The Central Board of Indirect Taxes and Customs ( CBIC ) has released new guidelines for the electronic processing of Goods and Services Tax ( GST ) refund applications submitted by the Canteen Stores Department (CSD).
These guidelines are outlined in Circular No. 227/21/2024-GST, dated July 11, 2024.
The CSD, under the Ministry of Defence, is entitled to claim a refund of 50% of the central tax, integrated tax, and Union territory tax paid on inward supplies of goods for subsequent supply to Unit Run Canteens or authorised customers.
Previously, CSD had to file these refund claims manually. However, with the introduction of new functionality on the GST common portal, CSD can now file these applications electronically.
All CSDs must file refund applications in FORM GST RFD-10A on the common portal.
Refund claims must be based on invoices of inward supplies of goods received by CSD.
CSD must ensure all invoices have the supplier’s GSTIN and the respective CSD’s GSTIN clearly mentioned.
Refund applications must be submitted once every quarter, but CSD can opt to club multiple quarters and financial years in a single application.
The proper officer will validate GSTIN details and ensure all necessary returns have been filed before processing the refund. The refund amount cannot exceed 50% of the taxes paid, and the system will auto-populate this data in FORM GST RFD-10A.
A detailed speaking order will accompany the refund sanction order in FORM GST RFD-06.
It was also clarified that the applications filed manually before the new electronic system was implemented will continue to be processed manually as per Circular No. 60/34/2018-GST dated September 4, 2018.
The CBIC has added that trade notices are to be issued to publicise these guidelines. Any difficulties in implementing the circular should be reported to the Board.
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