The Goods and Services Tax Network ( GSTN ) has developed an online functionality to enable Canteen Stores Department ( CSD ) to file refund applications in FORM GST RFD-10A on the GST common portal. This move follows the Circular No. 227/21/2024-GST issued by the GST policy wing, CBIC, on July 11, 2024.
The Canteen Stores Department ( CSD ) is now eligible to claim a refund of 50% of the central tax, integrated tax, and Union territory tax on inward supplies of goods received for subsequent supply to its Unit Run Canteens or authorised customers, as per Section 55 of the CGST Act.
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The refund process has been streamlined with a new electronic filing option on the common portal, replacing the previous manual application procedure outlined in Circular No. 60/34/2018-GST dated 04.09.2018.
CSD must now file refund applications electronically using FORM GST RFD-10A on the common portal. Applications can be filed quarterly or for multiple quarters/financial years. Refund is available only for goods received from registered persons with a tax invoice, and suppliers must have filed their returns in FORM GSTR-1 and FORM GSTR-3B.
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When filing a refund application, the CSD must include an undertaking confirming that the goods are intended for subsequent supply to Unit Run Canteens or authorised customers, along with a declaration that no previous claims have been made on the same invoices. Refund applications must be submitted within two years from the end of the quarter in which the supplies were received.
The processing of refund claims will follow the same procedure as FORM GST RFD-01 claims, with officers validating the details and verifying invoices against FORM GSTR-1 and FORM GSTR-3B.
Only invoices that are validated will be considered for the refund, and any invoices that have already been refunded will be flagged. Finally, the proper officer will issue the refund order in FORM GST RFD-06 and provide a detailed speaking order to accompany it.
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PROCESS TO BE FOLLOWED FOR FILING REFUND
a. Log in into the GST portal. Click on Services -> Refund -> Application for Refund.
b. Select “Refund of tax paid on Inward supply of goods by Canteen Store Department ( CSD )”.
c. Select Period for which refund is to be applied, by selecting From & To Period and then clicking on “Create Refund” application.
d. The refund applications on the GST portal are to be filed sequentially with respect to tax periods. If there is no refund to be claimed for a particular period, CSD needs to file a NIL refund claim for that period. Once a refund is filed or NIL refund claim is filed for a particular period, the system will not allow filing for the same period again. Similarly, it will not allow the taxpayer to file for any previous periods.
Example:
A CSD wants to file two refunds for the periods Jan 2024 to March 2024 and July 2024 to September 2024. In the GST system, the CSD has to file the first refund by selecting the period Jan 2024 to March 2024. When the CSD tries to file the second refund claim for the period July 2024 to September 2024, the GST portal will prompt the user to file refund for the period April 2024 – June 2024.If there is no refund claim for the period April 2024 – June 2024, then NIL refund claim has to be filed for the said period. Post that, the GST portal will allow the CSD to file a refund for the period July 2024 to September 2024.
e. In the GST portal, the Select Period is available from July 2017. If a taxpayer has already filed manual refund claims for the earlier periods or no refund claim is required to be filed for the earlier periods, they are advised to file NIL refund claims for such earlier periods.
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Example:
A CSD wants to file a refund claim ( RFD 10A ) for the period April – June 2024 in the GST system and all their earlier CSD refund claims are filed manually till the period March 2024. The said CSD has to file NIL refund claims in the GST system for the period from June 2017 – March 2024 in the GST portal though manual refund claims are filed for the said period. This will enable the taxpayer to file CSD refund claims for the period April – June 2024.
Note: Once a NIL refund claim is filed in the GST system for a period, the CSD cannot claim a refund for the same period again in the GST system.
f. The details of invoices for which refund is to be claimed shall be uploaded in the Statement. After successful validation of the statement, click on the Proceed button.
g. The total tax paid on Inward supply of goods will be auto-populated. Enter the value of IGST, CGST and SGST in the “Total Refund applied for” table.
h. While filing a refund application, the applicant has to Select the “Bank Account number” in which the refund is to be disbursed.
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i. Before submitting the refund application, the applicant can Save & Preview the refund application. If any correction/addition or rectification is to be done in the refund application, it can be done only before submission. Once the application is submitted using the Submit button, the system will not allow any change in the refund application.
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