Limitation for refund of wrongly paid CGST/SGST begins from IGST payment date, not original payment date – Patna High Court{ Sai Steel V/s State of Bihar (2025) 33 Centax 178 (Pat.)}
Facts
- Period: FY 2017–18.
- Assessee wrongly treated certain inter-State supplies as intra-State supplies.
- Accordingly, it paid CGST + SGST instead of IGST.
- Later, during audit (2023), the objection was raised.
- Assessee paid the correct IGST on 04.03.2023.
- Thereafter, it applied for refund of wrongly paid CGST + SGST.
- The department rejected the refund claim on limitation, saying the 2 years should be counted from the original payment date (2018).
Issue
- From which date should the 2-year limitation under Sec. 54 of the CGST Act, 2017 be counted for refund?
- From the date of wrong payment of CGST/SGST (2018), or
- From the date of subsequent correct payment of IGST (04.03.2023)?
Held (Patna High Court)
- The relevant date for limitation is the date of payment of correct tax (IGST), i.e., 04.03.2023.
- Department erred in reckoning limitation from January 2018.
- Assessee is entitled to refund of wrongly paid CGST + SGST with interest.
- Reliance: Sec. 54 CGST Act, 2017 read with Sec. 19 IGST Act, 2017.
