Processing of Refund claims

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..... ay the balance tax on sale (Output Tax) of goods in a tax period. If ITC exceeds the output tax liability in a tax period, the dealer can adjust the excess tax credit towards CST liability, carry forward the same as credit in the next tax period or claim refund. Thus, refund becomes a vital activity in the VAT regime. Dealer can exercise the refund option in the periodical return of a tax period and the same is treated as refund application. No separate application for refund is required to be filed for claiming refund accruing in a tax period by virtue of volume of sale and purchase. 2. In the era of self assessment, a return filed by the dealer is treated as self assessed. No verification of the claims made by dealer is made out in gen .....

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..... of sale. If sale has been made against C forms (say) and the forms have been filed completely at the time of processing the refund, then there is hardly any hurdle in releasing such refund. But, in practice, there are so many kinds of cases, complex as well as simple. 5. Circulars on the subject have been issued in the past also. The refund cases prior to year 2012-13, if any, may be processed in accordance with the instructions contained therein. However, system reports may be utilized to verify tax payment, return filing, registration status etc. of sellers in the usual manner. 6. For processing the cases from the year 2012-13 and onwards, ITC may be verified by viewing mis-match report and running the actual tax payment report .....

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..... relevant return. Shortfall of forms requires assessment to be framed. System will assist in framing such assessments and calculation of tax and interest instantly. However, transactions against H forms and E-I / E-II forms may be verified wherever required. 8. As usual, all outstanding demand (un-stayed) pertaining to DVAT Act , CST Act during VAT regime and un-stayed demand under DST Act (including other local Acts), CST Act during DST needs to be adjusted out of the refund claim before releasing the same. But, demand which has already been recovered may not be adjusted to avoid duplicity. Un-assessed case for any previous years, if any, for shortage of forms or for any other default should be assessed before processing the r .....

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