Introduction of GST Refund - GST Ready Reckoner - GST

Introduction of GST Refund INTRODUCTION Timely refund mechanism is essential in tax administration, as it facilitates trade through release of blocked funds for working capital, expansion and modernization of existing business. The provisions pertaining to refund contained in the GST law aim to streamline and standardise the refund procedures under GST regime. Thus, under the GST regime there will be a standardised form for making any claim for refunds. The claim and sanctioning procedure will be completely online and time bound which is a marked departure from the existing time consuming and cumbersome procedure. It has been decided, however, that since the online refund module is not available immediately, the refund process would be handled manually and Circular No. 17/17/2017GST dated 15.11.2017 and Circular no. 24/24/2017-GST dated 21.12.2017 prescribing the detailed procedure have been issued. SITUATIONS LEADING TO REFUND CLAIMS The relevant date provision embodied in Section 54 of the CGST Act, 2017 , provision contained in Section 77 of the CGST Act, 2017 and the requirement of submission of relevant documents as listed in Rule 89(2) of CGST Rules, 2017 is an indicator of the various situations that may necessitate a refund claim. A claim for refund may arise on account of- 1. Export of Goods or services on payment of tax 2. Supply of goods or services to SEZs units and developers on payment of tax 3. Export of Goods or services under Bond/Letter of Undertaking, without payment of tax 4. Supply of goods or services to SEZs units and developers under Bond/Letter of Undertaking, without payment of tax 5. Deemed Exports (refund available to both supplier and recipient) 6. Refund of taxes on purchase made by UN Agencies, Embassies etc 7. Refund arising on account of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court 8. Refund of accumulated Input Tax Credit on account of inverted duty structure 9. Finalisation of provisional assessment 10. Excess balance in electronic cash ledger 11. Excess payment of tax and interest, if any, or any other amount paid 12. Refunds to International tourists of GST paid on goods in India and carried abroad at the time of their departure from India (not yet operationalized) 13. Refund on account of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued (tax paid on advance payment) 14. Refund of CGST SGST paid by treating the supply as intra-State supply which is subsequently held as inter-State supply and vice versa. 15. Refudn to CSD Canteens. The list is only indicative and not exhaustive. Thus practically every situation is covered.