TMI BlogClarification on refund related issuesX X X X Extracts X X X X X X X X Extracts X X X X ..... ripura Act No. 9 of 2017) for the purpose of uniformity in the implementation of the Act it is instructed to follow the clarification issued vide Circular No. 135/05/2020 GST dated 31 st March, 2020 by the Department of Revenue. Central Board of Indirect Taxes and Customs, GST Policy Wing. Encl.: Circular No. 135/05/2020-GST. (Nagesh Kumar B, IAS) Chief Commissioner of State Tax Government of Tripura Circular No.135/05/2020 - GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing New Delhi, Dated the 31st March, 2020 To, The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All) The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Clarification on refund related issues Reg. Various representations have been received seeking clarification on some of the issues relating to GST refunds. In order to clarify these issues and to ensure uniformity in the implementation of the provisions of law in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Circulars can supplant but not supplement the law. Circulars might mitigate rigours of law by granting administrative relief beyond relevant provisions of the statute, however, Central Government is not empowered to withdraw benefits or impose stricter conditions than postulated by the law. 2.3 Further, same issue has been raised in various other representations also, especially those received from the merchant exporters wherein merchant exporters have received the supplies of goods in the last quarter of a Financial Year and have made exports in the next Financial Year i.e. from April onwards. The restriction imposed vide para 8 of the master refund circular prohibits the refund of ITC accrued in such cases as well. 2.4 On perusal of the provisions under sub-section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017 and sub-section (3) of section 54 of the CGST Act , there appears no bar in claiming refund by clubbing different months across successive Financial Years. 2.5 The issue has been examined and it has been decided to remove the restriction on clubbing of tax periods across Financial Years. Accordingly, circular N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax structure; f. Refund to supplier of tax paid on deemed export supplies; g. Refund to recipient of tax paid on deemed export supplies; h. Refund of excess balance in the electronic cash ledger; i. Refund of excess payment of tax; j. Refund of tax paid on intra-State supply which is subsequently held to be inter-State supply and vice versa; k. Refund on account of assessment/provisional assessment/appeal/any other order; l. Refund on account of any other ground or reason. 4.2 For the refund of tax paid falling in categories specified at S. No. (i) to (l) above i.e. refund claims on supplies other than zero rated supplies, no separate debit of ITC from electronic credit ledger is required to be made by the applicant at the time of filing refund claim, being claim of tax already paid. However, the total tax would have been normally paid by the applicant by debiting tax amount from both electronic credit ledger and electronic cash ledger. At present, in these cases, the amount of admissible refund, is paid in cash even when such payment of tax or any part thereof, has been made through ITC. 4.3.1 As this could l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdingly paid by issuance of order in FORM GST RFD-06 for amount refundable in cash and FORM GST PMT-03 to re-credit the amount attributable to credit as ITC in the electronic credit ledger. 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 regarding admissibility of refund of the ITC availed on the invoices which are not reflecting in the FORM GSTR-2A of the applicant. 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/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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