Re Crediting Order Under Gst

If the proper officer rejects (whether wholly or partially) the

refund claim filed by the applicant. Then, in such case, the proper officer is required to issue an order for re-credit of the rejected amount. Such an order for re-credit will be issued in Form GST PMT-03. The present article explains the types of refund and relevant debit ledger; provisions relating to refund claim and rejection of refund claim and provisions relating to the order to re-credit.

Various types of refund vis-à-vis ledger debit

The following table explains the different types of refund and corresponding ledger from which the amount gets debited-

Type of refund	Ledger from which the amount is debited
Refund of the excess balance of cash in the electronic cash ledger.	Electronic Cash Ledger
Refund of accumulation of input tax credit on account of inverted duty structure.	Electronic Credit Ledger
Refund of accumulation of input tax credit on account of export of goods/ services without payment of tax.	Electronic Credit Ledger
Refund on account of supplies made to Special Economic Zone unit or a developer without payment of tax.	Electronic Credit Ledger
Refund to the recipient of deemed export supplies.	Electronic Credit Ledger

Provisions relating to refund claim and rejection of refund claim

The flow of filing of refund application, the process of the same by the proper officer and action of the proper officer is explained hereunder- Under Goods and Services Tax, the taxpayer can claim the refund of excess GST/ interest or any other amount paid by filing a refund application. As and when the refund application is filed, the electronic cash ledger or electronic credit ledger gets debited with the amount of refund claimed. After scrutinizing the refund application, the proper officer will take any of the following action-

Allow the refund, if found appropriate, or
Reject the refund, if found inappropriate, or
Partially allow the refund.

Cases, wherein, the refund is allowed, an order in Form GST RFD-06 will be issued. However, in case of partial or full rejection of refund claim an order in Form GST PMT-03 will be issued.

Provisions relating to the order to re-credit

In case the amount claimed as refund is rejected either partially or fully. The amount already debited, to the extent of rejection, shall be re-credited to the electronic credit ledger. However, such re-credit is possible only based on the re-credit order passed by the proper officer in Form GST PMT-03. Order in Form GST PMT-03 will contain following details-

Basic details like-
- GSTIN of the applicant whose refund has been rejected.
- Name, trade name and address.
Details of debit entry like-
- Period or tax period to which the credit relates.
- Ledger from which the debit entry was made for claiming a refund.
- Debit entry number and date.
Refund application and rejection details like-
- Refund application reference number and date.
- Number and date of order vide which refund was rejected.
Details of the amount of credit like-
- Bifurcation of the amount of credit of tax, interest, penalty, fee, other and total.

Several important points worth noting

In case the refund application is incomplete, the proper officer will issue a deficiency memo. In such cases, wherein the deficiency memo is issued, the re-crediting order in Form GST PMT-03 is not required.
Before issuing re-crediting order in Form GST PMT-03, the proper officer is required to take an undertaking from the applicant stating that the applicant shall not file an appeal against the order.

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Frequently Asked Questions

Common questions about Re Crediting Order Under GST.

Form GST PMT-03 is an order issued by the proper officer when a refund claim filed by a taxpayer is rejected, either partially or fully. It serves to re-credit the rejected amount back to the taxpayer's electronic credit ledger.

Form GST PMT-03 is required to be issued by the proper officer when they reject (either wholly or partially) a refund claim filed by the applicant (taxpayer). It is necessary to re-credit the rejected amount back to the taxpayer's ledger.

Form GST PMT-03 contains details such as the applicant's GSTIN, name, trade name, and address. It also includes the period or tax period to which the credit relates, the ledger from which the debit entry was made for claiming a refund, the debit entry number and date, the refund application reference number and date, the order number and date vide which the refund was rejected, and the bifurcation of the amount of credit to be re-credited (tax, interest, penalty, fee, other, and total).

No, before issuing Form GST PMT-03 for re-crediting the rejected refund amount, the proper officer is required to take an undertaking from the applicant stating that they shall not file an appeal against the order rejecting their refund claim.

No, Form GST PMT-03 is not required in cases where the refund application is incomplete, and the proper officer has issued a deficiency memo. The re-crediting order is only required when the refund claim has been partially or fully rejected.

The amount rejected and to be re-credited is credited back to the taxpayer's electronic credit ledger based on the order in Form GST PMT-03 issued by the proper officer.

Various types of refunds can be claimed under GST, such as refund of excess balance in the electronic cash ledger, refund of accumulation of input tax credit on account of inverted duty structure or export of goods/services without payment of tax, refund on supplies made to Special Economic Zones, and refund to recipients of deemed export supplies. These refunds are debited from either the electronic cash ledger or the electronic credit ledger, depending on the type of refund.

No, the taxpayer has to provide an undertaking stating that they shall not file an appeal against the order rejecting their refund claim before the proper officer can issue Form GST PMT-03 for re-crediting the rejected amount.

After scrutinizing a refund application filed by a taxpayer, the proper officer can take one of three actions: allow the refund (issue Form GST RFD-06), reject the refund (issue Form GST PMT-03), or partially allow the refund (issue both Form GST RFD-06 for the allowed portion and Form GST PMT-03 for the rejected portion).

No, Form GST PMT-03 is only issued when the refund claim is rejected either partially or fully. If the refund claim is allowed in full, the proper officer will issue an order in Form GST RFD-06 instead.