CBIC: Implementation of GST PMT-03 for Re-Crediting the ITC Approved as Refund

The Central Board of Indirect Taxes and Customs (CBIC) has circulated the ‘advisory’ regarding the implementation/execution of PMT-03 for re-crediting the Input Tax Credit (ITC) that has been approved as a refund.

The Board has Highlighted the following Notification:

“Notice bearing number16/2020-Central Tax dated March 23, 2020, through which sub-rule4 A has been added in Rule 86 of the CGST Rules, 2017 and Para 4 of the circular bearing number 135/05/2020 dated March 31, 2020, in which the procedure for refund of tax paid on supplies other than zero-rated supplies was furnished/provided.”

As per sub-rule, 4A of Rule 86 of the CGST Rules, 2017 that is read with Para 4 of the Circular dated March 31, 2020, a taxpayer is empowered to refund of tax that is wrongly paid or paid in excess (not zero-rated supplies), in the similar mode by which the liability of tax liability had been discharged, i.e.. If in case tax had been paid by

  • Partly debiting the cash ledger and
  • Partly debiting the credit ledger

Then the refund shall be approved/sanctioned and credited in the bank account of the taxpayer by issuing of RFD-05 and also the credit part ought to be re-credited to the electronic credit ledger of the taxpayer through PMT-03.

“The PMT-03 functionality available at present in the online refund module is only for re-crediting of the rejected amount that has been debited at the time of filing of refunds. In order to enable the operationalization of re-crediting of ITC (Input Tax Credit) sanctioned as refund towards tax wrongly paid or paid in excess by debiting the credit ledger, a new enhanced PMT-03 functionality has been developed and deployed in the system, the CBIC said.”

However, the new functionality is applicable and suitable only to the 4 types of refund as mentioned in the aforesaid referred circular namely

  1. refund of excess tax that has been paid;
  2. refund of tax that is paid on an intra-State supply that has been later held to be inter-State supply and vice versa;
  3. refund on account of provisional assessment/ assessment/any other order/appeal and
  4. refund on account of “any other” ground or reason
Yash Bapna (Ex-employee)

I hold a degree in law, a diploma in mass communication, and a degree in management. Though I am a lawyer by profession, but writing has always been one of the things that I'm passionate about.

View Comments

  • Hello sir,
    Can I file a fresh refund application for the same period for which the refund got rejected if I file an undertaking of not filing an appeal?
    Thanks

  • Dear Sir,

    Please let me know more on PMT-03 how it functioning.
    for ex: I have filed refund claim for Rs.100 in that commissioner been issued RFD-05 for Rs.50 which has been credited our bank account and for balance Rs.50 he has been issued PMT-03 and told us that it will get credited to our electronic credit ledger but its almost 4 months gone still its not credited yet.
    Please let us know is there any time limit / do we need to intimate somebody etc. please advise.

    Thanks
    Kashinath

Published by
Yash Bapna (Ex-employee)

Recent Posts

No GST Returns Will Be Accepted If Filed More Than 3 Years Past Their Due Date

An advisory has been released by the Goods and Services Tax Network (GSTN) which notifies…

12 hours ago

Delhi HC: Two Judgment Orders Against One SCN Cannot Be Accepted for the Same Period

It was cited by the Delhi HC that the two adjudication orders against one SCN…

14 hours ago

CBDT Allows Electronic Filing of Forms 3CEDA and 3C-O Via Notification No. 5/2024

The Central Board of Direct Taxes (CBDT) in an update for the taxpayers via the…

15 hours ago

October 2024 Records the 2nd Highest GST Collection, Driven by Domestic Sales

In October, Gross GST collection surged to 9% to Rs 1.87 lakh crore, the second…

17 hours ago

UP AAR: GST Will Be Levied on the Installation of Electricity Distribution Systems by DISCOMs

Goods and Services Tax (GST) is to get paid on the procurement of materials and…

2 days ago

Bombay HC Quashes Rejection Order for Voluntary GST Cancellation Due to Lack of Stated Reasons

The Bombay High Court carried that as the revocation orders for the registration cancellation on…

3 days ago