“Came Late but Came Correct”:- GSTN Portal finally removes restriction and allows filing of refund application spread across different financial years

The GSTN portal has finally removed the artificial restriction which was not allowing to file the refund application spread across different financial years. The unreasonable restriction as existed in the GSTN portal since it’s incorporation had been causing grave hardship to assessees whose huge amounts of refunds were stuck only because their refunds periods were spread in different financial years. The restriction also got the backing of CBIC Circular No. 37/11/2018-GST, and which was later incorporated in Circular No. 125/44/2019, which clarified that refund period cannot spread across different financial years.

This issue was litigated before Hon’ble Delhi High Court in the case of Pitambra Books Pvt. Ltd. v. Union of India W.P(C) No. 627 of 2020. The Hon’ble High Court by providing relief vide order dated 21.01.2020, stayed the rigour of para 8 of the Circular No. 125 (Supra) which imposed restriction on the assessees and directed the GSTN Portal to remove the restriction. In view of the relief provided by the Hon’ble High Court, CBIC vide Circular No.135/05/2020 – GST dated 31.03.2020, removed the restriction imposed in the Circular No. 125/44/2019, and modified it to that extent “i.e. the restriction on bunching of refund claims across financial years shall not apply.

Though the relief had been provided to the assessees by the Hon’ble High Court and the Government in Jan’2020 and March’2020 respectively, however, it took almost 7 months from the date of Hon’ble Court’s direction and 5 months  from the date of CBIC circular No. 135/05 (Supra) for the GSTN to remove the restriction and allow the assessees to file refund application spread across different financial years.

Now it is possible for assessees to easily file the refund application spread across different financial years, on the GSTN portal.

This is a huge relief for all the assessees.


The case in the matter of Pitambra Books Pvt. Limited v. Union of India W.P(C) 627 of 2020, was litigated and argued by Advocate Puneet Agrawal (Partner at ALA Legal Associates & Solicitors) and Advocate Yuvraj Singh (Manager at ALA Legal Associates & Solicitors).

Yuvraj is an advocate and has completed his B.A. LL.B(Hons) from RGNUL-Punjab. He is a practicing advocate and has been involved in matters pertaining to GST and other indirect taxes as well as Direct Tax. He is active in Writ Courts and has involvement in a few landmark judgments like Pitambra Books Pvt. Ltd. V. Union of India (W.P.C. No. 627 of 2020), and represented Sales Tax Bar Association (Delhi) to resolve GST issues and glitches.