64 The registered person has correctly prepared and filed GSTR-1 for the tax period JULY 2021. BUT 3B WAS NOT COORECTYLY FILED. The value of outward supply and output tax stated excess by Rs. 3606187 & 180305 respectively. No any correction was made regarding this error up to march2022. not correcting this error may cause loss of Rs. 180305. Whether refund can be claimed in terms of circular no26/26/2017? if yes which form should be used for claiming refund? alternatively whether such output tax can be adjusted in 3b of tax period may 2022?

Ans. You can take the benefit of clarification given in the circular, though the circular speaks about the adjustment in the subsequent return GSTR-1 or GSTR-3B as the case may be.

Further, also GST provision provides for the rectification in reporting till the 30th September (now amended to 30th November) or annual return whichever is earlier.

Therefore, you may adjust the liability in the current financial year GSTR-3B but before the due date of adjustment and a reconciliation can be provided if sought by the department.

It is to be noted that the department may take the clarification in a stringent manner and can deny the adjustment benefit taken in the current year and not in subsequent return.

Alternatively, you can file a refund application vide RFD-01 stating the option of excess payment of tax category.

63 Is Input Tax Credit available on purchase of Transformer?

Is there any decided case law or advance ruling in the favour or against the above?

Ans. The input tax credit is available to the recipient on goods or services which are used or intended to be used in the course or furtherance of his business.

Further, the credit shall not be allowed in case it is specifically denied to be availed under Section 17(5) of the CGST Act, 2017.

Therefore in your case, apparently it seems that there is no such restriction on the availability of input tax credit on the transformer. However, for further checking we need to understand the nature of business activity where such a transformer shall be used.

62 Rule violation under rule 96(10) of CGST act
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In response to demand letter from Asst Commissioner, Tuticorin customs, we wish to pay the IGST on imports customs duty which we had not done as it was imported under advance licence for the year 2020-2021 and submitted a reply for the same to Asst Commissioner, Tuticorin Customs in Feb 2022 to accept to pay the IGST on imports . But the AC,Customs has not replied on this so far. Since we are concerned about the interest accrual if any, we do not know, how to take this forward.

We are ready to pay IGST on imports customs duty to satisfy the rule 96(10), but the customs has not given its consent/directions/procedure to make the payment. Pl. advise us how we can proceed further on this matter.

Ans. This is a very subjective matter and needs proposal analysis of the facts and figures.

Firstly, if you want to go for the refund of IGST, then you are supposed to pay the amount on imports but availability of Input Tax Credit will be in question in the light of timelines for the availment of Input Tax Credit on imports. If you are not getting reply form the department, it  depends on the question you have raised in the reply submitted wherein you have accepted to pay the demand.

Secondly, if you continue to avail the benefit under advance licensing, in that case you can’t get for the refund under export with payment of duty, if any refund granted will be recovered by the department.

In case you have any further query, do let us know.

It is also advised to take a detailed opinion to have better clarity.