The Central Board of Indirect taxes and Customs (CBIC) has issued clarifications, according to which access money lying in the electronic cash ledger (ECL) for the purpose of paying goods and services tax (GST) can be taken out even after two years of the date of paying tax.
The taxpayer has to deposit cash first into the ECL maintained on the GSTN portal. This cash balance can be utilized by the taxpayer against their tax liability. However, in case of claiming refund, a taxpayer is required to file a refund application to the GST authorities within the two years from the date of payment of tax. But in case of exports, the date is that on which a ship or aircraft leaves India.
Regarding this, the time bar of two years has been lifted by the government. This move would ease the cash flow of the companies.
Assessees are entitled to get refund of money lying in ECL due to tax deducted at source (TDS) or tax collected at source (TCS) under the GST regime. TCS could be levied if someone uses an ecommerce platform for selling its goods. TDS and TCS could also be levied if a company is dealing with the government.
Further, CBIC has also clarified that those making payments outside but place of supply is in India are not required to have dynamic QR code on their invoices.