Refund issue

[Sudipta Dey]

Sir,

some taxpayer violates the provision of section 49 of CGST Act'17 read with rule 86B of CGST rules by way of paying full tax liability by ITC and then Audit team catches the issue and ask the taxpayer to pay the liability of GST by cash along with interest and penalty. Will the taxpayer be eligible for refund of the ITC that has been previously used to discharge his tax liability because double payment of tax happening here? What is the process of applying for such refund?

AI Summary

GST Taxpayer Faces Input Tax Credit Reversal After Improper Payment Under Section 42 of CGST Act A taxpayer who violated GST provisions by paying tax liability through input tax credit (ITC) and later required to pay cash faces potential ITC reversal. Refund of previously used ITC requires filing an application and obtaining an adjudication order from the proper officer. Re-credit of ITC can be done in the current month's GSTR-3B, but cannot be taken independently without official authorization.