Payment Of Tax PDF

PAYMENT OF TAX Introduction: Under GST regime for any intra state supply, taxes to be paid are the CGST & SGST/UTGST for any inter state supply, taxes to be paid is IGST which has components of both CGST and SGST. The introduction to E-Ledgers is a unique feature under the GST regime. E-Ledgers are...

PAYMENT OF TAX Introduction: Under GST regime for any intra state supply, taxes to be paid are the CGST & SGST/UTGST for any inter state supply, taxes to be paid is IGST which has components of both CGST and SGST. The introduction to E-Ledgers is a unique feature under the GST regime. E-Ledgers are of 2 types: One set is prepared and updated by the tax payer- Electronic Cash Ledger and Electronic Credit Ledger Second set is Electronic Liability Register, prepared and updated on the basis of returns furnished by the registered person. Key Features of Payment Process: Electronically generated challan from GSTN common portal in all modes of payment there is no use of manually prepared challans; Facilitation for the tax payer by providing hassle free, anytime, anywhere mode of payment of tax; Convenience of making payment online Logical tax collection data in electronic format Paperless transactions Speedy accounting and reporting Electronic reconciliation of all receipts Simplified procedure for banks Warehousing of digital challan Electronic Ledgers: E-Ledgers are statements of cash and input tax credit in respect of each registered taxpayer. In addition, each taxpayer should also have an electronic tax liability register. Types of Electronic Ledgers: 1. Electronic Cash Ledger: ✓ The electronic cash ledger contains a summary of all the deposits/payments made by a tax payer. The deposit in the electronic cash ledger shall be made through any of the following modes namely: o Internet banking through authorized banks o Credit card or debit card through authorized banks o National electronic fund transfer or Real time gross settlement from any bank; or o Over the counter payment through authorized banks for deposits up to ten thousand rupees per challan per tax period, by cash, cheque or demand draft. ✓ The amount available in the electronic cash ledger may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the provisions of this act or the rules made there under. ✓ The electronic cash ledger under 49 (1) shall be maintained in FORM GST PMT- 05 for each person, liable to pay tax, interest, penalty, late fee or any other amount, on the common portal for crediting the amount deposited and debiting the payment therefrom towards tax, interest, penalty, fee or any other amount. ✓ Any person or a person on his behalf shall generate a challan in FORM GST PMT-06 on the common portal and enter the details of the amount to be deposited by him towards tax, interest, penalty, fees or any other amount. Validity Period: Provided that the challan in FORM GST PMT-06 generated at the common portal shall be valid for a period of 15 days. ✓ NOTE 1: Exception: The restriction for deposit up to ten thousand rupees per challan in case of an over-the-counter payment shall not apply to deposit to be made by: o Government department or any other deposit to be made by persons as may be notified by the Commissioner in this behalf; o Proper Officer or any other Officer authorized to recover outstanding dues from any person, whether registered or not; including recovery made through attachment or sake of movable or immovable properties; o Proper Officer or any other Officer authorized for the amounts collected by way of cash, cheque or demand draft during any investigation or enforcement activity or any ad hoc deposit. ✓ NOTE 2: A person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient may also make the deposit under sub rule (2) through international money transfer through Society for Worldwide Interbank Financial Telecommunication payment network, from the date to be notified by the board. ✓ NOTE 3: For the purpose of this sub rule, it is hereby clarified that for making payment of any amount indicated in the challan, the commission, if any, payable in respect of such payment shall be borne by the person making such payment. ✓ Any payment required to be made by a person who is not registered under the Act, shall be made on the basis of a temporary identification number generated through the common portal. ✓ Where the payment is made by the way of NEFT or RTGS or immediate payment services mode from any bank, the mandate form shall be generated along with the challan on the common portal and the same shall be submitted to the bank from where the payment is to be made. The mandate form shall be valid for a period of 15 days from the date of registration of challan. ✓ On successful credit of the amount to the concerned government account maintained in the authorized bank, a challan identification number shall be generated by the collecting bank and the same shall be indicated in the challan. ✓ On receipt of the challan identification number from the collecting bank, the said amount shall be credited to the electronic cash ledger of the person on whose behalf the deposit has been made and the common portal shall make available receipt to this effect. ✓ Where the bank account of the person concerned or the person making the deposit on his behalf, is debited but no challan identification number is generated or generated but not communicated to the common portal, the said person may represent electronically in FORM GST PMT 07 through the common portal to the bank or electronic gateway through which the deposit was initiated. ✓ In cases where bank fails to communicate the challan identification number details of taxes paid through e-payment mode to GST system for updated the electronic cash ledger, the ECL of such taxpayers are updated next day on the basis of RBI e-scroll file containing the successful payment made against the CIN as shared by banks with RBI. However, there is presently no provision in the CGST Rules, 2017 providing for such updating of ECL based on e-scroll of RBI. Where the bank fails to communicate details of challan identification number to the common portal the electronic cash ledger may be updated on the basis of e-scroll of the RBI in cases where the details of the said e-scroll are in conformity with the details in challan generated in FORM GST PMT 06 on the common portal. ✓ In any amount deducted under TDS or collected under TCS and claimed by the registered taxable person from whom the same amount was deducted or as the case may be collected shall be credited to his electronic cash ledger. ✓ Where a person has claimed refund of any amount from the electronic cash ledger the said amount shall be debited to the electronic cash ledger. ✓ If the refund so claimed is rejected, either fully or partly, the amount debited to the extent or rejection, shall be credited to the electronic cash ledger by the proper officer by any order made in FORM GST PMT 03 ✓ A registered person shall upon noticing any discrepancy in his electronic cash ledger, communicate the same to the officer exercising jurisdiction in the matter, through the common portal in FORM GST PMT 04. The refund shall be deemed to be rejected if the appeal is finally rejected. ✓ A registered person may on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under the act to the electronic cash ledger for integrated tax, central tax, state tax or union territory tax or cess in FORM GST PMT 09. ✓ Common portal Identification number is 14-digit number generated when a challan is created before payment of GST. CPIN is used to identify the GST challan. GST tax challan is prepared online and as such GST tax challan can be saved temporarily without instructing for generation of final GST challan. However, once after finalizing the tax challan after cross checking and scrutiny the tax payer can submit such challan draft for generating GST challan. After submission of such data for GST challan, GSTN generates challan bearing a 14- digit unique number to identify the challan, which is called CPIN. The GST challan is valid for 15 days. The tax payer can either pat GST with such challan bearing CPIN within 15 days of its generation or he can request for a fresh GST challan online. ✓ Challan identification number is a 17-digit number generated when a challan is paid. Thus, CIN is generated after payment of GST. It Comprises of 14-digit  CPIN and 3-digit bank code. CIN is used to track the status of GST challan, whether paid or unpaid. ✓ Bank Reference Number is the transaction number given by the bank for a payment against a challan. ✓ E-FPB stand for Electronic Focal Point Branch. These are branches of authorized banks which are authorized to collect payment of GST. Each authorized bank will nominate only a branch as its E-FPB for Pan India Transaction. The E-FPB will have to open accounts under each major head for all governments. Any amount received by such E-FPB towards GST will be credited to the appropriate account held by such E-FPB. For NEFT/RTGS transaction, RBI will act as E-FPB. 2. Electronic Credit Ledger ✓ The self-assessed input tax credit (ITC) by a registered person shall be credited to its electronic credit ledger or electronic input tax credit ledger. ✓ The amount available in the electronic credit ledger may be used for making payment towards output tax under CGST, SGST, UTGST or IGST ✓ Electronic Credit ledger cannot be utilized for tax payable under reverse charge mechanism. ✓ Manner of utilization of credits: o RANK 1: IGST: Integrated tax shall first be utilized towards payment of integrated tax and the amount remaining, if any, may be utilized towards the payment of central tax and state tax or as the case may be union territory tax in that order. o RANK 2: CGST: And the amount remaining, if any, may be utilized towards the payment of integrated tax. o RANK 3: SGST/UTGST: The state/ union territory tax shall be first utilized towards payment of state tax/union territory tax and the remaining if any may be utilized towards payment of integrated tax. Provided that ITC on account of state tax/ union territory tax shall be utilized towards payment of integrated tax only where the balance of input tax credit on account of central tax is not available for payment of integrated tax. o The central tax shall not be utilized towards payment of state tax or union territory tax and the state tax or union territory tax shall not be utilized towards payment of central tax. ✓ The central tax shall not be utilized towards payment of State tax or Union territory tax. ✓ The State tax or Union territory tax should not be utilized towards payment of central tax. ✓ Electronic credit ledger shall be maintained in FORM GST PMT 02 for each registered person eligible for input tax credit under the act on the common portal and every claim of input tax credit under the act shall be credited to the said ledger. ✓ The electronic credit ledger shall be debited to the extend of discharge of any liabilities. ✓ Where a registered person has claimed refund of any unutilized amount from the electronic credit ledger, the amount to the extend of the claim shall be debited in the ledger. ✓ If the refund filed is rejected, either fully or partly, the amount debited to the extend of rejection shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT 03. ✓ No entry shall be made directly in the electronic credit ledger under any circumstances. ✓ A registered person shall upon noticing any discrepancy in his electronic credit ledger, communicate the same to the officer exercising jurisdiction in the matter through the common portal in FORM GST PMT 04. ✓ The balance in the electronic cash ledger or electronic credit ledger after payment of tax, penalty, interest, fees or any other amount payable may be refunded. ✓ Guidelines for disallowing debit of electronic credit ledger under rule 86A Total amount of ineligible or Officer to disallow debit of amount fraudulently availed ITC from Not exceeding 1 Crore Deputy Commissioner/ Assistant Commissioner ✓ In certain specified circumstances, Commissioner or an officer authorized by him, on the basis of reasonable belief that ITC available in the electronic credit ledger has been fraudulently availed or is ineligible, may not allow debit of an equivalent to such credit in electronic credit ledger. ✓ Grounds for disallowing debit of an amount from electronic credit ledger: o The credit is availed by the registered person on the invoices or debit note issued by a supplier, who is found to be non-existent or is found not to be conducting any business from a place declared in registration. o The credit availed by the registered person on invoices or debit notes, without actually receiving any goods or services both. o The credit is availed by the registered person on invoices or debit notes, the tax in respect of which has not been paid to the government. o The registered person claiming the credit is found to be non-existent or is found not to be conducting any business from the place declared in registration. o The credit is availed by the registered person without having any invoice or debit note or any other valid document for it. ✓ Proper authority for the purpose of rule 86A Total amount of ineligible or Officer to disallow debit of amount fraudulently availed ITC from Above 1crore but not Additional Commissioner/Joint exceeding 5 Crore Commissioner Above 5 Crore Principal Commissioner/Commissioner 3. Electronic Liability Ledger All liabilities of a taxable person under this act shall be recorded and maintained in an electronic liability register in such manner as may be prescribed. It will reflect the total tax liability of a taxpayer for a particular tax period. It lays down that all liabilities of a taxable person will be maintained in a separate register. Every taxable person shall discharge his tax and other dues under this act or the rules made thereunder in the following order, namely: o Self-assessed tax, and other dues related to return of previous tax periods o Self-assessed tax, and other dues related to return of current tax periods o Any other amount payable under this act or the rules made thereunder including the demand determined under section 73 and section 74. In other words, the liability if any, arising out of deemed notice and adjudication proceedings comes last. This sequence is to be mandatorily followed. The electronic liability register shall be maintained in FORM GST PMT 01 for each person liable to pay tax, interest, penalty, late fee or any other amount on the common portal and all amounts payable by him shall be debited to the said register. The electronic liability register of the person shall be debited by: o The amount payable towards tax, interest, late fee or any other amount payable as per the return furnished by the said person; o The amount of tax, interest, penalty or any other amount payable as determined by a proper officer in pursuance of any proceedings under the act or as ascertained by the said person; o The amount of tax and interest payable as a result of mismatch o Any amount of interest that may accrue from time to time Subject to the provisions, payment of every liability by a registered person as per his return shall be made by debiting the electronic credit ledger maintained as per rule or the electronic cash ledger maintained as per rule and the electronic liability register shall be credited accordingly. The amount deducted under TDS and TCS or the amount payable under reverse charge basis, or the amount payable towards interest, penalty, fee or any other amount under the act shall be paid by debiting the electronic cash ledger maintained and the electronic liability register shall be credited accordingly. Any amount of demand debited in the electronic liability register shall stand reduced to the extend of relief given by the appellate authority or the appellate tribunal or court and the electronic tax liability register shall be credited accordingly. The amount of penalty imposed or liable to be imposed shall stand reduced partly or fully, as the case maybe, if the taxable person makes the payment of tax, interest, penalty specified in the show cause notice or demand order and the electronic liability register shall be credited accordingly. A registered person shall upon noticing any discrepancy in his electronic liability register, communicate the same to the officer exercising jurisdiction in the matter, through the common portal in FORM GST PMT 04.  Every person who has paid the tax on goods or services or both under this act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such tax to the recipient of such goods or services or both. Date of deposit of tax dues: o Where any amount has been transferred to the electronic cash ledger under this act, the same shall be deemed to be deposited in the said ledger as provided: o For the purpose of this section; the date of credit to the account of the government in the authorized bank shall be deemed to be the date of deposit in the electronic cash ledger o “tax dues” means the tax payable under this act and does not include interest, fee, penalty and o “other dues” means interest, fee, penalty or any other amount payable under this act. Interest on Delayed Payment of Tax: Every person who is liable to pay tax in accordance with the provisions of this act or the rules made thereunder, but fails to pay the tax or any part thereof to the government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding 18% Analysis: o The tax dues which are not paid within the stipulated time are liable to interest payment. o Interest shall be applicable only on the net taxes paid through electronic cash ledger and not on the gross taxes paid for such period. The period of interest will be from the date following the due date of payment to the actual date of payment of tax. A taxable person: o Who makes an undue or excess claim of input tax credit or o Undue or excess reduction in output tax liability Shall pay an interest on such undue or excess claim or on such undue or excess reduction, as the case maybe, at such rate not exceeding 24% as may be notified by the government on the recommendations of the council. Q1. In January 2021, Mr. A supply some goods to Mr. B for ₹10,00,000 and charged @ 18% (1,80,000), balance of electronic credit ledger of Mr. A on 31st January 2021 was ₹1,00,000. Mr. A paid his tax liability for the month of January 2021 on 20th May 2021. (Due date was 20th February 2021) Q2. A ltd. has belatedly filed GST return for the month of March after 60 days from the due date for filing such return. Total tax paid in such return is as below Particulars IGST CGST SGST Output tax payable 5,00,000 3,00,000 3,00,000 Tax payable under reverse charge 20,000 24,000 24,000 Input tax available for utilization 2,50,000 50,000 50,000 Tax Deducted at Source: Person liable to deduct tax at source: Following specific persons are liable for TDS: a. A department or establishment of the Central Government or State Government; or b. Local Authority; or c. Government Agencies; or d. Such persons or category of persons as may be notified by the government on the recommendations of the council Threshold limit: Total value of such supply, under a contract, exceeds ₹ 2,50,000. (Value of supply shall be taken as the amount excluding central tax, state tax, union territory tax and cess indicated in the invoice) The amount deducted as tax under this section shall be paid to the government by the deductor within 10 days after the end of the month in which such deduction is made A certificate of tax deduction at source shall be issued in such form and in such manner as may be prescribed. The deductee shall claim credit, in his electronic cash ledger of tax deducted and reflected in the return of the deductor. If any deductor fails to pay to the government the amount deducted shall pay interest in addition to the amount of tax deducted. No refund to the deductor shall be granted if the amount deducted has been credited to the electronic cash ledger of the deductee. STANDARD RATE OF DEDUCTION: The tax would be deducted @ 1% of the payment made to the supplier of taxable goods and/or services, where the total value of such supply under a contract exceeds ₹2,50,000 (excluding the amount of CGST, SGST, UTGST, IGST and cess) Thus, individual supplies may be less than ₹2,50,000 but if total value of supplies under a contract is more than ₹2,50,000 TDS will be deducted. When the location of the supplier and the place of supply is in a state/union territory which is different from the state/union territory of registration of the recipient, there will be no TDS. Tax is not liable to be deducted at source in the following cases: o When goods/ services are supplied from a public sector undertaking to another public sector undertaking, whether or not a distinct person. A TDS deductor has to compulsorily register without any threshold limit, the deductor has the privilege of obtaining registration of GST without having required to obtain PAN, He can obtain registration using his Tax Deduction and Collection Account Number (TAN) issued under the Income Tax, 1961. TDS Deductor need to issue certificate of such TDS to the deductee within 5 days of deducting TDS failing which fees of ₹100 per day subject to maximum of ₹5,000 will be payable by such deductor. Any amount shown as TDS will be reflected in the electronic cash ledger of the concerned supplier. He can utilize this amount towards discharge his liability towards tax, interest, fees and any other amount.  Consequences of not complying with TDS Provisions: Sr. No Event Consequences 1 TDS not deducted. Interest to be paid along with the TDS amount; else the amount shall be determined and recovered as per the law. 2 TDS certificate not issued or Late fee of ₹100 per day subject to a maximum delayed beyond the of ₹5000 prescribed period of 5 days 3 TDS deducted but not paid to Interest to be paid along with TDS amount else the government or paid later the amount shall be determined and recovered than 10th of the succeeding as per law. month 4 Late filing of TDS return Late fee of ₹100 for every day during which such failure continues subject to maximum of ₹5000. The deductor is also required to file a return in FORM GSTR 7 within 10 days from the end of the month. If the supplier is unregistered name of the supplier rather than GSTIN shall be mentioned in the return. Collection of Tax at source: TCS refers to the tax which is collected by the electronic commerce operator, when a supplier supplies taxable goods or services through its portal and the payment for that supply is collected by the electronic commerce operator. ECO, not being an agent, shall collect an amount calculated at such rate not exceeding one per cent, as may be notified by the government of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the ECO. The amount collected shall be paid to the government by the operator within 10 days after the end of month in which such collection is made, in such manner as may be prescribed. DUE DATE OF FILING E-STATEMENT: Every operator who collects the amount shall furnish a statement, electronically, containing the details of outwards supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected during the month, within 10 days after the end of the month in form GSTR 8. Extended time limit CGST Commissioner may for reasons to specify in writing extend the time limit for furnishing the statement for such class of registered persons as maybe specified therein. DUE DATE OF FILING ANNUAL STATEMENT: Every operator who collects the amount shall furnish an annual statement, electronically, containing the details of: o Outwards supplies of goods or services or both effected through it, o Supplies of goods or services or both returned through it,  o The amount collected under the said sub section during the financial year. In such form and in such manner as may be prescribed before the thirty first day of December following the end of such financial year. If any operator after furnishing a statement discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars as noticed, subject to payment of interest. No such rectification of omission or incorrect particulars shall be allowed after: o 30th day of November following the end of the financial year. o The actual date of the furnishing of the relevant annual statement, whichever is earlier. The supplier who has supplied goods or services or both through the operator shall claim credit in his electronic cash ledger, of the amount collected and reflected in the statement of the operator furnished. Any authority not below the rank of Deputy Commissioner may serve a notice, either before or during the course of any proceedings under this act, requiring the operator to furnish such details relating to: o Supplies of goods or services or both effected through such operator during any period; or o Stock of goods held by the supplier making supplies through such operator in the godowns or warehouses, by whatever name called, managed by such operator and declared as additional places of business by such supplier, as may be specified in the notice. Every operator on whom a notice gas been served shall furnish the required information within 15 working days of the date of service of such notice. Any person who fails to furnish the information required by the notice served shall, without prejudice to any action, be liable to pay a penalty which may extend to 25,000 rupees. Unique Identification number for each transaction: A unique identification number shall be generated at the common portal for each debit or credit to the electronic cash or credit ledger. The unique identification number relating to the discharge of liabilities shall be indicated in the corresponding entry in the electronic liability ledger. A unique identification number shall be generated at the common portal for each credit in the electronic liability register. Refund of Tax: The provisions relating to the refund of tax aims to streamline and standardize the refund procedure under GST regime. Section 54: Refund of Tax Section 55: Refund in certain cases Section 56: Interest on delayed refunds Section 57: Consumer welfare fund  Section 58: Utilization of Fund Refund includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilized input tax credit. Zero-rated supply shall mean the following supplies of goods or services namely: Export of goods or services or both, Supply of goods or services or both to a SEZ developer or a SEZ unit. Any person claiming refund of any tax, interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of 2 years from the “Relevant Date” Meaning or relevant date: It means, Sr. No. Cases Relevant Date In case of goods exported out of India where a refund of tax paid is available in respect 1 of goods themselves or, as the case maybe, the inputs services used in such goods and Date on which the ship or aircraft in which such Goods are exported by sea or air goods are loaded leaves India Goods are exported by land Date on which such goods pass the frontier Date of dispatch of goods by the post office Goods are exported by post concerned to a place outside India In case of services exported out of India where a refund of tax paid is available in respect 2 of services themselves or, as the case maybe, the inputs services used in such services and The supply of services had been Date of receipt of payment in convertible foreign completed prior to the receipt of exchange or in Indian Rupees wherever permitted such payment by the RBI; Payment for the services had been received in advance prior to the Date of issue of invoice date of issue of invoice In case of supply of goods regarded as deemed exports Date on which the return relating to such deemed 3 where a refund of tax paid is exports is furnished available in respect of the goods Where the tax becomes refundable as a consequence of judgement, decree, order or Where the date of communication of such 4 direction of the Appellate judgement, decree, order or direction Authority, Appellate Tribunal or any court. In case of refund of unutilized Due date of furnishing of return under section 39 5 ITC on account of inverted duty for the period in which such claim for refund arises. structure In the case where tax is paid Date of adjustment of tax after the final assessment 6 provisionally under the Act rules thereof made there under.  In case of a person, other than the Date of receipt of goods or services or both by such 7 supplier person 8 Any other case Date of payment of tax As per section 53(3), a registered person may claim refund, of any unutilized ITC at the end of any tax period in the following cases: i. Zero rated supplies made without payment of tax ii. Where the credit is accumulated on account of rate of tax on input being higher than the rate of tax on output supplies (other than NIL rated or fully exempt supplies), except supplies of goods or services or both as may be notified the Government on the recommendation of the council. However, refund of unutilized input tax credit shall NOT be allowed in cases: i. Where the goods exported out of India are subject to export duty. ii. If the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies. Documentary evidence for filing refund claim: Application shall be accompanied by: Such documentary evidence as may be prescribed to establish that a refund is due to the applicant and Such documentary or other evidence as the applicant may furnish to establish that there is no unjust enrichment. However, where the amount claimed as refund is less than ₹ 2 lakh, it shall not be necessary for the applicant to furnish any documentary and other evidences but he may file a declaration, based on the documentary or other evidences available with him, certifying that there is no unjust enrichment. Where the amount of refund claimed exceeds ₹ 2 lakh, a certificate in Annexure 2 of Form GST RFD 01 by a Chartered Accountant or a Cost Accountant to the effect that there is no unjust enrichment in the case of the applicant. If the proper officer is satisfied that the whole or part of the amount claimed as refund is refundable, in the refund application he may make an order accordingly in FORM GST RFD 06 and the amount so determined shall be credited to the consumer welfare fund. Grant of Provisional Refund: In case of zero-rated supply, the applicant can apply for provisional refund. The exporters and suppliers are entitled to a 90% refund on a provisional basis. Provisional refund is granted within 7 days of the refund claim. The amount of provisional refund is credited directly to the claimant’s bank account. Provisional Refund NOT Allowed: The provisional refund is not granted if the applicant has been prosecuted for any offence under GST law or earlier law within past 5 years. The amount of tax evaded in such prosecution shall be more than 2.5 crore.  Time limit for issuance of refund order: Refund order shall be issued by the proper officer within 60 days from the date of receipt of invoice. The time limit of 60 days shall be counted from the date of filing claim for refund as mentioned in the acknowledgement received for refund claim. Refund to UN bodies, embassies etc. Supplies made to UN bodies and embassies may be exempted from payment of GST as per international obligations. However, this exemption has been operationalized by way of a refund mechanism. So, a taxable person making supplies to such bodies would charge the tax due and remit the same to the government account. However, the UN bodies and other entities notified under the act can claim refund of the taxes paid by them on their purchases. The claim has to be made before the expiry of 18 months. Interest on delayed refunds Interest on amount refundable consequent to order passes by proper officer under: Interest is payable on such refund at 6% Interest is payable to the applicant from the date immediately after the expiry of 60 days from the date of receipt of application till the date of refund of such tax. Interest on amount refund consequent to order passed in an appeal or further proceedings Interest is payable on such refund at 9% Interest is payable to the applicant from the date immediately after the expiry of 60 days from the date of receipt of application till the date of refund of such tax. Consumer welfare fund was created to promote and protect the welfare of consumers, create consumer awareness and strengthen consumer movements in the country, particularly in rural areas. Amount of refund which is not payable to the applicant is credited to the consumer welfare fund. All sums credited to the consumer welfare fund shall be utilized by the government for the welfare of the consumers. The government shall, by an order, constitute a Standing Committee who shall make recommendations for proper utilization of the money credited to the consumer welfare fund for welfare of the consumers.