Circular, 2019

Text

Reproduced from the document India Code holds for this instrument. The Gazette prints Hindi and English side by side and this is the English; the Department's own PDF remains the authority.

To

GOVERNMENT OF TRIPURA

OFFICE OF THE CHIEF COMMISSIONER OF STATE TAX

PANDIT NEHRU COMPLEX, GURKHABASTI

AGARTALA, TRIPURA WEST, PIN-799006. ~ Dated, Agartala, th~9 March, 2019.

Circular No. 1212019- GST (State) The Additional Commissioner of State Tax I Deputy Commissioner of State Tax/ Superintendent of State Tax (All) I Inspector of State Tax (All) Subject: Clarifications on refund related issues- regarding. The Department of Revenue, Central Board of Indirect Taxes and Customsj GST Policy Wing vide Circular No. 9411312019-GST dated 28 111 March, 2019 has issued clarifications on refund related issues, 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 ~onferred by section 168 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 20 17) for the purpose of uniformity in the implementation of the Act it is instructed to follow the clarifications issued vide Circular No . 94113120 19-GST dated 28111 March, 2019 by the Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing.

Enclo: Circular No. 9411312019-GST.

Copy to:

Chief Commissioner of State Tax Government ofTripura

1. The P.S. to the Principal Secretary, Finance, Government of Tripura for favour of kind information.

2. The Assistant Statistical Officer, Statistical Section, Olo th e Commissioner of Agartala with request to upload the Circular in the Official website -'-'w-'-w'-'w.:....;.7t "-'. ~=-==;r==.:.!.=

3. Guard File.

(N agesh Kumar , AS) Chief Commissioner of State Tax Government ofTripura v To, Circular No. 94/13/2019-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs New Delhi, Dated the 28th March, 2019 The Principal Chief Commissioners I Chief Commissioners I Principal Commissioners I Commissioners of Central Tax (All) The Principal Director Generals I Director Generals (All) Subject: Clarifications on refund related issues under GST- Reg. Various representations have been received seeking clarifications on certain issues relating to refund. 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 Central Goods and Services Tax Act, 2017 (hereinafter referred to as "CGST Act"), hereby clarifies the issues as detailed hereunder: Sl.

No.

Issue Certain registered persons have reversed, through return in FORM GSTR-3B filed for the month of August, 20 18 or for a subsequent month, the accumulated input tax credit (lTC) required to be lapsed in terms of notification No. 20120 IS­ Central Tax (Rate) dated 26.07.2018 read with circular No. 56130120 18-GST dated 24.08.2018 (hereinafter referred to as the "said notification"). Some of these registered persons, who have attempted to claim refund of accumulated lTC on account of inverted tax structure for the same period in which the lTC required to be lapsed in terms of the said notification Clarification a) As a one-time measure to resolve this issue, refund of accumulated ITC on account of inverted tax structure, for the period(s) m which there ts reversal of the ITC required to be lapsed m terms of the said notification, is to be claimed under the category "any other" instead of under the category "refund of unutilized lTC on account of accumulation due to inverted tax structure" in FORM GST RFD-01A.

It is emphasized that this application for refund should relate to the same tax period in which such reversal has Page 1 of5 has been reversed, are not able to claim refund of accumulated ITC to the extent b) to which they are so eligible. This is because of a validation check on the common portal which prevents the value of input tax credit in Statement lA of higher than the amount of ITC avaiJed in FORM GSTR-3B of the relevant period minus the value of ITC reversed in the same period. This results in registered persons being unable to claim the full amount of refund of accumulated TTC on account of inverted tax structure to which they might be otherwise eligible.

What is the solution to this problem? Circular No. 94/13/2019-GST been made.

The application shall be accompanied by all statements, declarations, undertakings and other documents which are statutorily required to be submitted with a "refund claim of unutilized lTC on account of accumulation due to inverted tax structure'. On receiving the said application the proper officer shall himself calculate the refund amount admissible as per rule 89(5) of Central Goods and Services Tax Rules, 20 1 7 (hereinafter referred to as "COST Rules'1), m the manner detailed in para 3 of Circular No.

59/33/2018-GST dated 04.09.2018.

After calculating the admissible refund amount, as described above and scrutinjzing the application for completeness and eligibility, if the proper officer is atisfied that the whole or any part of the amount claimed is payable as refund, he shall request the taxpayer, in writing, to debit the said amount from his electronic credit ledger through FORM GST DRC-03. Once the proof of such debit is received by the proper officer, he shall proceed to issue the refund order in FORM GST RFD-06 and the payment advice in c) All refund applications for unutilized TTC on account of accumulation due to inverted tax structure for subsequent tax period(s) shall be filed in FORM GST RFD-OlA under the category "refund of unutilized ITC on account of accumulation due to inverted tax structure".

2. The clarification at Sl. No. 1 above applies ft ts hereby clarified that aU those to registered persons who have already regi tered persons required to make the Page 2 of5 Circular No. 94/13/2019-GST reversed the lTC required to be lapsed in reversal in terms of the said notification terms of the said notification through and who have not yet done so, may return in FORM GSTR-3B. What about reverse the said amount through FORM those registered persons who are yet to CST DRC-03 instead of through FORM perform this reversal? GSTR-3B.

3. What shall be the consequence if any a) As the registered person has reversed registered person reverses the amount of credit to be lapsed, in terms the said notification, through the return in FORM GSTR-3B for any month subsequent to August, 2018 or through FORM GST DRC-03 subsequent to the due date of filing of the return in FORM GSTR-38 for the month of August, 20 18? the amount of credit to be lapsed in the return in FORM GSTR-3B for a month subsequent to the month of August, 2018 or through FORM GST DRC-03 subsequent to the due date of filing of the return in FORM GSTR-38 for the month of August, 2018, he shall be . liable to pay interest under sub-section ( l) of section 50 of the COST Act on the amount which has been reversed belatedly. Such interest shall be calculated starting from the due date of filing of return in FORM GSTR- 3 B for the month of August, 20 18 till the date of reversal of said amount through FORM GSTR-3B or through FORM GST DRC-03, as the case may be.

b) The registered person who has reversed the amount of credit to be lapsed m the return m FORM GSTR-3B for any month subsequent to August, 2018 or through FORM GST DRC-03 subsequent to the due date of filing of the return in FORM GSTR-3B for the month of August, 2018 would remain eligible to claim refund of unutilized lTC on account of accumulation due to inverted tax such refund shall be granted only after the reversal of the amount of credit to be lapsed, either through FORM along with payment of interest, as applicable.

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4. How should a merchant exporter claim refund of input tax credit availed on supplies received on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No.

40/2017-Central Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Circular No. 94/13/20 19-GST a) Rule 89(4B) of the CGST Rules provides that where the person claiming refund of unutilized input tax credit on account of zero-rated supplies without payment of tax has received supplies on which the supplier has availed the benefit of the said notifications, the refund of input tax credit, availed in respect of such inputs received under the said notifications for export of goods, shall be granted.

(E), dated the 23rd October, 2017 or notification No. 41/2017-Integrated Tax (Rate), dated the 23rd October, 2017, published m the Gazette of India, b) dated the 23rd October, 2017 (hereinafter referred to as the "said notifications")? This refund of accumulated ITC under rule 89(4B) of the CGST Rules shall be . applied under the category "any other" instead of under the category "refund of unutilized ITC on account of exports without payment of tax" in FORM GST RFD-01 A and shall be accompanied by all supporting documents required for substantiating the refund claim under the category "refund of unutilized ITC on account of exports without payment of tax".

After scrutinizing the application for completeness and eligibility, if the proper officer is satisfied that the whole or any part of the amount claimed is payable as refund, he shall request the taxpayer, in writing, to debit the said amount from his electronic credit ledger through FORM GST DRC-03. Once the proof of such debit is received by the proper officer, he shall proceed to issue the refund order in FORM GST RFD-06 and the payment advice in

5. Vide Circular No. 59/33/2018-GST dated In such cases, the claimant may re- 04.09 .20 18, it was clarified that after submit the refund application manually issuance of a deficiency memo, the input m FORM GST RFD-OlA after tax credit is required to be re-credited correction of deficiencies pointed out in Page 4 ofS through FORM GST RFD-OlB and the taxpayer IS expected to file a fresh application for refund. Accordingly, m several cases, the ITC amounts were re­ credited after 1ssuance of ~eficiency memo. However, it was later represented that the common portal does not allow a taxpayer to file a fresh application for the same period after issuance of a deficiency memo. Therefore, the matter was re­ examined and it was subsequently clarified, vide Circular No. 70/44/2018- GST dated 26.10.2018 that no re-credit should be carried out in such cases and taxpayers should file the rectified application, after issuance of the deficiency memo, under the earlier ARN only. It was also further clarified that a suitable clarification would be issued separately for cases in which such re-credit has already been carried out. However, no such clarification has yet been issued and several refund claims are pending on this account.

Circular No. 94/13/2019-GST the deficiency memo, using the same ARN. The proper officer shall then proceed to process the refund application as per the existing guidelines. After scrutinizing the application for completeness and eligibility, if the proper officer is satisfied that the whole or any part of the amount claimed is payable as refund, he shall request the taxpayer, in writing, to debit the said amount from his electronic credit ledger through FORM GST DRC-03. Once the proof of such debit is received by the officer, he shall proceed to issue the refund order in FORM GST RFD-06 and the payment advice in FORM GST

RFD-05.

2. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.

3. Difficulty, if any, in implementation ofthis Circular may please be brought to the notice of the Board. Hindi version would follow.

Page 5 ofS (Upender Gupta)