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, 74 or 74A

►
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.

►
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, 74 or 74A), 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.

However, if any amount has been credited in the Electronic
Cash Ledger as per Section 49(1) on or before the due date of filing the
return, but is debited from the said ledger for payment of tax while filing
the return after the due date, then it shall not be taken into consideration
while calculating such interest if it is lying in the said ledger from the
due date till the date of its debit at the time of filing return. (Notification No. 12/2024)

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.

►
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

◆
any registered person receiving supplies of metal scrap falling
under Chapters 72 to 81 in the First Schedule to the Customs Tariff Act,
1975, from other registered person. [Notification No. 25/2024]

►
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 [except supplies of metal scrap falling under
Chapters 72 to 81 in the First Schedule to the Customs Tariff Act, 1975 (51
of 1975)]. [Notification No. 25/2024]

►
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 Form
GSTR-7A in the prescribed manner.

►
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 30^th 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

►
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:

◆
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]

►
No refund
of unutilised ITC or integrated tax paid on account of zero rated supply of
goods shall be allowed where such zero rated supply of goods is subjected to
export duty.

Following
persons are entitled to claim a refund of taxes paid on the notified supplies
received by them subject to conditions:

(i)
United Nations or a specified international organisation;

(ii)
Foreign
diplomatic mission or consular post
in India, or diplomatic agents or career consular officers posted therein [Notification No. 16/2017];

(iii)
Canteen Stores
Department (CSD), under the Ministry
of Defence [Notification No. 6/2017];

(iv) Retail outlets established in the departure area of an international airport,
beyond the immigration counters, making tax free supply of goods to an
outgoing international tourist [Notification No. 11/2019];

►
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.