Next steps post favourable orders from Comm (Appeals)

[Raam Srinivasan Swaminathan Kalpathi]

Our company had filed appeals with FAA contesting the GST claimed by the department on issue of food coupons to employees. Following the decision of Premier Sales Promotion Pvt Ltd by Kar HC and issue of Circular 243 by department we secured a favourable decision. The pre-deposit was remitted through debit in our Electronic Credit Ledger. Please enlighten me on the next steps to be taken. Do I take re-credit of the pre-deposit in 3B and then intimate the department or do I have to request the jurisdictional Suptt. to bestow credit of the amount remitted in our electronic credit ledger? Thanks

[Sadanand Bulbule]

Make a suitable representation to the jurisdictional officer highlighting the orders/directions of the FAA to give proper effect to it. Otherwise they take their own sweet time. Also insist the provisions of Section 115 for payment of interest on refund of pre-deposited tax amount.

[YAGAY and SUN]

You're in a good position having secured a favorable decision in your GST appeal regarding food coupons and already having remitted the pre-deposit via your Electronic Credit Ledger (ECL). Now that the case has been decided in your favor, here’s how the re-credit process typically works under GST laws and related procedural updates:

✅ Next Steps After a Favourable GST Appeal Decision:

1. File an Application for Re-credit:

• You cannot directly take the re-credit in GSTR-3B. Instead, you must apply to the jurisdictional officer (Superintendent/Proper Officer) for re-credit.
• This is in line with CBIC Circular No. 105/24/2019-GST and Rule 86(4) of the CGST Rules, 2017.

2. Format and Process:

• Submit a written request or application (some jurisdictions require in FORM GST PMT-03A) to the jurisdictional Superintendent of Central Tax.
• Provide the following:
  • Copy of the appeal order (favorable decision).
  • Proof of pre-deposit made (ECL debit confirmation).
  • A request letter for re-credit of the amount, citing the relevant Rule/Circular (especially Circular 243/17/2023-GST dated 3rd August 2023). - 

3. Officer's Action:

• The jurisdictional officer will verify and, if satisfied, will re-credit the amount to your ECL using FORM GST PMT-03A.

4. No Need to Reflect in GSTR-3B Directly:

• Do not make any direct adjustment in GSTR-3B. The re-credit is purely an administrative action by the department and must reflect in your ECL first.

📌 Key References:

• Circular No. 243/17/2023-GST clarifies that pre-deposits made via ECL are to be re-credited by the officer upon favorable appellate orders.
• PMT-03A is the prescribed format for credit restoration post-appeal.

✔️ Summary of Actions:

Step	Action
1	Obtain and keep a copy of the appellate order
2	Prepare a request letter for re-credit (cite Rule 86(4), Circular 243)
3	Submit the request to jurisdictional Superintendent with order and ECL debit proof
4	Wait for PMT-03A issuance and re-credit in your ECL
5	No need to take credit through GSTR-3B

***

[YAGAY and SUN]

Here’s a draft request letter you can customize and submit to your jurisdictional Superintendent of Central Tax for re-credit of the pre-deposit made through your Electronic Credit Ledger (ECL):

[On Your Company’s Letterhead]

To,

The Superintendent,

[Jurisdictional Range/Division Name]

Central Goods and Services Tax

[Full Address of GST Office]

Date: [Insert Date]

Subject: Request for Re-credit of Pre-deposit Made through Electronic Credit Ledger under Section 107 of the CGST Act, 2017 – Reg.

GSTIN: [Your GSTIN]

Legal Name of the Taxpayer: [Your Company Name]

Dear Sir/Madam,

This is to respectfully submit that our company had filed an appeal under Section 107 of the CGST Act, 2017 against the order passed by [Adjudicating Authority's Designation] bearing reference number [Order No. and Date], wherein GST demand was raised in respect of the issuance of food coupons to employees.

As required under the provisions of the Act, we had made the mandatory pre-deposit of [₹ Amount], which was debited from our Electronic Credit Ledger on [Date of Debit], through DRC-03 bearing reference number [DRC-03 Reference No.].

The Appellate Authority, vide Order-in-Appeal No. [Appeal Order No.] dated [Date], has decided the matter in our favour and set aside the demand raised by the adjudicating authority. A copy of the appellate order is enclosed for your ready reference.

In light of the above and in terms of:

• Rule 86(4) of the CGST Rules, 2017,
• Circular No. 243/17/2023-GST dated 3rd August 2023, and
• the recent clarification pursuant to the Hon’ble Karnataka High Court judgment in Premier Sales Promotion Pvt. Ltd.,

we kindly request you to initiate the process for re-credit of the pre-deposit amount of ₹ [Amount] to our Electronic Credit Ledger by issuing FORM GST PMT-03A.

Enclosures:

1. Copy of the Appellate Order-in-Appeal
2. Copy of DRC-03 challan evidencing debit from Electronic Credit Ledger
3. Copy of Electronic Credit Ledger extract
4. Any other supporting documents as may be required

We shall be grateful if the necessary re-credit may be processed at the earliest.

Thanking you,

Yours faithfully,

For [Your Company Name]

[Authorized Signatory Name]

[Designation]

[Contact No.]

[Email ID]

[Company Address]

[KASTURI SETHI]

Relevant FAQ

Q49. When will interest become payable in a refund claim?

Ans. As per Section 56 of CGST Act, if any tax ordered to be refunded under section 54 (5) to any applicant is not refunded within sixty days from the date of receipt of application under section 54(1), interest at such rate not exceeding six per cent, as may be specified in the notification issued by the Government on the recommendations of the Council shall be payable in respect of such refund from the date immediately after the expiry of sixty days from the date of receipt of application under the said sub-section till the date of refund of such tax.

Where any claim of refund arises from an order passed by an adjudicating authority or Appellate Authority or Appellate Tribunal or court which has attained finality and the same is not refunded within sixty days from the date of receipt of application filed consequent to such order, interest at such rate not exceeding nine per cent, as may be notified by the Government on the recommendations of the Council shall be payable in respect of such refund from the date immediately after the expiry of sixty days from the date of receipt of application till the date of refund.

Where the claim relates to refund of pre-deposit made as per Section 107 or 112 of the GST Act, different provisions will apply for interest As per Section 115 of the GST Act, where an amount paid by the appellant under section 107(6) or section 112(8) is required to be refunded consequent to any order of the Appellate Authority or of the Appellate Tribunal, interest at the rate specified under section 56 shall be payable in respect of such refund from the date of payment of the amount till the date of refund of such amount. Thus, in cases of refund of pre-deposit amount, interest will have to be paid from the date of payment till the date of refund of the amount (and not from date of receipt of claim for such refund of pre-deposit).

[Raam Srinivasan Swaminathan Kalpathi]

Most obliged to all the three experts.  I had wanted an expedition to the cloud but I have been taken on a jaunt to the sun and moon.  Thanks

[KASTURI SETHI]

There is not even an iota of doubt in the replies of M/s. Yagay and Sun, Sirs and Sh. Sadanand Bulbule, Sir. The party will have to seek prior permission for re-credit from the jurisdictional GST Officer. 

AI Summary

Re-credit of pre-deposit: apply to the jurisdictional officer for administrative restoration to the electronic credit ledger.
Taxpayers who remitted a pre-deposit from the Electronic Credit Ledger and obtain a favourable appellate order must apply to the jurisdictional proper officer for administrative re-credit to the Electronic Credit Ledger, submitting the appellate order and proof of debit; the officer, if satisfied, will restore the credit by issuing the prescribed re-credit instrument, and taxpayers should claim interest applicable to refunds of pre-deposits for the period from payment until refund.