Sections extracted
- Section 168 (1)
- Section 54(3)
- Section 16(2) (aa)
- Section 41
- sections 16(2)(c)
- Section 42(2)
GST circular working note
Circular 197/09/2023-GST: Clarification on refund-related issues
Source-led decode of CBIC Circular 197/09/2023-GST with the actual provisions, rules, forms and official PDF trail.
Reviewed by CA Nikhil Gupta · Updated 5 October 2026
Filing identity
Circular number
197/09/2023-GST
Date
2023-07-17
CBIC record
1003171
PDF source
official text PDF; 5 page(s)
Form in 2 minutes
Circular 197/09/2023-GST deals with clarification on refund-related issues. Read it as a refund and re-credit control: start with the refund category, tax period, ledger affected and the specific form or acknowledgement named in the circular. The circular is binding administrative clarification under the GST framework only to the extent of the issue it answers; the Act, Rules, notifications and event-date version still control the final legal result.
Working point: On the issue of clarification on refund-related issues, a reviewer first identifies whether the circular changes eligibility, filing route, debit/re-credit mechanics or proof requirements; only then is the portal form or officer response selected.
Bare law, rules and notifications
Rules extracted
- Rule 36(4)
- Rule 89(1)
- Rule 96A
Forms extracted
- FORM GST RFD-01
Notifications and linked circulars
- Notification No. 49/2019
- Notification No. 39/2021-Central Tax
- Notification No. 40/2021-Central Tax
- Notification No. 18/2022-CT
- Notification No. 14/2022-CT
- Notification No. 16/2020-Central Tax
- Circular No. 197/09/2023
- Circular No. 135/05/2020-GST
- Circular No. 125/44/2019-GST
- Circular No. 139/09/2020-GST
The source map above is limited to citations actually extracted from the official Circular 197/09/2023-GST PDF. Where the transaction also touches another charging section, exemption entry, return rule or limitation provision, document that separate source before filing or advising.
Paragraph-wise decode
| Para | Issue dealt with in the circular |
|---|---|
| 1 | Refund of accumulated input tax credit under Section 54(3) on the basis of that available as per FORM GSTR 2B: - |
| 1.1 | In terms of Para 5 of Circular No. 135/05/2020-GST dated 31.03.2020, refund of accumulated input tax credit (ITC) is restricted to the input tax credit as per those invoices, the details of which are uploaded by the supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant. Para 5 of the said circular is reproduced below: “5. Guidelines for refunds of Input Tax Credit under Section 54(3): |
| 5.1 | In terms of para 36 of circular No. 125/44/2019-GST dated 18.11.2019, the refund of ITC availed in respect of invoices not reflected in FORM GSTR-2A was also admissible and copies of such invoices were required to be uploaded. However, in wake of insertion of sub-rule (4) to rule 36 of the CGST Rules, 2017 vide notification No. 49/2019-GST dated 09.10.2019, various references have been received from the field formations... |
| 5.2 | The matter has been examined and it has been decided that the refund of accumulated ITC shall be restricted to the ITC as per those invoices, the details of which are uploaded by the supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant. Accordingly, para 36 of the circular No. 125/44/2019-GST, dated 18.11.2019 stands modified to that extent.” |
| 1.2 | However, in view of the insertion of clause (aa) in sub-section (2) of section 16 of the CGST Act, 2017 w.e.f. 1st January, 2022 vide Notification No. 39/2021-Central Tax dated 21.12.2021, and the amendment in Rule 36(4) of the Central Goods and Services Tax Rules, 1997 (hereinafter referred to as “CGST Rules”) w.e.f. 1st January, 2022 vide Notification No. 40/2021- Central Tax dated 29.12.2021, doubts are being raised as to... |
Use these paragraph cues to locate the operative part quickly, then read the full official PDF for conditions, exceptions, examples, effective dates and past-period regularisation language.
Workflow
- Identify issue.
Record the taxpayer, supply, return period, order or refund event covered by Circular 197/09/2023-GST. - Map source.
Open the circular PDF with the Act, Rule and notification entries listed above. - Compile proof.
Refund ARN, export or supply documents, tax-payment proof, ledger extracts, debit or re-credit trail and the officer communication. - Close filing.
Use the portal or officer channel that matches the event date and keep the acknowledgement with the source PDF.
Forms and downloadable source
Circular 197/09/2023-GST expressly references these forms: FORM GST RFD-01. Use the official form compendium and the live portal version before filing.
Do not use a form title by memory alone. Confirm the live portal, the rule that prescribes the form, historical return period and any officer instruction before upload or reply.
Highlighted advisory points
Scope
Circular 197/09/2023-GST should be confined to clarification on refund-related issues; nearby issues require their own source check.
Evidence
Keep the official PDF, transaction documents and portal record together so a reviewer can reproduce the conclusion.
Version
For historical periods, use the law and portal version applicable to the event, not merely the current screen label.
Exam and advisory case study
In an exam problem, separate entitlement from procedure: first test the Act and Rules, then apply the circular only for the manner of filing, processing, re-credit or regularisation it actually states. For Circular 197/09/2023-GST, a complete answer names the issue, lists the controlling provisions extracted above, applies the circular's operative answer, and then states what the taxpayer or officer must do in the return, refund, appeal, billing or record file.
Finin2min summary and Q&A
Summary: Circular 197/09/2023-GST is a source-specific GST clarification on clarification on refund-related issues. Use the exact official PDF, not a generic circular checklist, and preserve the law/rule/notification map with the working file.
Is the circular itself the full law?
No. It clarifies administration under GST. The Act, Rules, notifications, court orders and facts of the transaction remain necessary.
When is a form PDF needed?
Only when the circular or linked rule actually points to a prescribed form. If the page lists forms, use the form compendium and the current GST portal version.
Can this be applied to another tax period?
Only after checking the effective date, amendment history and any past-period regularisation language in the official circular and related notification.
Primary official sources
CBIC circular metadata | Official CBIC PDF viewer | CBIC circular list | GST Council circulars
This Finin2min page is an educational working note. Official legislation, Gazette instruments, circulars, portal rules, court decisions and the facts of the matter prevail. Obtain professional advice for a live filing, refund, appeal or dispute.