Next steps post favourable orders from Comm (Appeals), Goods and Services Tax - GST

[RaamSrinivasan Kalpathi]

Our company had filed appeals with FAA contesting the GST claimed by the department on issue of food coupons to employees. Following the decision of Premier Sales Promotion Pvt Ltd by Kar HC and issue of Circular 243 by department we secured a favourable decision. The pre-deposit was remitted through debit in our Electronic Credit Ledger. Please enlighten me on the next steps to be taken. Do I take re-credit of the pre-deposit in 3B and then intimate the department or do I have to request the jurisdictional Suptt. to bestow credit of the amount remitted in our electronic credit ledger? Thanks

Posts / Replies

[Sadanand Bulbule]

Make a suitable representation to the jurisdictional officer highlighting the orders/directions of the FAA to give proper effect to it. Otherwise they take their own sweet time. Also insist the provisions of Section 115 for payment of interest on refund of pre-deposited tax amount.

[YAGAY andSUN]

You're in a good position having secured a favorable decision in your GST appeal regarding food coupons and already having remitted the pre-deposit via your Electronic Credit Ledger (ECL). Now that the case has been decided in your favor, here’s how the re-credit process typically works under GST laws and related procedural updates:

✅ Next Steps After a Favourable GST Appeal Decision:

1. File an Application for Re-credit:

• You cannot directly take the re-credit in GSTR-3B. Instead, you must apply to the jurisdictional officer (Superintendent/Proper Officer) for re-credit.
• This is in line with CBIC Circular No. 105/24/2019-GST and Rule 86(4) of the CGST Rules, 2017.

2. Format and Process:

• Submit a written request or application (some jurisdictions require in FORM GST PMT-03A) to the jurisdictional Superintendent of Central Tax.
• Provide the following:
  • Copy of the appeal order (favorable decision).
  • Proof of pre-deposit made (ECL debit confirmation).
  • A request letter for re-credit of the amount, citing the relevant Rule/Circular (especially Circular 243/17/2023-GST dated 3rd August 2023).

3. Officer's Action:

• The jurisdictional officer will verify and, if satisfied, will re-credit the amount to your ECL using FORM GST PMT-03A.

4. No Need to Reflect in GSTR-3B Directly:

• Do not make any direct adjustment in GSTR-3B. The re-credit is purely an administrative action by the department and must reflect in your ECL first.

📌 Key References:

• Circular No. 243/17/2023-GST clarifies that pre-deposits made via ECL are to be re-credited by the officer upon favorable appellate orders.
• PMT-03A is the prescribed format for credit restoration post-appeal.

✔️ Summary of Actions:

Step	Action
1	Obtain and keep a copy of the appellate order
2	Prepare a request letter for re-credit (cite Rule 86(4), Circular 243)
3	Submit the request to jurisdictional Superintendent with order and ECL debit proof
4	Wait for PMT-03A issuance and re-credit in your ECL
5	No need to take credit through GSTR-3B

*** 

[YAGAY andSUN]

Here’s a draft request letter you can customize and submit to your jurisdictional Superintendent of Central Tax for re-credit of the pre-deposit made through your Electronic Credit Ledger (ECL):

[On Your Company’s Letterhead]

To,
The Superintendent,
[Jurisdictional Range/Division Name]
Central Goods and Services Tax
[Full Address of GST Office]

Date: [Insert Date]

Subject: Request for Re-credit of Pre-deposit Made through Electronic Credit Ledger under Section 107 of the CGST Act, 2017 – Reg.

GSTIN: [Your GSTIN]
Legal Name of the Taxpayer: [Your Company Name]

Dear Sir/Madam,

This is to respectfully submit that our company had filed an appeal under Section 107 of the CGST Act, 2017 against the order passed by [Adjudicating Authority's Designation] bearing reference number [Order No. and Date], wherein GST demand was raised in respect of the issuance of food coupons to employees.

As required under the provisions of the Act, we had made the mandatory pre-deposit of [₹ Amount], which was debited from our Electronic Credit Ledger on [Date of Debit], through DRC-03 bearing reference number [DRC-03 Reference No.].

The Appellate Authority, vide Order-in-Appeal No. [Appeal Order No.] dated [Date], has decided the matter in our favour and set aside the demand raised by the adjudicating authority. A copy of the appellate order is enclosed for your ready reference.

In light of the above and in terms of:

• Rule 86(4) of the CGST Rules, 2017,
• Circular No. 243/17/2023-GST dated 3rd August 2023, and
• the recent clarification pursuant to the Hon’ble Karnataka High Court judgment in Premier Sales Promotion Pvt. Ltd.,

we kindly request you to initiate the process for re-credit of the pre-deposit amount of ₹ [Amount] to our Electronic Credit Ledger by issuing FORM GST PMT-03A.

Enclosures:

1. Copy of the Appellate Order-in-Appeal
2. Copy of DRC-03 challan evidencing debit from Electronic Credit Ledger
3. Copy of Electronic Credit Ledger extract
4. Any other supporting documents as may be required

We shall be grateful if the necessary re-credit may be processed at the earliest.

Thanking you,

Yours faithfully,
For [Your Company Name]

[Authorized Signatory Name]
[Designation]
[Contact No.]
[Email ID]
[Company Address]