GST PMT-03 Form to Re-Credit ITC

In typical scenarios, any registered taxable person can claim a refund of excess tax or interest paid by furnishing GST RFD-01 under GST. However, in case if the authorities reject the claim, the ITC of such taxpayers is re-credited to their electronic cash or credit ledger with the help of the GST PMT-03 form. So, in this blog, we will cover all the aspects related to the GST PMT-03 form to re-credit ITC.

What is GST PMT-03 Form?

GST PMT-03 is a type of order form through which Input Tax Credit (ITC) is re-credited to the e-cash or e-credit ledger in full or parts on the rejection of a refund claimed. However, the order of re-crediting the ITC in form GST PMT-03 is passed by the proper officer via GST RFD-01B.

GST PMT-03 Form Applicability

Here is the list of refund for which the GST PMT-03 form can be used to re-credit ITC to the e-cash or e-credit ledger:

S.No.	Refund Type	Ledger
1	Refund in case of excess balance of cash	Cash ledger
2	Accumulated ITC due to export of goods or services without making tax payment	Credit Ledger
3	ITC accumulated because of inverted tax structure	Credit Ledger
3	Supplies made to SEZ units or SEZ developers without making tax payment	Credit Ledger
4	Refund in case of deemed export supplies to the recipient	Credit Ledger
5	Refund of tax paid due in case of wrongly paid tax (inter-State supply which is subsequently held to be intra-State supply and vice versa)	Credit Ledger
6	Refund due to assessment or provisional assessment or any other order	Credit Ledger
7	Refund in case of “any other” reason that is not listed above.	Credit/Cash Ledger

Once the ARN is generated for any of the aforementioned refund types the status will automatically change to the Pending for Provisional Refund. Once, the proper officer verifies it, he/she will sanction the provisional refund via GST RFD-01B. 

GST PMT-03 Non-Applicability

If a taxpayer leaves the refund application incomplete due to any reason and the proper officer finds it he/she can file a Deficiency Memo. In such cases, the whole amount of refund debited will be re-credited to the respective ledger. So, GST PMT-03 will not be applicable in such types of scenarios. It shall be noted that once the recipient receives the deficiency memo from the proper officer, he/she needs to furnish a fresh refund application. 

GST PMT-03 Format

The Form GST PMT-03 looks as follows:

Important Points to Remember about GST PMT-03

1. The taxpayer always needs to make sure that his/her refund application is not incomplete.
2. The taxpayer will receive a re-credited ITC amount in the same mode by which tax liability was discharged by him/her.
3. ITC part of the refunded amount is re-credited to the e-credit ledger of the taxpayer by filing PMT-03.
4. The cash part will be deposited back to the bank of the recipient by filing GST RFD-05.
5. The taxpayer will not receive a refund for zero-rated supplies made by him or her.
6. Only the proper officer can verify and order the refund in the GST RFD-01B Form.