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Circular No. 168/24/2021 - GST

F.No. CBIC – 20021/04/2021– GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
******
New Delhi, dated the 30
th
December, 2021
To,

The Pr. Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)
The Principal Directors General / Directors General (All)

Madam / Sir,

Subject: Mechanism for filing of refund claim by the taxpayers registered in erstwhile
Union Territory of Daman & Diu for period prior to merger with U.T. of Dadra &
Nagar Haveli.

New GSTINs with UT Code 26 were created for the taxpayers of erstwhile UT of
Daman and Diu w.e.f 1
st
August, 2020 on merger of the UT of Dadra & Nagar Haveli and UT
of Daman & Diu. During the transition, the taxpayers have transferred their ITC balance from
their electronic credit ledger of the old GSTIN (by reversing the balance amount available in
electronic credit ledger through the last return in FORM GSTR 3B filed for the old GSTIN
prior to merger) to the new GSTIN (by availing the ITC for the said amount in the first return
in FORM GSTR 3B filed for the new GSTIN) as per procedure specified under Notification
No. 10/2020-CT dated 21.03.2020.

2 Representations have now been received from the field formations and trade/industry
that due to transfer of ITC from old GSTIN to new GSTIN, the taxpayers are unable to apply
for refund on account of zero-rated supplies and inverted rated structure for the period prior
to merger in respect of old GSTIN as they have no ITC available in the electronic credit
ledger of the old GSTIN for debiting the amount from electronic credit ledger for claiming
refund of unutilised ITC. Such taxpayers are also unable to apply for such refund claim from
the new GSTIN because all the invoices bear the old GSTIN and the system has certain
validations which do not allow the refund application to be filed from the new GSTIN for the
period prior to the merger.

3 The matter has been examined and to ensure uniformity in the implementation of the
provisions of law across the field formations, the Board, in exercise of its powers conferred
by section 168 (1) of the Central Goods and Services Tax Act, 2017, hereby prescribes the

following procedure in respect of the taxpayers, registered in the erstwhile UT of Daman &
Diu and who are unable to file refund claim, due to merger of UT of Dadra & Nagar Haveli
and UT of Daman & Diu, to enable such taxpayers to file refund claim for the period prior
to merger:

i. The application for refund shall be filed under ‘Any other’ category on the
GST portal using their new GSTIN. In the Remarks column of the
application, the applicant needs to enter the category in which the refund
application otherwise would have been filed. For example, if the applicant
wants to claim refund of unutilised ITC on account of export of
goods/services, in remarks column, he shall enter ‘Refund of unutilised ITC on
account of export of goods/services without payment of tax for the period prior
to merger of Daman & Diu with Dadra & Nagar Haveli’. The application
shall be accompanied by all the supporting documents which otherwise are
required to be submitted with the refund claim.
ii. At this stage, the applicant is not required to make any debit from the
electronic credit ledger.
iii. On receipt of the claim, the proper officer shall calculate the admissible refund
amount as per law. Further, upon scrutiny of the application for completeness
and eligibility, if the proper officer is satisfied that the whole or any part of the
amount claimed is payable as refund, he shall request the applicant, in writing,
if required, to debit the said amount from the electronic credit ledger through
FORM GST DRC-03. Once the proof of such debit is received by the proper
officer, he shall proceed to issue the refund order in FORM GST RFD-06 and
the payment order in FORM GST RFD-05.
iv. For the categories of refund where debit of ITC is not required, the applicant
may apply for refund under the category “Any other” mentioning the reasons
in the Remarks column. Such application shall also be accompanied by all the
supporting documents which are otherwise required to be submitted along
with the refund claim.

4. No refund claim, requiring debit from the electronic credit ledger or where the refund
would result in re-credit of the amount sanctioned in the electronic credit ledger, shall be filed
using old GSTIN.

5. It is requested that suitable trade notices may be issued to publicize the contents of
this circular. Difficulty, if any, in implementation of the above instructions may please be
brought to the notice of the Board. Hindi version would follow.


(Sanjay Mangal)
Principal Commissioner