Procedure of disposal of Refund filed in present law under 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.

[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 andSUN]

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.

AI Summary

Refund procedure under GST: provisional refunds issued promptly with balance released after document verification and unresolved rejection stages. Refunds are payable in cash rather than as ledger credits and a denied refund under earlier law lapses. The query asks when a refund is 'rejected' for purposes of lapse-at assessing officer, commissioner (or appellate commissioner), higher administrative levels, or only after judicial denial-and how pending appellate or higher-level claims are treated when earlier authorities have rejected them. Replies note likely changes in authority designations under GST, advise provisional upfront payment of the bulk of export-related input tax refunds with the remainder after document verification, and propose administrative mechanisms to resolve legacy rejected claims.