2 Years Limitation To File GST Refund Application Is Directory & Not Mandatory: Madras High Court

2 Years Limitation To File GST Refund Application Is Directory & Not Mandatory: Madras High Court

Case Title: M/s. Lenovo (India) Pvt. Ltd. Versus JCIT

Citation: 2023 LiveLaw (Mad) 363

The Madras High Court has held that the 2-year limitation to file a GST refund application is a directory and not mandatory.

The bench of Justice Krishnan Ramasamy has observed that the terms used in Section 54(1) of the CGST Act ''may make application before two years from the relevant date in such form and manner as may be prescribed'', which means that the assessee may make application within two years, and it is not mandatory that the application has to be made within two years, and in appropriate cases, refund applications can be made even beyond two years. The time limit fixed under Section 54(1) is directory-like in nature and is not mandatory. Therefore, even if the application is filed beyond the period of two years, the legitimate claim of refund by the assessee cannot be denied in appropriate cases

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