9911796707
TMI BlogClarifications on issues related to refund.X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 49T of 2017 and 52T of 2017 cited at Ref. (4) and (5), respectively clarified various issues in relation to processing of claims for refund on account of Zero-rated supply of goods or services or both. These Trade Circulars are based on various Circular(s) issued by the Central Board of Indirect Tax and Customs (CBIC), New Delhi i.e. Circular No. 17/17/2017 - GST dated 15th November 2017 and Circular No. 24/24/2017 - GST dated 21st December 2017. In addition to aforesaid Circular(s) CBIC has also issued Circular cited at Ref. (6) above and clarified certain issues involving GST refund. 2. On this background, several representations have been received seeking further clarifications on issues relating to refund. In order to clarify these issues and with a view to ensure uniformity in the implementation of the provisions of the GST Act, across the State, the undersigned, in exercise of its powers conferred by sub-section (1) of section 168 of the Maharashtra Goods and Services Tax Act, 2017 (hereinafter in this Trade Circular referred as "MGST Act"), hereby clarifies the issues raised as below: 3. Non-availment of drawback: The third proviso to sub-section (3) of section 54 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f integrated tax under the provisions of rule 96A of the Maharashtra Goods and Services Tax Rules, 2017 (hereinafter referred to as the "MGST Rules"). Under the said provisions, an exporter is required to furnish a bond or Letter of Undertaking (LUT) to the Nodal Officer before effecting zero rated supplies. 5.2. A detailed procedure for filing of LUT has already been specified vide Trade Circular No. 50T of 2017 dated the 7th December 2017. A facility for online submission of LUT at GSTN is also made available and same is explained vide Trade Circular No. 10T of 2018 dated the 28th February 2018. In view of this the tax payer is now not required to submit to the jurisdictional officer, the copy of the acknowledgement generated at GSTN for submission of LUT online. To know more please refer Circular No. 40/11/2018 dated the 6th April 2018 issued by the CBIC. 5.3. It has been brought to the notice of this office that in some cases, such zero rated supplies have been made before filing the LUT and refund claims for unutilized input tax credit have been filed. 5.4. In this regard, it is emphasized that the substantive benefits of zero rating may not be denied where it has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after the rectification of the deficiencies. 7.2. 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 MGST Rules may be referred to, wherein it has been clearly stated that once an applicant has been communicated the deficiencies in respect of a particular application, the applicant shall furnish a fresh refund application after complying with the deficiencies so communicated. 7.3. It is therefore, clarified that there can be only one deficiency memo for one refund application and once such a memo has been issued, the applicant is required to file a fresh refund application, manually in FORM GST RFD-01A. This fresh application would be accompanied with the original ARN, debit entry number generated originally and a hard copy of the refund application filed online earlier. It is further clarified that once an application has been submitted afresh, pursuant to a deficiency memo, the concerned refund processing officer will not serve another deficiency memo with respect to the application for the same period, unless the deficiencies pointed out in the original memo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... structure is concerned the tax payer is entitled to claim the refund of input tax credit in respect of inputs as defined under section 2(59) of the MGST Act. In other words, the tax payer is not entitled to claim the refund of ITC under this category in respect of the services availed during the said period. 9.4. It is clarified that as the transitional credit pertains to duties and taxes paid under the existing laws viz., under Maharashtra Value Added Tax Act, 2002 or, as the case may be, Maharashtra Entry Tax Act, the same cannot be said to have been availed during the relevant period and thus, cannot be treated as part of 'Net ITC'. 10. Discrepancy between values of GST invoice and shipping bill/bill of export: 10.1. It has been brought to the notice of the 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. The matter has been examined and it is clarified that the zero rated supply of goods is effected under the provisions of the G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process such refund applications accordingly. 12. Grant of refund of the amount less than ₹ 1000/-: 12.1. Sub-section (14) of the section 54 of the MGST Act provides that no refund under sub-section (5) or sub-section (6) shall be paid to an applicant, if the amount is less than thousand rupees. Therefore, in view of the aforesaid provisions, the tax payer is advised not to file the FORM-RFD-01A and claim the refund wherever such claim is less than ₹ 1000/. 12.2. The claim of refund of ₹ 1000/- either on account of accumulated ITC, IGST paid or of the excess in the electronic cash ledger is to be considered qua MGST/CGST/IGST/Cess. In case such claim is filed already then the refund processing officer need not grant the refund of the said amount. The FORM-RFD-04 or RFD-06 in such cases shall not be issued. The applicant may be informed accordingly. 12.3. However, in case the refund under one or more of the aforesaid Act(s) is below ₹ 1000/- and refund claim under other Act(s) is ₹ 1000/- or more then only to such extent (i.e. where refund claim is less than ₹ 1000/-) the refund claim under that particular Act, need not be processed. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alization of export proceeds for processing of refund claims related to export of goods has not been envisaged in the law and should not be insisted upon. 15. Supplies to Merchant Exporters: 15.1. Notification No. 40/2017 - State Tax (Rate), dated 23rd October 2017 and notification No. 41/2017 - Integrated Tax (Rate) dated 23rd October 2017 (issued by the Board, CBIC) provide for supplies for exports at a concessional rate of 0.05% and 0.1% respectively, subject to certain conditions specified in the said notifications. 15.2. It is clarified that the benefit of supplies at concessional rate is subject to certain conditions and the said benefit is optional. The option may or may not be availed by the supplier and / or the recipient and the goods may be procured at the normal applicable tax rate. 15.3. It is also clarified that the exporter will be eligible to take credit of the tax @ 0.05% / 0.1% paid by him. The supplier who supplies goods at the concessional rate is also eligible for refund on account of inverted tax structure as per the provisions of clause (ii) of the first proviso to sub-section (3) of section 54 of the MGST Act. It may also be noted that the exporter ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
