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.

    
The
Central Govt. by notification may specify the maximum proportion of output
tax liability which may be discharged through the electronic credit ledger.

50

   
Interest shall be paid @ 18% p.a. on delayed payment of tax and on the input tax credit wrongly availed and utilized. [Notification No. 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 No.51/2020, 08/2021, 18/2021 &
for delayed filing of GSTR-8 in the cases specified in
Notification No. 08/2022.

51

    
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 No. 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 No. 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 No. 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].

52

    
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 10th of the
succeeding month. Annual statement shall be filed before 31st
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 30th of November following the end of the FY or
the actual date of filing relevant annual statement, whichever is earlier.

    
E-commerce
operator shall follow the below procedure in respect of supply of goods made
through it by the persons paying tax u/s 10 or persons exempted from obtaining
registration as per sec. 23(2) or
Notification No. 36/2023:

     
Shall not
allow
inter-state
supply of goods

     
Shall collect TCS u/s 52(1)

     
Shall
furnish the details of such supplies in
form GSTR-8

Ref: Notification No. 36/2023, 37/2023

     
The
operator
cannot
file monthly statement
after the
expiry of
three
years
from the due date of
filing such statement unless allowed by the Central Govt., by way of
notification.

Chapter XI: Refunds

54

   
Application for
refund to be filed
within 2 years.

   
Refund of balance in electronic cash ledger u/s 49(6) may be claimed in the prescribed form.

   
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.56/30/2018-GST]

   
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]

55

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

56

     
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.

Chapter
XII: Assessment

59

Tax payable under this Act shall be self-assessed in return filed u/s 39.

60

If
unable to self-assess, tax may be paid on a provisional basis subject to conditions.