Summary of Clarification on refund related issues vide Circular No.135/05/2020 – GST dt. 31st March, 2020, explaining Bunching of Refund claims across Financial Years, Change in manner of refund of tax paid on supplies other than zero rated supplies, Guidelines for refunds of Input Tax Credit under Section 54(3) and New Requirement to mention HSN/SAC in Annexure ‘B’.
Page Contents
1. Bunching of Refund claims across Financial Years :-
|
Earlier as per Circular No. 125/44/2019 |
Amendment | Relevant sections |
Remarks |
| Restriction on bunching of refund claims across financial years. | Removal of Restriction on bunching of refund claims across financial years. | Section 16(3)(a) of IGST Act, 2017: – Refund of unutilized ITC.
Section 54(1) of CGST Act, 2017: Relevant Date for filing of Refund application |
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. Change in manner of refund of tax paid on supplies other than zero rated supplies:-
| Refund Type | Earlier | Amendement |
Relevant Rules |
| 1. Refund of Excess payment of Taxes
2. Refund of tax paid on intra-State supply which is subsequently held to be inter State supply and vice versa; 3. Refund on account of assessment/provisional assessment/appeal/any other order; 4. Refund on account of “any other” ground or reason. |
Refund claimed in Cash | Refund allowed in proportion of cash and credit ledger has been debited for discharging the total tax liability for the relevant period for which refund application is filed. | 1. Sub Rule (4A) of Rule 86 of CGST Rules 2017:-Re-credit of the debit made in electronic credit ledger through Form GST PMT-03.
2. Sub Rule (1A) to Rule 92 of CGT Rules, 2017:-Form RFD -06 for refund payment in cash and Form GST PMT-03 for re credit to electronic credit ledger in proportion of the amount of cash and credit debited for making payment of such tax liability. |
3. Guidelines for refunds of Input Tax Credit under Section 54(3) :-
|
Earlier as per Circular 125/44/2019-CGST |
Amendment | Relevant Rule |
Remarks |
| 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. | Refund of ITC restricted to the extent reflected in Form GSTR-2A. | Rule 36(4) of CGST Rules, 2017 : Input tax credit, the details which have not been uploaded in Form GSTR-2A, shall not exceed 10% of the eligible credit available wrt Invoices and Debit Notes as reflected in Form GSTR-2A. | Accordingly, Para 36 of the circular No. 125/44/2019-GST, dated 18.11.2019 stands modified to that extent. |
4. New Requirement to mention HSN/SAC in Annexure ‘B’:-
In order to distinguish ITC on capital goods and/or input services out of total ITC for a relevant tax period, changes have been made in Annexure B by adding a column relating to HSN/SAC Code.
Such distinction is required where refund of credit on Capital goods and/or services is not permissible in certain cases.
Annexure B
Statement of invoices to be submitted with application for refund of unutilized ITC
Sr. No. |
GSTIN of the Supplier |
Name of the Su pplier |
Invoice Details |
Categories of input supplies |
Central Tax |
State Tax/ Union Te rritory Tax |
Inte grated Tax |
Cess |
Eligi ble ITC |
A mount of eligible ITC |
||||||
Invoice No. |
Date |
Value |
Input/Input Services/Capital Goods |
HSN/SAC |
Yes/No |
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1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
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