GST: CBIC lays down Procedures relating to Sanction, Post-Audit, and Review of Refund Claims [Read Circular]

The Central Board of Indirect Taxes and Customs (CBIC) w.r.t. sanction, post-audit, and review of refund claims.

This is in the light of the receipt of reports of different practices being followed by the field formations regarding sanction, review, and post-audit of refund claims by the Board.

“In certain Commissionerates, speaking order is being issued in respect of all refund claims, whereas in others, speaking orders are not being issued if the refund is sanctioned in full. Similarly, in the case of review and post-audit, different practices are being followed by the field formations. The matter has been examined with the twin purpose of ensuring uniformity in procedure and enabling effective monitoring of sanction of refund claims in order to safeguard the interest of revenue,” the Board said.

It was clarified that while passing the refund sanction order in FORM GST RFD-06, the proper officer should also upload a detailed speaking order along with the refund sanction order in FORM GST RFD-06. In order to ensure uniformity in the issuance of such speaking order, it is clarified that such speaking order should inter alia contain the following details including details for the category of refunds, additional details in case of the refund of accumulated ITC, etc.

With regard to post-audit and review, it was clarified that “as per extant practice, all refund orders are required to be reviewed for examination of legality and propriety of the refund order and for taking a view whether an appeal to the appellate authority under provisions of sub-section (2) of section 107 of the CGST Act is required to be filed against the said refund order.”

“Till the time the functionality for conducting post-audit online is developed on ACES GST portal, post-audit of refund orders may be conducted in offline mode. For the said purpose, the refund orders covered under para 2.2.3 above and the relevant documents may be provided to the post-audit cell by the concerned Division through the e-Office within 7 days of issuance of refund sanction order in FORM GST RFD-06. The report of the post audit may be furnished by the Post-Audit Cell to the Review Cell through e-Office as per the time-limit specified in para 2.2.4(c) above,” the circular said.

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