PMT-03 to re-credit the ITC as a refund for wrongly/excess tax paid. PMT-03 can now be used to re-credit the electronic credit ledger as
- a refund for the excess amount paid as tax;
- refund of intra-state supply which is later held to be inter-state supply & vice versa;
- refund on account of assessment/provisional assessment/appeal/order, and.
- a refund based on “any other” ground or reasons.
For the above-mentioned cases, a new functionality is developed and introduced in the system.
At Present, PMT-03 functionality could only be used to re-credit the rejected amount that has been debited at the time of filing of refunds.
However, it shall be noted as per sub-rule 4A of rule 86 of the CGST Rules 2017, read with para 4 of the circular dated March 31, 2020, a taxpayer should be refunded the excess amount he wrongly paid or paid in excess in the same mode by which the tax liability was discharged.
Therefore, the introduction of new functionality is seen as a welcomed move by taxpayers.
To read the full circular & source of information;
Other GST Updates “Registration will be cancelled by the department “If GST Returns Mismatched“