Question

When IGST refund of lower value granted as per para 9.1 of Circular No. 37/11/2018-GST dated 15th March, 2018, what will be the treatment for remaining IGST already paid. Para 91. “During the processing of the refund claim, the value of the goods declared in the GST invoice and the value in the corresponding shipping bill / bill of export should be examined and the lower of the two values should be sanctioned as refund.” When Discrepancy between values of GST invoice and shipping bill/bill of export appears. Say, refund received Rs,1,01,000/- based on shipping bill in a case Rs. 1,10,000/- IGST was paid as per GST invoice. What to do with Rs. 9000/- paid but not refunded. Whether that will be loss to tax payer or any remedy is available to get it back either as credit or cash?

Answer

When the tax deposited at the time of clearance is more than the actual refund claim given to the assessee then the balance amount should be allowed to be taken back to the ITC account (if the tax was paid from the ITC account).

This should be mentioned in the order of refund claim. If the order of refund claim does not contain any information like this then you should approach to the Proper Officer. (Reply dt.01/09/2018)