Procedure of disposal of Refund filed in present law under GST, Goods and Services Tax - GST

[Narendra Soni]

Dear experts

In GST Act, procedure of disposal of Refund (excise/service tax/VAT) filed in present law is given below:-

(i) The refund if allowed would accrue in cash under the earlier law, viz., and would not be credited to the electronic credit ledger or electronic cash ledger.

(ii) The refund if rejected, fully or partially would lapse, no credit will be allowed.

Please suggest

1.The stage of rejection when the refund will be treated as 'rejected' i.e.rejected by Asst.Commir /DC or By Commr. (Appeal) or by Jt.Secretory or by HC/SC.

2.What will be for refund/rebate claims pending at Commr (Appeal) or by Jt.Secretory or by HC/SC, due to rejected by earlier authorities.

Posts / Replies

[Ganeshan Kalyani]

Sir, at the outset I would like to state that the designation of the authority would undergo change in GST. Further it is draft as of now, so commenting would tantamount to be futile. Thanks.

[KASTURI SETHI]

No need to go into depth at this pre-mature stage a large number of changes will take place. errors may creep in. moreover, 16 States will play roles to protect their interests.

[YAGAY AND SUN]

Exemption from IGST/CGST/SGST on imported /domestic inputs used in exports: For the input used in the goods/services which are exported, the exporters would be eligible for refund of unutilized input tax credit. With a view to ensure quick refund, 80% of the refund on account of exports of goods & services will be given expeditiously ,on provisional basis, while balance 20% will be refunded after due verification of documents. For the exporters, the facility of duty free imports/ procurement of inputs for exports should continue else it will lead to increasing requirement of working capital even for payment of IGST /CGST/SGST. This will hit MSME as their cost of capital is quite high, blunting their competitive edge in exports .The exemption will not lead to any loss of revenue as in any case exporters will be entitled to refund which affect their liquidity.

[Ganeshan Kalyani]

Sir, 1) in my view the highest authority. 2) special team will be set up to tackle such issues. Thanks.