Para 2 (F) - REFUND FOR TAX PAYMENT ON PURCHASE BY UN BODIES, SUPPLIES TO CSD CANTEENS, PARA MILITARY FORCES CANTEENS, ETC - Report on - Business Processes for GST on Refund Process - [August 2015]

2(F) REFUND FOR TAX PAYMENT ON PURCHASE BY UN BODIES, SUPPLIES TO CSD CANTEENS, PARA MILITARY FORCES CANTEENS, ETC.: i) Presently the UN bodies are eligible for refund of taxes paid by them at the time of purchases made by them from the market. GST Law may provide for similar provision and in such a case, the following process for grant of refund is recommended: a) Refund on purchases by UN Bodies may be granted from only one office each of both the tax administrations within one State. b) UN Bodies may be assigned a unique identification number (ID) the structure of which would be uniform across the States in conformity with the GSTIN Structure. (Some other structure may have to be considered as such bodies do not have PAN) c) The registration document, return document and invoice would contain a column for capturing this Unique ID. d) There has to be a separate field for allotting ID to such bodies. e) While making supplies to such bodies, the suppliers must indicate the Unique ID on the invoices. f) The UN Bodies may file their purchase statements (without purchase invoices) along with their claim for refund. g) The GST Law may provide that some purchases are ineligible for refund (e.g. invoice value less than the prescribed threshold, goods / services specified as ineligible for refund, etc.). Such cases should be specifically marked in the purchase statement or may not be included in the purchase statement. h) The net claim will be related to GST paid on total purchases minus GST paid on ineligible purchases. i) The IT system will carry out the matching with the sales statements of the counter party suppliers. j) The matched and claimed to be eligible invoices will be seen by the jurisdictional authority to verify that none of the ineligible purchases have been included in the refund claim. k) The refund may be granted based on the matching and the limited manual verification. l) There might be situations when the supplier does not declare the supply in his monthly return. In such a case, unmatched invoices will get marked by the IT system and the supplier will be notified accordingly. m) The UN body may be granted refund along with its next claim if any of the unmatched supplies have been accepted and related GST has been paid by the supplier and return has been filed subsequently. n) The personal purchases by the staff may also be done seeking ID of the UN body on the invoice. o) Such invoices in the statement can be marked as for personal consumption for any additional verification in case of any restriction under the GST Law. p) GST Law Drafting Committee may provide for appropriate provisions whether refund has to be given for the personal purchases by the staff of UN bodies and Embassies. Such provisions may also relate to limits or restrictions, if any on such refunds. ii) It is recommended that the suppliers to CSD Canteens, Para Military Canteens would not be eligible for exemption. The procedure as detailed above would apply in respect of supplies to CSD Canteens, Para Military Forces canteens etc. and these bodies would claim refund. iii) Form of application for refund which may be used by such bodies is enclosed as Annexure-VII to this document. iv) The refund may be on account of CGST, SGST or IGST as the case may be.