GST Rule Change 2025: CBIC Makes Changes In Refund Rules; New Rules Applicable From...

New Delhi: The Central Board Of Indirect Taxes And Customs (CBIC)has made revision in rules pertaining to Central Goods and Services Tax Rules, 2017.

New Rules Applicable From Which Date?

In a circular issued on 27 May 2025, the CBIC said that these rules may be called the Central Goods and Services Tax (Second Amendment) Rules, 2025 and shall come into force on the date of their publication in the Official Gazette. 

"No refund shall be available for any tax, interest, and penalty, which has already been discharged for the entire period, prior to the commencement of the Central Goods and Services  Tax (Second Amendment)  Rules,  2025,  in cases  where a  notice  or statement or order mentioned in sub-section (1) of section 128A, includes a demand of tax, partially for the period mentioned in the said sub-section and partially for a period other than mentioned in the said sub-section," CBIC circular said.

In rule 164, in sub-rule 7, after the first proviso, the following proviso shall be inserted, namely

“Provided  further  that  where  the  notice  or  statement  or  order  mentioned  in  sub-section(1)  of section 128A of the Act includes demand of tax, partially for the period mentioned in the said sub-section and partially for the period other than that mentioned in the said sub-section, the applicant instead of withdrawing the appeal, shall intimate the appellate authority or Appellate Tribunal that he does not wish to pursue the appeal for the period mentioned in the said sub-section and the relevant authority shall, after taking note of the said request, pass such order for the period other than that mentioned in the said sub-section, as he thinks just and proper."

For the removal of doubt, CBIC has clarified that the appeal application shall be deemed to have been withdrawn to the extent of the said intimation for the period from the 1st July, 2017 to the 31st March, 2020 or part thereof, for the purpose of sub-clause (3) of section 128A.