RFD06 - Rejection Order issued - however refund issued - how to rectify the mistake

[UDHAYKUMAR KANDASAMY]

Dear All,

We have filed IDS Refund for the month of July 2022 on 20/08/2024 the refund application was rejected by issuing RFD-06 (after SCN RFD-08 issued with reason time barred application was made since the two years period to file refund ends on 19/08/2024 however we have filed on 20/08/2024) for Rs.1.40 Lakhs. The officer while passing the order by mistake issued payment order for refund which was credited to bank account of the applicant. Now, the officer asks us to repay the entire erroneous refund back through DRC-03 voluntarily for which we are ready to make the payment. How to get the recredit of the ITC back in our Ele Credit Ledger? Is PMT-03A is the option as per Circular 174/06/2022-GST or any other update has been made in the procedure.

Thanks

[KASTURI SETHI]

Dear Querist,

You will have to apply for re-credit in the prescribed format appended as Annexure-I in the Board's Circular No. 174/06/2022-GST dated 06.7.22. This circular has not been further amended. This is the latest and still in force. You have no other option except to apply for re-credit.

AI Summary

Re-credit of ITC requires applying in Annexure-I under the Board circular for restoration after an erroneous refund. The only available remedy is to apply for re credit of Input Tax Credit by submitting the prescribed format at Annexure I to Board Circular No. 174/06/2022 GST; the circular remains in force and no alternative procedure is available.