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TMI BlogManual filing and processing of claim of refund of inverted tax structure and deemed exports.X X X X Extracts X X X X X X X X Extracts X X X X ..... of inverted tax structure and deemed exports shall be filed and processed manually till further orders. In this regard, the undersigned, in exercise of powers conferred under section 168 (1) of the Maharashtra Goods and Services Tax Act, 2017 (hereinafter referred to as the "MGST Act") hereby clarifies that the contents of the Trade Circular No. 49T of 2017 and Trade Circular No. 52T of 2017 [cited at Ref. (3) and (4) above] shall also be applicable to the refund claims on account of inverted tax structure and deemed exports inasmuch as they pertain to the method of submission of refund claim and its processing which is consistent with the relevant provisions of the MGST Act, 2017 and Maharashtra Goods and Services Tax Rules, 2017 (hereafter referred to as the "MGST Rules"). 2. Periodicity of submission of refund application: 2.1. It is clarified that refund claims on account of inverted tax structure and deemed exports shall be filed for a tax period on a monthly basis in FORM GST RFD-01A. In order to avoid the delay in grant of refund the Trade is advised to file the application for refund only after return in FORM-GSTR-1 is filed. 2.2. However, in case of registered taxable p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ember 2017. (b) supplies of services as notified in Notification No. 15/2017-State Tax (Rate) dated 29th June 2017. [Construction Services: Point 5(b) Schedule II] 1.6. As per the provisions of section 54(3)(ii) the aforesaid categories of supplies of goods or services are barred from seeking refund of the un-utilized or accumulated inputs. 2. Preparation of Application for Refund: 2.1. The registered taxable person who desires to get the refund on account of inverted tax structure is required to file an application manually in FORM GST RFD-01A (as notified in the MGST Rules vide Notification No. 55/2017 -State tax dated 15.11.2017 and as amended from time to time). All the details in the said form is to be filled appropriately. 2.2. The applicant who desires to get the aforesaid refund shall access the common portal i.e. www.gst.gov.in and fill the appropriate details, of claim of refund, in in Statement-1 made available on the common portal with the use of appropriate Log-in Id and password. 2.3. The process flow diagram is given below: Login Id>password>Services>Refund> Application for Refund> >Select the refund type>select from dropdown the month>select Create applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rated supply of goods. 2.11. It is to be kept in mind that the term "Net ITC" and "Adjusted Total Turnover" shall have the same meaning as assigned to it in rule 89(4) of the MGST Rules, 2017. 2.12. For better understanding same is re-produced below: Where,- (B) "Net ITC" means input tax credit availed on inputs and input services during the relevant period other than the input credit availed for which the refund is claimed under sub-rule (4A) and 4(B) or both; (E) "Adjusted Total turnover" means the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding,- (a) the value of exempt supplies other than zero-rated supplies and (b) the turn-over of supplies in respect of which refund is claimed under sub-rule (4A) and 4(B) or both, if any. during the relevant period. 2.13. After entering the appropriate figures in the above table i.e. Statement-1, the amount of refund will get auto populated in the column (5) of the said TABLE. 2.14. Further, there is another TABLE below the Statement-1 (at GSTN portal>refund tab) where the amount of eligible refund will get auto calculated as also the amount of refund claim. The said T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dger. (e) Application can be saved at any stage of completion for a maximum time period of 15 days. If the same is not submitted within 15 days from the date of form creation, the saved draft will be purged from the GST database. The applicant after 15 days may follow the same procedure for creation and submission of refund Application in FORM-RFD-01A. (2) Needless to say that the applicant shall first discharge the outstanding liability, if any, in respect of IGST, CGST, SGST and cess as also the recovery of the dues (under the MVAT, CST Act, Luxury Tax etc.) not stayed by the appellate forum and then only seek the refund on account of inverted rated supply of goods. (3) It may also be noted that the amount claimed as refund is subject to recovery of the dues, if any, by the department. Hence, the applicant is advised to discharge the aforesaid outstanding liability at the earliest. 2.18. UPLOAIDNG OF THE INFORMATION IN STATEMENT-1 REALTED TO REFUND OF INVERTED TAX STRUCTURE AT GSTN PROTAL: (1) Once the aforesaid steps are followed and application is saved then the message as "Saved successfully" will appear at the top left hand side of the Table. After doing so the "PROCEED ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation. 2.20. STATEMENTS TO BE ATTACHED AND UNDERTAKING TO GIVEN WITH REFUND APPLICATION FORM-GST-RFD-01A: (1) After preparation of application and Statement-1 for refund as above, the applicant shall prepare the Statement-1A as given in rule 89(2)(h) of the MGST Rules, 2017 and attach the same with the refund application. The said statement contains the details of invoices of inward supplies received and tax paid on inward supplies as also the details of invoices of outward supplies issued and tax paid on outward supplies. (2) The details of inward supplies invoice number date, value and tax on inputs and corresponding details of outward supplies made. (3) The Statement as given below shall be filled correctly and completely. Statement-1A [rule 89(2)(h)] Refund Type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section 54(3)] Sr.No. Details of invoices of inward supplies received Tax paid on inward supplies Details of invoices of outward supplies issued Tax paid on outward supplies (1) No. (2) Date (3) Taxable Value (4) Integrated Tax (5) Central Tax (6) State/Union Territory Tax (7) No. (8) Date (9) Taxable Value (10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RM-RFD-02 as given in Rule 90(1) of the MGST Rules, shall be issued within 15 days from the date of submission of application. (4) In case the application so submitted is found deficient in certain aspects then the concerned officer shall issue deficiency memo in FORM-RFD-03 within 15 days from the date of receipt of the application. (5) In other words, the concerned officer after due verification is required to issue either FORM-RFD-02 or FORM-RFD-03 not later than 15 days from the date of receipt of application. All the supervisory authorities are hereby directed to monitor that these timelines are strictly followed. 2.23. ISSUANCE OF DEFICIENCY MEMO IN CASE OF REFUND OF APPLICATION IS DEFICIENT: (1) As explained above, in case an application for refund is deficient then the Deficiency Memo should be issued. It 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. Re-submission of the application, after rectifying the deficiencies pointed out in the Deficiency memo, shall be made by using the same ARN and debit entry number generated originally. (2) It shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit on such supplies has been availed of by him. 3. An undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and the supplier may claim the refund. 3.2. As stated above, the State Government has issued aforesaid notifications and notified certain supplies to be deemed export. Further third proviso to rule 89(1) of the MGST Rules, 2017 allows the recipient or supplier to file the application for refund under this category. In other words the refund on account of Deemed Export may be claimed either by the supplier or by the recipient of the Deemed Export supplies. 3.3. In case such refund is sought by the supplier of deemed export supplies, the documentary evidences as specified in Notification No. 49/2017-as stated above, are also required to be furnished which includes an undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and that no input tax credit on such supplies has been availed of by him. 3.4. The undertaking should be submitted manually along with the refund application in FORM-GST-RFD-01A. 3.5. Similarly, in case the refund is filed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the appropriate information and submission of applications at GSTN portal the ARN receipt gets generated. 4.7. The amount refund claimed under each Act will be shown in TABLE-2 above. 5. STATEMENTS TO BE ATTACHED AND UNDERTAKING TO BE GIVEN WITH REFUND APPLICATION-GST-RFD-01A: 5.1. The application shall be accompanied by a statement 5B of the FORM-GST-RFD-01A as given below. 5.2. It shall contain details of invoices of outward supplies if the refund is claimed by the supplier and the details of invoices of inward supplies in case refund is claimed by the recipient. 5.2.1. It should also contain the details of the taxable value and the taxes paid thereon. Statement-5B [rule 89(2) (g) Refund Type: On account of deemed exports Sr.No. Details of invoices of outward supplies in case refund is claimed by supplier/Details of invoices of inward supplies in case refund is Claimed by recipient Tax paid (1) No. (2) Date (3) Taxable Value (4) Integrated Tax (5) Central Tax (6) State/Union Territory Tax (7) Cess (8) 6. The applicant seeking refund on account of Deemed Exports shall prepare application for refund as given in the Para-2 above. The procedure in relati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ------------------------,solemnly affirm and declare I/We---------------------have not been prosecuted for any offence under the Act or under an existing law where the amount of tax evaded exceeds two hundred and fifty lakh, during any period of five years immediately preceding the tax period for which the claim of refund relates. Signature Name Designation/Status] UNDERTAKING I hereby undertake to pay back to the Government the amount of refund sanctioned along with interest in case it is found subsequently that the requirements of clause (c) of sub-section (2) of section 16 read with sub-section (2) of section 42 of the CGST/SGST Act have not been complied with in respect of the amount refunded Signature Name Designation/Status] SELF-DECLARATION [RULE 89(2(1)) I/ We_______(Applicant) having GSTIN/temporary Id_ _ _ _, solemnly affirm and certify that in respect of the refund amounting to Rs. _ _ _/with respect to the tax, interest, or any other amount for the period from_ _ _to_ _ _, claimed in the refund application, the incidence of such tax and interest has not been passed on to any other person. Signature Name- Designation/Status (This Declaration is not required ..... X X X X Extracts X X X X X X X X Extracts X X X X
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