TMI BlogRefund of GST deposited by us due to return filed post annual cut off by supplierX X X X Extracts X X X X X X X X Extracts X X X X ..... We purchased material from a public limited company in Feb. 2018 took GST credit .The supplier did not file return from Feb. 2018 onward also did not pay GST. The Department cancelled supplier's registration after Feb.2018 but gave effect from 1.2.2018 due to non filing of Returns. So we are made to pay GST along with interest penalty . Then supplier filed pending Returns along with G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST, interest penalty in Nov. 2022. So GST amount reflected in our GSTR-2B with remark - Return filled post annual cut off. So GST credit was denied to us . Can we claim refund of GST , interest penalty as supplier has paid the same ! - Reply By Padmanathan Kollengode - The Reply = You cannot claim refund of GST, interest penalty. Rule 37A has been inserted NOTIFICATION No. 26/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 022 Central Tax dated 26-12-2022 : Your query is directly covered by the proviso to Rule 37A . The proviso clearly states that the registered person can re-avail the credit in Form GSTR-3B . However it is silent on interest and penalty. In my considerate view, once interest has been collected from the supplier for belated payment of OPT, it cannot be again collected from recipient for re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... versal of same amount as ITC. After all interest is only compensatory in nature as held by Supreme Court in Pratibha Processors - 1996 (10) TMI 88 - SUPREME COURT . Therefore, Govt cannot be compensated twice, once from supplier and again from recipient. Regarding penalty, one has to consider under which provision the penalty was imposed. Clearly, in your case there is no wilfull suppresio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, misstatement or fraud involved and the same if alleged can be challenged. The only way to get the relief of interest and penalty would be to file a writ before the High Court - Reply By Padmanathan Kollengode - The Reply = please read refund of GST. instead of GST, interest and penalty. Interest and penalty can be litigated as explained above - Reply By Amit Agrawal - The Reply = De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar Querist, What do you mean by saying that '' So we are made to pay GST along with interest penalty ? No-one can force anyone to pay such amount without following due process under law. Second, what is procedure followed while paying said GST along with interest penalty and whether same is done u/s 74 by filing form DRC-03 ? And if yes, whether Form DRC-04 got issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Dept.? Lastly, have you given any letter asking for waiver of SCN by paying u/s 74 (5) etc.? Kindly elaborate various factual aspects, some of which are listed above. - Reply By Shilpi Jain - The Reply = Do file a refund application to claim back the amount paid to department as department cannot be benefited twice. There were also HC decisions which stated that primary liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is on the supplier and protective liabiltiy on the recipient. Once supplier has paid, there is no reason for department to keep amount received from recipient. If the order is adverse then file a Writ in the HC. - Refund of GST deposited by us due to return filed post annual cut off by supplier - Query Started By: - mehta pradip Dated:- 17-5-2023 Goods and Services Tax - GST - Got 4 Replies - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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