Clarifications on certain refund related issues
by ReinHeads Team | Nov 22, 2021
| Clarifications on certain refund related issues |
| Dear All,
This is in reference to the clarifications issued by the Central Board of Indirect Taxes and Customs (‘CBIC’) vide Circular No. 166/22/2021-GST dated 18 November 2021 (‘ Circular’) on certain refund related issues.
We have hereinbelow summarized key clarifications provided vide the Circular:
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Issues
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Clarifications
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| Whether time limit to file refund application under Section 54(1) of CGST Act, 2017 is applicable on filing of refund for excess balance in cash ledger |
Time limit as provided under Section 54(1) of the CGST Act, 2017 would not applicable in case of filing refund application for excess balance in cash ledger. |
| Whether declaration/certification under Rule 89(2)(l) or 89(2)(m) of the CGST Rules, 2017 i.e. to declare/ certify that incidence of tax has not been passed on any other person is required in case of filing refund application for excess balance in cash ledger |
Not required |
| Whether refund of TDS/TCS deposited in electronic cash ledger under the provisions of section 51 /52 of the CGST Act can be refunded as excess balance in cash ledger? |
Amount of TDS/TCS credited in cash ledger is equivalent of cash deposited in electronic cash ledger. The registered person may claim the refund of amount credited in cash ledger on account of TDS/TCS in case the same remains unadjusted post payment of output tax liabilities. |
| In case of refund application to be file by recipient of deemed exports, whether the date of return filed by the supplier or date of return filed by the recipient will be relevant for the purpose of determining relevant date for such refunds? |
Relevant provision of Clause (b) of Explanation (2) under Section 54 of CGST Act reads as under:
“(b) in the case of supply of goods regarded as deemed exports where a refund of tax paid is available in respect of the goods, the date on which the return relating to such deemed exports is furnished;”
In light of above provision, it is clear that refund belongs to deemed exports of goods irrespective of whether refund is to be filed by recipient or supplier.
Further, as tax on the supply of goods, regarded as deemed export, would be paid by the supplier in his return, therefore, the relevant date for purpose of filing of refund claim for refund of tax paid on such supplies would be the date of filing of return, related to such supplies, by the supplier. |
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