TaxTMI 
TaxTMI 
GST | Refund or Adjustment of Tax Paid Pursuant to Favourable Advance Ruling
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....ST | Refund or Adjustment of Tax Paid Pursuant to Favourable Advance Ruling <br> Query (Issue) Started By: - Abhijeet Mane Dated:- 10-8-2026 Goods and Services Tax - GST <br> Got 1 Replies <br> GST<br> <br> If an assessee has paid GST on a transaction for past periods and subsequently obtains a favourable AAR/AAAR holding that the transaction is exempt/not taxable, whether the assessee need to man....
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....datory refund of GST already paid for prior periods? Or, whether the tax already paid be adjusted through GSTR-3B or is refund under Section 54 the only remedy? --Reply By: Sanjeev Agarwal The Reply: A favourable AAR/AAAR does not, by itself, require the assessee to refund or reverse GST already paid for past periods. However, if the assessee seeks recovery of such GST on the basis that the tra....
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....nsaction was exempt/non-taxable, the normal statutory remedy is a refund claim under Section 54, subject to limitation and unjust-enrichment requirements. The assessee should not ordinarily adjust the historical GST merely by reducing its liability in a subsequent GSTR-3B. Such adjustment cannot be treated as a general substitute for the statutory refund mechanism, particularly in view of the Supr....
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....eme Court's decision in Bharti Airtel on rectification of GSTR-3B. Where the Section 54 limitation has expired, a separate examination is required as to whether the amount was collected/retained without authority of law and whether an Article 265/writ remedy is available. This is fact- and jurisdiction-sensitive. <br>***<br> Discussion Forum - Knowledge Sharing....