Admissibility of Input Tax Credit (“ITC”) and GST refund on invoices not appearing in GSTR-2A has always been a point of quarrel. Department has already issued various circulars, notifications and inserted rules to clarify the matter.

On the similar issue, Central Board of Indirect Taxes & Customs (“CBIC” or “Department”) has received various representations on admissibility of GST Refund on Import Invoices, ISD Invoices and RCM Invoices. Department clarified such matters through circular no. 139/09/2020-GST dated 10th June, 2020.

1. GST Refund on import, ISD and RCM invoices which are not appearing in GSTR-2A 

• Vide Para No. 5 of Circular No. Circular No.135/05/2020 – GST dated the 31st March, 2020, the department has clarified that refund of ITC accumulated shall be restricted to ITC of those Invoices which are appearing in GSTR-2A of applicant.
• Therefore, as per clarification, no ITC was admissible on invoices which are not appearing in GSTR-2A.
• Relying on such circular, refund sanction authorities have rejected various refund claims in respect of ITC availed on Import, ISD Invoice and RCM etc details of which are not reflected in GSTR-2A.
• Therefore, taxpayers have requested CBIC to clarify the matter.

2. Refund is admissible for  import, ISD and RCM invoices

• Refund was granted to the taxpayers even in respect of those invoices details of which are uploaded by taxpayers alongwith refund application even though such invoices are not appearing in GSTR-2A.
• However, through Circular No. 135/05/2020 – GST dated the 31st March, 2020, department restricted refund on invoices not appearing in GSTR-2A.
• Therefore, GST refund is restricted to those invoices details of which are uploaded by supplier in GSTR-1 and reflected in GSTR-2A of assessee.
• However, this circular doesn’t impact refund of ITC availed on invoices/documents  relating to import, ISD invoices and the inward supplies liable to RCM etc.
• Therefore, the department clarified that refund of 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.