Rule 8 of the GST Settlement of Funds Rules, 2017

Rule 8

Rule 8. Report relating to reduction of amount to be apportioned to Centre (Central Tax) and State (State Tax) or Centre (Union Territory Tax) due to Integrated Tax apportioned earlier but subsequently refunded.-

(1) The details relating to reduction of amount to be apportioned to Centre (Central Tax) and State (State Tax) or Centre (Union Territory Tax), to be made in a month shall be transmitted by the common portal to the Authorities, in FORMS GST STL - 5.01 to GST STL – 5.04, due to Integrated Tax apportioned earlier but-

(a) subsequently refunded as provided for in sub-section (5) of section 17 of the Integrated Goods and Services Tax Act, 2017; or

(b) ineligible credit on account of the said Integrated Tax apportioned earlier subsequently having become eligible in accordance with sub-section (1) of section 18 of the Central Goods and Services Tax Act, 2017 read with sub-section (1) of section 18 of the State Goods and Services Tax Act, 2017 of the concerned State, section 20 of the Integrated Goods and Services Tax Act, 2017 and section 21 of the Union Territory Goods and Services Tax Act, 2017

shall be in FORMS GST STL - 5.01 to GST STL – 5.03 in the manner hereinafter provided.

(2) (a) a monthly State-wise consolidated statement showing a summary wherein Integrated Tax paid by a taxpayer has already been apportioned but-

(i) subsequently refunded to the person due to the provisions of the Central Goods and Services Tax Act, 2017 or the State Goods and Services Tax Act, 2017 of the concerned State or, the Union Territory Goods and Services Tax Act, 2017 leading to a reduction in amount to be apportioned to Centre (Central Tax) or State (State Tax) or Centre (Union Territory Tax), in a particular month as provided for in sub-section (5) of section 17 of the Integrated Goods and Services Tax Act, 2017; or

(ii) subsequently the ineligible credit in respect whereof having become eligible, as referred to in clause (b) of sub-rule (1) above,

(b) monthly reports containing State-wise details pertaining to the information contained in FORM GST STL – 5.01 shall be further provided as under, namely:—

(i) list of registered taxpayers the Integrated Tax paid by whom and was apportioned earlier due to the underlying inter-State inward supplies for which input tax credit was ineligible previously but has now become eligible in accordance with sub-section (1) of section 18 of the Central Goods and Services Tax Act, 2017 read with sub-section (1) of section 18 of the State Goods and Services Tax Act, 2017 of the concerned State, section 20 of the Integrated Goods and Services Tax Act, 2017 and section 21 of the Union Territory Goods and Services Tax Act, 2017 leading to reduction of Integrated Tax shall be in FORM GST STL - 5.02.

Note: The summary of reduction in amount to be credited to State Tax or Union Territory Tax and Central Tax shall be reflected at S.No.1of FORM GST STL - 5.01;

(ii) list of registered taxpayers where Integrated Tax recovered under section 79 of Central Goods and Services Tax Act, 2017 and State Goods and Services Tax Act, 2017 of the concerned State (or section 21 of Union Territory Goods and Services Tax Act, 2017) or paid consequent to a demand raised by the proper officer is apportioned, and the amount so recovered is subsequently refunded pursuant to an appeal order, as provided under sections 107, 112, 113, 117 and 118 of the Central Goods and Services Tax Act, 2017 and the State Goods and Services Tax Act, 2017 of the concerned State (or section 21 of the Union Territory Goods and Services Tax Act, 2017), or where the amount of Integrated Tax paid is subsequently refunded in terms of section 77 of the Central Goods and Services Tax Act, 2017 and the respective State Goods and Services Tax Act, 2017, as aforesaid, leading to reduction in Integrated Tax shall be in FORM GST STL - 5.03.

Note: The summary of reduction in amount to be debited to State Tax or Union Territory Tax and Central Tax shall be reflected at S.No.2 of FORM GST STL - 5.01;

(iii) list of registered taxpayers where the liability of payment of Integrated Tax is reduced on account of any reason other than an amendment in the amount payable after the said payment has been made, on account of rectification of return as provided under sections 37, 38 and 39 of the Central Goods and Services Tax Act, 2017 and the State Goods and Services Tax Act, 2017 of the concerned State (or section 21 of the Union Territory Goods and Services Tax Act, 2017), where the excess Integrated Tax so paid has been apportioned, and the same is now required to be reduced from the Central Tax and State Tax or Union Territory Tax, shall be in FORM GST STL - 5.04.

Note 1: The summary of reduction in amount to be credited to State Tax or Union Territory Tax and Central Tax shall be reflected at S.No.3 of FORM GST STL - 5.01.

Note 2: Reduction on account of amendment of tax payable necessitated by rectification of any return is settled by netting off values in the return and hence what will remain in FORM GST STL - 5.04 is the reduction in tax paid on account of any other reason only.