Filing GST Refund Under Inverted Duty Structure Simplified

Practical Issues faced while filing Inverted Duty Refund in Statement GST_ REFUND _S01A-Solutions to them…

An inverted duty structure is a situation when the tax on inputs is higher than that on output leading to accumulation of credit.

Refund under Inverted Duty Structure can be claimed as per Clause (ii) of sub-section (3) of section 54 of the CGST Act, 2017, where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council:

The following questions address the issues faced by the Tax payers while filing the refund application on the GST Portal:-

1. How to download the utility for filing refund?

Reply-: Login the GST Portal Services Refund Application for Refund Refund on account of ITC accumulated due to Inverted Tax Structure Download Offline Utility unzip and open GST_REFUND_S01A.xlsb template

2. If Refund Template not functioning properly in your system?

Reply-: It is suggested to use Microsoft Windows 10 or above with Microsoft Excel version 10 or above.

3. How to remove run time error?

Reply-: Where option is to be chosen from the data mentioned in cells, don’t copy paste those cells and unselect/remove data from each cell one by one

4. What should be the frequency for filing refund application?

Reply-: The periodicity of refund application shall be selected same as of GSTR-1, i.e., Refund claims shall be filed for a tax period on a monthly basis in FORM GST RFD-01A other than the registered persons having aggregate turnover of up to Rs.1.5 crore in the preceding financial year or the current financial year and who have opted to file FORM GSTR-1 on a quarterly basis.

5. Json file not getting uploaded but any error reason is not given by portal?

Reply-: There is some error in json file due to which portal does not accept it. The reason could be any of the following;-

a. GSTIN-: GSTIN should be correct and of the Assessee only for whom, the refund application is filed.

b. Period-:The period selected on the portal and in the refund template should be same.

c. Details of invoices of inward supplies received-:No clerical error should be there like same invoice entered twice, invoice of another period is mentioned in this period, some clerical mistake while entering invoice details.

d.  Tax paid on inward supplies-:No IGST input tax credit is mentioned against Intra State Supply and vice versa.

e. Details of invoices of outward supplies issued-:No clerical error should be there like same invoice entered twice, invoice of another period is mentioned in this period, some clerical mistake while entering invoice details

f. Tax paid on outward supplies-:No IGST output tax liability is mentioned against Intra State Supply and vice versa.

g. B2C Supplies incorrectly entered-:No clerical error should be there while adding up tax amount & taxable value like tax amount total is mentioned but error in taxable value and vice versa.

h. Amount of CGST & SGST should be same

i. Select the appropriate applicable Type of Supply & Type of Document

6. How to enter invoice wise details in GST_REFUND_S01A?

Reply-: One row should contain either Details of invoices of inward supplies or Details of invoices of outward supplies. Both types of invoices should not be mentioned in one row.

7. What information is to be matched with details of invoices of inward supplies?

Reply-: The invoices of inward supplies received to be matched with Draft 2A.

8. What information is to be matched with details of invoices of outward supplies?

Reply-: The invoices of outward supplies issued to be matched with GSTR-1.

9. How to enter b2c supplies?

Reply-: One consolidated entry for all b2c Outward supplies is to be entered in the statement.

Conclusion-: The refund claim for a tax period shall be filed only after filing the FORM GSTR-1 for the said tax period. It is also to be ensured that a valid return in FORM GSTR-3B has been filed for the last tax period before the one in which the refund application is being filed.

For any query, Author can be reached at gstrajender@ca-spark.com