The mechanism for filing of refund claim by the taxpayers registered in erstwhile Union Territory of Daman & Diu for the period prior to the merger with U.T. of Dadra & Nagar Haveli
New GSTINs with UT Code 26 were created for the taxpayers of erstwhile UT of Daman and Diu w.e.f 1st August 2020 on the merger of the UT of Dadra & Nagar Haveli and UT of Daman & Diu.
During the transition, the taxpayers have transferred their ITC balance from their electronic credit ledger of the old GSTIN (by reversing the balance amount available in the electronic credit ledger through the last return in FORM GSTR 3B filed for the old GSTIN prior to the merger) to the new GSTIN (by availing the ITC for the said amount in the first return in FORM GSTR 3B filed for the new GSTIN) .
The taxpayers are unable to apply for a refund on account of zero-rated supplies and inverted rated structure for the period prior to the merger in respect of old GSTIN as they have no ITC available in the electronic credit ledger of the old GSTIN for debiting the amount from electronic credit ledger for claiming refund of unutilized ITC.
Taxpayers were unable to file refund applications for the period prior to the merger. To enable such a refund mechanism taxpayers should follow below guidelines:
The application for refund shall be filed under the ‘Any other’ category on the GST portal using their new GSTIN.
In the Remarks column of the application, the applicant needs to enter the category in which the refund application otherwise would have been filed.
For example, if the applicant wants to claim a refund of unutilized ITC on account of export of goods/services, in the remarks column, he shall enter ‘Refund of unutilized ITC on account of export of goods/services without payment of tax for the period prior to the merger of Daman & Diu with Dadra & Nagar Haveli’.
The application shall be accompanied by all the supporting documents which otherwise are required to be submitted with the refund claim.
The applicant is not required to make any debit from the electronic credit ledger.
Disclaimer: This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
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Published on: December 31, 2021