The Uttar Pradesh GST Department has issued clarification w.r.t. issues relating to claiming of refund of tax wrongfully paid to the government under GST provisions.
The Board, on receipt of representations seeking clarification on the issues in respect of a refund of tax wrongfully paid as specified in section 77(1) of the Uttar Pradesh Goods and Services Tax Act, 2017 and section 19(1) of the Integrated Goods and Services Tax Act, 2017, has said that “doubts have been raised regarding the interpretation of the term “subsequently held” in the aforementioned sections, and whether refund claim under the said sections is available only if supply made by a taxpayer as inter-State or intra-State, is subsequently held by tax officers as intra-State and inter-State respectively, either on scrutiny/ assessment/ audit/ investigation or as a result of any adjudication, appellate or any other proceeding or whether the refund under the said sections is also available when the inter-State or intra-State supply made by a taxpayer, is subsequently found by the taxpayer himself as intra-State and inter-State respectively.”
In this regard, it is clarified that “the term “subsequently held” in section 77 of UPSGST Act, 2017 or under section 19 of IGST Act, 2017 covers both the cases where the inter-State or intra-State supply made by a taxpayer, is either subsequently found by the taxpayer himself as intra-State or inter-State respectively or where the inter-State or intra-State supply made by a taxpayer is subsequently found/ held as intra-State or inter-State respectively by the tax officer in any proceeding. Accordingly, refund claim under the said sections can be claimed by the taxpayer in both the above-mentioned situations, provided the taxpayer pays the required amount of tax in the correct head.”
It was further clarified that the recent amendment in rule 89 of UPSGST Rules, 2017 clarifies that the refund under section 77 of UPSGST Act/ Section 19 of IGST Act, 2017 can be claimed before the expiry of two years from the date of payment of tax under the correct head, i.e. integrated tax paid in respect of subsequently held inter-State supply, or central and state tax in respect of subsequently held intra-State supply, as the case may be. However, in cases, where the taxpayer has made the payment in the correct head before the date of issuance of notification No. 1227/XI-2-21-9(42)/17T.C.58-U.P.GST Rules-2017-Order-(226)-2022 dated January 07, 2022, the refund application under section 77 of the UPSGST Act/ section 19 of the IGST Act can be filed before the expiry of two years from the date of issuance of the said notification. i.e. from September 24, 2021.
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