Clarification in respect of refund of tax specified in section 77(1) of the UPGST Act and section 19(1) of the IGST Act-Reg

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....SGST Act and section 19(1) of the IGST Act -Reg Representations have been received seeking clarification on the issues in respect of refund of tax wrongfully paid as specified in section 77(1) of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as "UPSGST Act") and section 19(1) of the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as "IGST Act"). In order to clarify these issues and to ensure uniformity in the implementation of the provisions of law across the field formations, the Commissioner, in exercise of its powers conferred by section 168 of the UPSGST Act, hereby clarifies the issues detailed hereunder: 2.1 Section 77 of the UPSGST Act, 2017 reads as follows: "77. Tax ....

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.... not be required to pay any interest on the amount of integrated tax payable." 3. Interpretation of the term "subsequently held" 3.1 Doubts have been raised regarding 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 him....

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.... Tax Rules, 2017(hereinafter referred to as "UPSGST Rules") vide notification No. 1227/XI-2-21-9(42)/17T.C.58-U.P.GST-Rules-2017-Order-(226)-2022 dated 07.01.2022. The said sub-rule (1A) of rule 89 of UPSGST 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: Provid....

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....l.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. 1227/XI-2-21-9(42)/17T.C.58- U.P.GST Rules-2017-Order-(226)-2022 dated 07.01.2022, 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 transaction on 10.11.2021 i.e. after issuance of notification No. 1227/XI-2-21-9(42)/17T.C.58-U.P.GST Rules-2017-Order-(226)-202....