GST REFUND APPLICATION - RFD-02 ACKNOWLEDGEMENT NOT RECEIVED, Goods and Services Tax - GST

[Ram Ramachandran]

Dear Forum Experts, If GST-02 Acknowledgement is not received for a GST Refund application even after sending reminders via the refund module in GST portal and 2 months have passed what is the suggested "next step" ?

Is there an option to request for a personal hearing if the RFD-02 is delayed ?

Posts / Replies

[KASTURI SETHI]

Meet the higher officers of the department along with the proof of uploading the application for refund and  also copies of reminders uploaded/emailed.

[Shilpi Jain]

If its filed with central authorities try raising a ticket at CPGRAMS.

[RaamSrinivasan Kalpathi]

Rule 90(2) mandates issue of Ack. within 15 days from the date of filing of application if the same is complete in all respects.  Else, a deficiency communication shall be uploaded at the common portal.  Practically elucidating, I am of the opinion that the only reason for the delay could be because the case is 'red flagged' and under investigation with DGGI.  If that is so, no amount of shooting emails is going to elicit a response from the department.  There have been such cases gathering dust for over 2 years.  To ferret out the reasons for the delay, the options available are two fold, viz.

a)  Personally meet the judisdictional Suptt and politely seek the reasons, as opined by respected Shri.Kasthuriji, or

b) File a WP in the HC with a request to direct the department to process the refund application.  Usually filing a WP brings out the real reason for the reticence of the department in issuing an Ack.

Suggestion would be to attempt the first option and in the event it turns out to be a dead-end the only option will be to file a WP.

Thanks 

[Ram Ramachandran]

Dear Forum Experts, I have been visiting the GST Jurisdictional office since last 2 months requesting for answers as to why no RFD-02 (Acknowledgement) nor RFD-03 (Deficiency Memo) has been issued to date from date of refund application (10th Sept 2024). No answers are coming from the concerned GSTO.

2. On 19th Nov, I was asked to submit all hard copy documents which were earlier uploaded to the GST portal. When I pointed out the contents of Circular 125/44/2019 - GST dated 18.11.2029, wherein no physical documents are required to be submitted, the GST officer told me that if I didn't do it the application will not be processed. So I complied with this requirement also.

3. All time limits of issuing RFD-02/RFD-03 has lapsed.

4. Today, when I visited the officer again, I was told that the Additional Commissioner had raised a query on the file. Since the refund amount is greater that Rs 10 lakhs, I was told that the Additional Commissioner needs to sanction the amount.

5. My question:

a) Can RFD-08 (SCN for Rejection of Refund) be issued by the Department without completing RFD-02/03 due process ?

b) What is the procedure which Department should follow to seek clarification regarding the refund application via the GST portal ?

[KASTURI SETHI]

Dear Querist,

Regarding the  legal procedure my reply is as under :-

Query : (a) Can RFD-08 (SCN for Rejection of Refund) be issued by the Department  without completing RFD-02/03 due process  ? 

Ans. NO.
(b) What is the procedure which Department should follow to seek clarification regarding the refund application via the GST portal ? 

Ans. In this context, read carefully the following judgement along with the relied upon case laws mentioned therein :-

2020 (7) TMI 611 - DELHI HIGH COURT - JIAN INTERNATIONAL Versus COMMISSIONER OF DELHI GOODS AND SERVICES TAX

[Ram Ramachandran]

Dear Shri Kasturi Sethi,

1. Thank you for sharing the case law regarding my issue.

3. Department has issued RFD-02 (acknowledgement) after 127 days of submission of RFD-01 via the Online portal alongwith RFD-08, Notice for rejection of partial refund claimed, on 14.01.2025

4. The reasons given appear to me as infructuous as they have cited following undertaking missing from my application :

i) Declaration under second and third proviso to section 54(3)

ii) Undertaking in relation to sections 16(2)(c) and section 42(2)

iii) Statement 3 under rule 89(2)(b) and rule 89(2)(c)

iv) Statement 3A under rule 89(4)

v) Declaration regarding correctness of information

vi) Proof of export of services

vii) Copy of Service Agreement

5. Whilst I shall reply to the above SCN ( referring to Circular No. 125/44/2019 - GST & Circular No. 197/09/2023-GST) pointing out the electronic submission of my application and the fact that ARN / Electronic form RFD-01 will not get processed and ARN generated unless all the alleged missing declarations are completed, I suspect the Department is basing their observations by not referring to the portal application but are only processing the manual documents/copies of the application submitted to them in Nov 2024, on their demand.

6. The department has not provided any calculation or reasoning on how they have arrived at the partial amount of the claim they have rejected. Why did they accept partial claim and reject partial when the reasons they have cited covers the entire application ?

My questions/clarification sought from forum experts :

a) What is the recommended action suggested ?

b) By issuing RFD-08, SCN, for partial dis-allowance of my claim, can RFD-06 still be issued after my explanation is accepted ? Or will I be required to file a new application ?

c) Why would the department raise such illogical reasons especially when the process of submission / processing is being done in an electronic environment ?