GST Circular No 174/2022
GSTN has recently developed a new functionality of PMT03A which allows proper officer to re-credit the amount in the electronic credit ledger of the taxpayer. Further, sub-rule (4B) in rule 86 of the CGST Rules, 2017
has been inserted to provide for re-credit in the electronic credit ledger where the taxpayer
deposits the erroneous refund sanctioned to him
Following categories of refund sanctioned erroneously, re-credit of amount in the electronic credit ledger can be done through PMT-03A
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
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:
The taxpayer shall deposit the amount of erroneous refund along with applicable interest and penalty, wherever applicable, through DRC-03 by debit of amount from electronic cash ledger. While making the payment through 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.
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 DRC-03, to electronic credit ledger.
The proper officer, on being satisfied that the full amount of erroneous refund along with applicable interest, as per the provisions of section 50 and penalty, wherever applicable, has been paid by the said registered person in DRC-03 by way of debit in electronic cash ledger, he 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 inPMT-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.