Dated:- 19-12-2015 – REPORT OF THE JOINT COMMITTEE ON BUSINESS PROCESSES FOR GST ON REFUND PROCESSES SITUATIONS WHERE REFUND WOULD ARISE: Excess payment due to mistake and inadvertence, Export (including deemed export), Finalization of Provisional Assessment, Refund of pre deposit in case of Appeal or Investigation, Refund for Tax payment on transactions by UN bodies, CSD Canteens, Para-military forces canteens, etc. Refund from Manufacturing / Generation/ Production/Creation of Tax- free supplies or Non-GST Supplies, Refund of Carry Forward Input Tax Credit Refund on account of year end or volume based incentives. Tax refunds for International Tourists. EXCESS PAYMENT OF TAX DUE TO MISTAKE OR INADVERTENTCE The situations where the tax payer has made excess payment of tax either by mistake or by inadvertence resulting in more payment of tax than due to the Government. Such excess payment may be on account of:- wrong mention of nature of tax (CGST / SGST / GST), wrong mention of GSTIN,
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tax credit) and thereafter claiming the rebate of the duty paid on exported goods. EXPORT (INCLUDING DEEMED EXPORT) OF GOODS / SERVICES The following process is proposed for making this system as simple as possible: Verification: The IEC details of taxpayer will be captured at the time of issuance of GSTIN and the same will be verified online with DGFT. Application: The refund of ITC / rebate of GST paid on exported goods may be granted on submission of application to this effect by the taxpayer. Since the trigger point for refund is export of goods, therefore the event of export will be verified online. EXPORT (INCLUDING DEEMED EXPORT) OF GOODS / SERVICES Linkage between ICEGATE of Customs administration and the proposed GSTN of GST administration may be established so that online verification of the exports can be carried out. Invoice wise sale / purchase details by the taxpayers (filed with the monthly returns) can be linked with the Customs data (for export cases) available with I
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riod for the outcome of the appeal / application for stay. GST Law Drafting Committee may also consider for providing powers to jurisdictional authority at sufficiently senior level for withholding the refund in exceptional cases on the condition that interest at appropriate rate has to be paid. PRE DEPOSIT IN CASE OF APPEAL OR INVESTIGATION The refund of such amount may be handled as per the procedure given below: A separate mechanism for the accounting. Amount of tax paid during investigation, etc. become non leviable once the investigation is finalized and / or an adjudication order in favour of the taxpayer is issued. As soon as the investigation, etc. is over which does not lead to issuance of a show cause notice, or where after investigation, show cause notice is issued but the adjudication order is in favour of the taxpayer. The taxpayer shall be immediately eligible to claim refund of the amount that is found to have been paid in excess during investigation, etc. PRE DEPOSIT IN
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Annexure-VII to this document. Same process to apply for CSD canteen/CPMF canteen etc. No exemption in Tax but refund of Tax to be made. REFUND OF CARRY FORWARD INPUT TAX CREDIT The ITC may accumulate on account of the following reasons: Inverted Duty Structure i.e. GST on output supplies is less than the GST on the input supplies; Stock accumulation; Capital goods; and Partial Reverse charge mechanism for certain services. GST Law may provide that refund of carried forward ITC may not be allowed and such amount would be carried forward to the next tax period (s). In cases of inverted duty structure, cash refund may be granted after due audit and should be sanctioned only after the input tax credit has been matched from the purchase and sales statements filed along with monthly returns. REFUND ON ACCOUNT OF YEAR END OR VOLUME BASED INCENTIVES PROVIDED BY THE SUPPLIER THROUGH CREDIT NOTES In such cases, the eligibility for ITC at the buyer s end and the output liability at the supplier
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proper officer under the Custom Act gives an order for export known as LET EXPORT ORDER . 3. On account of Export of Services. Date of BRC. 4. On account of finalization of provisional assessment. Date of the finalization order. 5. In pursuance of an appellate authority s order in favour of the taxpayer. Date of communication of the appellate authority s order. 6. On account of payment of GST During investigation, etc. when no/less liability arose at the time of finalization of investigation proceedings or issuance of adjudication order. Date of communication of adjudication order or order relating to completion of investigation. 7. On account of accumulated credit of GST in case of a liability to pay service tax in partial reverse charge cases. Date of providing of service (normally the date of invoice). 8. For refund arising out of payment of GST on petroleum products, etc. to Embassies or UN bodies or to CSD canteens, etc. on the basis of applications filed by such persons. Date of
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ith refund Application. Bill of Lading Needed to be filed online with refund application. BRC To be filed within one year of Export or in a Period as prescribed by RBI. To be submitted with application in case of advance payment. DOCUMENTS TO BE FILED FOR REFUND EXPORT OF SERVICES: Invoice Bank Realization Certificate (BRC). No refund without filing of BRC. Cut-off date for filing of refund to be linked to receipt of BRC No custom documents that can substantiate the occurrence of event of export as no shipping bill is required to be filed. PROCEDURE: It is recommended that the State Tax authorities shall deal with the SGST refund and Central Tax authorities shall deal with refund of CGST and IGST. Applicant may be given the option of filing refund application either through the GSTN portal or through the respective State / Central Tax portal. Refund Claim Form under Goods & Services Tax.docx Refund Claim Form for embassies, international and public organisations.docx. On filing of
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ication is found to be in order but does not satisfy the test of unjust enrichment, the refund amount, after sanction, would be credited to the Consumer Welfare Fund. Minimum Limit: It is recommended that an amount in the range of ₹ 500-1000/- may be fixed below which refund shall not be granted. PROCEDURE: Other important points: Return itself may be treated as a refund application in specified cases. On filing of the electronic application, a receipt/ acknowledgement number to be generated & communicated to the applicant via SMS and email for future reference. Refund application to be displayed on taxpayer's online dashboard/ledger. PROCEDURE: Refund application found to be complete in all respect – To be communicated to applicant via SMS and e-Mail. Date of such communication to be considered as the relevant date for interest liability Proof of satisfying the principle of unjust enrichment Self certification by taxpayers CA certificate for taxpayers beyond a threshold
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