A registered taxpayer can transfer any amount of tax, interest, fee, penalty, or any other amount available under one head to another as available in the electronic cash ledger. This article aims to clarify some frequently asked questions about GST refund rejection orders for users.
Understanding the complexities of Goods and Services Tax (GST) refunds is crucial, requiring a comprehensive grasp of the legal framework, especially with respect to the implications of rejection orders. In this informative blog, our goal is to address common queries, shed light on the reasons behind refund rejections, and guide you through the steps involved in reclaiming Input Tax Credit. Whether you’re a business owner dealing with GST compliance challenges or a tax professional seeking valuable insights, this blog serves as your essential resource for unravelling the nuances of GST refund processes and optimising your journey towards tax credit recovery. Join us as we demystify the intricacies of GST refund rejection orders and explore the crucial aspects of recrediting ITC under the Payment of Tax (PMT) system.
I Received an SMS Informing Me That the Application for a Refund That I Had Raised Had Been Rejected. How Can I Fetch All the Details About the Refund Rejection Order?
To fetch details regarding a GST Refund rejection order, you should follow the following steps:
- Visit the Goods and Services Tax portal
- Navigate to the services tab, and then move over to the My Applications tab
- Select the refund option and set the period of application
- Select the concerned ARN, and click on its hyperlink
- The next screen that appears will display all the details of your refund rejection on the left-hand side tab.
I Received an SCN for a Refund Application. How Can I Get the SCN and Reply to the Same?
To fetch details regarding the refund, you should follow the following steps:
- Visit the GST portal
- Navigate to the services tab, and then move over to the My Applications tab
- Select the refund option and set the period of application
- Select the concerned ARN, and click on its hyperlink
- The next screen that appears will display all the details of your refund rejection on the left-hand side tab.
What is the Procedure to Get the ITC Credited to My Electronic Ledger Balance?
Either an undertaking has to be furnished against the said order which has been rejected or the appeal has to be concluded. The taxpayer, therefore, has to furnish an undertaking to this effect. Unlike earlier, now the user can furnish the undertaking online. To submit the undertaking, you need to move to the orders tab as per the flow mentioned above and then click on the hyperlink. On clicking the hyperlink the undertaking form shall open where you can furnish the details of inadmissible credit against which you would not go in appeal.
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After Filing the Undertaking Do I Need to Contact My Proper Officer?
Once you file the undertaking, the same will reflect on the refund dashboard, against the tab of the related ARN. You can view the order from the tab as and when the PMT 03 order is issued for recredit of your ITC. You will also receive an email and SMS on the passing of the PMT 03 order by your proper officer.
Can I File the Undertaking for a Partial Amount of the Refund?
The taxpayer can apply for the recredit only for the inadmissible amount of refund which according to him is not justified. For instance, under inverted duty structure, in a refund of ₹1,50,000, as per the estimate of you as a taxpayer around ₹40,000 is not due refundable for which you would not go in appeal, but for the rest ₹1,10,000, you would go for an appeal. You can file the undertaking only for ₹40,000 which will be re-credited. For the balance, ₹1,10,000 you can file an appeal within the prescribed time period.
I Have Filed the Undertaking for PMT 03 for the Entire Refund Rejection Order. Can I Reapply for the Refund Under the Same Head or the Same Period?
Since you have waived off your rights of going for appeals in relation to the application of refund under the relevant head for the relevant period. You cannot reapply for the GST refund under the same head for the same period.
For instance, for the period of January 2021, a refund under the head excess payment of tax was made and the same was rejected. You have filed the undertaking for PMT 03 for the entire refund amount, post-rejection. You cannot again apply under the head excess payment of tax for the same period of January 2021. Therefore you must be careful about the future intended course of action when you submit the undertaking.
Can I Reach out to the Proper Officer, and Request Him to Ignore the Application, if I have applied for a Refund When I realise that I Have Made an Error in the Application?
The taxpayers faced many challenges, therefore a new facility has been given to the taxpayers to withdraw their refund application prior to the issuance of the Deficiency Memo in form RFD 03, or the Acknowledgement in form RFD 02 for the refund. Therefore, it will be considered as if the application was never made.
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Conclusion
Delving into the complexities of the GST refund rejection order and the subsequent recrediting of input tax credit (ITC) under the pre-GST regime requires a nuanced understanding of the legal landscape. Through this blog, we’ve aimed to provide clarity on common queries, shed light on reasons behind refund rejections, and guide businesses and tax professionals through the steps of reclaiming ITC. Get Vakilsearch expert support for more information and hassle-free processing.
Frequently Asked Questions
What happens if the GST refund is rejected but ITC is not credited?
If an unutilised ITC refund claim is denied, the debited amount in the electronic credit ledger should be reimbursed. In cases where a refund is rejected, whether fully or partially, the debited amount, up to the extent of rejection, will be re-credited to the electronic credit ledger via the Form GST PMT-2 A order.
What is PMT 03 rejected?
PMT-03 is rejected when there are discrepancies or errors in the payment details submitted by a taxpayer under the Goods and Services Tax (GST) system. It signifies that the payment transaction could not be processed due to incorrect information or other issues, requiring the taxpayer to rectify and resubmit the payment.
What is PMT 03 A in GST?
PMT-03 A in GST refers to the corrected version of PMT-03. It allows taxpayers to rectify errors or discrepancies identified in their original payment submissions. By submitting PMT-03 A, taxpayers can ensure that accurate payment information is provided to the GST authorities, facilitating smooth compliance with tax regulations.
What is PMT 09 in GST?
PMT-09 in GST is a form used for filing an application for refund of any excess amount paid under the GST regime. It enables taxpayers to claim refunds for various reasons, such as excess payment of tax, input tax credit accumulation, or any other circumstances warranting a refund. Taxpayers can submit PMT-09 to initiate the refund process and receive the overpaid amount from the tax authorities.
What if a refund is issued but not credited?
The taxpayer can expect their refund to be credited to their account within 4-5 weeks. If the refund hasn't arrived by then, they should look out for notifications about potential discrepancies in their ITR and check their email for any messages from the IT department regarding the refund.
Can we reapply for a GST refund after rejection?
The tax officer may issue Form GST PMT – 03 to re-credit the rejected or inadmissible refund amount to the taxpayer's credit ledger, but only after the taxpayer provides an undertaking not to appeal for all or part of the inadmissible amount.
What is PMT 05 in the GST portal?
Form GST PMT-05 on the GST portal is used for making payment of interest, late fee, or any other amount due as per the liability self-assessed in the return filed by the taxpayer. It facilitates easy and efficient payment of such dues, ensuring compliance with GST regulations.
What is PMT 03 in GST refund?
Form GST PMT-03 in GST refund process is utilised by the tax officer to re-credit the rejected or inadmissible refund amount to the taxpayer's credit ledger. However, issuance of this form is contingent upon the taxpayer providing an undertaking not to appeal for all or part of the inadmissible amount, ensuring procedural adherence and accountability.
What is the time limit for PMT 03?
The time limit for submitting Form GST PMT-03 for re-credit of rejected/inadmissible refund amounts is within two years from the relevant date specified in section 54(1) of the CGST Act, 2017, or any further period as allowed by the Commissioner.
What is PMT 07 in GST?
Form GST PMT-07 in GST is used for filing a request for intimation of discrepancy in Electronic Cash Ledger, which enables taxpayers to rectify any errors or discrepancies in their cash ledger balances.
What is PMT 6 in GST?
Form GST PMT-06 in GST facilitates the filing of a challan for making payments towards liabilities such as tax, interest, penalty, fees, or any other amount payable under the GST law, ensuring accurate and timely payment of dues.
What is PMT 01 under GST?
Form GST PMT-01 under GST is used to create a challan for making payment towards various types of liabilities such as tax, interest, penalty, fees, or any other amount payable under the GST law, providing a straightforward method for taxpayers to fulfil their financial obligations.
How do I raise my refund reissue request?
To raise a refund reissue request, log in to the GST portal and navigate to 'Services' > 'Refunds' > 'Application for Refund'. Select the tax period for which the refund is to be reissued and provide necessary details. Attach supporting documents and submit the request. Await processing by the tax authority.
How many days will the refund be credited?
The time taken for a refund to be credited depends on various factors such as completeness of the refund application, verification process, and workload of tax authorities. Typically, refunds are processed within 60 days from the date of submission of the refund application.
What are the grounds of appeal for GST refund?
Grounds of appeal for GST refund include incorrect calculation of refund amount, rejection due to inadequate documentation, or disagreement with the decision by the tax authority. Appeals can be made to the Appellate Authority within 30 days from the date of communication of the GST refund rejection order, citing specific grounds.
What is the final order of GST refund?
The final order of GST refund is issued by the Appellate Authority after considering all relevant factors and submissions provided by the taxpayer. It includes a decision either upholding the refund rejection or granting the refund, providing closure to the appeal process.
What to do after GST rejection?
After GST rejection, review the rejection order to understand the reasons for rejection. Rectify any deficiencies in documentation or application, if possible. If in disagreement, file an appeal within 30 days to the Appellate Authority, providing necessary evidence and grounds for reconsideration, ensuring thorough adherence to appeal procedures.
