The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday issued the clarification on refund of Input Tax Credit (ITC) where details aren’t reflected in Form GSTR-2A.

In some of the cases refund sanctioning authorities have rejected the refund of accumulated ITC in respect of ITC availed on imports, ISD invoices, RCM, etc. citing the Circular dated March 31, 2020, on the basis that the details of the said invoices/ documents are not reflected in FORM GSTR-2A of the applicant.

The Circular dated March 31, 2020, pertains to guidelines for refunds of Input Tax Credit under Section 54(3).

The Board in order to clarify the issue relating to refund of accumulated ITC in respect of invoices whose details are not reflected in the FORM GSTR-2A of the applicant.

“Before the issuance of Circular No. 135/05/2020- GST dated 31st March 2020, the refund was being granted even in respect of credit availed on the strength of missing invoices (not reflected in FORM GSTR-2A) which were uploaded by the applicant along with the refund application on the common portal. However, vide Circular No.135/05/2020 – GST dated the 31st March 2020, the refund-related to these missing invoices has been restricted. Now, the refund of accumulated ITC shall be restricted to the ITC available on those invoices, the details of which are uploaded by the supplier in FORM GSTR-1, and are reflected in the FORM GSTR-2A of the applicant,” the Board clarified.

The circular further clarified, “the aforesaid circular does not in any way impact the refund of ITC availed on the invoices/documents relating to imports, ISD invoices, and the inward supplies liable to Reverse Charge (RCM supplies), etc. It is hereby clarified that the treatment of refunds of such ITC relating to imports, ISD invoices, and the inward supplies liable to Reverse Charge (RCM supplies) will continue to be the same as it was before the issuance of Circular No. 135/05/2020- GST dated 31st March 2020.”