Central Board of Indirect Taxes vide Circular no. 139 dated 10th June, 2020 has clarified that, ‘Circular no 135 which restricts the refund of ITC in respect of Invoices whose details are not reflected in GSTR 2A’ is not applicable for Refund of ITC availed on Invoices / documents relating to Imports, ISD Invoices and RCM Supplies (Inward supplied liable to Reverse Charge).
Relevant extracts of Circular No. 135 restricting the refund of said ITC is as follows;-
“it has been decided that the refund of accumulated ITC shall be restricted to the ITC as per 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”.
This has been clarified in response to the representations received by CBIC that in some cases, refund sanctioning authorities have rejected the refund of accumulated ITC in respect of ITC availed on Imports, ISD Invoices & RCM etc.
Therefore, treatment of refund of said ITC relating to Imports, ISD Invoices and inward supplies liable to Reverse Charge will continue to be same as it was before the issuance of Circular No. 135/05/2020-GST dated 31st March, 2020.