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GST refund paid as estimated tax liability

Sangeeth Kumar (Tax Consultant) (5 Points)

04 November 2024

Hello Friends,

Application for GST Registration as a casual taxable person got rejected. Estimated tax liability paid while applying for registration.

While applying GST Refund under "Refund of excess balance in electronic cash ledger", when we submitting the application, it asks for aadhaar authentication. Aadhaar authentication link not working, it gets struck in that page.

Aadhaar authenticated already during registration application.

Now, how to get refund for the amount paid as estimated tax liability?

Thanks in advance.

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4 Replies

Sahil Jaiswal (Article Assistant) (1072 Points)
Replied 05 November 2024

Hello,

If your GST registration as a casual taxable person was rejected but you’ve already paid the estimated tax liability, the refund process should be fairly straightforward. Here’s what you can do to resolve the Aadhaar authentication issue and proceed with your refund application:

Verify Aadhaar Authentication Status
- Since you've already completed Aadhaar authentication during the registration process, your authentication status should ideally reflect in the GST portal. However, if it’s still asking for authentication during the refund process, this may be a technical glitch.
Clear Cache and Try Different Browser
- Sometimes, technical issues on the GST portal can be resolved by clearing your browser’s cache or using a different browser (like Chrome, Firefox, or Edge). This can help if the Aadhaar authentication link is getting stuck due to browser compatibility issues.
Try Aadhaar Authentication on Mobile or Other Device
- Another workaround is to try completing Aadhaar authentication on a mobile device or another computer, as it might process differently and allow you to proceed.
Raise a Grievance on GST Portal
- If the issue persists, raise a grievance ticket on the GST portal (https://selfservice.gstsystem.in/). Select Refunds as the issue category, explain the problem, and attach any relevant screenshots. GST support typically responds within a few days, and they may be able to reset the authentication requirement or process the refund manually.
Contact GST Helpdesk
- Reach out to email helpdesk @ gst.gov.in. Explain that your Aadhaar authentication was already completed during registration, and you’re unable to proceed with the refund application due to a technical glitch.
Alternative Route for Refund Application
- If the above steps don’t resolve the issue, you may also consider filing the refund offline through your jurisdictional GST office. Contact your local GST officer, explain the situation, and provide proof of the rejected registration and estimated tax payment. The officer may guide you through the offline process or escalate your issue within the system.

Following these steps should help you navigate the Aadhaar authentication issue and proceed with your refund application for the amount paid as an estimated tax liability.

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Sahil Jaiswal (Article Assistant) (1072 Points)
Replied 05 November 2024

Hello,

Since the goods purchased from China were directly dispatched to Germany without entering India, this transaction is treated as a high-seas sales or an “out-and-out” supply under Indian GST law. Here’s the GST treatment and how to show it in accounting and GST returns.

1. GST Liability

Under GST law, goods that do not enter Indian customs territory are generally not considered a supply within India. Therefore, this transaction is not subject to GST in India, as it does not qualify as an import or export in India.
This is because GST is applicable on goods that are supplied within India or imported into India, and here, neither of those conditions are met.

2. Accounting Treatment

Record as Purchase and Sale Transaction: Even though there is no GST liability, you should record this transaction in your accounts as both a purchase (from the supplier in China) and a sale (to the buyer in Germany).
Currency and Exchange Rate: Record the purchase and sale in the applicable foreign currency (e.g., USD, EUR, etc.), and convert it to INR for accounting at the exchange rate on the date of transaction.
No GST in Accounts: Since no GST is applicable, ensure that neither Input GST nor Output GST is recorded in your accounting ledgers for this transaction.

3. GST Return Reporting

Since this transaction does not involve GST liability, it does not need to be reported in GSTR-1 or GSTR-3B.
However, to maintain transparency and complete records, it’s a good practice to disclose this transaction in the Notes section of your financial statements, specifying that the goods were sold on a high-seas basis and did not enter Indian territory, hence no GST was applicable.

Summary

GST Impact: No GST applicable as goods did not enter Indian customs territory.
Accounting: Record as foreign purchase and sale transactions without GST impact.
GST Return: Not to be reported in GST returns (GSTR-1 or GSTR-3B), but disclose it in financial statement notes for clarity.

Sangeeth Kumar (Tax Consultant) (5 Points)
Replied 05 November 2024

Thanks for your reply...

Sangeeth Kumar (Tax Consultant) (5 Points)
Replied 11 November 2024

I have filed grievance to help desk on 04.11.2024. They were asking the screenshot of the error page for three times. I replied for all their mails with screenshots. Still now no solution for this issue and the ticket status is open.

how long it will take to resolve?