Important Keyword: Notification No. 56/2020 – Central Tax, GST refund order extension, Section 54(7) CGST Act, Section 168A CGST Act, CBIC June 2020 notification, refund processing extension, Notification 46/2020 amendment, COVID-19 GST relief India, GST refund compliance, Finodha GST services.
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[F. No. CBEC-20/06/08/2020-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 27th June, 2020
Notification No. 56/2020 – Central Tax: Seeks to amend notification no. 46/2020-Central Tax in order to further extend period to pass order under Section 54(7) of CGST Act till 31.08.2020 or in some cases up to fifteen days thereafter.
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
G.S.R.....(E).– In exercise of the powers conferred by section 168A of the Central Goods and Services Tax Act, 2017 (12 of 2017), read with section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), and section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Government, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.46/2020-Central Tax, dated the 9th June, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 361(E), dated the 9th June, 2020, namely:-
In the said notification, in the first paragraph,--
- for the words, figures and letters “29th day of June, 2020”, the words, figures and letters “30th day of August, 2020” shall be substituted;
- for the words, figures and letters “30th day of June, 2020”, the words, figures and letters “31st day of August, 2020” shall be substituted.
(Pramod Kumar)
Director,
Government of India
Note: The principal notification No. 46/2020-Central Tax, dated the 9th June, 2020 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 361(E), dated the 9th June, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 56/2020 – Central Tax
Q1: What is Notification No. 56/2020 – Central Tax about?
Answer:
This notification extends the time limit for the issuance of refund orders under Section 54(7) of the CGST Act, 2017. It modifies Notification No. 46/2020 – Central Tax by extending deadlines from June 2020 to August 2020.
Q2: What is the main objective of this notification?
Answer:
The goal is to give more time to tax authorities to issue refund orders to taxpayers whose refund applications were delayed due to COVID-19 lockdowns, ensuring smooth processing without penalties or loss of benefits.
Q3: What is Section 54(7) of the CGST Act, 2017?
Answer:
Under Section 54(7), any refund claim filed by a registered person must be sanctioned within 60 days from the date of receipt of the application.
However, due to the pandemic, CBIC has temporarily extended this time limit through this notification.
📘 Stay compliant with Finodha GST Compliance Services.
Q4: How was Notification No. 46/2020 – Central Tax amended?
Answer:
Notification No. 46/2020 had set deadlines as:
“29th June 2020” and “30th June 2020.”
Under Notification No. 56/2020, these were replaced with “30th August 2020” and “31st August 2020,” respectively.
Q5: What is Section 168A of the CGST Act, 2017?
Answer:
Section 168A empowers the Government, during a pandemic or disaster, to extend time limits for actions such as:
Refund processing,
Return filing,
Compliance under various provisions.
This notification uses Section 168A to legally extend refund order deadlines.
Q6: What types of refund cases are covered under this extension?
Answer:
This extension applies to refund claims filed under:
Exports of goods or services,
Inverted duty structure,
Deemed exports, and
Excess tax paid under CGST, IGST, or UTGST Acts.
📘 Need help filing your refund? Use Finodha GST Return Filing.
Q7: What does this mean for taxpayers waiting for GST refunds?
Answer:
If your refund was pending due to administrative delays or lockdown issues, the government has extended the time frame for officers to process it till 31st August 2020, ensuring that no refund claim gets lapsed.
Q8: What if the refund order was due after 31st August 2020?
Answer:
In certain cases, as per the notification, officers may get an additional 15 days beyond 31st August 2020 to complete refund processing.
Q9: Does this notification apply only to CGST refunds?
Answer:
No ❌.
The extension applies to refunds under all three laws — CGST, IGST, and UTGST Acts, ensuring a uniform approach across tax jurisdictions.
Q10: How does this help businesses during COVID-19?
Answer:
Many refund applications were stuck during lockdowns. This extension ensured that businesses — especially exporters and small enterprises — could receive timely refunds, improving their cash flow during financial hardship.
💡 Example:
An exporter who applied for a refund in May 2020 but whose processing deadline fell in June would still be eligible, as officers could issue orders till 31st August 2020.
Q11: Who issued this notification?
Answer:
This notification was issued by CBIC (Ministry of Finance) and signed by Shri Pramod Kumar, Director, Government of India.
Q12: What is the role of the GST Council in this extension?
Answer:
The decision was taken on the recommendation of the GST Council, as per the legal requirement under Section 168A, ensuring that extensions are uniformly implemented across states and UTs.
Q13: Will this affect interest on delayed refunds?
Answer:
No, this extension does not change the taxpayer’s right to receive interest on delayed refunds under Section 56 of the CGST Act.
The extension applies to administrative processing time, not to the taxpayer’s eligibility for refund or interest.
Q14: Is any taxpayer action required due to this notification?
Answer:
No taxpayer action is needed. This notification is directed at tax authorities, not taxpayers.
However, businesses are advised to track their refund status and ensure proper documentation.
📘 Track your refunds and filings easily with Finodha GST Compliance.
Q15: How can taxpayers check refund order status?
Answer:
You can check your refund application status by:
Logging in to the GST portal.
Navigating to Services → Refunds → Track Application Status.
Entering your ARN to view progress.
🏁 Conclusion
Notification No. 56/2020 – Central Tax serves as an important relief measure, ensuring that refund applications delayed due to lockdowns are processed without penalty or lapse.
By extending the deadline for refund orders, the government reaffirmed its commitment to supporting businesses and maintaining liquidity during uncertain times.
💡 Tip: Always track refund timelines and documentation. For expert help with GST refunds and compliance, visit Finodha GST Return Filing or consult Finodha GST Experts.
Download PDF: Notification No. 56/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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