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GST Advisory 08/2021 -  Refunds

Implementation of PMT-03 to re-credit the ITC sanctioned as refund towards tax wrongly paid or paid in excess by debiting the credit ledger.

As per rule 86(4A) of the CGST Rules, 2017 read with Para 4 of the Circular supra, a tax payer is entitled to refund of tax wrongly paid or paid in excess (other than zero rated supplies), in the same mode by which the tax liability was discharged, i.e., if the tax was paid by partly debiting the credit ledger and partly debiting the cash ledger, the refund shall be sanctioned in the same proportion. The cash part has to be sanctioned and credited to the bank account of the tax payer by issuance of RFD-05 and the credit part should be re-credited to the electronic credit ledger of the tax payer through PMT-03.

Eligible cases for recredit of ITC.
i. Refund of excess payment of tax;
ii. Refund of tax paid on intra-State supply which is subsequently held to be interState supply and vice versa;
iii. Refund on account of assessment/provisional assessment/appeal/any other order;
iv. Refund on account of “any other” ground or reason

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Published by


on Apr 21, 2021


Paragraph 4 of this 'GST Advisory 08/2021 - Refunds' begins with the following sentence, "The procedure to use this functionality is explained in detail in the User Manual that is attached herewith."
By: Arindam Sarkar | Dt: Apr 23, 2021

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