Refund of Pre-Deposit to Be Allowed if Assessee Filed Appeal and Decided in Its Favor Due to Section 16(5) & 16(6)

Corrigendum to Circular No. 237/31/2024-GST dated October 25th, 2024

Earlier, the CBIC has issued Circular No. 237/31/2024-GST wherein para 4 has clarified that no refund of tax already paid or input tax credit already reversed would be available, where such tax has been paid or input tax credit has been reversed on account of contravention of provisions of sub-section (4) of section 16 of the CGST Act, and where such input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of section 16 of the CGST Act.

Now, the CBIC has issued Corrigendum to Circular No. 237/31/2024-GST to clarify that restriction on refund under section 150 of the Finance (No. 2) Act, 2024 will not apply to the refund of an amount paid as pre-deposit by the taxpayer as per sub-section (6) of section 107 or sub-section (8) of section 112 of the CGST Act, at the time of filing of an appeal, where such appeals are decided in favor of the said taxpayer.

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