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CA certification under rule 89(2)(m) and Statement 7 under rule 89(2)(k)

Tarun rawat (cvbv) (42 Points)

16 July 2021

Whether a CA certification under rule 89(2)(m) and Statement 7 under rule 89(2)(k) are required to submit with RFD-01, in the case where the taxpayer has excess cash balance in electronic cash ledger more the RS.2 lac due to TCS cash credit ( u/s 54 of CGST Rule 89).

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7 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 17 July 2021

Yes under Rule 89(2)(k) , the CA certificate is required if Refund claim exceeds 2lac rupees. (refer Annexure A of point 8 of Circular 125 )
Kindly Refer the proviso under clause (m) of Rule 89(2) of CGST Act , states that CA certificate is not required in respect of cases cover under clause (a) to (d) & (f) of Section 54 of CGST Act .
So this clauses do not cover "refund from cash Ledger"

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CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 17 July 2021

CA certificate not required for cash ledger refunds

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Tarun rawat (cvbv) (42 Points)
Replied 17 July 2021

Pankaj ji ....what about 1st proviso of section 54 and 1st proviso of rule 89 and CA zafer how its not required?

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 17 July 2021

Dear Tarun Rawat
According to your Query : The Refund u/r 89(2)(k) is " Amount claim on account of Excess payment of Tax " & Refund from cash Ledger is 2 different clause under which refund is claimed.

First of all point is arises where the CA certificate is required :
1. When the refund is more then 2lac & where the taxpayer is required to proof that the incidence of tax is passed to Recepient.

Now the refund from Cash Ledger , it' is belong to Taxpayer (Taxpayer money) so the Question of incidence of tax passed to Recepient is not arises.

Moreover In term of proviso under Section 54(1) r/w Rule 89(1) Of CGST Act , the the refund from cash ledger can be claimed accordance to the section 49((6) & as per section 49(6) the refund from cash Ledger can be claimed through the return filed in GSTR 3 for the relevant period . That means after being set-off your liability , the refund can be claimed from cash ledger once your return for the relevant period has been filed.

But due to Non implementation of GSTR 3 , the RFD01 is required to file refund from cash ledger.

Thus in short to claim refund from cash ledger not required the CA cerification.

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