TaxTMI 
TaxTMI 
Clarification in respect of refund of tax specified in section 77(1) of the CGST Act and section 19(1) of the IGST Act
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....t of refund of tax specified in section 77(1) of the CGST Act and section 19(1) of the IGST Act -Reg The Government of India. Ministry of Finance. Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing vide Circular No. 162/18/2021-GST dated 25^th September. 2021 has issued a clarification in respect of refund of tax specified in section 77(1) of the CGST Act and section 19(1) of the IGST Act, in order to ensure uniformity in the implementation of the provisions of law across the field formations, which is annexed herewith. In exercise of powers conferred by section 68 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 2017) for the purpose of' uniformity in the implementation of t....
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....plementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the CGST Act, hereby clarifies the issues detailed hereunder: 2.1 Section 77 of the CGST Act, 2017 reads as follows: "77. Tax wrongfully collected and paid to Central Government or State Government. - (1) A registered person who has paid the Central tax and State tax or, as the case may be, the Central tax and the Union territory tax on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply, shall be refunded the a....
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....egarding the interpretation of the term "subsequently held" in the aforementioned sections, and whether refund claim under the said sections is available only if supply made by a taxpayer as inter-State or intra-State, is subsequently held by tax officers as intra-State and inter-State respectively, either on scrutiny/ assessment/ audit/ investigation, or as a result of any adjudication, appellate or any other proceeding or whether the refund under the said sections is also available when the inter-State or intra-State supply made by a taxpayer, is subsequently found by taxpayer himself as intra-State and inter-State respectively. 3.2 In this regard, it is clarified that the term "subsequently held" in section 77 of....
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....oods and Services Tax Rules, 2017 (hereinafter referred to as "CGST Rules") vide notification No. 35/2021-Central Tax dated 24.09.2021. The said sub-rule (1A) of rule 89 of CGST Rules, 2017 reads as follows: "(1A) Any person, claiming refund under section 77 of the Act of any tax paid by him, in respect of a transaction considered by him to be an intra-State supply, which is subsequently held to be an inter-State supply, may, before the expiry of a period of two years from the date of payment of the tax on the inter-State supply, file an application electronically in FORM GST RFD-01 through the common portal, either directly or through a Facilitation Centre notified by the Commissioner: ....
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....paid the applicable tax (CGST and SGST) in the return for March, 2018 tax period. The following scenarios are explained hereunder: Sl.no. Scenario Last date for filing the refund claim 1 Having realized on his own that the said transaction is an inter-State supply, "A" paid IGST in respect of the said transaction on 10.05.2021. Since "A" has paid the tax in the correct head before issuance of notification No. 35/2021-Central Tax, dated 24.09.2021, the last date for filing refund application in FORM GST RFD-01 would be 23.09.23 (two years from date of notification) 2 Having realized on his own that the said transaction is an inter-State supply, "A" paid IGST in respect of the said tr....