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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 ..... ction on clubbing of tax periods across different financial years was put in vide para 11.2 of Circular No. 37/11/2018-GST, dated August 2, 2019. The said circular was rescinded being subsumed in the master circular on refunds No. 125/44/2019-GST, dated December 10, 2019 and the said restriction on the clubbing of tax periods across financial years for claiming refund thus has been continued vide paragraph 8 of the Circular No. 125/44/2019-GST, dated December 10, 2019, which is reproduced as under : 8. The applicant, at his option, may file a refund claim for a tax period or by clubbing successive tax periods. The period for which refund claim has been filed, however, cannot spread across different financial years. Registered persons having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ute, however, 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 next financial year, i. e., from April onwards. The restriction imposed vide para 8 of the master refund circular prohibits the refund of ITC accrued in such cases as well. 2.4 On perusal of the provisions under sub-section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017 and sub-section (3) of section 54 of the HPGST Act, there appears no ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh 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 HPGST Act. It is hereby clarified that refund of accumulated ITC under clause (ii) of sub-section (3) of section 54 of the HPGST Act would not be applicable in cases where the input and the output supplies are the same. 4. Change in manner of refund of tax paid on supplies other than zero- rated supplies 4.1 Circular No. 125/44/2019-GST, dated December 10, 2019, in para 3, categorizes the refund applications to be filed in Form GST RFD-01 as under : (a) Refund of unutilized input tax credit (ITC) on account of exports without payment of tax ; (b) Refund of tax paid on export of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s issue has been engaging attention of the Government. Accordingly, vide Notification No. 16/2020-State Tax dated 23rd June, 2020 , sub-rule (4A) has been inserted in rule 86 of the HPGST Rules, 2017 which reads as under : (4A) Where a registered person has claimed refund of any amount paid as tax wrongly paid or paid in excess for which debit has been made from the electronic credit ledger, the said amount, if found admissible, shall be re-credited to the electronic credit ledger by the proper officer by an order made in Form GST PMT-03. 4.3.2 Further, vide the same notification, sub-rule (1A) has also been inserted in rule 92 of the HPGST Rules, 2017. The same is reproduced hereunder : (1A) Where, upon examination of the application of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled. 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. Guidelines for refunds of input tax credit under section 54(3) 5.1 In terms of para 36 of Circular No. 125/44/2019-GST, dated December 10, 2019, the refund of ITC availed in respect of invoices not reflected in Form GSTR-2A was also admissible and copies of such invoices were required to be uploaded. However, in wake of insertion of sub-rule (4) to rule 36 of the HPGST Rules, 2017 vide Notification No. 49/2019-GST, dated November 1, 2019, various references have been received from the field formations regarding admissib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .3 A suitably modified statement format is attached for applicants to upload the details of invoices reflecting in their Form GSTR-2A. The applicant is, in addition to details already prescribed, now required to mention HSN/SAC code which is mentioned on the inward invoices. In cases where supplier is not mandated to mention HSN/SAC code on invoice, the applicant need not mention HSN/SAC code in respect of such an inward supply. 7. This circular shall come into force with effect from March 31, 2020. 8. Difficulty, if any, in the implementation of this circular may be brought to the notice of this office accordingly. Commissioner of State Taxed and Excise [12-25/2018-19-EXN-GST-(575)-16797-815] Annexure B Statement of invoices to be submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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