Q.19 What are the supporting documents required for cash ledger refund ?

Ans. As per the proviso to sub-section (1) of Section 54 of CGST Act' 2017,refund of balance in the electronic cash ledger can be claimed by way of furnishing returns under Section 39.

However, practically the refund of balance in electronic cash ledger is being filed through Form GST RFD-01 on the GST portal. There is no mandatory requirement to upload supporting documents in relation to filing of such refund. Once the refund is applied the portal automatically computes any liability which may arise on the basis of mismatch of GSTR-1 with GSTR-3B filed by the registered person and a notice is issued to clarify such gap. Where there is no such gap, the refund is sanctioned accordingly 

Q.18 Under RCM, one has to issue tax invoice as well as payment voucher? Also why the prescribed payment voucher is to be sent to the supplier? 

Ans. Yes, in cases where tax is to be paid by the recipient on reverse charge basis, the recipient is required to issue a payment voucher to comply with Section 31(3)(g). The payment voucher so issued is to be sent to the supplier, being the proof that tax has been paid on reverse charge on the said supply and the consideration has been paid to the supplier.

Q.17 Is there a need to pay interest on wrongly availed ITC…?

What is the take of industry, if we are having enough ECL balance at the time of wrong availment? 

Ans. In terms of Section 50(3) as proposed in Finance Bill, 2022 and decision in 45th GST Council Meeting interest is to be charged only when ITC has been wrongfully availed and utilized, which means interest is to be calculated only where balance of credit is not available in the Electronic Credit ledger. Further, with reference to relevant case laws, it is clear that interest has to be charged where input has been wrongly availed and utilized, and not just upon availment of credit.

As per industry norms, interest is being paid on availment and utilisation.