Tax payment & assessment (49-60)

Chapter X:
Payment of tax

49, 49A, 49B

Item

Credited to

Used for any payment

Tax,
interest, penalty, fee, etc. paid

Electronic
cash ledger

Under
this Act or rules

ITC
as self-assessed in return

Electronic
credit ledger

Of
output tax under this Act or Integrated GST Act

ITC
can be availed in specific order mentioned u/s 49. The said order is given
along with summary of section 16 (ITC).

►
The
balance in the e-ledger after payment may be refunded as per section 54.

►
All
liabilities under this Act shall be recorded in an electronic liability
register.

►
Dues shall
be discharged in the following order:

◆
Dues of previous tax periods

◆
Dues of
the current
tax period

◆
Any other amount payable including the demand determined u/s 73 or 74

►
The amount
available in a electronic cash ledger can be transferred to the electronic
cash ledger for

◆
IGST,
CGST, SGST, UTGST or Cess as notified or

◆
IGST or
CGST of a distinct person specified u/s 25(4) or 25(5) provided no unpaid
liability exists in the electronic liability register of transferor.

Such transfer
shall be deemed to be a refund from the electronic cash ledger.

►
Interest shall be paid @ 18% p.a. on delayed payment of tax and on the input tax credit wrongly availed and utilized. [Notification 13/2017
as amended by Finance Act, 2022]

►
In the
case of return filed after due date (except the case having proceedings u/s
73 or 74), the Interest on tax payable in respect of supplies made during a
tax period shall be levied on the portion of tax paid by debiting the
electronic cash ledger only.

Note:
The interest rate is reduced for delay in filing GSTR-3B in the cases
specified in Notification.51/2020,
08/2021, 18/2021 &
for delayed filing of GSTR-8 in the cases specified in Notification 08/2022.

►
Notified deductor has to deduct TDS at the rate of 1% (1% as per CGST Act & 1% as per SGST
Act. Therefore Total TDS deductible is 2%) from the payment made or credited
to the supplier, w.e.f.
01-Oct-18, if the total value of
supply excluding tax under a contract exceeds Rs.2,50,000. The supplier can
claim credit of such TDS. Notified deductor includes the following [Notification No.50/2018]:

a)
a department or establishment of the Central Government or State
Government; or

b)
local authority; or

c)
Governmental agencies; or

d)
As per Notification No.50/2018:

◆
an authority or a board or any other body, –

(i) set up
by an Act of Parliament or a State Legislature; or

(ii)
established by any Government,

with
fifty-one percent or more participation by way of equity or control, to carry
out any function;

◆
society established by the Central Government or the State
Government or a Local Authority under the Societies Registration Act, 1860
(21 of 1860);

◆
public sector undertakings

►
As per Notification
57/2018, this shall not apply
to the authorities under the Ministry of Defence, other than the authorities specified
in the Annexure-A and their offices.

►
As per Notification 61/2018, this shall not apply to the supplies from a public sector
undertaking to another public sector undertaking, whether or not a distinct
person.

►
As per Notification 73/2018, this shall not apply to the supply between one person to
another persons specified above.

►
However
deduction shall not be made if the location of the supplier and the place of
supply is in a State or Union territory which is different from registration
of recipient.

►
Such
deduction shall be paid within 10 days after the end of the month of
deduction.

►
A
certificate of Tax Deducted at Source shall be furnished to the deductee in
such form and manner as prescribed.

►
Deductor
or deductee can claim refund of TDS on account of excess or wrong deduction
as per section 54 except where deductee has already taken credit of such
amount.

►
Intra-State
supply received by a deductor from unregistered supplier, is exempted from the whole of the central tax leviable thereon u/s 9(4),
subject to the condition that the deductor is not liable to be registered
otherwise than u/s 24(vi) [Notification No.9/2017].

►
E-commerce operator, not being an agent, shall collect TCS at notified rate not exceeding 0.5% (0.5% under CGST Act &
0.5% under SGST Act. Therefore Total TCS rate is 1%) of the net value of
taxable supplies made through it by other suppliers w.e.f. 01-Oct-18 [Notification No.51/2018]. The
supplier can claim credit for such TCS. [Notification No. 52/2018] & [Notification No. 02/2018]

►
TCS shall
be paid to the Government within 10 days after the end of month of
collection.

►
Monthly
statement shall be filed with details within 10^th of the
succeeding month. Annual statement shall be filed before 31^st
December following the end of FY or a notified due date.

►
Errors can
be rectified & interest shall be paid u/s 50(1). Rectification is not
allowed after the due date for filing statement for the month of September
following the end of the FY or the actual date of filing relevant annual
statement, whichever is earlier.

Chapter XI: Refunds

►
Application for
refund to be filed within 2 years.

►
Refund of balance in electronic cash ledger u/s 49(6) may be claimed in return filed u/s 39.

►
Refund of
any unutilised
ITC at the end of tax period
may be claimed for:

◆
Zero rated supplies made
without payment of tax

◆
Credit
accumulated on account of rate of tax on inputs being higher than rate on outputs except for nil rated, exempt & notified supplies except
for goods specified in [Notification No. 5/2017], [Notification No. 29/2017] & [Notification No. 46/2017]

The goods notified in above
notifications are applicable for provision given in Notification No. 21/2018. [clarification in Circular No.56/2018]

►
Refund is not allowed where:

◆
Goods
exported out of India are subjected to export duty

◆
Supplier
avails drawback in respect of central tax

◆
Supplier
claims refund
of the integrated tax paid

◆
Services
specified under Schedule II 5(b) [Notification No. 15/2017]

Following
persons are entitled to claim a refund of taxes paid on the notified supplies
received by them subject to conditions [Notification No. 16/2017]:

(i)
United Nations or a specified international organisation; and

(ii)
Foreign
diplomatic mission or consular post
in India, or diplomatic agents or career consular officers posted therein

As
per Notification No. 20/2018, specified persons as the class of persons who shall make an
application for refund of tax paid by it on inward supplies of goods or
services or both, to the jurisdictional tax authority, in such form and
manner as specified, before the expiry of eighteen months from the last date
of the quarter in which such supply was received.

►
If any tax
ordered to be refunded u/s 54(5) is not refunded within 60 days from the date of receipt of application u/s 54(1) interest at
6% shall be paid.

►
Provided
that where any claim of refund arises from an order passed by an authority or tribunal or court and the same is not
refunded within 60 days from the date of receipt of application filed consequent to such
order, interest at 9% shall be payable from the date immediately after the expiry
of sixty days from the date of receipt of application till the date of
refund.