CBIC clarifies Refund related Issues [Read Circular]

CBDT - Refunds -Taxscan

In order to clarify the issues related to refund under the GST regime and to ensure uniformity in the implementation of the provisions of law across the field formations, the CBIC has issued a circular last day stating that the assessees should manually submit a print-out of relevant FORM GSTR-2A and invoices along with the refund application to the proper officer.

It also emphasized that the proper officer shall not insist on the submission of an invoice (either original or duplicate) the details of which are present in FORM GSTR-2A of the relevant period submitted by the claimant.

In case of refund of unutilized input tax credit, it was said that the facility to calculate the refundable amount is not presently available on the common portal and therefore, till the time, the taxpayers are advised to follow the order as explained above for all refund applications filed after the date of issue of this Circular. However, for applications already filed and pending with the tax authorities, where this order is not adhered to by the claimant, no adverse view may be taken by the tax authorities.

It was further clarified that the amended restriction under rule 96(10) of the CGST Rules, applies only to those purchasers/importers who are directly purchasing/importing supplies on which the benefit of certain notifications, as specified in the said sub-rule, has been availed.

With regard to the disbursal of refund amount after sanctioning by the proper officer, the circular stated that “neither the State nor the Central tax authorities shall refuse to disburse the amount sanctioned by the counterpart tax authority on any grounds whatsoever, except under sub-section (11) of section 54 of the CGST Act. It is further clarified that any adjustment of the amount sanctioned as refund against any outstanding demand against the claimant can be carried out by the refund disbursing authority if not already done by the refund sanctioning authority.”

It further requested the Field formations to reject claims of refund from the electronic credit ledger for less than one thousand rupees and recredit such amount by issuing an order in FORM GST RFD-01B.

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