GST Refund Clarifications
[Circular No. 166/22/2021-GST dated 17 November 2021]
Subject:
Clarification on certain refund related issues.
Various representations have
been received from taxpayers and other stakeholders
seeking clarification
in respect of certain issues relating to refund.
The issues have been
examined. In order to ensure
uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168(1) of
the Central Goods
and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby clarifies each of
these issues as
under:
|
S.No. |
Issue |
Clarification |
|
1. |
Whether the provisions of sub- section (1) of section 54 of the
CGST Act regarding time period,
within which an application for
refund can be filed, would
be applicable in cases of refund of excess balance
in electronic cash ledger? |
No, the provisions
of sub-section (1) of section 54 of
the CGST Act regarding
time period, within
which an application
for refund can be
filed, would not be applicable
in cases of
refund of
excess balance in
electronic cash ledger. |
|
2. |
Whether certification/
declaration under
Rule 89(2)(l)
or 89(2)(m) of CGST Rules, 2017
is required to be furnished
along with the application for
refund of excess balance in electronic
cash ledger? |
No, furnishing of certification/ declaration under Rule 89(2)(l) or 89(2)(m) of the CGST Rules, 2017 for not passing the
incidence of
tax to any other person
is not required in cases of refund of excess
balance in electronic cash ledger as unjust enrichment clause is
not applicable in such cases. |
|
3. |
Whether refund of TDS/TCS deposited in electronic
cash ledger
under the provisions of section 51 /52
of the CGST Act can be refunded
as excess balance in cash
ledger? |
The amount
deducted/collected as
TDS/TCS by TDS/ TCS deductors under the provisions of section 51 /52 of
the CGST Act, as the case may be, and
credited to
electronic cash ledger of
the registered person,
is equivalent to cash deposited
in electronic cash ledger. It is not mandatory
for the registered person to
utilise the TDS/TCS amount credited to his electronic cash ledger only
for the purpose for discharging tax liability. The
registered person
is at full liberty to discharge his
tax liability in respect of the supplies made by
him during a tax
period, either through debit in electronic credit ledger or through debit in electronic
cash ledger, as per his choice
and availability
of balance in the said ledgers.
Any amount, which remains unutilized in electronic cash ledger, after discharge
of tax dues and other dues payable
under CGST Act and rules made
thereunder,
can be refunded to the
registered person as excess balance in
electronic cash ledger in accordance with the proviso to sub-section
(1) of section 54, read with sub-section (6) of section
49 of CGST Act. |
|
4. |
Whether relevant date
for the refund of tax paid on supplies regarded as deemed export
by recipient is to be
determined as per clause
(b) of Explanation (2) under
section 54 of CGST Act and if so,
whether the date of return filed by
the supplier or date of return
filed by the recipient will be relevant for the purpose
of determining relevant
date for such refunds? |
Clause (b) of Explanation (2) under Section 54 of CGST Act reads
as under: “(b) in the case of
supply of goods regarded as
deemed exports where
a refund of tax paid is available in respect of the
goods, the date on which the return relating to such
deemed exports is furnished;” On perusal of the above, it is clear that clause (b) of Explanation (2) under section
54 of the CGST Act is applicable for
determining relevant date in
respect of refund of amount
of tax paid on the supply
of goods regarded as
deemed exports, irrespective of
the fact whether the refund
claim is filed by the supplier or by the recipient. Further, as the tax on the supply of goods,
regarded as deemed
export, would be paid by
the supplier in his return,
therefore, the
relevant date for purpose of filing
of refund claim for
refund of tax paid on such supplies
would be the date of filing
of return, related to such
supplies, by the supplier. |
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|
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2. It is requested that suitable trade notices may be issued to publicize the contents
of this Circular.
3. Difficulty,
if any, in the implementation of this Circular may be brought to the notice of the
Board.
F.No. CBIC-20021/4/2021-GST