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??Submission of invoices for processing of claims of refund
??Now no need to submit copies of invoices (either original or duplicate).
Refund claim shall be accompanied by a print-out of FORM GSTR-2A of the claimant for the relevant period for which the refund is claimed.
The proper officer shall rely upon FORM GSTR-2A as an evidence.
Hard copy of invoices may be asked only where these invoices are not present in GSTR-2A.
??Following needs to be submit by Claimant-
Details of the invoices in annexure A (format specified in circular)
Application for refund claim in FORM GST RFD-01A
Application reference number (ARN)
Re-credit of electronic credit ledger in case of rejection of refund claim:
??Rejection of refund on account of ineligible ITC:
The proper office shall order for the rejected amount to be re-credited to the electronic credit ledger of the claimant using FORM GST RFD-01B.
For recovery of this amount, a demand notice shall have to be simultaneously issued to the claimant under section 73 or 74 of the CGST Act.
In case demand is confirmed, the said amount shall be added to the electronic liability register of the claimant through FORM GST DRC- 07.
Alternatively, the claimant can voluntarily pay this amount, along with interest and penalty, if applicable, before service of the demand notice, and intimate the same to the proper officer in FORM GST DRC-03
??Rejection of refund for any reason other than eligible credit:
The rejected amount shall be re-credited to the electronic credit ledger of the claimant using FORM GST RFD-01B.
Before recredited, undertaking from claimant will be taken that no further appeal will be filled.
??Supplies imported with benefit of reduced tax or no tax:
Goods / supplies which has been imported on which benefit of reduced tax or no tax incidence under certain specified notification has been availed (i.e. Advance Authorization/EPCG), shall not be eligible for refund on integrated tax paid on export of goods or services.
??Disbursal of refund amount after sanctioning by the proper officer
A few cases have come to notice where a tax authority, after receiving a sanction order from the counterpart tax authority (Centre or State), has refused to disburse the relevant sanctioned amount calling into question the validity of the sanction order on certain grounds.
It is clarified that the remedy for correction of an incorrect or erroneous sanction order lies in filing an appeal against such order and not in withholding of the disbursement of the sanctioned amount.
It is hereby clarified that neither the State nor the Central tax authorities shall refuse to disburse the amount sanctioned by the counterpart tax authority on any grounds whatsoever, except under sub-section (11) of section 54 of the CGST Act.
Status of refund claim after issuance of deficiency memo
As per certain notification and clarification, once deficiency memo has been issued in RFD-03, the refund claim will have to file fresh refund application.
It has been learnt that certain field formations are issuing show cause notices to the claimants in cases where the refund application is not re-submitted after the issuance of a deficiency memo.
These show-cause-notices are being subsequently adjudicated and orders are being passed in FORM GST RFD-04/06.
A refund application which is re-submitted after the issuance of a deficiency memo shall have to be treated as a fresh application and no show-cause-notice is required to be issued.
??Treatment of refund applications where the amount claimed is less than rupees one thousand
As per section 54(14), no refund shall be paid if the amount is less than Rs. 1,000/-.
In this regard, it is clarified that the limit of rupees one thousand shall be applied for each tax head separately and not cumulatively.
The limit would not apply in cases of refund of excess balance in the electronic cash ledger. |
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