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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 ..... etailed hereunder : 2. Clarification in respect of refund claim by recipient of deemed export supply 2.1 Representations have been received in respect of difficulties being faced by the recipients of the deemed export supplies in claiming refund of tax paid in respect of such supplies since the system is not allowing them to file refund claim under the aforesaid category unless the claimed amount is debited in the electronic credit ledger. 2.2 Para 41 of circular issued vide Memo No. 3561/GST-2, Panchkula dated the December 16, 2019 (Circular No. 125/44/2019-GST, dated November 18, 2019 of Central) has placed a condition that the recipient of deemed export supplies for obtaining the refund of tax paid on such supplies shall submit an undert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be debited by the claimant while filing application for refund claim. Therefore, whenever the recipient of deemed export supplies files an application for refund, the portal requires debit of the equivalent amount from the electronic credit ledger of the claimant. 2.5 As stated above, there is no restriction under third proviso to rule 89(1) of the HGST Rules, 2017 on recipient of deemed export supply, claiming refund of tax paid on such deemed export supply, on availment of ITC on the tax paid on such supply. Therefore, the para 41 of Circular issued vide Memo No. 3561/GST-2, Panchkula dated December 16, 2019 (Circular No. 125/44/2019-GST, dated November 18, 2019 of Central) is modified to remove the restriction of non-availment of ITC by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refund with respect to the said supplies. The procedure regarding procurement of supplies of goods from DTA by export oriented unit (EOU)/electronic hardware technology park (EHTP) unit/software technology park (STP) unit/bio-technology parks (BTP) Unit under deemed export as laid down in Circular No. 14/14/2017-GST, dated November 6, 2017 issued by Central needs to be complied with. 3. Extension of relaxation for filing refund claim in cases where zero-rated supplies has been wrongly declared in table 3.1(a). 3.1 Para 26 of circular issued vide Memo No. 3561/GST-2, Panchkula, dated the December 16, 2019 (Circular No. 125/44/2019-GST, dated November 18, 2019 of Central) gave a clarification in relation to cases where taxpayers had inadverte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble 3.1(a) instead of table 3.1(b) of Form GSTR-3B till March 31, 2021. Accordingly, para 26 of circular issued vide Memo No. 3561/GST-2, Panchkula dated the December 16, 2019 (Circular No. 125/44/2019-GST, dated November 18, 2019 of Central) stands modified as under : 26. In this regard, it is clarified that for the tax periods commencing from July 1, 2017 to March 31, 2021, such registered persons shall be allowed to file the refund application in Form GST RFD-01 on the common portal subject to the condition that the amount of refund of integrated tax/cess claimed shall not be more than the aggregate amount of integrated tax/cess mentioned in the table under columns 3.1(a), 3.1(b) and 3.1(c) of Form GSTR-3B filed for the corresponding tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n zero-rated supplies ; and (ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, during the relevant period. 4.4 Turnover in State as referred to in the definition of adjusted total turnover in rule 89(4) has been defined under sub-section (112) of section 2 of the HGST Act 2017, as : Turnover in State means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter State supplies of goods or services or both made from the State or Union territory by the said taxa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... illustration where actual value per unit of goods exported is more than 1.5 times the value of same/similar goods in domestic market, as declared by the supplier : Illustration : Suppose a supplier is manufacturing only one type of goods and is supplying the same goods in both domestic market and overseas. During the relevant period of refund, the details of his inward supply and outward supply details are shown in the table below : Net admissible ITC = Rs. 270 All value in Rs. Outward Supply Value per unit No of units supplied Turnover Turnover as per amended definition Local (Quantity 5) 200 5 1000 1000 Export (Quantity 5) 350 5 1750 1500 (1.5*5*200) Total 2750 2500 The formula for calculation of refund as per rule 89(4) is : Refund Amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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