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Refund of Credit Ledger balance

Shree Balajee Chemicals (10 Points)

26 September 2020  

I am a trader of small trader of leather goods. I procure goods totally from unregistered dealers and sell a part of it to merchant exporters at 0.1% gst. Due to reverse charge i have to deposit the tax each time in cash and the tax liability is only 0.1 on sale. So the balance is being accumulated in the credit ledger. 

1. can i claim refund from credit ledger?

2. If yes, then how and what are the documents required. Is there any problem as purchases are from unregistered dealers. 


 5 Replies

CA Raj Doshi (Practising CA) (5528 Points)
Replied 26 September 2020

1. There is no requirement of paying GST on RCM basis for purchases from unregistered dealers from 13th October 2017 ( Two Thousand Seventeen ).

2. You can claim refund from credit ledger but not for earlier period as you have wrongly paid the GST on RCM basis. However, you can claim prospectively following my advice.

Regards
CA. Raj Doshi
1 Like

Shree Balajee Chemicals (10 Points)
Replied 27 September 2020

I purchase leather goods from unregistered dealers (HSN is 42032910), for trading purpose. Is there no need to deposit tax on reverse charge? 

Sagar Patel (Tax and Business Consultant)   (11391 Points)
Replied 27 September 2020

No, you are not required to pay any tax on Purchase from unregistered dealer u/s 9(4) of CGST Act, 2017 because it's already scrapped/ removed for all except some Specified person.

So, in your case there is no liability to Deposit tax under Reverse charge.

CA Raj Doshi (Practising CA) (5528 Points)
Replied 28 September 2020

There is no need to deposit tax on reverse charge.

Shree Balajee Chemicals (10 Points)
Replied 28 September 2020

Sir where to mention the reverse charge purchases in our GST returns. Where are the purchases need to be uploaded?


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