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TMI BlogRefund of Integrated Tax paid on account of zero rated suppliesX X X X Extracts X X X X X X X X Extracts X X X X ..... do not get added to the cost of exports. The objective of zero rating of exports and supplies to SEZ is sought to be achieved through the provision contained in Section 16(3) of the IGST Act, 2017, which mandates that a registered person making a zero rated supply is eligible to claim refund in accordance with the provisions of section 54 of the CGST Act, 2017, under either of the following options, namely: he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax (IGST) and claim refund of unutilised input tax credit of Central tax (CGST), State tax (SGST) / Union territory tax (UTGST) and integrated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on for refund shall be considered to have been filed and refund shall be processed by the department. Since the system of filing of return in FORM GSTR3 has not started so far, the refund of integrated tax on export of goods would be granted based on FORM GSTR-1 and FORM GSTR-3B for the time being. The details of the relevant export invoices contained in FORM GSTR-1 (or Table 6A thereof) shall be transmitted electronically by the common portal to the system designated by the Customs and the said system shall electronically transmit to the common portal, a confirmation that the goods covered by the said invoices have been exported out of India. Upon receipt of the information regarding the furnishing of a valid return in FORM GSTR-3 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (Rate) dated 23.10.2017 or notification No. 41/2017-Integrated Tax (Rate) dated 23.10.2017. Service Exporters and Persons making supplies to SEZ Under this category also, the supplier may choose to first pay IGST and then claim refund of the IGST so paid. In these cases, the suppliers will have to file refund claim in FORM GST RFD 01 on the common portal, as per Rule 89(1) of the CGST Rules, 2017. Service Exporters need to file a statement containing the number and date of invoices and the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates, as the case may be, along with the refund claim. In so far as refund is on account of supplies made to SEZ, the DTA supplier will have to file the refund c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supply of services made to a Special Economic Zone unit or a Special Economic Zone developer; 3. a declaration to the effect that the Special Economic Zone unit or the Special Economic Zone developer has not availed the input tax credit of the tax paid by the supplier of goods or services or both, in a case where the refund is on account of supply of goods or services made to a Special Economic Zone unit or a Special Economic Zone developer. Manual filing of claims Till such time as full-fledged refund module is operationalised by GSTN, manual filing of claims has been prescribed vide Circular no.17/17/2017-GST dated 15.11.2017 Circular no. 24/24/2017-GST dated 21.12.2017. The application for refund of IGST paid on zero-rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seven working days for the purpose of payment of the relevant sanctioned refund amount of tax or cess, as the case may be. This time limit of seven working days is also applicable to refund claims in respect of zero-rated supplies being processed as per Circular no. 17/17/2017GST dated 15.11.2017 as against the time limit of three days prescribed in para 4 of the said Circular. It must be ensured that the timelines specified under section 54(7) of the CGST Act, 2017 and rule 91(2) of the CGST Rules, 2017 for the sanction of refund are adhered to. Special Procedure to facilitate smooth refund of Central Tax and State Tax In order to facilitate sanction of refund amount of central tax and State tax by the respective tax authorities, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive order issued in this regard by the Chief Commissioner of Central Tax and the Commissioner of State Tax. In case such an order has not been issued in the State, the registered person is at liberty to apply for refund before the Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented. However, in the latter case, an undertaking is required to be submitted stating that the claim for sanction of refund has been made to only one of the authorities. It is reiterated that the Central Tax officers shall facilitate the processing of the refund claims of all registered persons whether or not such person was registered with the Central Government in the earli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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