9911796707
TMI BlogClarification on refund related issuesX X X X Extracts X X X X X X X X Extracts X X X X ..... is powers conferred by section 168 (1) of the Andhra Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as "APGST Act"), hereby clarifies the issues detailed hereunder: 2. Clarification in respect of refund claim by recipient of Deemed Export Supply 2.1 Representations have been received in respect of difficulties being faced by the recipients of the deemed export supplies in claiming refund of tax paid in respect of such supplies since the system is not allowing them to file refund claim under the aforesaid category unless the claimed amount is debited in the electronic credit ledger. 2.2 Para 41 of Circular No.125/44/2019 (Central) 03/2020 (State), dated 10-01-2020 (Circular No. 125/44/2019 - GST dated 18/11/2019) has pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit to the claimant, the portal allows refund of only Input Tax Credit (ITC) to the recipients which is required to be debited by the claimant while filing application for refund claim. Therefore, whenever the recipient of deemed export supplies files an application for refund, the portal requires debit of the equivalent amount from the electronic credit ledger of the claimant. 2.5 As stated above, there is no restriction under 3rd proviso to Rule 89(1) of APGST Rules, 2017 on recipient of deemed export supply, claiming refund of tax paid on such deemed export supply, on availment of ITC on the tax paid on such supply. Therefore, the para 41 of Circular No.125/44/2019 (Central) 03/2020 (State), dated 10-01- 2020 (Circular No. 125/44/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been detailed in statement 5B for the tax period for which refund is being claimed and the amount does not exceed the amount of input tax credit availed in the valid return filed for the said tax period. The recipient shall also be required to declare that the supplier has not claimed refund with respect to the said supplies. The procedure regarding procurement of supplies of goods from DTA by Export Oriented Unit (EOU) / Electronic Hardware Technology Park (EHTP) Unit / Software Technology Park (STP) Unit / Bio-Technology Parks (BTP) Unit under deemed export as laid down in Circular No.6, CCT's Ref.No.CCW/GST/74/2015, Dated 02-01-2018 (Circular No. 14/14/2017-GST dated 06.11.2017) needs to be complied with." 3 Extension of relaxation fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ications in FORM GST RFD-01A/ FORM GST RFD-01. 3.3 The issue has been examined and it has been decided to extend the relaxation provided for filing refund claims where the taxpayer inadvertently entered the details of export of services or zero-rated supplies to a Special Economic Zone Unit/Developer in table 3.1(a) instead of table 3.1(b) of FORM GSTR-3B till 31.03.2021. Accordingly, para 26 of Circular No.125/44/2019 (Central) 03/2020 (State), dated 10-01-2020 (Circular No. 125/44/2019 - GST dated 18.11.2019) stands modified as under: "26. In this regard, it is clarified that for the tax periods commencing from 01.07.2017 to 31.03.2021, such registered persons shall be allowed to file the refund application in FORM GST RFD-01 on the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 89 as under: "Adjusted Total Turnover" means the sum total of the value of- (a) the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the turnover of services; and (b) the turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services, excluding- (i) the value of exempt supplies other than zero-rated supplies; and (ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, during the relevant period.' 4.4 "Turnover in state or turnover in Union territory" as referred to in the definition of "Adjusted Total Turnover" in Rule 89 (4) has been defined under sub-sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (4) of Rule 89. Thus, the restriction of 150% of the value of like goods domestically supplied, as applied in "turnover of zero-rated supply of goods", would also apply to the value of "Adjusted Total Turnover" in Rule 89 (4) of the APGST Rules, 2017. 4.6 Accordingly, it is clarified that for the purpose of Rule 89(4), the value of export/ zero- rated supply of goods to be included while calculating "adjusted total turnover" will be same as being determined as per the amended definition of "Turnover of zero-rated supply of goods" in the said sub-rule. The same can explained by the following illustration where actual value per unit of goods exported is more than 1.5 times the value of same/ similar goods in domestic market, as declared by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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