Rule 4 of the GST Settlement of Funds Rules, 2017

Rule 4

Rule 4. Report of Cross-Utilisation and Apportionment of Integrated Tax between Centre (Integrated Tax) and State (State Tax) or Central (Integrated Tax) and Centre (Union Territory Tax) .-

The details relating to the transfer of funds between Centre (Integrated Tax) and State (State Tax) or Centre (Integrated Tax) and Centre (Union Territory Tax) to be made in a month shall be transmitted by the common portal to the Authorities, in FORMS GST STL - 1.01 to GST STL - 1.12, for each State and Union Territory, as follows, namely:—

(a) a monthly consolidated statement for each State in FORM GST STL - 1.01 containing the details referred to in clause (b) relating to the total amount to be transferred—

(i) from the Centre (Integrated Tax) to the State (State Tax) or the Centre (Union Territory Tax) or from the State (State Tax) or the Centre (Union Territory Tax) to the Centre (Integrated Tax) on account of cross-utilisation of credit as provided in section 53 of the Central Goods and Services Tax Act, 2017, section 53 of the Goods and Services Tax Act of the concerned State (hereinafter referred to as State Goods and Services Tax Act), section 10 of the Union Territory Goods and Services Tax Act, 2017 and section 18 of the Integrated Goods and Services Tax Act, 2017;

(ii) from the Centre (Integrated Tax) to the State (State Tax) or the Centre (Union Territory Tax) on account of apportionment as provided for in section 17 of the Integrated Goods and Services Tax Act, 2017.

(b) the monthly reports containing State-wise details pertaining to the information contained in FORM GST STL – 1.01 are as under, namely:—

(i) list of registered persons of the State or Union Territory who have discharged liability of Integrated Tax by utilising the input tax credit of State Tax or Union Territory Tax or Central Tax, in accordance with section 53 of the Central Goods and Services Tax Act, 2017 or section 53 of the State Goods and Services Tax Act, 2017 or section 10 of the Union Territory Goods and Services Tax Act, 2017 (including cross utilisation by Input Service Distributor), as the case may be, shall be in FORM GST STL – 1.02.

Note: The summary of Integrated Tax liability discharged by using the input tax credit of Central Tax and that discharged by using the input tax credit of State Tax or Union Territory Tax shall be reflected in column (3) of both FORM GST STL - 2.01 and FORM GST STL - 1.01 respectively;

(ii) list of registered persons of the State or Union Territory who have discharged liability of State Tax or Union Territory Tax, as the case may be, from the input tax credit of Integrated Tax, as provided under section 18 of the Integrated Goods and Services Tax Act, 2017 shall be in FORM GST STL – 1.03.

Note: The summary of liability on account of State Tax/Union Territory Tax discharged from the input tax credit of the Integrated Tax shall be reflected in column (4) of FORM GST STL - 1.01.

(iii) list of registered persons or unregistered persons who have paid Integrated Tax under the following circumstances and which is required to be apportioned as per the provisions of section 17 of the Integrated Goods and Services Tax Act, 2017 shall be as under:-

(A) list of registered persons of a State or Union Territory-,

(I) who have made outward inter-State supply, including distribution of credit by an Input Service Distributor, to unregistered persons or units of another State or Union Territory; or

(II) who have provided online information and database access and retrieval services to unregistered persons of another State or Union territory; or

(III) who have made supplies to SEZ on payment of tax but the refund of the same has not been claimed within the relevant period specified in section 54 of the Central Goods and Services Tax Act, 2017 and the respective State Goods and Services Tax Act, 2017, or the claim of refund has been rejected, either fully or partially; or

(IV) who have made the exports on payment of tax, but the claim of refund has been rejected, either fully or partially, shall be in FORM GST STL – 1.04.

Explanation.- The list specified at clause III or clause IV shall be prepared after taking into consideration the integrated tax paid as may be ascertained on the basis of a Standard Operating Procedure formulated in this behalf.

Note: The summary of Integrated Tax to be apportioned as State Tax or Union Territory Tax and Central Tax from this statement shall be reflected in column (5) of both FORM GST STL - 1.01 and FORM GST STL - 2.01, respectively;

(B) list of registered persons of a State or Union Territory who have made outward inter State supplies to,-

(I) a person paying tax under section 10 of the Central Goods and Services Tax Act, 2017 or to Non-resident taxable persons; or

(II) persons registered under section 51 or section 52 of the Central Goods and Services Tax Act, 2017 of another State or Union Territory; or

(III) such holders of Unique Identification Number who have not claimed refund of the input tax within the time allowed in this regard,

shall be in FORM GST STL – 1.05.

Note: The summary of Integrated Tax to be apportioned as State Tax or Union Territory Tax and Central Tax from this statement shall be reflected in column (6) of both FORM GST STL - 1.01 and FORM GST STL - 2.01, respectively;

(C) list of registered persons of a State or Union Territory who have received inter-State inward supplies or have effected imports in respect of which the input tax credit,-

(I) has been declared as ineligible; or

(II) has lapsed due to opting into composition scheme or where the supply has become wholly exempt, as provided for in sub-section (4) of section 18 of the Central Goods and Services Tax Act, 2017 and sub-section (4) of section 18 of the respective State Goods and Services Tax Act read with section 21 of the Union Territory Goods and Services Tax Act, 2017; or

(III) availed in respect of inputs (whether as such or contained in semi-finished or finished goods) or capital goods lying in stock on the day immediately preceding the date of cancellation of registration where the said tax has been paid along with the application for cancellation registration, in accordance with the provisions of sub-section (5) of section 29 of the Central Goods and Services Tax Act, 2017, sub-section (5) of section 29 of the respective State Goods and Services Tax Act, read with section 21 of the Union Territory Goods and Services Tax Act, 2017; or

(IV) tax of the nature specified in sub-item (III.) above that has been paid along with the final return;

(V) where input tax credit is not available, on account of limitation of time period as delineated in sub-section (4) of section 16 of the Central Goods and Services Tax Act, 2017,

shall be reflected in FORM GST STL – 1.06:

Provided that the said report in FORM GST STL -1.06 shall be prepared after taking into consideration amounts in respect of such reversals or utilisations of input tax credit as may be ascertained on the basis of a Standard Operating Procedure formulated in this behalf.

Note: The summary of Integrated Tax to be apportioned as State Tax or Union Territory Tax and Central Tax from this statement shall be reflected in column (7) of both FORM GST STL - 1.01 and FORM GST STL - 2.01, respectively;

(D) list of registered persons of a State or Union Territory who have received inter-State inward supplies or have effected imports in respect of which the input tax credit remains un-availed till the period specified in clause (c) or clause (f) of sub-section (1) of section 17 of the Integrated Goods and Services Tax Act, 2017, shall, with effect from such date as may be notified in this behalf, shall be reflected in FORM GST STL – 1.07:

Provided that the said report in FORM GST STL -1.07 shall be prepared after taking into consideration amounts in respect of such declarations of input tax credit as may be ascertained on the basis of a Standard Operating Procedure formulated in this behalf.

Note: The summary of Integrated Tax to be apportioned as State Tax or Union Territory Tax and Central Tax from this statement shall be reflected in column (8) of both FORM GST STL - 1.01 and FORM GST STL - 2.01, respectively;

(E) list of unregistered persons who have made imports in the concerned State or Union Territory, in terms of clause (d) of sub-section (1) of section 17 of the Integrated Goods and Services Tax Act, 2017 shall be reflected in FORM GST STL – 1.08.

Note: The summary of Integrated Tax to be apportioned to State Tax or Union Territory Tax and Central Tax from this statement shall be reflected in column (9) of both FORM GST STL - 1.01 and FORM GST STL - 2.01, respectively;

(F) list of,-

(I) composition taxpayers who have received supplies by way of imports on which Integrated Tax has been paid; or

(II) Unique Identification Number holders who have received supplies by way of imports on which Integrated Tax has been paid and who have not claimed refund within the time period specified in this regard; or

(III) persons registered under section 51 or 52 of the Act in a State or Union Territory who have received supplies by way of imports on which Integrated Tax has been paid; or

(IV) composition taxpayers or non-resident taxable persons who have received inward inter-State supplies that are liable to reverse charge,

shall be reflected in FORM GST STL – 1.09.

Note: The summary of Integrated Tax to be apportioned to State Tax or Union Territory Tax and Central Tax from this statement shall be reflected in column (10) of both FORM GST STL -1.01 and FORM GST STL - 2.01, respectively;

(G) list of registered persons in a State or Union Territory who have paid interest on Integrated Tax, and fee deposited for filing advance ruling application under Integrated Goods and Services Tax shall be reflected in FORM GST STL – 1.12.

Note: The summary of Integrated Tax to be apportioned as State Tax or Union Territory Tax and Central Tax from this statement shall be reflected in column (11) of both FORM GST STL - 1.01 and FORM GST STL - 2.01, respectively.