The CBIC has issued an Corrigendum to Circular No. 237/31/2024-GST dated 15th October, 2024, clarifying regarding the restriction on refunds under section 150 of the Finance (No. 2) Act, 2024. Specifically, it states that this restriction will not apply to refunds of amounts paid by taxpayers as pre-deposit under sub-section (6) of section 107 or sub-section (8) of section 112 of the CGST Act when filing an appeal. Therefore, if such appeals result in a favorable decision for the taxpayer, they will be entitled to a refund of the pre-deposited amount.

This clarification provides relief to taxpayers by confirming that pre-deposits are refundable in cases where appeals succeed, despite the general restrictions on refunds under the Finance Act.

The Complete Corrigendum to Circular No. 237/31/2024-GST can be accessed at https://taxo.online/wp-content/uploads/2024/10/cir-cgst-corr-237-2024.pdf