CBEC clarifies Issues on Manual filing of Refund of Deemed Exports & Excess balance in E-Ledger [Read Circular]

In a relief to tax payers, the Central Board of Excise and Customs (CBEC) on Thursday released clarification regarding issues on manual filing of refund of deemed exports & excess balance in e-ledger under the new Goods and Services Tax (GST) regime.

Earlier, due to the non-availability of the refund module on the common portal, the Government had enabled the facility of manual filing and processing of refund applications by casual taxable person or non-resident taxable person, tax deductor, tax collector and other registered taxable person etc. in connection with this, the Government had said that the applications/documents/forms pertaining to refund claims on account of zero-rated supplies shall be filed and processed manually till further orders.

Addressing the concerns of the stakeholders in this matter, the Board has now, come up with a clarification that refund claims in respect of zero-rated supplies and on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger shall be filed for a tax period on a monthly basis in FORM GST RFD-01A.

However, in case registered persons having aggregate turnover of up to Rs1.5 crorein the preceding financial year or the current financial year are opting to file FORM GSTR-1 quarterly (notification No. 57/2017-Central Tax dated 15.11.2017 refers), such persons shall apply for refund on a quarterly basis.

The CBEC missive further stated that that the refund claim for a tax period may be filed only after filing the details in FORM GSTR-1 for the said tax period.

The tax payers must ensure that a valid return in FORM GSTR-3B has been filed for the last tax period before the one in which the refund application is being filed.

“Since the date of furnishing of FORM GSTR 1 from July, 2017 onwards has been extended while the dates of furnishing of FORM GSTR 2 and FORM GSTR 3 for such period are yet to be notified, it has been decided by the competent authority to sanction refund of provisionally accepted input tax credit at this juncture. However, the registered persons applying for refund must give an undertaking to the effect that the amount of refund sanctioned would be paid back to the Government with interest in case it is found subsequently that the requirements of clause (c) of sub-section (2) of section 16 read with sub-section (2) of sections 42 of the CGST Act have not been complied with in respect of the amount refunded. This undertaking should be submitted manually along with the refund claim till the same is available in FORM RFD-01Aon the common portal,” the circular said.

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