Time period for filing application for refund of excess balance in electronic cash ledger

Whether the provisions of sub- section (1) of section 54 of the CGST Act regarding time period, within which an application for refund can be filed, would be applicable in cases of refund of excess balance in electronic cash

ledger?

No, the provisions of sub-section (1) of section 54 of the CGST Act regarding time period, within which an application for refund can be filed, would not be applicable in cases of refund of excess balance in electronic cash ledger.

Requirement of furnishing declaration under Rule 89(2) for a refund of excess balance in electronic cash ledger

Whether certification/ declaration under Rule 89(2)(l) or 89(2)(m) of CGST Rules, 2017 is required to be furnished along with the application for refund of excess balance in electronic cash ledger?

No, furnishing of certification/ declaration under Rule 89(2)(l) or 89(2)(m) of the CGST Rules, 2017 for not passing the incidence of tax to any other person is not required in cases of refund of excess balance in electronic cash ledger as unjust enrichment clause is not applicable in such cases.

Refund of TDS/TCS deposited in electronic cash ledger

Whether refund of TDS/TCS deposited in the electronic cash ledger under the provisions of section 51 /52 of the CGST Act can be refunded as excess balance in the cash ledger?

• TDS/TDS u/s 51/52 of the CGST Act is equivalent to cash deposited in electronic cash.
• It is not mandatory for the registered person to utilize the TDS/TCS amount credited to his electronic cash ledger only for the purpose of discharging tax liability.
• The registered person is at full liberty to discharge his tax liability in respect of the supplies made by him during a tax period, either through debit in electronic credit ledger or through debiting electronic cash ledger, as per his choice and availability of balance in the said ledgers.
• Thus, the registered person is at full liberty to claim a refund of TDS/TCS lying in an electronic cash ledger.

Relevant date for the refund of tax paid on supplies regarded as deemed export by the recipient

Whether relevant date for the refund of tax paid on supplies regarded as deemed export by the recipient is to be determined as per clause (b) of Explanation (2) under section 54 of CGST Act and if so, whether the date of return filed by the supplier or date of return filed by the recipient will be relevant for the purpose of determining relevant date for such refunds?

Clause (b) of Explanation (2) under Section 54 of CGST Act reads as under:

“(b) in the case of a supply of goods regarded as deemed exports where a refund of tax paid is available in respect of the goods, the date on which the return relating to such deemed exports is furnished;”

On perusal of the above, it is clear that clause (b) of Explanation (2) under section 54 of the CGST Act is applicable for determining relevant date in respect of a refund of the amount of tax paid on the supply of goods regarded as deemed exports, irrespective of the fact whether the refund claim is filed by the supplier or by the recipient.

Further, as the tax on the supply of goods, regarded as deemed export, would be paid by the supplier in his return, therefore, the relevant date for purpose of filing of refund claim for refund of tax paid on such supplies would be the date of filing of the return, related to such supplies, by the supplier.