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TMI BlogClarification in respect of refund of tax specified in section 77(1) of the CGST Act and section 19(1) of the IGST ActX X X X Extracts X X X X X X X X Extracts X X X X ..... State Tax (All) Subject : Clarification in respect of refund of tax specified in section 77(1) of the CGST Act and section 19(1) of the IGST Act Reg The Government of India. Ministry of Finance. Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing vide Circular No. 162/18/2021-GST dated 25 th September. 2021 has issued a clarification in respect of refund of tax specified in section 77(1) of the CGST Act and section 19(1) of the IGST Act, in order to ensure uniformity in the implementation of the provisions of law across the field formations, which is annexed herewith. In exercise of powers conferred by section 68 of the Tripura State Goods and Services Tax Act, 2017 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter referred to as IGST Act ). In order to clarify these issues and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the CGST Act, hereby clarifies the issues detailed hereunder: 2.1 Section 77 of the CGST Act, 2017 reads as follows: 77. Tax wrongfully collected and paid to Central Government or State Government. - (1) A registered person who has paid the Central tax and State tax or, as the case may be, the Central tax and the Union territory tax on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply, shall be refunded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said sections is available only if supply made by a taxpayer as inter-State or intra-State, is subsequently held by tax officers as intra-State and inter-State respectively, either on scrutiny/ assessment/ audit/ investigation, or as a result of any adjudication, appellate or any other proceeding or whether the refund under the said sections is also available when the inter-State or intra-State supply made by a taxpayer, is subsequently found by taxpayer himself as intra-State and inter-State respectively. 3.2 In this regard, it is clarified that the term subsequently held in section 77 of CGST Act, 2017 or under section 19 of IGST Act, 2017 covers both the cases where the inter-State or intra-State supply made by a taxpayer, is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him, in respect of a transaction considered by him to be an intra-State supply, which is subsequently held to be an inter-State supply, may, before the expiry of a period of two years from the date of payment of the tax on the inter-State supply, file an application electronically in FORM GST RFD-01 through the common portal, either directly or through a Facilitation Centre notified by the Commissioner: Provided that the said application may, as regard to any payment of tax on inter-State supply before coming into force of this sub-rule, be filed before the expiry of a period of two years from the date on which this sub-rule comes into force. 4.2 The aforementioned amendment in the rule 89 of CGST Rules, 2017 clarifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrect head before issuance of notification No. 35/2021-Central Tax, dated 24.09.2021, the last date for filing refund application in FORM GST RFD-01 would be 23.09.23 ( two years from date of notification ) 2 Having realized on his own that the said transaction is an inter-State supply, A paid IGST in respect of the said transaction on 10.11.2021 i.e. after issuance of notification No. 35/2021-Central Tax dated 24.09.2021 Since A has paid the correct tax on 10.11.2021, in terms of rule 89 (1A) of the CGST Rules, the last date for filing refund application in FORM GST RFD-01 would be 09.11.2023 (two years from the date of payment of tax under the correct head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ays CGST and SGST on the said transaction. It is also clarified that any refund applications filed, whether pending or disposed off, before issuance of notification No.35/2021-Central Tax, dated 24.09.2021, would also be dealt in accordance with the provisions of rule 89 (1A) of the CGST Rules, 2017. 4.4 Refund under section 77 of the CGST Act / section 19 of the IGST Act would not be available where the taxpayer has made tax adjustment through issuance of credit note under section 34 of the CGST Act in respect of the said transaction. 5. it is requested that suitable trade notices may be issued to publicize the contents of this circular. 6. Difficulty, if any, in implementation of this Circular may please be broug ..... X X X X Extracts X X X X X X X X Extracts X X X X
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