IN ADVERTED TAX STRUCTURE REFUND IN GST

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This discussion addresses how to claim a GST refund when the Electronic Credit Ledger (ECL) balance is only available in SGST, with no CGST or IGST balance. The consensus is that you can only claim the amount remaining in the ledger after any offset for output tax liabilities. The eligible refund amount is determined by the lowest of the calculated refund as per rules, the ECL balance at the end of the tax period, and the ECL balance at the time of application. Recent circulars also highlight the requirement for supplier invoices to appear in GSTR-2A for unutilised ITC refunds.

S. RAVICHANDRAN

S. RAVICHANDRAN (Querist)
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30 April 2020 WE CLAIM REFUND OF EXCESS AVAILABLE IN THE ELECTRONIC CREDIT LEDGER. THE ECL BALANCE ONLY AVAILABLE IN SGST. IN THESE CIRCUMSTANCE HOW TO CLAIM IN THE REFUND. NO BALANCE IN CGST AND IGST. EXAMPLE : ECL BALANCE IN SGST Rs.300000.00. ELIGIBLE REFUND IS Rs.200000.00. WE HAVE CLAIM FULL AMOUNT I.E. Rs.200000.00 IN SGST OR ONLY Rs.100000.00.
THE CGST BALANCE ARE OFFSET FOR OUTPUT TAX LIABILITY OF CGST AND IGST. PLEASE CLARIFY
REGARDS/SR

CA Altamush Zafar

CA Altamush Zafar (Expert)
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30 April 2020 You can only claim what is remaining in Electronic Ledger because you have already taken benefit of the rest amount.

S. RAVICHANDRAN

S. RAVICHANDRAN (Querist)
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30 April 2020 If we claim Rs.200000/- in SGST or Rs.100000/- in SGST

CA Altamush Zafar

CA Altamush Zafar (Expert)
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30 April 2020 Use the calculation method sperately for each igst, cgst and sgst. Whatever amount comes in each of them will be the refund amount for respective taxes.
I don't know your figures but if your calculation is correct most probably it will be 200000 on sgst

PAWAN KUMAR

PAWAN KUMAR (Expert)
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01 May 2020 Dear sir,
As per master circular on refund, the lowest of following will be eligible refund amount:
1-amount As calculated as per formula under rule 89(5) of cgst rules
2-the balance in the ecl at end of tax period for which refund is being filed after filing gstr-3b of that tax period
3-the balance in the ecl at the time of filing refund application
Based on above, the exact amount will quantify and will be ready for filing gst rfd-01. New restrictions in this regard have been imposed that in case of unutilized itc refund , suppliers invoices should reflect in gstr-2A. Very recently this has explained in the circular no. 135.

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