1. Tax wrongfully collected and Paid under wrong head
> Section 77 of the CGST Act 2017 provides that if the registered taxpayer has paid CGST and SGST/UTGST, as the case may be on a transaction considered by him to be intra-state supply, but which was subsequently held to be inter- state supply, would get refund of the amount of taxes paid. Similarly, section 19 of the IGST Act 2017 provides for the refund of IGST where the supply is subsequently held as intra-state supply.
> The taxpayer needs to pay the tax amount under correct head without any interest.
2. Meaning of Subsequently Held
> Subsequently held covers both the following case and the taxpayer shall be eligible for refund provided that the taxpayer has discharged the tax under the correct head.
a) Interstate supply made by the taxpayer is subsequently identified to be an intrastate transaction or vice versa by the taxpayer himself
b) Interstate supply made by the taxpayer is subsequently identified to be an intrastate transaction or vice versa by the tax officer in any proceedings.
3. Relevant date for claiming refund under section 77 of the CGST Act 2017 and Section 19 of the IGST Act 2017
|Person claiming refund under section 77 of the CGST and section 19 of IGST Act 2017||Within the expiry of 2 years from the date of payment of tax under the correct head shall file an application electronically in FORM GST RFD-01|
|Where the payment under the correct head has already been made before the date of issuance of notification No 35/2021 Central Tax dated 24th September 2021||Before the expiry of 2 years from the date of issue of this notification .|
4. Additional Clarifications
> Any refund application filed whether pending or disposed of, before issuance of the notification No 35/2021 Central Tax dated 24th September 2021 would also be dealt in accordance with the provisions of Rule 89(1A) of the CGST Rules 2017.
5. No refund Available in certain cases
> Refund will not available wherein the taxpayer has adjusted the wrongly charged tax
through issue of credit notes.