CA. Annapurna Kabra

Transcription

1 By CA. Annapurna Kabra

2 I) Payment under GST Type of payment Due date Modes of payment with Rules and collection of tax Collection of incorrect amount / rate of GST Omission to collect GST in invoice Right to retain tax collected in excess and duty to deposit all taxes collected Invoice to refer tax charged or omission to disclose any tax on invoice Ensuring reversal of credit by recipient in case of credit note Duty to deposit TCS in case customer defaults in payment of e-commerce suppliers on COD terms Difference between TDS and TCS failure to collect TCS and failure to deduct TDS - implications 2

3 II) Refund under GST Type of Refund, Forms, Period, Terms and Conditions Provisional Refund % with Rules Including Refund under earlier law Refund in case of delayed collection of statutory forms Refund arising from Re-assessment / Appeal under earlier law Error in payment of CGST-SGST or IGST Export of zero-rated supplies Rebate and Refund Unjust enrichment applicable and inapplicable cases Limitation legality and vested right to refund Other related points 3

4 Type of Payments 1) Every deposit made towards tax, interest, penalty by internet banking/ debit card/ credit card/ NEFT/ RTGS shall be credited to the electronic cash ledger of the person. Deposit Tax, Interest, Penalty, Fee or Any other amount Internet Banking/Credit/ Debit Cards/ NEFT/ RTGS Cr to Electronic Cash Ledger

5 ITC of registered person as self- assessed in his return shall be credited to his electronic credit ledger. ITC Cr to Electronic Credit Ledger As per S.41 Provisional Basis Eligible ITC Self Assessed Return

6 Amount available in the electronic cash ledger may be used for making payment towards tax, interest, penalty, fee payable as per the provisions. Amount available in the electronic credit ledger may be used for making payment towards output tax under CGST/ SGST Act or IGST Act. Cash Ledger Tax Interest Penalty Fees Any other Amount Credit Ledger Output Tax CGST SGST UTGST IGST

7 Utilization of Credits IGST CGST SGST UTGST IGST CGST SGST UTGST CGST IGST SGST/ UTGST SGST IGST CGST/ UTGST UTGST IGST

8 Taxable person discharge Taxes and other dues Order of Discharge of Tax Self Assessed Tax Demand u/s 73 & 74 Other Amounts Previous Period Current Period Compounding Fees Fine in lieu of Confiscation

9 Order of discharge of Taxes Types of Payments of Tax Tax CGST/ SGST/ UTGST/ IGST Tax Deducted at Source (TDS) Tax Collected at Source (TCS) Due Date Regular taxpayers - 20 th of the following month Compounding taxpayer - 18 th of the month following the quarter 10 th of the month following the quarter

10 Rule 1 Electronic Tax Liability Register Sub rule 1 Maintenance of Electronic Tax Liability Register This register will be maintained on the common portal in FORM GST PMT 01. Sub rule 2 Amounts debited to the said register: a) amount of tax, interest, late fee etc payable as per return b) amount of tax, interest, penalty payable under proceedings c) amount of tax and interest payable as a result of mismatch under Sec 42/ 43/ 50. d) any amount of interest that may accrue from time to time.

11 Rule 1 Electronic Tax Liability Register Sub rule 3 On payment of tax or any other amount by a registered person as per his returns - a) Electronic Credit Ledger/ Electronic Cash Ledger of the person shall be Debited and b) His Electronic Tax Liability Register shall be Credited. On payment of TDS, TCS, Composition Tax, Tax under Reverse Charge Mechanism by a registered person, Sub rule 4 a) Electronic Cash Ledger of the person shall be Debited and b) His Electronic Tax Liability Register shall be Credited.

12 Rule 1 Electronic Tax Liability Register Sub rule 5 If any relief is given by the appellate authority or Appellate Tribunal or court then the amount of demand debited in the register shall be reduced to the extent of relief given. Sub rule 6 If the taxable person makes the payment of tax, interest and penalty as specified in the show cause notice or demand order then the amount of penalty imposed or liable to be imposed shall stand reduced accordingly.

13 Form GST PMT 1 to be maintained on the common portal Debits Returns: Tax, interest, late fee or any other amount Proceedings: Tax, interest, penalty or any other amount Tax and interest Mismatch of input tax credit with the output tax Reduction of output tax by way of issuing credit notes with the input tax credit Details of supplies by e-commerce that do not match with the outward supplies furnished by the supplier Credits Liability: Sum of amounts debited to electronic credit ledger and electronic cash ledger TDS, TCS (e-com), RCM and composition: Tax, interest, penalty, fee or any other amount payable Appellate Authority: Amount to be credited upon reduction in tax liability Amount of penalty: If the tax and interest and penalty is paid in the manner specified.

14 Rule 2 Electronic Credit Ledger Sub rule 1 Maintenance of Electronic Credit Ledger: It shall be maintained on the Common Portal in FORM GST PMT 02 Every claim of ITC by the registered person shall be credited to the said ledger Sub rule 2 Electronic Credit Ledger shall be debited in accordance with Sec. 49 of the CSGT Act, 2017 Sub rule 3 On claim of refund of un utilized amount in the Electronic Credit Ledger, the amount to the extent of claim shall be debited to the said ledger.

15 Rule 2 Electronic Credit Ledger Sub rule 4 If the claim for refund is rejected, the amount debited shall be recredited to the ledger, in accordance with the order made by the proper officer in FORM GST PMT 03 If the claim is wholly rejected, the whole amount debited shall be re- credited. If the claim is partially rejected, the amount to the extent of rejection shall be re- credited. A refund shall be deemed to be rejected if: a) the appeal is finally rejected or b) if the claimant gives an undertaking to the proper officer that he shall not file an appeal.

16 Rule 2 Electronic Credit Ledger Sub rule 5 No entry into the ledger shall be made directly into the ledger apart from those provided in Payment Rules. Sub rule 6 If any discrepancy is noted by the registered person, he shall communicate the same in FORM GST PMT 04 on the common portal to the officer having jurisdiction in the matter.

17 Rule 3 Electronic Cash Ledger Sub rule 1 Sub rule 2 Maintenance of Electronic Cash Ledger: Electronic Cash Ledger shall be maintained in FORM GST PMT 05 on the common portal The ledger will be credited on deposit of amount into it and debited when any payment is made from it. Any person, or a person on his behalf, shall generate a challan in FORM GST PMT-06 on the Common Portal and enter the details of the amount to be deposited by him towards tax, interest, penalty, fees or any other amount. The said challan shall be valid for a period of 15 days Commission payable for making payment of amount indicated in the challan shall be borne by person making the payment

18 To be maintained in Form GST PMT 2 in the common portal; Summary of input tax credit as per the inward supply register; Matched, mis-match, provisional input tax credit to be recorded separately Any discrepancy in electronic credit ledger to be communicated by the registered person to the jurisdictional officer through common portal in Form GST PMT-04

19 Electronic Credit Ledger Debits Discharge of liability (tax, interest, penalty and other amounts). Credits Claim of input tax credit on inputs, capital goods, reverse charge claimed in return, ISD, merger, pre-registration Claim of refund of tax Refund claim rejected by order in Form GST PMT-03

20 Sub rule 3 Rule 3 Electronic Cash Ledger A deposit into the ledger can be made in any of the following modes: Internet Banking Credit/ Debit Cards Over the counter payments RTGS/ NEFT from any bank Through authorized banks Note on Over the counter payments: Deposit value Rs per challan per tax period. It can be done using cash, cheque or DD

21 Rule 3 Electronic Cash Ledger Sub rule 4 Any payment required to be made by an un registered person, shall be made on the basis of a temporary identification number generated through the Common Portal. Sub rule 5 Where the payment is made by way of NEFT or RTGS mode, the mandate form shall be generated along with the challan on the Common Portal. It has to be submitted to the bank from where the payment is to be made. The mandate form shall be valid for a period of fifteen days from the date of generation of challan.

22 Rule 3 Electronic Cash Ledger Sub rule 6 On successful credit of the amount to the concerned government account maintained in the authorized bank, a Challan Identification Number (CIN) will be generated by the collecting Bank and the same shall be indicated in the challan. Sub rule 7 On receipt of CIN from the authorized Bank, the said amount shall be credited to the electronic cash ledger of the person. A receipt shall be available on the Common Portal to show this effect.

23 Rule 3 Electronic Cash Ledger Sub rule 8 Where the amount is debited from the bank account of the person but no CIN is generated or generated but not communicated to the Common Portal, the said person may represent electronically in FORM GST PMT-07 through the Common Portal to the Bank or electronic gateway through which the deposit was initiated. Sub rule 9 The amount of TDS/ TCS shall be credited to the ledger of the deductee as per Rule 2 of Return rules.

24 Electronic Cash Ledger To be Maintained in Common portal in Form GST PMT 05 Debits Payment made towards tax, interest, penalty, fee or any other amount Credits Amount deposited as tax, interest, penalty, fee or any other amount Refund of any amount claimed from electronic cash ledger Rejected claim of refund - TDS and TCS claimed in the return filed in Form GSTR-2

25 Electronic Cash Ledger Payment to be made by generating a challan in Form GST PMT 06 on the common portal; Challan shall be valid for 15 days; Commission for making payment shall be borne by taxable person; Modes of deposits Internet banking through authorised banks Credit / debit card through authorised banks NEFT / RTGS from any bank Over The Counter (OTC) thorough authorised banks up to Rs.10,000/- per challan per tax period

26 Electronic Cash Ledger OTC Payment exceeding Rs. 10,000/- can be deposited: Government Departments; Persons notified by the Board / Commissioner (SGST); Proper office / authorised officer to recover outstanding dues; Recovery made through attachment or sale of movable or immovable properties; Amounts collected by way of cash / cheque at the time of investigation by proper officer / authorised officer;

27 Electronic Cash Ledger Payment to be made by unregistered dealer on generating temporary identification through common portal; NEFT / RTGS payment: mandate to be generated and to be submitted to the bank. Mandate is valid for a period of 15 days; CIN will be generated on successful credit of the amount to Government account; CIN not generated on successful payment representation in Form GST PMT 6 through common portal or electronic gateway; On receipt of CIN, the amount will be credited to electronic cash ledger; Receipt to be generated on common portal;

28 Steps for making e-payment Key in the details relating to payment of taxes CGST, SGST, IGST can be paid concurrently Generate draft challan (From GST PMT 5)and save. (Can be edited before finalisation) After finalisation generate challan. Challan is valid for 15 days CIN will be generated on successful credit On receipt of CIN, amount will be credited to electronic cash ledger Note: In cases where amount is debited but no CIN is generated or CIN is generated but not communicated to common portal represent in Form GST PMT-07 through common portal to bank

29 Tax Deducted at Source (TDS)

30 Tax Deducted at Source Sec 51 The following persons may be made liable to deduct tax at source:- Department/ establishment of CG/ SG Local Authority Governmental Agency Notified persons/ categories of persons Rate of TDS: 1% of payment made/ credited to supplier ( the deductee ) Value of payment exclusive of CGST, SGST, UTGST, IGST and cess TDS is required to be deducted only in cases where the total value of the supply of goods/ services exceeds Rs. 2,50,000 No TDS if location of supplier and place of supply is in a State/ UT which is different from State/ UT of registration of recipient The deductee can claim credit of TDS deducted in electronic cash ledger Condition: The deductor should have reflected such TDS amount in his returns Refunds will be allowed to deductor/ deductee in case of excess/ erroneous deduction No refund to deductor if TDS has been credited to electronic cash ledger of deductee

31 Tax Deducted at Source Sec 51 TDS compliance requirements:- Payment TDS deducted is required to be paid to the Government within 10 days after the end of the month in which such deduction was made Failure to pay: Interest at such rate as may be prescribed Certificate The deductor is required to furnish a certificate containing details of contract value, rate of deduction, etc. Failure to furnish certificate within 5 days of crediting the TDS to the Government: late fee of Rs. 100 per day until failure is rectified, maximum: Rs. 5,000

32 Rule 7 Form and manner of submission of a return by a person required to deduct tax at source Sub rule 1 Sub rule 2 Sub rule 3 Registered persons required to deduct tax at source under section 51 shall furnish a return in FORM GSTR-7. The details furnished by the deductor in his return shall be made available to each of the suppliers in Part C of their FORM GSTR-2A The details will be available after the due date of filing of FORM GSTR-7. The TDS certificate shall be made available to the deductee in FORM GSTR-7A on the basis of the return furnished in FORM GSTR - 7.

33 Tax Collected at Source (TCS)

34 Tax Collected at Source Sec 52 Every e-commerce operator, not being an agent, is required to collect tax at source in cases where consideration is collected by the operator However, TCS is required to be collected regardless of the operator s mode of collection of consideration Rate of TCS: to be prescribed not exceeding 1% Value: Net value of taxable supplies made through the e-commerce operator by other suppliers Net value of taxable supplies means:- Aggregate value of taxable supplies of goods/ services made through the operator by registered persons during a month Aggregate value of taxable supplies returned Value of services notified u/s 9(5) on which the whole amount of tax on intra-state supplies would be paid by the operator The supplier who has supplied goods/ services through the operator can claim credit of TCS collected in his electronic cash ledger Condition: The deductor should have reflected such TDS amount in his returns

35 Tax Collected at Source Sec 52 TCS compliance requirements:- Payment TCS collected is required to be paid to the Government within 10 days after the end of the month in which such collection was made Certificate The operator who collects TCS has to furnish:- A monthly statement within 10 days after the end of the month An annual statement within 31 st December of the relevant year Containing details of outward supplies (including supplies returned) of goods or services effected through it and amount of tax collected at source

36 Tax Collected at Source Sec 52 Matching of details Details of supplies furnished by the operator in his monthly statement will be matched with corresponding details of outward supplies furnished by the supplier Discrepancies (if any) will be communicated to both the supplier and the operator Where discrepancy relates to value of outward supplies furnished by operator > value of outward supplies furnished by supplier If such discrepancy is not rectified by the supplier in his valid return or by the operator in his monthly statement, such amount of discrepancy will be added to the output tax liability of the supplier for the month following the month in which discrepancy is communicated Liability to pay interest at such rates as may be prescribed

37 Tax Collected at Source Sec 52 Furnishing information An authority not below the rank of Deputy Commissioner, may serve a notice requiring the operator to furnish details relating to:- Supplies of goods/ services effected through such operator Stock of goods held by suppliers making supplies through such operators in godowns, warehouses, etc., managed by the operator and declared as an additional place of business by the supplier Every operator on whom such notice has been served has to furnish the required information within 15 working days of the date of service of notice Failure: liable to pay penalty which may extent to Rs. 25,000 in addition to penalty u/s 122 Note: For the purpose this section, supplier means supplier of goods/ services/ both making supplies through the operator

38 Rule 8 Form and manner of submission of statement of supplies by an E-commerce operator Sub Rule 1 E commerce operators required to collect tax at source shall furnish a statement in FORM GSTR-8. The statement shall contain details of supplies effected through him and the amount of tax collected at source. Sub Rule 2 The details furnished by the operator shall be made available to each of the suppliers in Part D of FORM GSTR-2A. Details will be made available after the due date of filing of FORM GSTR- 8.

39 Reduction in output tax liability Credit note not declared: discrepancy shall be communicated to the supplier and recipient; Such output tax liability to be paid with interest - amount to be added to the output tax liability in the return for the month succeeding the month in which discrepancy is communicated; If Recipient declares credit note: output tax liability will be reduced in the month in which credit note is declared; Interest paid will be refunded by way of crediting to electronical cash ledger;

40 Other Issues relating to Payment Omission to collect GST in Invoice Collection of incorrect amount/ rate of GST? Excess Collected Short Collected Duty to deposit all taxes collected

41 Payment issues relating to TDS & TCS Whether TCS provisions apply to E-Commerce Operators u/s 9(5) Difference between TDS and TCS Whether payment of tax i.e. TCS provisions apply where delivery made directly by supplier and monies are also received directly by supplier though transaction is facilitated through E-Commerce Operator? Whether TCS to be made when customer declines receipt on COD basis? How will the TDS/ TCS deducted/ collected be reflected in the books of the deductee? What is the effect of not complying with TDS/ TCS provisions? How is excess deduction/ erroneous deduction dealt with?

42 Unutilized ITC Refunds by person specified u/s 55(Embassy, agency of UNO etc. Refund Balance in electronic cash ledger Advance tax deposited by CTP & NRTP* *Casual taxable person Non resident taxable person

43 Srl. No. Types of refund Form Time limit 1 Unutilized ITC [Sec 54(3)] GST RFD-01 2 Balance in electronic cash ledger [Sec 54(1)] 3 Advance tax deposited by CTP or NRTP (If furnished all returns under Section 39) [Sec 54(13)] 4 Refund by persons specified under [Sec 54(2)] (Embassy, Agency of UNO, etc.) - Refund of tax on inward supply GST RFD-01 Or As may be applicable, 1. GSTR-3 (Monthly Return); or GSTR-4 (Composition supplier); or GSTR-7 (Person required to deduct TDS) GST RFD-01 Or In the last return Within 2 years from relevant date GST RFD-10 Quarterly - within 6 months from the quarter end of receipt of supply

44 (3) Refund of unutilized ITC Eligible Not Eligible Export of goods and/or services, For export of services: bank realization certificate or foreign inward remittance certificate is required Supply to SEZ unit or developer Rate of tax on inputs is more than rate of tax on output *other than -Nil rate - fully exempt If supplier avails drawback in respect of CGST or claims refund of IGST Goods exported outside India subject to export duty

45 (4) Documentary evidence to claim refund: (a) Document must show refund due to such applicant (b) Such document must be furnished including document specified in sec. 33 Sec Amt of Tax indicated in Invoice Important Points If claim amt less than 2,00,000/- no documents. required 1.Refund includes tax paid on zerorated supplies of goods and/ or services or inputs or input services used in making such zero-rated supplies or tax on the supply of goods regarded as deemed exports, or refund of unutilized ITC

46 (5) On receipt of such application if the proper officer is satisfied that the whole or part of the amount claimed as refund is refundable, he may make an order accordingly and the amount determined shall be credited to the Fund referred to in section 57. (6) If refund relate to zero rate supply of goods and/or service (7) Officer issues order within 60 days of receipt of application for both registered and other than notified by govt. Refund on provisional basis 90% of the total amt so claimed (excluding ITC provisionally accepted)

47 (8) Refundable amt shall be paid to applicant instead of credit to the fund when: (9) If any contrary to any - judgment, - decree, - order or direction of the Appellate Tribunal or any court or in any other provisions of this Act or the rules made, no refund shall be made except in accordance with the provisions of subsection (8). a) tax paid on zero-rated supplies of goods and/or services (b) unutilized ITC under sub-section (3); (c) tax paid on a supply which is not provided, and invoice has not been issued, or where a refund voucher has been issued; (d) refund of tax in pursuance of section 77;(tax wrongfully collected & paid to govt.) (e) Tax and interest paid but had not passed on the incidence of such tax to any other person

48 (10) If the person has defaulted in furnishing return or If he required to pay any tax there upon proper officer may withhold refund or deduct tax payable from refundable amount Refund is subject matter of an appeal (11) Officer may withhold of refund claim if Pending from commissioner proceeding Other proceedings on account of malfeasance or fraud committed (12) As a result of appeal or further proceedings if amt becomes entitled to refund Eligible for interest at the rate of 6% on refund value

49 Meaning of relevant date:-sec 54(14) Sl. No. Situation Relevant date 1 Export of goods (In respect of goods/inputs/ input services When ship or aircraft leaves India or goods pass the frontier or goods are dispatched by Post Office 2 Deemed export When return of such deemed exports is filed 3 Person other than supplier date of receipt of goods/ services by such person 4 Export of services (In respect of services/ inputs/ input services 5 Consequence of judgment, order or direction of Appellate Authority, etc. 1. Receipt of CFE*, if supply of service is prior to the receipt of such payment. 2. Issue of invoice, if payment is received prior to the invoice date Date of communication of such judgment, order, etc 6 Unutilized ITC End of the FY in which such refund claim arises 7 Provisional payment of tax Date of tax adjustment after the final assessment *Certificate of foreign remittance 8 Other case Date of payment of tax

50 Section 56 of CGST Act Interest on delayed refunds Sl No. Particulars Description 1 Eligibility If not refunded within 60 days from date of receipt of application 2 Period covered Period of expiration of 60 days to the date of grant of refund 3 Rate Interest up to 6% - General case Interest up to 9% - If not refunded within 60 days of application filed after the favorable order by adjudicating or appellate authority or court.

51 57. Following refund amt shall be credited to Consumer Welfare Fund Sec. 54(5) as per order of officer (a) the amount referred to in subsection (5) of section 54; income from investment of the amount credited to the Fund 58. Utilization of fund (1) shall be utilized by the Government for the welfare of the consumers such other monies received by it, in such manner as may be prescribed (2) The Government shall maintain proper and separate account and other relevant records in relation to the Fund as specified by Comptroller and Auditor-General of India

52 Refund Scenarios Refunds under GST can be applied for in the following cases: Zero RatedSupplies Unutilized Input taxcredit Othercases: Refund of tax/interest/fees/penalty; Refund of tax paid on supplies not provided; Refund of tax paid on wrong classifications of supply; Refund arising out of an order/decree; Refund to specified persons in respect of inward supplies (UNO, Embassy of foreign countries or any notified persons).

53 Refund Procedure Application for Refund Deficiency Memo Issued? No Acknowledgment for filing refund Whether Zero Rated Supply Refund? No C Yes Yes Resubmit the Application Provisional Refund

54 Refund Procedure C Any Grounds for Rejection Issue of SCN Reply to SCN Final Order

55 Provisional Refund Refund in respect of Zero Rated supplies may be granted provisionally to extent of 90%. The provisional refund would be required to be granted within 7 days from the date of issuing the acknowledgement for filing the refund claim. No provisional refund would be granted in respect of provisional input tax credit. Provisional refund is subject to the following conditions: Person claimingrefundshould not be prosecuted under GST or existing laws in any of the previous 5 years; GST Compliance Rating should be more than 5 on a scale of 10; and Refund claimed is not a subject matter of any appeal, review or revision.

56 General Provisions Refund of unutilized ITC shall not be available: When the goods exported are subject to Export Duty. When the supplier has claimed the drawback or refund of Tax paid. Self declaration for not passing on the incidence of tax would be sufficient in cases where the amount of refund does not exceed Rs.2 Lakh. Certificate from CA/Cost Accountant would be required in cases where the amount is more than Rs.2 Lakh.

57 General Provisions Where the person has both taxable & zero rated supplies, refund of ITC would be restricted proportionately to extent of Zero Rated supplies. The refund applications shall be disposed off within 60 days from the date of receipt of complete application. Refund in respect of Deemed Exports would be required to be claimed by the recipient of supply.

58 Relevant Date & Documents Scenario Relevant Date Documents & Procedures Refund of Unutilized ITC used export of goods. in Tax paid on export of goods. Before expiry of 2 years from the relevant date. Export of Goods By Sea/ Air Date on which ship/aircraft leaves India. By Land Date on which goods pass the frontier of India By Post Date of despatch of goods from Post Office Application in Form GST RFD-01 Export Report Shipping Export. Export Invoices. manifest/export Bills/Bills of Debit to Electronic Credit ledger.

59 Relevant Date & Documents Scenario Relevant Date Documents & Procedures Before expiry of 2 years from the relevant date. Application in RFD-01 Form GST Refund of Unutilized ITC used in export of services. Tax paid on export of services. Export of Services Date of receipt of exchange; or convertible foreign Date of issue of invoice where consideration was received in advance. Invoice vs Realisation Reconciliation. Debit to Electronic Credit ledger.

60 Relevant Date & Documents Scenario Relevant Date Documents & Procedures Before expiry of 2 years from the Application in Form GST relevant date. RSD-01. Refund of Unutilized ITC used in supplies made to SEZ. Tax paid on supplies made to SEZ. Refund of ITC Two years from the date of end of the Financial year to which the ITC pertains. Refund of Taxes paid Two year from the date of payment of Tax. Endorsement by specified officer for receipt of goods/services in the SEZ. Details of invoices for supplies made to SEZ. Debit to Electronic Credit ledger.

61 Relevant Date & Documents Scenario Relevant Date Documents & Procedures Refund on unutilised input tax credit as a result of rate on inputs being higher than output supplies (Not applicable where output supply in NIL Rated or Fully Exempt) Two years from the date of end of the Financial year to which the ITC pertains. Application in Form GST RSD- 01. Details of invoices for inward supplies. Details of invoices for outward supplies. Debit to Ledger. Electronic Credit

62 Relevant Date & Documents Scenario Relevant Date Documents & Procedures Refund of tax paid on supplies not provided. Refund of tax paid on wrong classification of supply. Before expiry of 2 years from the date of payment. Application in Form GST RFD-01 on the Common GST Portal In case of balance in the Electronic Cash Ledger, through Form GST-3/4/7 i.e. GST Returns

63 Relevant Date & Documents Scenario Relevant Date Documents & Procedures Refund to specified persons in respect of inward supplies. Refund arising as a result of any judgment, decree, order or direction of Appellate Tribunal/Court Before six months from the last of day of the Quarter in which supply was received. Date of communication of such judgment, decree, order or direction of Appellate Tribunal/Court Application in Form GST RFD- 10 on a quarterly basis. Statement of inward supplies. The value of supply should be more than Rs.5,000/-. Application in Form GST RFD- 01. Reference number of order. the Copy of the judgment, decree, order or direction

64 List of Refund Forms Sl. No Form Number Content 1 GST RFD 01 Application for Refund 2 GST RFD 02 Acknowledgement 3 GST RFD 03 Deficiency Memo 4 GST RFD 04 Provisional Refund Order 5 GST RFD 05 Payment Advice 6 GST RFD 06 Refund Sanction/ Rejection Order 7 GST RFD 06 Interest on delayed refund order (same as refund order) 8 GST RFD 07 Order for complete adjustment of sanctioned refund 9 GST RFD 08 Notice for rejection of application for refund 10 GST RFD 09 Reply to show cause notice 11 GST RFD 10 Application fro refund by any specialize agency of UN or Multilateral Financial Institution and Organization, Consulate or Embassy of foreign countruies, etc.

65 Existing Law Refund was claimed under existing law (Where refund was claimed either before, on or after the appointed day, for refund of any amount of CENVAT credit, duty, tax or interest paid before the appointed day) GST After appointed day, refund will be paid in cash as per existing Law Except 11B(2) (i.e. Claim of Refund should be made within 1 year from the relevant date) Partially/ completely rejected refund claim shall be lapsed. No refund claim allowed of any amount of CENVAT credit where the balance of the said amount as on the appointed day has been carried forward under this Act.

66 Existing Law Every claim for refund of any duty or tax paid under existing law, filed after the appointed day, for the goods or services exported before or after the appointed day. GST It shall be disposed off in accordance with the provisions of existing law. Partially/ completely rejected refund claim shall be lapsed. No refund claim allowed of any amount of CENVAT credit where the balance of the said amount as on the appointed day has been carried forward under this Act.

67 Existing Law Every claim for refund of tax deposited under the existing law filed after the appointed day, in respect of services not provided: GST It shall be disposed off in accordance with the provisions of existing law and any amount eventually accruing to him shall be paid in cash Except Section 11B (Limit of 1 year would apply as provided in 11B(2) of C. Excise)

68 Every proceeding of appeal, review or reference relating to A Claim of CENVAT Credit under the existing law, initiated whether before, on or after the appointed day Shall be disposed off in accordance with the provisions of existing law If appeal etc. allowed, amount refundable in cash [Subject to Sec. 11B(2) of Central Excise Act] If amount of credit becomes recoverable, it is recovered as arrear of tax under this Act. Amount recovered not admissible as input tax credit under GST. No Refund shall be allowed when Cenvat credit is carried forward under GST.

69 Every proceeding of appeal, review or reference relating to any output duty or tax liability Shall be disposed of in accordance with the provisions of the existing law whether initiated before, on or after the appointed day Suppose Output duty Initially determined =Rs 100/- Output duty Finalized =Rs 120/- Rs 20/- will be recovered as an arrear of duty or tax under this Act Rs 20 will not be admissible as ITC. Suppose Output duty Initially determined =Rs 100/- Output duty Finalized =Rs 80/- Rs 20/- will be refunded in cash except 11B(2) i.e. limit of 1 year will apply Rs 20 will not be admissible as ITC.

70 An assessment or adjudication proceedings instituted whether before, on or after the appointed day under the existing law Any amount of tax, interest, fine or penalty, becomes recoverable/ refundable Suppose Tax, Interest, Fine, Penalty Initially determined =Rs 100/- Finalized =Rs 120/- Rs 20/- will be recovered as an arrear of duty or tax under this Act Rs 20 will not be admissible as ITC. Suppose Tax, Interest, Fine, Penalty Initially determined =Rs 100/- Finalized =Rs 80/- Rs 20/- will be refunded in cash except 11B(2) i.e. limit of 1 year will apply.

71 Return Furnished Under existing law 01/07/17 Return Revised-Amount Recoverable or Input Inadmissible To be treated as recovery of Arrear of tax under GST Not Admissible as ITC Return furnished Under existing law 01/07/17 Return revised-amount Refundable or Credit admissible To be Refunded in cash subject to provisions of 11B (2) of Central Excise and amount rejected if any, not admissible as ITC.

72 Withholding/ Deduction of Refund Withholding Deduction Furnish Return Till Payment of tax due Unpaid Tax Not Stayed Specified date 11-Jun-17 72

73 WITHOLDING OF REFUNDS IN EXCEPTIONAL CIRCUMSTANCES Subject matter of Appeal/ Further Proceedings Other proceedings under the Act is pending Commissioner Opinion Adversely Effect Revenue Fraud Opportunity of being heard Withhold Refund 11-Jun-17 73

74 Deemed Passing of Credit Every person who has paid the tax Unless the contrary is proved by him, Be deemed to have passed on the full incidence To the recipient of such goods or services or both

75 The principle of unjust enrichment would be applicable in all cases of refund except in the following cases. Refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies. Unutilized input tax credit in respect of (i) zero rated supplies made without payment of tax or, (ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies. Refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued.

76 The principle of unjust enrichment would be applicable in all cases of refund except in the following cases. Refund of tax in pursuance of Section 77 of CGST/SGST Act i.e. tax wrongfully collected and paid to Central Government or State Government. If the incidence of tax or Interest paid has not been passed on to any other person; Such other class of persons who has borne the Incidence of tax as the Government may notify.

77 Export of Zero-Rated supplies Rebate and Refund Section 16 of IGST Zero rated supply (1) Zero rated supply means any of the following supplies of goods or services or both, namely: (a) Export of goods or services or both; or (b) Supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. (2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply.

78 Export of zero-rated supplies Rebate and Refund A registered person making Zero rated supply shall be eligible to claim refund under either of the following options, namely: (a)he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilized input tax credit; or (b) He may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder.

79 Export of zero-rated supplies Rebate and Refund A registered person making Zero rated supply shall be eligible to claim refund under either of the following options, namely: (a)he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilized input tax credit; or (b) He may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder.

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