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Clarification regarding refund of GST amount when service not availed
21-Jul-2023 (In GST Law)
I had paid 53100 to a coaching class. Subsequently due to changes in T&C I applied for refund. They refunded 45000. They deducted 8100 as gst amount which cannot be refunded. Are they right in keeping this amount as there is no service so why gst?
Can you please give me some more details. It requires to see the application form/agreement T&C which needs to be examine. Let me go through it. In the name of GST, I am getting so many cases wherein, even withdrawing from arrangement, the company is charging GST.
Helpful?
14+
14+
Adv. Sanjay Kumar
Faridabad | 25+ Answers
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The plea mostly adopted by service providers is - that the tax portion cannot be refunded for the same has been deposited with the Govt.
This is only half correct, in the sense that assuming there is enough time lag between the payment made by you and then refusing to go ahead; them initiating the processing of refund and the tax actually being paid to the Govt from their company account. Under law, adjustments in payment of future tax it is possible where it can be substantiated by the company that services have not been provided and refund of money received has already been made. It is also be possible that the time period elapsed was not as much that the tax was actually deposited yet, by the company.
In either case, GST must be refunded by the company.
Good Luck!
This is only half correct, in the sense that assuming there is enough time lag between the payment made by you and then refusing to go ahead; them initiating the processing of refund and the tax actually being paid to the Govt from their company account. Under law, adjustments in payment of future tax it is possible where it can be substantiated by the company that services have not been provided and refund of money received has already been made. It is also be possible that the time period elapsed was not as much that the tax was actually deposited yet, by the company.
In either case, GST must be refunded by the company.
Good Luck!
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24+
24+
Adv. Ruchira Chaudhary
Gurgaon | 100+ Answers
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Reverse Charge Mechanism may not be applicable on Coaching services, however, it is to understand that on which capacity the coaching organisation has deducted the GST. In my view, it is recoverable on the basis of Credit/debit note. Coaching classess are not applicable under RCM.
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10+
10+
Adv. Manoj Mor
Gurgaon | 25+ Answers
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