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GST - Manual filing and processing of refund claims on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger CGST Circular No.24/24/2017 GST dated 21.12.2017 - Communication thereof - GST - GST Trade Notice No. 04 / 2018Extract OFFICE OF THE COMMISSIONER OF GST CENTRAL EXCISE NO. 1, WILLIAMS ROAD, CANTONMENT, TIRUCHCHIRAPALLI - 620 001 C. No. IV/16/04/2018-GST Policy Dated : 19.01.2018 GST Trade Notice No. 04 / 2018 Sub: GST - Manual filing and processing of refund claims on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger CGST Circular No.24/24/2017 GST dated 21.12.2017 - Communication thereof - Reg. Please refer to the following GST Trade Notices issued by this office. No GST Trade Notice No. Date Board's Circular communicated Subject 1 42/2017 dated 20.11.2017 CGST Circular No. 14/14/2017 GST dated 06.11.2017 Procedures, safeguards and forms for procurement of supplies of goods from DTA by EOU / EHTP Units / STP Units / BTP Units under deemed export benefits 2 46/2017 dated 23.11.2017 CGST Circular No. 17/17/2017-GST dated 15.11.2017 Procedures and guidelines for the manual filing and processing of the refund claims 2. In furtherance to the above, the Central Board of Excise Customs (CBEC) has issued CGST Circular No.24/24/2017-GST dated 21.12.2017 on the above subject. The gist of the aforesaid Circular is detailed as hereunder: Due to the non-availability of the refund module on the common portal, it has been decided by the competent authority, on the recommendations of the Council, that the applications/ documents/ forms pertaining to refund claims on account of inverted duty structure (including supplies in terms of notification Nos. 40/2017-Central Tax (Rate) and 41/2017-lntegrated Tax (Rate) both dated 23.10.2017, deemed exports and excess balance in electronic cash ledger shall be filed and processed manually till further orders. In this regard, it has beenclarified that the specified provisions of Circular No. 17/17/2017-GST dated 15.11.2017 shall also be applicable to the following types of refund:- (i) Refund of unutilised input tax credit where the credit has accumulated on account of rate of tax on inputs being higher than, the rate of tax on output supplies (other than nil rated or fully exempted supplies of goods and services or both except those supplies which are notified by the Government on the recommendations of the Council (Section 54(3) of the CGST Act refers), (ii) refund of tax on the supply of goods regarded as deemed exports; and (iii) refund of balance in the electronic cash ledger It has been further clarified that Refund claims in respect of zero-rated supplies and on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger shall be filed for a tax period on a monthly basis in FORM GST RFD01A. However, in case registered persons having aggregate turnover of upto ₹ 1.5 Crores in the preceding financial year or the current financial year are opting to file FORM GSTR-I quarterly, such persons shall apply for refund on a quarterly basis. Further, it is stated that the refund claim for a tax period may be filed only after filing the details in FORM /GSTR-I for the said tax period. It is also to be ensured that a valid return in FORM GSTR 3B has been filed for the last tax period before the one in which the refund application is being filed. Since the date of furnishing of FORM GSTR-I from July, 2017 onwards, has been extended while the dates of furnishing of FORM GSTR 2 and FORM GSTR 3 for such period are yet to be notified, it has been decided by the competent authority to sanction refund of provisionally accepted input tax credit at this juncture. However, the registered persons applying for refund must give an undertaking to the effect that the amount of refund sanctioned would be paid back to the Government with interest in case it is found subsequently that the specified requirements have not been complied with in respect of the amount refunded. This undertaking should be submitted manually along with the refund claim till the same is available in FORM RFD-01A on the common portal. In case of refund claim arising due to inverted duty structure, the Statement 1 and Statement IA of FORM GST RFD-01A have to be filled. Further, as per the provisions of rule 89(2) (g) of the CGST Rules, the Statement 5B of FORM GST RFD-01A is required to be furnished for claiming refund on supplies declared as deemed exports. The refund order issued either by the Central Tax authority or the State Tax/ UT tax authority shall be communicated to the concerned counterpart tax authority within seven working days for the purpose of payment of the relevant sanctioned refund amount of tax or cess, as the case may be. This time limit of seven working days js also applicable to refund claims in respect of zero-rated supplies being processed as per Circular No. 17/17/2017 GST dated 15.11.2017 as against the time limit of three days prescribed in para 4 of the said Circular, It is also clarified that the drawback of all taxes under GST (Central tax, Integrated Tax, State / Union Territory Tax) should not have been availed while claiming refund of accumulated ITC under /section 54(3)(ii) of the CGST Act. A declaration to this effect forms part of Form GST RFD-01A. 3. This trade notice is issued so as to sensitize the trade and field formations about contents of the aforesaid references and for complete details, the respective references may please be referred in CBEC's websites www.cbec.gov.in. 4. The Trade Industry Associations / Chambers of Commerce are requested to bring the contents of the Trade Notice to the notice of all their members. (S. Srimathi) Joint Commissioner
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