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CBIC notifies procedure for availing refund of GST by
unregistered buyers, reversal and re-availment of ITC in
case of non payment
The notification has also covered a long pending demand
of the industry for re-availment of credit in case of
reversal of credit due to non-payment by the supplier by
insertion of a new rule 37A.
In a move that will
benefit homebuyers in case of cancelled bookings, the
government has notified the procedure for filing of
refund of Goods and Services Tax by unregistered buyers
in the case of cancellation of agreement for supply of
service. The procedure can also be used for refund in
case of a cancelled long term insurance policy.
This, along with a host of
other measures and procedures, has been notified by the
Central Board of Indirect Taxes and Customs in line with
the decisions taken at the 48th meeting of the Goods and
Services Tax Council.
It has also amended Rule
37(1) of the CGST Rules with effect from October 1, 2022
to state that a registered person, who fails to pay to
the supplier, the amount towards the value of such
supply, whether wholly or partly along with the tax
payable thereon, within the time limit, shall pay or
reverse an amount equal to the ITC availed in respect of
such supply proportionate to the amount not paid to the
supplier along with interest.
The notification has also
covered a long pending demand of the industry for re-availment
of credit in case of reversal of credit due to
non-payment by the supplier by insertion of a new rule
37A.
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