What is the time period within which provisional refund has to be given?

Question 22 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 22 – Q 22. What is the time period within which provisional refund has to be given? Ans. Provisional refund to the extent of 90% of the amount claimed on account of zero-rated supplies in terms of sub-section (6) of section 54 of the CGST/SGST Act has to be given within 7 days from the date of acknowledgement of complete application for refund claim. – Statutory Provisions, Acts, Rules, Regulations

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What is the time period within which an acknowledgement of a refund claim has to be given?

Question 21 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 21 – Q 21. What is the time period within which an acknowledgement of a refund claim has to be given? Ans. Where an application relates to a claim for refund from the electronic cash ledger as per sub-section (6) of section 49 of the CGST/SGST Act made through the return furnished for the relevant tax period the acknowledgement will be communicated as soon as the return is furnished and in all othe

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Presently under Central law, exporters are allowed to obtain duty paid inputs, avail ITC on it and export goods upon payment of duty (after utilizing the ITC) and thereafter claim refund of the duty paid on exports. Will this system continue in

Presently under Central law, exporters are allowed to obtain duty paid inputs, avail ITC on it and export goods upon payment of duty (after utilizing the ITC) and thereafter claim refund of the duty paid on exports. Will this system continue in GST? – Question 20 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 20 – Q 20. Presently under Central law, exporters are allowed to obtain duty paid inputs, avail ITC on it and export goods upon payment of duty (after

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Today under VAT/CST merchant exporters can purchase goods without payment of tax on furnishing of a declaration form. Will this system be there in GST?

Question 19 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 19 – Q 19. Today under VAT/CST merchant exporters can purchase goods without payment of tax on furnishing of a declaration form. Will this system be there in GST? Ans. There is no such provision in the GST law. They will have to procure goods upon payment of tax and claim refund of the unutilized input tax credit in accordance with section 54(3) of the CGST/SGST Act. – Statutory Provisions, Acts, R

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How will the applicant prove that the principle of unjust enrichment does not apply in his case?

Question 18 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 18 – Q 18. How will the applicant prove that the principle of unjust enrichment does not apply in his case? Ans. Where the claim of refund is less than ₹ 2 Lakh, a selfdeclaration by the applicant based on the documentary or other evidences available with him, certifying that the incidence of tax has not been passed on to any other person would make him eligible to get refund. However, if the

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In case of refund under exports, whether BRC is necessary for granting refund?

Question 16 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. In case of refund under exports, whether BRC is necessary for granting refund? Ans. In case of refund on account of export of goods, the refund rules do not prescribe BRC as a necessary document for filing of refund claim. However, for export of services details of BRC is required to be submitted along with the application for refund. – Statutory Provisions, Acts, Rules, Regulations, Tax

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Whether refund can be made before verification of documents?

Question 15 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 15 – Q 15. Whether refund can be made before verification of documents? Ans. In case of any claim of refund to a registered person on account of zero rated supplies of goods or services or both (other than registered persons as may be notified), 90% refund may be granted on provisional basis before verification subject to such conditions and restrictions as may be prescribed in accordance with sub-

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Can refund be withheld by the department?

Question 11 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 11 – Q 11. Can refund be withheld by the department? Ans. Yes, refund can be withheld in the following circumstances: i. If the person has failed to furnish any return till he files such return; ii. If the registered taxable person is required to pay any tax, interest or penalty which has not been stayed by the appellate authority/Tribunal/ court, till he pays such tax interest or penalty; The prop

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Is there any time limit for sanctioning of refund?

Question 10 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 10 – Q 10. Is there any time limit for sanctioning of refund? Ans. Yes, refund has to be sanctioned within 60 days from the date of receipt of application complete in all respects. If refund is not sanctioned within the said period of 60 days, interest at the rate notified will have to be paid in accordance with section 56 of the CGST/SGST Act. However, in case where provisional refund to the exten

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Whether principle of unjust enrichment will be applicable in refund?

Question 8 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. Whether principle of unjust enrichment will be applicable in refund? Ans. The principle of unjust enrichment would be applicable in all cases of refund except in the following cases: – i. Refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies ii. Unutilized input tax credit in respect of (i) zero rated su

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Whether purchases made by Embassies or UN are taxed or exempted?

Question 6 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 6 – Q 6. Whether purchases made by Embassies or UN are taxed or exempted? Ans. Supplies to the Embassies or UN bodies will be taxed, which later on can be claimed as refund by them in terms of Section 54(2) of the CGST/SGST Act. The claim has to be filed in the manner prescribed under CGST/SGST Refund rules, before expiry of six months from the last day of the month in which such supply was received

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Suppose a taxable person has paid IGST/ CGST/SGST mistakenly as an Interstate/intrastate supply, but the nature of which is subsequently clarified. Can the CGST/SGST be adjusted against wrongly paid IGST or vice versa?

Question 5 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. Suppose a taxable person has paid IGST/ CGST/SGST mistakenly as an Interstate/intrastate supply, but the nature of which is subsequently clarified. Can the CGST/SGST be adjusted against wrongly paid IGST or vice versa? Ans. The taxable person cannot adjust CGST/SGST or IGST with the wrongly paid IGST or CGST/SGST but he is entitled to refund of the tax so paid wrongly – Sec.77 of the CGST/S

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Can unutilized Input tax credit be allowed as refund?

Question 2 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. Can unutilized Input tax credit be allowed as refund? Ans. Unutilized input tax credit can be allowed as refund in accordance with the provisions of sub-section (3) of section 54 in the following situations: – (i) Zero rated supplies made without payment of tax; (ii) Where credit has accumulated on account of rate of tax on inputs being higher than the rate of taxes on output supplies (othe

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What is refund?

Question 1 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 14. Refunds Q 1. What is refund? Ans. Refund has been discussed in section 54 of the CGST/SGST Act. Refund includes (a) any balance amount in the electronic cash ledger so claimed in the returns, (b) any unutilized input tax credit in respect of (i) zero rated supplies made without payment of tax or, (ii) where the credit has accumulated on account of rate of tax on inputs being higher than the

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