Transitional Provisions under GST Part6 –Treatment of Claim for Refund Pertaining to Taxes Paid Earlier

There could be a situation where refund has to be claimed for amount of cenvat credit or input tax credit paid before GST once becomes effective. This situation is addressed by section 179 of GST Law

Refund of Cenvat Credit, Taxes or Interest Paid under CGST

In such a scenario, every claim for refund filed by any person before or after the GST becoming effective, for refund of any amount of cenvat credit, duty, tax or interest paid before the GST becoming effective, shall be disposed of in accordance with the provisions of earlier law and any amount eventually accruing to him shall be paid in cash

Refund of Input Tax Credit, Tax and Interest under SGST

Every claim for refund filed by any person before or after the GST becoming effective, for refund of any amount of input tax credit, tax and interest paid before the GST becoming effective, shall be disposed of in accordance with the provisions of earlier law and any amount eventually accruing to him shall be refunded to him in accordance with the provisions of the said law

Point of Distinction between CGST AND SGST

In CGST, the refund will be paid in cash, whereas in SGST refund will be paid in accordance of State Law

Other Things to be considered

Any claim for refund of is fully or partially rejected, the amount so rejected shall lapse

No refund claim shall be allowed of any amount of input tax credit or CENVAT Credit where the balance of the said amount as on the GST becoming effective has been carried forward under this Act.