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TMI BlogClarification on refund related issuesX X X X Extracts X X X X X X X X Extracts X X X X ..... ield formations, the Chief Commissioner, in exercise of his powers conferred by section 168 (1) of the Andhra Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as APGST Act ), hereby clarifies the issues detailed hereunder: 2. Bunching of refund claims across Financial Years 2.1 It may be recalled that the restriction on clubbing of tax periods across different financial years was put in vide para 11.2 of the Circular No.8, in CCTs.Ref.No.CCW/GST/74/2015, Dated 15-3-2018. The said circular was rescinded being subsumed in the Master Circular on Refunds No.125-44-2019 (Central) 03-2020 (State), Dated 10.01.2020 and the said restriction on the clubbing of tax periods across financial years for claiming refund thus has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner to file the tax refund electronically, or to accept the same manually within 4 weeks from the Order. Hon ble Delhi High Court vide para 12 of the aforesaid Order has observed that the Circulars can supplant but not supplement the law. Circulars might mitigate rigours of law by granting administrative relief beyond relevant provisions of the statute, however, Central Government is not empowered to withdraw benefits or impose stricter conditions than postulated by the law. 2.3 Further, same issue has been raised in various other representations also, especially those received from the merchant exporters wherein merchant exporters have received the supplies of goods in the last quarter of a Financial Year and have made exports in the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed ITC under clause (ii) of sub-section (3) of section 54 of the APGST Act. 3.2 It may be noted that refund of accumulated ITC in terms clause (ii) of subsection (3) of section 54 of the APGST Act is available where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies. It is noteworthy that, the input and output being the same in such cases, though attracting different tax rates at different points in time, do not get covered under the provisions of clause (ii) of sub-section(3) of section 54 of the APGST Act. It is hereby clarified that refund of accumulated ITC under clause (ii) of sub-section (3) of section 54 of the APGST Act would not be applicable in cases where the inp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of filing refund claim, being claim of tax already paid. However, the total tax would have been normally paid by the applicant by debiting tax amount from both electronic credit ledger and electronic cash ledger. At present, in these cases, the amount of admissible refund, is paid in cash even when such payment of tax or any part thereof, has been made through ITC. 4.3.1 As this could lead to allowing unintended encashment of credit balances, this issue has been engaging attention of the Government. Accordingly, vide notification issued in G.O.Ms.No.143, Revenue (Commercial Taxes-II) Department, Dated 15.5.2020, sub-rule (4A) has been inserted in rule 86 of the APGST Rules, 2017 which reads as under: (4A) Where a registered perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admissible proportionately in the respective original mode of payment i.e. in cases of refund, where the tax to be refunded has been paid by debiting both electronic cash and credit ledgers (other than the refund of tax paid on zero-rated supplies or deemed export), the refund to be paid in cash and credit shall be calculated in the same proportion in which the cash and credit ledger has been debited for discharging the total tax liability for the relevant period for which application for refund has been filed. Such amount, shall be accordingly paid by issuance of order in FORM GST RFD-06 for amount refundable in cash and FORM GST PMT-03 to re-credit the amount attributable to credit as ITC in the electronic credit ledger. 5. Guidelin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ode should be added in the statement of invoices relating to inward supply as provided in Annexure B of the circular No.125-44-2019 (Central) 03-2020 (State), dated 10.01.2020 so as to easily identify between the supplies of goods and services. 6.2 The issue has been examined and considering that such a distinction is important in view of the provisions relating to refund where refund of credit on Capital goods and/or services is not permissible in certain cases, it has been decided to amend the said statement. Accordingly, Annexure-B of the circular No.125-44-2019 (Central) 03-2020 (State), Dated 10.01.2020 stands modified to that extent. 6.3 A suitably modified statement format is attached for applicants to up load the details of in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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