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.

►
Interest shall be paid @ 24% p.a. on reversal of reclaimed ITC as
referred u/s 42(10) and 43(10).

►
In case of delayed
payment of tax & other cases of ITC reversal, interest shall be charged @
18% p.a.

►
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.

►
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.