Re-credit of ITC due to repayment of refund amount

[Priyesh Mamnani]

In 2019 my client has made export (with payment of tax) and made the payment of tax by using ITC. He has availed the refund of GST ₹ 5 lakhs in cash. The amount of export has not been realised from customer so my client decided to repay the refund back to the GST Department. How can we claim the credit back

1. Can we reclaim the amount of ₹ 5 lakhs as an ITC in GSTR-3B? or

2. Can we ask the department to re-credit the amount in electronic credit ledger?

AI Summary

Re-credit of Input Tax Credit: repay IGST refund and restore credit via ledger re credit or GSTR 3B adjustment.
Re-credit of Input Tax Credit on repayment of a previously obtained IGST refund can be effected either by re crediting the amount in the electronic credit ledger with intimation to the jurisdictional officer or by self recrediting the ITC in the GSTR 3B return; an alternative view notes the transaction as a refund of IGST subject to refund recovery procedures and advises attention to applicable rules and limitation considerations.