REFUND OF GST AGAINST INVERTED DUTY STRUCTURE
Query (Issue) Started By: – SAFETAB LIFESCIENCE Dated:- 8-11-2018 Last Reply Date:- 13-11-2018 Goods and Services Tax – GST
Got 16 Replies
GST
Dear Experts,
\nWe have obtained refund of accumulated GST against inverted duty structure in March-2018 for the period of earlier months. The refund included ITC credited against goods (inputs) and services. Now we have been instructed to repay the refund received against input services against Notification No. 26\/2018 dt. 13.06.2018 retrospective effect from 01.07.2017.
\nNow, my query is shall reverse the demanded amount from Electronic Credit Ledger today as I have sufficient balance now or I have to pay only in Cash Ledger. I think this reversal of GST is eligible for re-credit of ITC as the Department has not denied the credit and denied only the refund. If I pay cash in Cash Ledger, shall I use the amount for offset of GST payment immediately in the same month itself.
\nReply By KAST<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n dit ledger will be complete. Also, this is not the correct solution but best solution available. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nic Cash Ledger. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ted(inadmissible) while sanctioning final Refund in RFD 06. As per my limited experience and understanding, it cannot be issued after RFD 06 is issued with no rejection a dn that to since not claim amount is held back and that too after 6 months of RFD 06. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" REFUND OF GST AGAINST INVERTED DUTY STRUCTURE Query (Issue) Started By: – SAFETAB LIFESCIENCE Dated:- 8-11-2018 Last Reply Date:- 13-11-2018 Goods and Services Tax – GSTGot 16 RepliesGSTDear Experts, We have obtained refund of accumulated GST against inverted duty structure in March-2018 for the period of earlier months. The refund included ITC credited against goods … Continue reading “REFUND OF GST AGAINST INVERTED DUTY STRUCTURE”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14881","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14881"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14881\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nWith due respect to you and expert comment above, there is no question of re credit above. There is no Refund claim pending and ITC portion available with officer to “re credit” the same as, re credit is only allowed on basis of order RFD 01B and nothing else. I have assumed you have already received RFD 06.
\nReply By KASTURI SETHI:
\nThe Reply:
\nElectronic Cash Ledger is equal to erstwhile PLA (Personal Ledger Account). In this account an assessee deposits tax amount through e-challan and debits from the same to transfer in Central Govt. Account. Anyhow, the ball is in the court of the Department.
\nReply By SHIVKUMAR SHARMA:
\nThe Reply:
\nI agree with Shri Nandan Khambete.
\nReply By SAFETAB LIFESCIENCE:
\nThe Reply:
\nDear Sirs,
\nWe have not received any SCN for this u\/s 73 or 74.
\nWe received refund under order RFD-06 only.
\nWe do not want to go for appeal.
\nWe can pay in Cash Ledger and make u<\/p>\n
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\nAfter repayment of this amount in cash through Electronic Cash Ledger, the entry of re-credit of this very amount is required in Electronic Credit Ledger and, thereafter, you can use it for offsetting liability in GSTR 3B in the same month. Re-credit of the same is your substantive right.The availment of credit of input service is not under challenge.
\nI am sure you understand the formula for sanction of refund very well.
\nReply By SAFETAB LIFESCIENCE:
\nThe Reply:
\nDear Mr. Kasthuri Seithi,
\nOnce I paid cash and if it comes in Cash Ledger, then why I need to take in Credit Ledger.
\nAlready that amount will be in Cash Ledger and availble for offsetting. If I take again in
\nCredit Ledger the very same amount as you told, it may double credit, Am I right.
\nReply By KASTURI SETHI:
\nThe Reply:
\nI fail to understand your first query dated 8.11.18. There are some confusion in it.
\nReply By Nandan Khambete:
\nThe Reply:
\nAmount cannot be recredited from Cash Ledger to Credit L<\/p>\n
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\nReply By KASTURI SETHI:
\nThe Reply:
\nSh.Nandan Khambete Ji, Sir, I agree with you to the extent that the amount of sanctioned refund cannot be recovered from the party after six months as explained by you inasmuch as the party is not at fault at all. Thus the remaining issues are relegated to the background. I also agree with your logic that the party must not rrepay the amount without letter or SCN irrespective of the fact whether the amount is small or huge. To repay the amount of sanctioned refund in view of retrospective amendment and that too after the expiry of six months is unconstitutional. When the department is on weak wicket regarding merits\/legal aspect, the department tries to recover through persuasive strategy. It appe<\/p>\n
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