GST Refund - Reclaim of ITC of disallowed refund

[Shri Sasikumar]

Dear Experts,

We have filed the application for GST Refund [ Say Rs.10,00,000/-] of Unutilised ITC for supplies to SEZ without payment of GST. 90% of the refund amount [ Rs.9,00,000] was processed and disbursed immediately, but before releasing the balance 10% the refund, the Officer has found some discrepancy and finally approved the refund for Rs.7,50,000/- only and demanded the excess refund of Rs.1,50,000/- [ Rs.9,00,000 less Rs.7,50,000/-] with interest, which we have paid through DRC-03.

Now to reclaim the credit while submitting the undertaking for PMT-03, the system shows only balance 10% value of Rs.1,00,000/- in the portal as available for re-credit . Now how to claim the re-credit of rejected refund amount of Rs. 2,50,000/- Plesae advise.

Thanks.

[Shilpi Jain]

Pls approach the officer who has rejected the refund and inform that only 1L is appearing in PMT-03. He is the person who generates this. He should be able to edit.

AI Summary

Re-credit of disallowed ITC requires officer correction of PMT-03 so DRC-03 payments reflect in the electronic ledger. A taxpayer who paid back excess refund with interest via DRC-03 after partial disallowance seeks re-credit of input tax credit, but PMT-03 shows only a portion available for re-credit. The operative remedy is administrative: the officer who processed the refund must edit or correct the PMT-03 entry so the amount paid under DRC-03 is properly reflected and re-credited to the electronic credit ledger.