Goods and Services Tax

REFUND OF GST AGAINST INVERTED DUTY STRUCTURE

Goods and Services Tax – Started By: – SAFETAB LIFESCIENCE – Dated:- 8-11-2018 Last Replied Date:- 13-11-2018 – Dear 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 (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. Now, 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. – Reply By KASTURI SETHI – The Reply = In my view, the amount of refund has to be deposited in Central Go

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ilable. With 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. – Reply By KASTURI SETHI – The Reply = Electronic 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. – Reply By SHIVKUMAR SHARMA – The Reply = I agree with Shri Nandan Khambete. – Reply By SAFETAB LIFESCIENCE – The Reply = Dear Sirs, We have not received any SCN for this u/s 73 or 74. We received refund under order RFD-06 only. We do not want to go for appeal. We can pay in Cash Ledger and make use of it in 3B in the same month itself. Can we proceed ?? – Reply By Nandan Khambete – Th

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ry 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. I am sure you understand the formula for sanction of refund very well. – Reply By SAFETAB LIFESCIENCE – The Reply = Dear Mr. Kasthuri Seithi,Once I paid cash and if it comes in Cash Ledger, then why I need to take in Credit Ledger. Already that amount will be in Cash Ledger and availble for offsetting. If I take again in Credit Ledger the very same amount as you told, it may double credit, Am I right. – Reply By KASTURI SETHI – The Reply = I fail to understand your first query dated 8.11.18. There are some confusion in it. – Reply By Nandan Khambete – The Reply = Amount cannot be recredited from Cash Ledger to Credit Ledger. Recredit means to credit ITC again wrt ITC debited.Once RFD 06 is received for full ITC Deb

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nding, 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. – Reply By KASTURI SETHI – The Reply = Sh.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 appears to me the party is ready to repay the amount on the basis of verbal request or written letter a

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