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.