CBIC prescribes manner of re-credit in electronic credit ledger using FORM GST PMT – 03A
Central Board of Indirect Taxes & Customs (CBIC) has issued Circular No. 174_06_2022 dated 6th July, 2022 to prescribe manner of re-credit in electronic credit ledger using FORM GST PMT-03A.
As per Rule 86 (4B) of CGST Rules, 2017 it can be stated that in respect of the following categories of refund sanctioned erroneously, re-credit of 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 unutilised 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 unutilised ITC due to inverted tax structure.
Procedure for re-credit of amount in electronic credit ledger:
a. 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 shall clearly mention the reason for making payment in the text box as the deposit of erroneous refund of unutilised ITC, or the deposit of erroneous refund of IGST obtained in contravention of sub-rule (10) of rule 96 of the CGST Rules.
b. 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.
c. The proper officer, on being satisfied that the full amount of erroneous refund along with applicable interest 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, shall re-credit an amount in electronic credit ledger, equivalent to the amount of erroneous refund so deposited by the registered person, by passing an order in FORM GST PMT-03A, preferably within a period of 30 days from the date of receipt of request for re-credit of erroneous refund amount so deposited or from the date of payment of full amount of erroneous refund along with applicable interest, and penalty, wherever applicable, whichever is later.
For the format of Annexure-A refer the attached document.
