Goods and Services Tax – 17/17/2017 – Dated:- 15-11-2017 – Circular No. 17/17/2017 – GST F. No. 349/169/2017-GST Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs GST Policy Wing New Delhi, Dated the 15th November, 2017 To, The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All) The Principal Director Generals / Director Generals (All) Madam/Sir, Sub – Manual filing and processing of refund claims in respect of zero-rated supplies – reg. Due to the non-availability of the refund module on the common portal, it has been decided by the competent authority, on the recommendations of the Council, that the applications/documents/forms pertaining to refund claims on account of zero-rated supplies shall be filed and processed manually till further orders. Therefore, in exercise of the powers conferred by sub-section (1) of section 168 of the Central Goods and Services Tax Act, 2017
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GST Rules. The shipping bill filed by an exporter shall be deemed to be an application for refund in such cases. The application shall be deemed to have been filed only when export manifest or export report is filed and the applicant has furnished a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be. Upon receipt of the information regarding furnishing of a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be, from the common portal, the system designated by the Customs shall process the claim for refund and an amount equal to the integrated tax paid in respect of such export shall be electronically credited to the bank account of the applicant. Any order regarding withholding of such refund or its further sanction respectively in PART-B of FORM GST RFD-07 or FORM GST RFD-06 shall be done manually till the refund module is operational on the common portal. 2.3 The application for refund of integrated tax paid on zero-rated supply of goods to a Special Economic Z
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ent of the claim. The common portal shall generate a proof of debit (ARN- Acknowledgement Receipt Number) which would be mentioned in the FORM GST RFD-01A submitted manually, along with the print out of FORM GST RFD-01A to the jurisdictional proper officer, and with all necessary documentary evidences as applicable (as per details in statement 3 or 5 of Annexure to FORM GST RFD-01), within the time stipulated for filing of such refund under the CGST Act. 2.5 The registered person needs to file the refund claim with the jurisdictional tax authority to which the taxpayer has been assigned as per the administrative order issued in this regard by the Chief Commissioner of Central Tax and the Commissioner of State Tax. In case such an order has not been issued in the State, the registered person is at liberty to apply for refund before the Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented. However
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MS mentioned below shall be done manually, within the timelines as specified in the relevant rules, till the module is operational on the common portal, and all such communications shall also be recorded appropriately in the refund register as discussed in the succeeding paragraphs – Sl.No. FORM Details Relevant provision of the CGST Rules, 2017 1. FORM GST RFD-02 Acknowledgement Rules 90(1) and 90(2) 2. FORM GST RFD-03 Deficiency memo Rule 90(3) 3. FORM GST RFD-04 Provisional refund order Rule 91(2) 4. FORM GST RFD-05 Payment advice Rules 91(3), 92(4), 92(5) and 94 5. FORM GST RFD-06 Refund sanction/Rejection order Rules 92(1), 92(3), 92(4), 92(5) and 96(7) 6. FORM GST RFD-07 Order for complete adjustment/withholding of sanctioned refund Rules 92(1), 92(2) and 96(6) 7. FORM GST RFD-08 Notice for rejection of application for refund Rule 92(3) 8. FORM GST RFD-09 Reply to show cause notice Rule 92(3) 2.8 The processing of the claim till the provisional sanction of refund shall be recorde
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f sanctioned refund/ withholding refund in FORM GST RFD-07 CT ST/UTT IT Cess CT ST/UTT IT Cess 1 2 3 4 5 6 7 8 9 10 11 12 13 2.10 After the refund claim is processed in accordance with the provisions of the CGST Act and the rules made thereunder and where any amount claimed as refund is rejected under rule 92 of the CGST Rules, either fully or partly, the amount debited, to the extent of rejection, shall be re-credited to the electronic credit ledger by an order made in FORM GST PMT-03. The amount would be credited by the proper officer using FORM GST RFD-01B (as notified in the CGST Rules vide notification No. 55/2017 – Central Tax dated 15.11.2017) subject to the provisions of rule 93 of the CGST Rules. 3. For the sake of clarity and uniformity, the entire process of filing and processing of refunds manually is tabulated as below: 3.1 Filing of Refund Claims: Sl. No. Category of Refund Process of Filing 1. Refund of IGST paid on export of goods No separate application is required as
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be maintained for record keeping of the manually sanctioned refunds – for receipts, sanction of provisional refunds and sanction of final refunds. The steps are as follows: Step No. Action to be Taken Step-1 Entry to be made in the Refund register for receipt of refund applications Step-2 Check for completeness of application as well as availability of the supporting documents in totality. Once completeness in all respects is ascertained, acknowledgement in FORM GST RFD-02 shall be issued within 15 days from the date of filing of the application and entry shall be made in the Refund register for receipt of refund applications Step-3 All communications (issuance of deficiency memo, issuance of provisional and final refund orders, payment advice etc.) shall be done in the format prescribed in the Forms appended to the CGST Rules, and shall be done manually (i.e. not on the common portal) within the timelines prescribed in the rules; Processing for grant of provisional refund shall be com
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is as under: MANUAL PROCESSING OF REFUND STEPS REMARKS LEGAL PROVISIONS Filing of refund application in FORM GST RFD- 01A online on the common portal (only when refund of unutilized ITC is claimed) The corresponding electronic credit ledger of CT / ST / UT / IT/ Cess would get debited and an ARN number would get generated. Rule 89 Filing of printout of FORMGST RFD-01A The printout of the ARN along with application of refund shall be submitted manually in the appropriate jurisdiction. This form needs to be accompanied with the requisite documentary evidences. This Form shall contain the debit entry in the electronic credit ledger of the amount claimed as refund in FORM GST RFD-01A. Rule 89(1) – Application Rule 89(2) – Requisite Documents Rule 89(3) – Debiting of electronic credit ledger Initial scrutiny of the Documents by the proper officer The proper officer shall validate the GSTIN details on the portal to validate whether return in FORM GSTR-3 or FORM GSTR- 3B, as the case may be,
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tion requirement Rule 93(1) – re-credit of refund amount applied for Issue acknowledgement manually within 15 days in FORM GST RFD-02 The date of submission of application for which acknowledgement has been given will be considered as the date for ensuring whether the refund application has been sanctioned within the stipulated time period. Rule 90(2) – Acknowledgement Grant of provisional refund within seven days of issue of acknowledgement The amount of provisional refund shall be calculated taking into account the total input tax credit, without making any reduction for credit being provisionally accepted. Provisional refund shall be granted separately for each head CT / ST / UT / IT/ Cess within 7 days of acknowledgement in FORM GST RFD-04. Before sanction of the refund a declaration shall be obtained that the applicant has not contravened rule 91(1). Payment advice to be issued in FORM GST RFD-05. Refund would be made directly in the bank account mentioned in the registration. Rul
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ther any adjustments against any outstanding liability is required (FORM GST RFD-07 – Part A). Ascertain what amount of the input tax credit is sanction-able, and amount of refund, if any, liable to be withheld. Order needs to be passed in FORM GST RFD-07 – Part B. Rule 89(4) – Refund Amount Calculation Rule 92(1) – Any adjustments made in the amount against existing demands Rule 92(2) – reasons for withholding of refunds If the sanction-able amount is less than the applied amount Notice has to be issued to the applicant in FORM GST RFD-08. The applicant has to reply within 15 days of receipt of the notice in FORM GST RFD-09. Principles of natural justice to be followed before making the final decision. Final order to be made in FORM GST RFD-06. Rule 92(3) – Notice for refund not admissible / payable Rule 92(3) – Requirement of reply to the notice within 15 days Rule 92(3), 92(4), 92(5) – Sanction of Refund order Pre-Audit Pre-audit of the manually processed refund applications is not
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Payment advice issue Payment of interest if any Amount, if any, will be paid by an order with payment advice in FORM GST RFD-05. Rule 94 4. The refund application for various taxes i.e. CT / ST / UT / IT/ Cess can be filed with any one of the tax authorities and shall be processed by the said authority, however the payment of the sanctioned refund amount shall be made only by the respective tax authority of the Centre or State government. In other words, the payment of the sanctioned refund amount in relation to CT / IT / Cess shall be made by the Central tax authority while payment of the sanctioned refund amount in relation to ST / UT would be made by the State tax/Union territory tax authority. It therefore becomes necessary that the refund order issued either by the Central tax authority or the State tax/UT tax authority is communicated to the concerned counter-part tax authority within three days for the purpose of payment of the relevant sanctioned refund amount of tax or cess, a
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