TMI BlogClarification on refund related issuesX X X X Extracts X X X X X X X X Extracts X X X X ..... Wing. Encl : Circular No. 147/03/2021-GST (Dr. Vishal Kumar, IAS) Chief Commissioner of State Tax Government of Tripura Circular No. 147/03//2021-GST CBEC-20/23/03/2020-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing New Delhi, Dated the 12th March, 2021 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of Central Tax (All) The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Clarification on refund related issues Reg. Various representations have been received seeking clarification on some of the issues relating to GST refunds. The issues have been examined and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act ), hereby clarifies the issues detailed hereunder: 2. Clarification in respect of refund claim by recipient of Deemed Export Supply 2.1 Repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax 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-GST dated 18.11.2019 is modified to remove the restriction of non-availment of ITC by the recipient of deemed export supplies on the invoices, for which refund has been claimed by such recipient. The amended para 41 of Circular no. 125/44/2.019-GST dated 18.11.2019 would read as under: 41. Certain supplies of goods have been notified as deemed exports vide notification No. 48/2017-Central Tax dated 18.10.2017 under section 147 of the CGST Act. Further, the third proviso to rule 89(1) of the CGST Rules allows either the recipient or the supplier to apply for refund of tax paid on such deemed export supplies. In case such refund is sought by the supplier of deemed export supplies, the documentary evidences as specified in notification No. 49/2017- Central Tax dated 18.10.2017 are also required to be furnished which includes an undertaking that the recipient of deemed export supplies shall not claim the refund in respect of such supplies and shall not avail any input tax credit on such supplies. Similarly, in case the refund is filed by the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cided 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-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 common portal subject to the condition that the amount of refund of integrated tax/cess claimed shall not be more than the aggregate amount of integrated tax/cess mentioned in the Table under columns 3.1(a), 3.1(b) and 3.1(c) of FORM GSTR-3B filed for the corresponding tax period. 4. The manner of calculation of Adjusted Total Turnover under sub-rule (4) of Rule 89 of CGST Rules, 2017. 4.1 Doubts have been raised as to whether the restriction on turnover of zero-rated supply of goods to 1.5 times the value of like goods domestically supplied by the same or, similarly placed, supplier, as declared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncludes turnover/ value of export/ zero-rated supplies of goods. The definition of Turnover of zero-rated supply of goods has been amended vide Notification No.16/2020-Central Tax dated 23.03.2020, as detailed above. In view of the above, it can be stated that the same value of zero-rated/ export supply of goods, as calculated as per amended definition of Turnover of zero-rated supply of goods , need to be taken into consideration while calculating turnover in a state or a union territory , and accordingly, in adjusted total turnover for the purpose of sub-rule (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 CGST 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 v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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