CBIC simplifies GST Refund Procedure [Read Circular]

Refund Fortnight - CBIC - Taxscan

The Central Board of Indirect Taxes and Customs ( CBIC ) has issued a circular simplifying the procedure for granting refund under the Goods and Services Tax ( GST ) regime.

Earlier, due to non-availability of the complete electronic refund module, the Board had permitted physical submission of refund application. However, the Board received complaints on physical submission of documents in the jurisdictional tax office as it is causing undue hardship to the taxpayers.

In the circular, the Board laid down certain instructions to simplify the refund process when the same is applied off-line.

The circular also addresses the issues like, while processing the refund of unutilized ITC on account of inverted tax structure, the departmental officers are denying the refund of ITC of GST paid on those inputs which are procured at equal or lower rate of GST than the rate of GST on outward supply, by not including the amount of such ITC while calculating the maximum refund amount as specified in rule 89(5) of the CGST Rules.

Another issue resolved by the Board was that the refund applications that have been generated on the portal but not physically received in the jurisdictional tax offices.

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