The Excise and Taxation Commissioner, Haryana vide a Notification dated 9th June 2020 has announced various relief measures for facilitating taxpayers in meeting the compliance requirements under Haryana Goods and Services Tax Act 2017 (HGST) on account of the measures taken to prevent the spread of Novel Corona Virus (COVID-19).
It has been brought to the notice of the Excise and Taxation Department that certain challenges are being faced by taxpayers in adhering to the compliance requirements under various other provisions of the Haryana Goods and Services Act 2017. The issue has been examined and in order to bring uniformity in implementation of HGST provisions, the following clarifications are issued-
|1||An advance is received by a supplier for a Service contract which subsequently got cancelled. The supplier has issued the invoice before supply of service and paid the GST thereon. Whether he can claim refund of tax paid or is he required to adjust his tax liability?||He is required to issue a “credit note” in terms of section 34 of the HGST Act. He shall declare the details of such credit notes in the return for the month during which such credit note has been issued. The tax liability shall be adjusted in the return. There is no need to file a separate refund claim.|
|2||An advance received by a supplier for Service contract which got cancelled subsequently. The supplier has issued receipt voucher and paid the GST on such advance received. Whether he can claim refund of tax paid on advance or he is required to adjust his tax liability in his returns?||He is required to issue a “refund voucher” in terms of section 31 (3) (e) of the HGST Act. The taxpayer can apply for refund of GST paid on such advances by filing FORM GST RFD-01 under the category “Refund of excess payment of tax”.|
|3||Goods supplied by a supplier under cover of a tax invoice are retuned by the recipient. Whether he can claim refund of tax paid or is he required to adjust his tax liability in his returns?||The supplier is required to issue a “credit note” in terms of section 34 of the HGST Act. He shall declare the details of such credit notes in the return for the month during which such credit note has been issued. The tax liability shall be adjusted in the return. There is no need to file a separate refund claim in such a case. In cases where there is no output liability against which a credit note can be adjusted, registered persons may proceed to file a claim under “Excess payment of tax, if any” through FORM GST RFD-01.|
|4||Letter of Undertaking (LUT) furnished for the purposes of zero-rated supplies which has expired on 31.03.2020. Whether a registered person can still make a zero-rated supply on such LUT and claim refund accordingly or does he have to make such supplies on payment of IGST and claim refund of such IGST ?||Time limit for filing of LUT for the year 2020-21 shall stand extended to 30.06.2020, and the taxpayer can continue to make the supply without payment of tax under LUT provided that the FORM GST RFD-11 for 2020-21 is furnished on or before30.06.2020.|
|5||While making the payment to recipient, amount equivalent to one per cent was deducted as per the provisions TDS. Whether the date of deposit of such payment has also been extended vide Notification 43/GST-2; dated 07.05.2020.||As per the Notification, the compliance requirements falls during the period from 20.03.2020 to 29.06.2020, the same has been extended till 30.06.2020. Accordingly, the due date for furnishing of return in FORM GSTR-7 along with deposit of tax deducted for the said period has also been extended till 30.06.2020 and no interest shall be leviable if tax deducted is deposited by 30.06.2020.|
|6||As per section 54 (1), a person is required to make an application before expiry of 2 years from the relevant date. If in a particular case, date for making an application for refund expires on 31.03.2020, can such person make an application for refund before 29.07.2020?||The compliance requirements falls during the period from 20.03.2020 to 29.06.2020, the same has been extended till 30.06.2020. Accordingly, the due date for filing an application for refund falling during the said period has also been extended till 30.06.2020|