Transitional Provisions under GST Part9 –When There is a Revision in Return After GST becomes effective

There could be a situation when a return filed by registered taxable person with regard to the Service Tax or Excise Duty or VAT undergoes revision. In such a scenario, the question arises how to treat additional tax or refund of taxes?

The above situation is addressed by section 185 of Model GST Law

Treatment of Tax Payable When There is a Revision of Return under CGST and SGST

Where any return, furnished under the earlier law, is revised after GST becoming effective and if, pursuant to such revision, any amount is found to be recoverable or any amount of cenvat credit or input tax credit is found to be inadmissible, the same shall be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act.

Point to be Noted: The amount so payable will be treated as an arrear of tax and will be not allowed as Input Tax Credit Under GST

Treatment of Tax Refund When There is a Revision of Return under CGST and SGST

Where any return, furnished under the earlier law, is revised after GST becoming effective and if, pursuant to such revision, any amount is found to be recoverable or any amount of cenvat credit or input tax credit is found to be refundable, then same will be either paid in cash or in accordance with earlier provisions of law

Point to be Noted: The revision should be filed within time-limit prescribed under earlier law

Point of Distinction between CGST AND SGST

In CGST, if there is any refund will be paid in cash, whereas in SGST it will be be paid in accordance with State VAT Law