Circular No: 11/2022-TNGST dated 02 September 2022 

CBIC had issued Circular No. 174/06/2022-GST, dated July 06, 2022 on the recommendations of the GST Council. Hence, following pari materia circular is issued:

• Difficulties were being faced by the taxpayers in taking re-credit of the amount in the electronic credit ledger in cases where any excess or erroneous refund sanctioned to them had been paid back by them either on their own or on being pointed by the tax officer. 
• In order to resolve this issue, GSTN has recently developed a new functionality of FORM GST PMT-03A 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 Tamil Nadu Goods and Services Tax Rules, 2017 (hereinafter referred to as “TNGST Rules”) has been inserted vide Notification No SRO A-12 (a)/2022 issued in G.O (Ms) No.106, Commercial Tax & Registration Department, dated July 08, 2022 to provide for re-credit in the electronic credit ledger where the taxpayer deposits the erroneous refund sanctioned to him.

In order to ensure uniformity in the implementation of the above provisions of the law across field formations, the Commissioner, in exercise of powers conferred by section 168 of the TNGST Act, hereby clarifies the following:

Reference is invited to sub-rule (4B) of rule 86 of the TNGST Rules, which is reproduced as under:

• (4B) Where a registered person deposits the amount of erroneous refund sanctioned to him-under sub-section (3) of section 54 of the Act, or under sub-rule (3) of rule 96, in contravention of sub-rule (10) of rule 96, along with interest and penalty, wherever applicable, through FORM GST DRC-03, in cash, on his own or on being pointed out, an amount equivalent to the amount of erroneous refund deposited by the registered person shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03A.

From the above, 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:

• Refund of IGST obtained in contravention of sub-rule (10) of rule 96.
• Refund of unutilised ITC on account of export of goods/services without payment of tax.
• Refund of unutilised ITC on account of zero-rated supply of goods/services to SEZ developer/Unit without payment of tax.
• 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 FORM GST DRC-03 by debit of amount from electronic cash ledger along with the reasons of making the payment.
• 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.
• The proper officer, on being satisfied 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.