TMI BlogManual filing and processing of refund claims in respect of zero-rated supplies - reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act ) and for the purpose of ensuring uniformity, the following conditions and procedure are laid down for the manual filing and processing of the refund claims: 2.1 As per sub-section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as the IGST Act ) read with clause (i) of sub-section (3) and sub-section (6) of section 54 of the CGST Act and rules 89 to 96A of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the CGST Rules ), a registered person may make zero-rated supplies of goods or services or both on payment of integrated tax and claim refund of the tax so paid, or make zero-rated supplies of goods or services or both under bond or Letter of Undertaking without payment of integrated tax and claim refund of unutilized input tax credit in relation to such zero rated supplies. 2.2 The refund of integrated tax paid on goods exported out of India is governed by rule 96 of the CGST Rules . The shipping bill filed by an exporter shall be deemed to be an application for refund in such cases. The application s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stered person needs to file the refund claim with the jurisdictional tax authority to which the taxpayer has been assigned as per the administrative order issued in this regard by the Chief Commissioner of Central Tax and the Commissioner of State Tax. In case such an order has not been issued in the State, the registered person is at liberty to apply for refund before the Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented. However, in the latter case, an undertaking is required to be submitted stating that the claim for sanction of refund has been made to only one of the authorities. It is reiterated that the Central Tax officers shall facilitate the processing of the refund claims of all registered persons whether or not such person was registered with the Central Government in the earlier regime. 2.6 Once such a refund application in FORM GST RFD-01A is received in the office of the jurisdictional proper officer, an entry shall be made in a refund register to be maintained for this purpose with the following details Table 1 Sl. No. Appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f refund shall be recorded in the refund register as in the table indicated below Table 2 Date of issue of Deficiency Memo in FORM GST RFD-03 Date of receipt of reply from the applicant Date of issue of provisional refund order in FORM GST-RFD-04 Amount of refund claimed Amount of provisional refund sanctioned Date of issue of Payment Advice in FORM GST RFD-05 CT ST/UTT IT Cess 1 2 3 4 5 6 7 8 9 2.9 After the sanction of provisional refund, the claim shall be processed and the final order issued within sixty days of the date of receipt of the complete application form. The process shall be recorded in the refund register as in the table indicated below Table 3 Date of issue of notice, if any for rejection of refund in FORM GST RFD-08 Date o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Refund of unutilized input tax credit due to the accumulation of credit of tax paid on inputs or input services used in making zero-rated supplies of goods or services or both FORM GST RFD-01A needs to be filed on the common portal. The amount of credit claimed as refund would be debited in the electronic credit ledger and proof of debit needs to be generated on the common portal. Printout of the FORM GST RFD- 01A needs to be submitted before the jurisdictional GST officer along with necessary documentary evidences, wherever applicable. 3.2 Steps to be followed for processing of Refund Claims: Three different refund registers are to be maintained for record keeping of the manually sanctioned refunds for receipts, sanction of provisional refunds and sanction of final refunds. The steps are as follows: Step No. Action to be Taken Step-1 Entry to be made in the Refund register for receipt of refund applications Step-2 Check for completeness of application as well as availability of the supporti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appropriate jurisdiction. This form needs to be accompanied with the requisite documentary evidences. This Form shall contain the debit entry in the electronic credit ledger of the amount claimed as refund in FORM GST RFD-01A . Rule 89(1) Application Rule 89(2) Requisite Documents Rule 89(3) Debiting of electronic credit ledger Initial scrutiny of the Documents by the proper officer The proper officer shall validate the GSTIN details on the portal to validate whether return in FORM GSTR-3 or FORM GSTR- 3B , as the case may be, has been filed. A declaration is required to be submitted by the claimant that no refund has been claimed against the relevant invoices. Deficiencies, if any, in documentary evidences are to be ascertained and communicated in FORM GST RFD-03 within 15 days of filing of the refund application. Deficiency Memo should be complete in all respects and only one Deficiency Memo shall be given. Submission of application after Deficiency Memo shall be treated as a fresh application. Resubmission of the application, after rectifying th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etails of IGST paid also needs to be verified from FORM GSTR- 3 or FORM GSTR- 3B , as the case may be, filed by the applicant and it needs to be verified that the refund amount claimed shall be less than the tax paid on account of zero rated supplies as per FORM GSTR-3 or FORM GSTR- 3B , as the case may be. Ascertain what amount may be sanctioned finally and see whether any adjustments against any outstanding liability is required ( FORM GST RFD-07 Part A). Ascertain what amount of the input tax credit is sanction-able, and amount of refund, if any, liable to be withheld. Order needs to be passed in FORM GST RFD-07 Part B. Rule 89(4) Refund Amount Calculation Rule 92(1) Any adjustments made in the amount against existing demands Rule 92(2) reasons for withholding of refunds If the sanction-able amount is less than the applied amount Notice has to be issued to the applicant in FORM GST RFD-08 . The applicant has to reply within 15 days of receipt of the notice in FORM GST RFD-09 . Principles of natural justice to be followed before making t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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