The Kerala Goods and Services Tax department, has recently released a set of instructions on disbursal of SGST components of refund claim.
Under the current laws, The tax payers are permitted to file the refund applications manually in FORM GST RFD-01A for a tax period on monthly basis for the categories such as Zero-rated supplies, On account of inverted duty structure (higher tax rate on input & lower tax rate on finished products), Deemed exports and Excess balance in electronic cash ledger.
The refund applications filed by the taxpayers in their respective jurisdiction shall be processed by respective Proper Officers. The refund has to be disbursed only by the respective tax authority of Central and State Government. Therefore refund of Central Taxes (CGST, CESS, IGST) sanctioned shall be made by Central Tax Authority and refund of State Tax (SGST) shall be made by State Tax Authority.
District Deputy Commissioners who are nominated as nodal officers, are authorized to facilitate sanction of refund claims.
The circular said that in case the refund claims so sanctioned by the Central Tax authority, the copy of the sanction order should be communicated to the respective nodal officers. On receipt of the refund sanction order in FORM GST RFD-04 (Provisional Refund) or FORM GST RFD06(Refund Sanction) along with Payment Advice in FORM GST RFD-05, the nodal officer shall send it to the DDO (Manager of DC office), for onward transmission for release of payment.
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