TMI BlogClarifications on exports related refund issues.X X X X Extracts X X X X X X X X Extracts X X X X ..... fy the issues raised as below: 2. Non-availment of drawback: This issue has been clarified in the Circular No. 37/11/2018-GST dated 15th March, 2018, issued by the GST Policy Wing, Central Board of Excise and Customs. A supplier availing of drawback only with respect to basic customs duty shall be eligible for refund of unutilized input tax credit of central tax / State tax / Union territory tax / integrated tax / compensation cess under the provisions made in this regard. It is further clarified that refund of eligible credit on account of State tax shall be available even if the supplier of goods or services or both has availed of drawback in respect of central tax. 3. Amendment through Table 9 of GSTR-1: It has been reported that refund claims are not being processed on account of mis-matches between data contained in FORM GSTR-1, FORM GSTR-3B and shipping bills/bills of export. In this connection, it may be noted that the facility of filing of Table 9 in FORM GSTR-1 , an amendment table which allows for amendments of invoices/ shipping bills details furnished in FORM GSTR-1 for earlier tax period, is already available. If a taxpayer has committed an error whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been zero rated under the Integrated Goods and Services Tax Act, 2017 (IGST Act) and as long as goods have actually been exported even after a period of three months, payment of integrated tax first and claiming refund at a subsequent date should not be insisted upon. In such cases, the case may be sent to the undersigned for suitable decision and under rule 96A of RGST Rules, 2017. The same process should be followed in case of export of services. 6. Deficiency memo: It may be noted that if the application for refund is complete in terms of sub-rule (2), (3) and (4) of rule 89 of the RGST Rules, an acknowledgement in FORM GST RFD-02 should be issued. Rule 90 (3) of the RGST Rules provides for communication in FORM GST RFD-03 (deficiency memo) where deficiencies are noticed. The said sub-rule also provides that once the deficiency memo has been issued, the claimant is required to file a fresh refund application after the rectification of the deficiencies. 6.1. In this connection, a clarification has been sought whether with respect to a refund claim, deficiency memo can be issued more than once. In this regard rule 90 of the RGST Rules may be referred to, wherein i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he RGST Rules, the amount of refund under these scenarios is to be calculated using the formulae given in the said sub-rules. The formulae use the phrase 'Net ITC' and defines the same as input tax credit availed on inputs and input services during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both . It is clarified that as the transitional credit pertains to taxes paid under the existing laws viz., under Rajasthan Value Tax Act, 2003, the same cannot be said to have been availed during the relevant period and thus, cannot be treated as part of 'Net ITC'. 9. Discrepancy between values of GST invoice and shipping bill/bill of export: It has been brought to the notice that in certain cases, where the refund of unutilized input tax credit on account of export of goods is claimed and the value declared in the tax invoice is different from the export value declared in the corresponding shipping bill under the Customs Act, refund claims are not being processed. This issue has been clarified in the Circular No. 37/11/2018-GST dated 15 th March, 2018, issued by the GST Policy Wing, Central Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ications can be filed. Section 2 (107) of the RGST Act defines the term tax period as the period for which the return is required to be furnished. The terms 'Net ITC' and 'turnover of zero rated supply of goods/services' are used in the context of the relevant period in rule 89(4) of RGST Rules. The phrase 'relevant period' has been defined in the said sub-rule as 'the period for which the claim has been filed'. 11.1 In many scenarios, exports may not have been made in that period in which the inputs or input services were received and input tax credit has been availed. Similarly, there may be cases where exports may have been made in a period but no input tax credit has been availed in the said period. The above referred rule, taking into account such scenarios, defines relevant period in the context of the refund claim and does not link it to a tax period. 11.2 In this regard, it is hereby clarified that the exporter, at his option, may file refund claim for one calendar month/quarter or by clubbing successive calendar months/quarters. The calendar month(s)/quarter(s) for which refund claim has been filed, however, cannot spread across diff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sisted upon by many field formations. 14.1 It was envisaged that only the specified statements would be required for processing of refund claims because the details of outward supplies and inward supplies would be available on the common portal which would be matched. Most of the other information like shipping bills details etc. would also be available because of the linkage of the common portal with the Customs system. However, because of delays in operationalizing the requisite modules on the common portal, in many cases, suppliers' invoices on the basis of which the exporter is claiming refund may not be available on the system. For processing of refund claims of input tax credit, verifying the invoice details is quintessential. In a completely electronic environment, the information of the recipients' invoices would be dependent upon the suppliers' information, thus putting an in-built check-and-balance in the system. However, as the refund claims are being filed by the recipient in a semi-electronic environment and is completely based on the information provided by them, it is necessary that invoices are scrutinized. 14.2 A list of documents required for pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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