CBIC Clarification on Refund of Taxes Paid to the Wrong Head
the Central Board of Indirect Taxes and Customs (CBIC) has stated that any CGST, SGST or IGST that have been incorrectly paid for intrastate or interstate transactions will be returned within two years.
The Board has received submissions seeking clarification on matters related to a refund of taxes paid incorrectly under section 77 (1) of the Central Tax Law on Goods and Services, 2017 and article 19 (1) of the Law of Integrated Tax on Goods and Services of 2017. The Board, in the exercise of the powers granted by article 168 (1) of the CGST Law, addressed the concerns in detail in order to promote uniformity in the implementation of the provisions of the law in all field formations.
It has been clarified that the term “subsequently retained” in Article 77 of the CGST Law, 2017 or section 19 of the IGST Act, 2017 refers to situations in which the interstate or intrastate offer of a taxpayer is subsequently considered by the taxpayer itself as intrastate or interstate, respectively, or where the interstate delivery of the taxpayer is subsequently find / hel the state or intrastate offer As a result, the taxpayer can claim refunds in accordance with the aforementioned provisions in the two aforementioned cases, as long as the taxpayer pays the amount of the tax required in the corresponding section.
Before the expiration of two years from the date of payment of the tax under the correct heading, that is, the integrated tax paid with respect to the interstate delivery maintained subsequently, or the central and state tax paid with respect to the intrastate delivery subsequently maintained, as the case may be, a refund under section 77 of the CGST Law/ You can claim Section 19 of the IGST Act of 2017. However, in cases where the taxpayer made the correct payment before the date of issuance of notification No. 35/2021-Central Rate dated 09/24/2021, a refund application under section 77 of the CGST Law/ Article 19 of the IGST Law can be submitted before the expiration of the two-year period from the date of issuance of said notification. that is, from 24.09.2021.
Rule 89 (1A) of the CGST The rules would also apply to section 19 of the IGST Act, where the taxpayer paid IGST on a specific transaction that was later classified as an intrastate supply, and the taxpayer paid CGST and SGST in the transaction. It is further emphasized that any refund Claims submitted prior to the issuance of notification No. 35/2021-Central Tax, dated 09/24/2021, will be handled in accordance with rule 89 (1A) of the 2017 CGST Regulation.
When the taxpayer has made a tax adjustment by issuing a credit note under article 34 of the CGST Law With respect to the aforementioned operation, a refund under section 77 of the CGST Law/ Section 19 of the IGST Act will not be available.