years from the date of payment by filing an application in the prescribed format.