The Delhi State Government has issued the manner of re-credit in Electronic Credit Ledger (ECL) in Form GST PMT-03A.
Difficulties were being faced by the taxpayers in taking re-credit of the amount in the electronic credit ledger in cases where any excess or erroneous refund sanctioned to them had been paid back by them either on their own on being pointed by the tax officer.
In order to resolve this issue, GSTN has recently developed a new functionality of FORM GST PMTO3A which allows proper officer to re-credit the amount in the electronic credit ledger of the taxpayer. Further, sub-rule (4B) in rule 86 of the Delhi Goods and Services Tax Rules, 2017 has been inserted vide Notification No. 14/2022-State Tax dated 17.10.2022 to provide for re-credit in the electronic credit ledger where the taxpayer deposits the erroneous refund sanctioned to him.
In respect of the following categories of refund sanctioned erroneously, re-credit of the amount in the electronic credit ledger can be done through FORM GST PMT-03A, on deposit of such erroneous refund along with interest and penalty, wherever applicable, by the taxpayer (a) Refund of IGST obtained in contravention of sub-rule (10) of rule 96. (b) Refund of unutilized ITC on account of export of goods/services without payment of tax. (c) Refund of unutilised ITC on account of zero-rated supply of goods/services to SEZ developer/Unit without payment of tax. (d) Refund of unutilized ITC due to inverted tax structure.
The circular stated that the taxpayer shall deposit the amount of erroneous refund along with applicable interest and penalty, wherever applicable, through FORM GST DRC-03 by debit of amount from electronic cash ledger. While making the payment through FORM GST DRC-03, the taxpayer shlil clearly mention the reason for making payment in the text box as the deposit of erroneous refund of unutilized ITC, or the deposit of erroneous refund of IGST obtained in contravention of sub-rule (10) of rule 96 of the Delhi Goods & Services Tax Rules.
Till the time an automated functionality for handling such cases is developed on the portal, the taxpayer shall make a written request, in format enclosed as Annexure-A, to jurisdictional proper officer to re-credit the amount equivalent to the amount of refund thus paid back through FORM GST DRC-03, to electronic credit ledger, the circular said.
“The proper officer, on being satisfied that the full amount of erroneous refund along with applicable interest, as per the provisions of section 50 of the Delhi Goods & Services Tax Act, and penalty, wherever applicable, has been paid by the said registered person in FORM GST DRC-03 by way of debit in electronic cash ledger, he shall re-credit an amount in electronic credit ledger, equivalent to the amount of erroneous refund so deposited by the registered l4rson, by passing an order in FORM GST PMT-03A, preferably within a period of 30 days from the date of receipt of the request for re-credit of erroneous refund amount so deposited or from the date of payment of a full amount of erroneous refund along with applicable interest, and penalty, wherever applicable, whichever is later,” it said.
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