Where any amount claimed as refund is rejected under rule 92 of the CGST Rules, either fully or partly, the amount debited, to the extent of rejection, shall be re-credited to the electronic credit ledger by an order made in FORM GST PMT-03. The amount would be credited by the proper officer using FORM GST RFD-01B (as notified in the CGST Rules, 2017 vide notification No. 55/2017 – Central Tax dated 15.11.2017) subject to the provisions of rule 93 of the CGST Rules. However, re-credit has not been given to assesses even after passing of order in Form GST PMT-03. The present article deals with this issue.

Circular No. 17/17/2017 – GST was issued on 15.11.2017 with the title “Manual filing and processing of refund claims in respect of zero-rated supplies “

The circular suggested the following steps therein :

1. FORM GST RFD-01A needs to be filed on the common portal. The amount of credit claimed as refund would be debited in the electronic credit ledger and proof of debit needs to be generated on the common portal.

2. FORM GST RFD- 01A needs to be submitted before the jurisdictional GST officer along with necessary documentary evidences, wherever applicable.

3. Entry to be made in the Refund register for receipt of refund applications

4. Check for completeness of application as well as availability of the supporting documents in totality. Once completeness in all respects is ascertained, acknowledgement in FORM GST RFD-02 shall be issued within 15 days from the date of filing of the application and entry shall be made in the Refund register for receipt of refund applications

5. Processing for grant of provisional refund shall be completed within 7 days

6. After the sanction of the provisional refund, final order is to be issued within sixty days (after due verification of the documentary evidences)

7. The amount not sanctioned and eligible for re-credit is to be re-credited to the electronic credit ledger by an order made in FORM GST PMT-03.

8. The actual credit of this amount will be done by the proper officer in FORM GST RFD-01B.

As can be seen from the above, at the time of filing the claim, Electronic credit register gets debited. But if the claim is rejected, the credit should be given back to the assessee in his electronic credit ledger. This has not happened till date since option for re-credit has still not been made available to the State/Central GST Officers in their module.

This has resulted in genuine hardship to the assessee. The assessee cannot use credit rightfully earned by him.

Several months  have passed (infact 6 to be precise), but there is no relief to assessees in this regard.

Representation needs to be made to the GST council in this regard. Hope the dilemma ends sooner.

God bless GST.

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20 Comments

  1. Jayantha says:

    Sir,
    officers informed that they will recredit the refund amount to EL, but same time they demanding a letter for not claim any interest for this in future. And I have a doubt, can we re apply for the refund in same month again after recredit??

  2. Anand Prakash Jain says:

    SIR, meri gst file jis CA ke pas he Usse Mujhe leni he but wo mujhe ID and PSWD nhi de rha he and mail, bhi usi ke he. usne credit ledger me bhot amount dal rakha he approx rs.100000, to me wo 100000 kese cash karu.
    plz guide.

  3. SURESH BHAT says:

    Dear sir,
    Our refund claim is being reject just because we have debited refund amount in cgst and sgst instead igst. is this a right way, please confirm

  4. Anilkumar Sighakolli says:

    Hi sir i am anil from andhra pradesh i read your comments in this post that you are saying due to lack of knowledge they are saying pmt 03 was not enabled. So how can I overcome this problem. As my jurisdiction cto was an arrogant person with the assessee. Please help me sir.

  5. pankaj says:

    We have received the rebate refund order on export of goods and AO allowed re-credit of cenvat credit as there is no provision in GST for re-credit of excise cenvat. CBIC has clarified the same should be remitted to Assessee in cash. however, AO has already passed his order before this notification and mentioning he is not authorised to amend his order. Anyone could suggest process for getting the refund.

  6. Ritika Rajvanshi says:

    This recredit option has not been enabled in the Jaipur Centre GST Offices as well.
    Can you tell in how much time they are taking to recredit the amount of PMT-03 to Electronic Credit Ledgers?

    1. ankitca1985 says:

      Option has been enabled across India. It is only the lack of awareness and IT expertise amongst the proper officers that the assessees have not been getting recredit of the rejected refund amount. Kindly contact your jurisdictional GST Commissioner. You can contact or email me on ankitca1985@gmail.com for any help.

      1. Sriram says:

        Hi Ankit
        We have this issue at Mumbai South jurisdiction office and the concerned AC Ranjit K Sinha is saying that the portal is not updated with this form. If it is enabled they do not know how to access this form.

  7. ankitca1985 says:

    UPDATE :

    After telephonic representation to Hon’ble Commissioner GST Policy Cell Shri Upender Gupta, th matter finally seems to have been resolved.The option to re-credit the rejected refund amount is enabled in the GST module for State / Centrl GST Officers.

    We appreciate the response given by Hon’ble Commissioner GST Policy Cell Shri Upender Gupta.

    Kindly draw my attention to any other issue(s) where we can jointly represent for anything lacking in GST implementation.

    1. Seetharami Reddy says:

      Sir, we are facing the same problem, but in our jurisdiction i mean in Ranga Reddy Commissionerate in state of Telangana the option not yet enabled. please help us in this regards.

      1. ankitca1985 says:

        Sir, kindly contact your jurisdictional GST Commissioner. The option is enabled across India on the portal provided to GST officers, if I am not mistaken. However, you will have to contact GST officers in your jurisdiction in this regard. Alternatively, you can also lodge grievance on the GST Website.

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