The Tamil Nadu GST Department vide Circular No: 11/2022-TNGST dated 02nd September, 2022, has prescribed the procedure for re-crediting the amount in the electronic credit ledger using FORM GST PMT-03A.

If the refund has been sanctioned erroneously, re-credit of that amount can be done via Form GST PMT-03A in the electronic credit ledger, along with the interest and penalty paid by the taxpayer.

The taxpayer faced difficulties in taking credit of the amount in the electronic credit ledger in cases where any excess or erroneous refund sanctioned to them had been paid back by them either on their own or on being pointed out by the tax officer.

In order to resolve the issue, GSTN developed a new functionality of FORM GST PMT-03A which allows proper officers to re-credit the amount in the electronic credit ledger of the taxpayer.

Rule 86(4B) of the Tamil Nadu Goods and Services Tax Rules, 2017 has been inserted to provide for re-credit in the electronic credit ledger where the taxpayer deposits the erroneous refund.

The department, with a view to ensuring uniformity in the implementation of the provisions of the law across field formations, has notified the procedure for Re-credit of amount in Electronic credit ledger. 

The taxpayer shall deposit the amount of the erroneous refund along with applicable interest and penalty, wherever applicable, through FORM GST DRC-03 by debit of the amount from the electronic cash ledger. While making the payment through FORM GST DRC-03, the taxpayer shall clearly mention the reason for making the payment in the text box as the deposit of an erroneous refund of unutilised ITC or the deposit of an erroneous refund of IGST obtained in contravention of rule 96 (10) of the TNGST Rules.

Till the time an automated functionality is developed on the portal for handling such cases, the taxpayer shall make a written request to the jurisdictional proper officer in Annexure- A, to re-credit the amount equivalent to the amount of refund thus paid back through FORM GST DRC-03 to the electronic credit ledger.

The proper officer, on being satisfied that the full amount of erroneous refund along with applicable interest as per Section 50 and penalty, if applicable has been paid by the registered person in FORM GST DRC-03 by way of debit in the electronic cash ledger, shall re-credit the amount in the electronic credit ledger. The amount shall be equivalent to the amount of erroneous refund so deposited by the registered person, by passing an order in FORM GST PMT-03A, preferably within a period of 30 days from the date of receipt of the request for re-credit of the erroneous refund amount so deposited or from the date of payment of the full amount of the erroneous refund along with applicable interest and penalty, whichever is later.

The Circular can be accessed at https://ctd.tn.gov.in/documents/10184/249230/Circular+No.11_2022/b99d6dc1-6b17-4b8b-ab92-4e3920a9dd8a?version=1.0