Page 20 - GSTL_ 28th May 2020_Vol 36_Part 4

J80 GST LAW TIMES [ Vol. 36
Whether registered person, who has paid GST on receipt of advance
amount, cannot adjust the same against his tax liability in his return
when whole of the advance amount is refunded?
In this regard, our analysis is as follows :-
(i) A registered person is required to pay GST on receipt of advance
amount towards supply of services and required to issue receipt
voucher. There is no requirement to pay GST on receipt of advance
amount towards supply of goods since the same is exempted vide
CGST (Non-Rate) Notification No. 66/2017, dated 15 November,
2017.
(ii) As per Section 31(3)(e) of CGST Act, 2017 when such advance
amount is refunded, since no supply is made, and in pursuance of
which no tax invoice is issued, the registered person is required to
issue refund voucher to the person who has made advance pay-
ment.
It is pertinent to note here that there is no provision in GST law which debars a
registered person from adjusting GST liability in respect of advance amount re-
funded through regular GST returns. In fact the statute indicates that GST amount
paid on advance amount, which is refunded subsequently, can be adjusted
through regular GST returns. In this regard reliance is placed upon the Table
Number 9 of GSTR-1 form notified vide CGST Rules, 2017. Table 9 of GSTR-1 is
reproduced below :-

Details of Revised details of document or Rate Tax- Amount Place
original details of original Debit/Credit able of
document Notes or refund vouchers Va- sup-
lue ply
GS- Inv. Inv. GS- Invoice Shipping Val- Int- Cen- State/ Cess
TIN No. Da- TIN bill ue egr- tral UT
te ated Tax Tax
Tax
No. Da- No. Da-
te te
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
9A. If the invoice/Shipping bill details furnished earlier were incorrect
9B. Debit Notes/Credit Notes/Refund voucher [original]

9C. Debit Notes/Credit Notes/Refund voucher [amendments thereof]

(emphasis supplied)
It is evident from above (table 9B) that similar to tax adjustment in respect of ‘Debit
Notes’ and/or ‘Credit Notes’ through regular GST returns, the same is also al-
lowed in respect of ‘Refund Voucher’. Hence, there is no bar in GST law which
allows only filing of refund claim in respect of GST paid on advance amount which
is subsequently refunded. Refund can be filed by the registered person if registered
person is unable to adjust the same against his output liability. Thus, following
conclusions can be made :-
[Continued on page J89]

GST LAW TIMES  28th May 2020  20