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.

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.