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TMI BlogClarification on refund related issuesX X X X Extracts X X X X X X X X Extracts X X X X ..... ccumulated input tax credit under section 54(3) on the basis of that available as per Form GSTR 2B : 1.1 In terms of para 5 of GST Circular No. 05/2020, dated April 4, 2020, refund of accumulated input tax credit (ITC) is restricted to the input tax credit as per those invoices, the details of which are uploaded by the supplier in Form GSTR-1 and are reflected in the Form GSTR-2A of the applicant. Para 5 of the said circular is reproduced below : 5. Guidelines for refunds of input tax credit under section 54(3) : 5.1 In terms of para 36 of GST Circular No. 46/2019, dated November 11, 2019, the refund of ITC availed in respect of invoices not reflected in Form GSTR-2A was also admissible and copies of such invoices were required to be upload ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e availment of input tax credit has been linked with Form GSTR-2B w.e.f. January 1, 2022, availability of refund of the accumulated input tax credit under section 54(3) of RGST Act for a tax period shall be restricted to input tax credit as per those invoices, the details of which are reflected in Form GSTR-2B of the applicant for the said tax period or for any of the previous tax periods and on which the input tax credit is available to the applicant. Accordingly, para 36 of GST Circular No. 46/2019, dated November 21, 2019, which was earlier modified vide para 5 of GST Circular No. 05/2020, dated April 4, 2020, stands modified to this extent. Consequently, GST Circular No. 09/2020, dated June 15, 2020, which provides for restriction on re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TR-2 and Form GSTR-3 remains unimplemented, it has been decided by the GST Council to sanction refund of provisionally accepted input tax credit. However, the applicants applying for refund must give an undertaking to the effect that the amount of refund sanctioned would be paid back to the Government with interest in case it is found subsequently that the requirements of clause (c) of sub-section (2) of section 16 read with sub-section (2) of section 12 of the RGST Act have not been complied with in respect of the amount refunded, This undertaking should be submitted electronically along with the refund claim. 2.2 In accordance with the same, the following undertaking was inserted in Form GST RFD-01 : I hereby undertake to pay back to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of refund sanctioned along with interest in case it is found subsequently that the requirements of clause (c) of sub-section (2) of section 16 of the CGST/SGST Act have not been complied with in respect of the amount refunded. 2.4. Consequentially, Annexure-A to the GST Circular No. 46/2019, dated November 11, 2019 also stands amended to the following extent : i. Undertaking in relation to sections 16(2)(c) and section 42(2) wherever mentioned in the column Declaration/Statement/Undertaking/Certificates to be filled online , may be read as Undertaking in relation to sections 16(2)(c) . ii. copy of GSTR-2A of the relevant period wherever required as supporting documents to be additionally uploaded stands removed/deleted. iii. Self-certifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and accordingly, in adjusted total turnover for the purpose of sub-rule (4) of rule 89. 3.3 On similar lines, it is clarified that consequent to Explanation having been inserted in sub-rule (4) of rule 89 of the RGST Rules vide Notification No. F. 12(15)FD/Tax/2022-30, dated July 16, 2022, the value of goods exported out of India to be included while calculating adjusted total turnover will be same as being determined as per the Explanation inserted in the said sub-rule. 4. Clarification in respect of admissibility of refund where an exporter applies for refund subsequent to compliance of the provisions of sub-rule (1) of rule 96A : 4.1 References have been received citing the instances where exporters have voluntarily made payment of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herever permitted by the Reserve Bank of India. 4.3 In this context, it has been clarified inter alia in para 45 of GST Circular No. 46/2019, dated November 21, 2019 that : . . . exports have been zero rated under the IGST Act and as long as goods have actually been exported even after a period of three months, payment of Integrated tax first and claiming refund at a subsequent date should not be insisted upon. In such cases, the jurisdictional Commissioner may consider granting extension of time limit for export as provided in the said sub-rule on post facto basis keeping in view the facts and circumstances of each case. The same principle should be followed in case of export of services . 4.4 Further, in para 44 of the aforesaid Circular ..... X X X X Extracts X X X X X X X X Extracts X X X X
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