Q. 218 In a case of GST refund under inverted duty, the ITC as per 3B is strictly as per 2B. GSTR-2B of particular period has invoices of previous month due to late return filing by suppliers. Now department issued SCN that ITC as per 3B is in excess of ITC as per 2A. Eg: ITC as per 2A: 100000 ITC as per 2B: 150000 ITC as per 3B: 150000 SCN issued that excess ITC amounting to Rs. 50000 is inadmissible. Circular 125/2019 speaks of GSTR-2A only as 2B was not introduced in 2020. Compliance of Rule 36 is mandatory for client whereas refunds are being rejected citing 2A where as Net ITC should have been as per 2B and not 2A. Please clarify.

Ans. Refund application for m/o April-2021. With effect from 1.1.2022, eligible ITC must be claimed as per GSTR-2B. Input tax credit to be claimed as per section 16 and rule 36 of the CGST rules, further rule 36(4) after implementation of Notification No. 40/2021 – Central Tax, clearly mentions to claim ITC as per GSTR-2B. Therefore, you can refer to the same and persuade the GST tax authorities not to consider the old circular.

Q. 217 We are being served SCN under RFD-08 after 80 calender days whereas law mandates sanction of refund within 60 days. Whether these days are working days or calender days. Please clarify.

Ans. In terms of rule 92(3) you are required to make a reply in Form GST RFD-09 within a period of 15 days from the receipt of this notice, after considering the reply, the GST officer will sanction or reject refund by issuing Form GST RFD-06. The time limit of 60 days shall be considered from the date of filing claim for refund as mentioned in the acknowledgment received for refund claim [Section 54(7) read with rule 90(1) and 90(2)]. There is no mention of working days or calendar days attached to it. In our view, 60 calendar days should be considered. 

Q. 216 Request to clarify that there are 4 group companies we use to purchase of goods in different companies and also we have been making payment some cases more than 180 days in such is gst to reverse. Request to clarify

Ans. Failure to make payment for the invoice within 180 days When the recipient of goods and services fails to pay to the supplier (except in case of supplies where tax is payable on reverse charge) the amount of tax towards the value of supply and the tax payable thereon within 180 days from the date of issue of invoice, the input tax credit availed shall be added to his output tax liability along with interest. Further, when the recipient makes the payment for invoice along with tax thereon, he shall be entitled to avail the ITC. Considering the above provisions, you are required to reverse the ITC claimed for the transactions mentioned above.