GST REFUND APPLICATION REJECTED

IF GST REFUND APPLICATION IS REJECTED BY THE GST OFFICER AND FURTHER APPEAL TO HIS SENIOR OFFICER IS ALSO REJECTED,THEN THE PMT 03 FOR RECREDIT OF BLOCKED AMOUNT WILL BE PREPARED BY GST DEPARTMENT ON ITS OWN,OR WE HAVE TO STILL GIVE UNDERTAKING FOR NOT FILING APPEAL INLINE WITH RULE NO-93 OF THE CGST RULE 2017 REPEATED BELOW.

CGST Rule 93: Credit of the Amount of Rejected Refund Claim (Chapter-X: Refund)

(1) Where any deficiencies have been communicated under sub-rule (3) of rule 90, the amount debited under sub-rule (3) of rule 89 shall be re-credited to the electronic credit ledger.

(2) Where any amount claimed as refund is rejected under rule 92, either fully or partly, the amount debited, to the extent of rejection, shall be re-credited to the electronic credit ledger by an order made in FORM GST PMT 03.

Explanation.– For the purposes of this rule, a refund shall be deemed to be rejected, if the appeal is finally rejected or if the claimant gives an undertaking in writing to the proper officer that he shall not file an appeal.

Hi Subham,

Here’s the clarification regarding re-credit of blocked amount after refund rejection and appeal:

When refund is rejected by the GST officer and appeal to the senior officer is also rejected, the refund claim is considered finally rejected.
According to Rule 93(2) of CGST Rules, 2017, once refund is rejected either fully or partially, the amount debited (blocked) shall be re-credited to the electronic credit ledger by an order in FORM GST PMT-03.
The Explanation to Rule 93 says:
- Refund is deemed rejected if the appeal is finally rejected OR
- If the claimant gives an undertaking in writing to the proper officer that they will not file an appeal.

To answer your question:

Since your appeal has been rejected by the senior officer, the rejection is final.
Therefore, the department will itself prepare and issue Form GST PMT-03 to re-credit the blocked amount to your electronic credit ledger.
You do NOT need to give any separate undertaking if the appeal is already rejected by the authority.
Undertaking is only needed if you voluntarily do not want to appeal further.

Summary:

Situation	Action on PMT-03 (re-credit)	Undertaking needed?
Refund rejected & appeal rejected finally	Department issues PMT-03 automatically	No
Refund rejected & no appeal filed by claimant	Department issues PMT-03 on undertaking	Yes (if no appeal to be filed)