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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  1. Ratish says:

    Sir, We have paid IGST on exports of goods supplied under Advance authorisation. After insertion of Rule 96(10), we have been asked to payback IGST amount received as refund with interest. In this case, how can we take recredit of ITC on IGST amount paid back.

  2. VINAY MIN says:

    Hi, sir, We Apply Gst refund for zero rated, and department issue notice GST RFD-08. for rejection of
    refund. after rejection what we have to do, either refund reclaim or we have remedy for appeal

  3. Duddu says:

    Sir, we claimed igst input instead of cgst &sgst input and the same was applied for refund . Later we claimed input in cgst &sgst and reversed igst wrongly claimed. Later rejected refund credited back to ledger in igst head .so we again claimed itc under cgst &sgst and reversed under igst.
    Is their any wrong in such adjustment?

  4. MAHESHWAR says:


  5. Itee says:

    Sir, IGST paid on import of capital goods. Can we claim its refund? My client is exporter and is making exports under LUT. Please suggest.

  6. mayank says:

    apply for refund of inverted duty structure in which in new online process in which tax officer issued rdf03 once deficency memo on that same day i got re credit in my itc ledger and again i apply again refund but again officer issued rfd03 deficency memo but this time no re credit in my itc ledger i ask the officer he told by mistak that has happen what should i do i have made grivence on gst portal that is open since 1 month gone i have not received recredit of itc

  7. Avdhesh says:

    Our consultant filed ITC accumulated due to Inverted Tax Refund for one month instead of full year. Now we approached to Dept to cancel the ARN. Now they have cancelled and issued RFD01B but unfortunately they forget the put the reject amount due to which ARN still showing and amount credited to us as 0.00 and due to this we are not able to file before months refund as well as after that month refund. After discussion with department heard that one new form RFD01C is being launched to amend the RFD01B than it will be possible to cancel the ARN. Please advise is there any mechanism or notification to amend the RFD01B

  8. Jayantha says:

    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??

  9. 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.

  10. 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

  11. 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.

  12. 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.

  13. 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?

  14. 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.

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