GST REFUND

[MAYUR BHADANI]

Deficiency memo issued for not attaching SELF- DECLARATION under rule 89(2)(l).

Is it necessary for refund of tax paid on input services used in making zero rated supplies for exports ?

[Ravinesh Sinha]

The declaration under rule 89(2)l is not required if refund claimed is under clause (b) of sub-section (8) of section 54 of the Act

If refund claim is of Unulilized ITC under sub section (3) of section 54 ,no such declaration is required.pl see the format attached to RFD -01

[MAYUR BHADANI]

Thank You Ravineshji for your reply..

[Amit Agrawal]

Rule 89 (2) (l) of the CGST Rules, 2017 states as follows:

"a declaration to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed does not exceed two lakh rupees:

Provided that a declaration is not required to be furnished in respect of the cases covered under clause (a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54;"

Clause (b) of sub-section (8) of section 54 reads as follows:- refund of unutilised input tax credit under sub-section (3)

And said sub-section (3) deals with refund of any unutilised input tax credit due to zero rated supplies made without payment of tax;

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[MAYUR BHADANI]

Thank you Amit Agrawal Sir,

I know your are always guiding thousands of professionals. You have vast knowledge and sharing it everyone who is in need.

[Amit Agrawal]

Dear Shri Mayur Bhadani Ji,

It is my pleasure and you are welcome!

[PAWAN KUMAR]

Declaration not required to be attached since it is unutilized itc refund claim and covered under section 54(8)(a).

AI Summary

Refund declaration requirement excluded where refund arises from unutilised input tax credit for zero rated supplies. Rule 89(2)(l) ordinarily mandates a self declaration but exempts refunds covered by specified clauses of section 54(8). A claim for refund of unutilised input tax credit-i.e., the refund under subsection (3) for zero rated supplies made without payment of tax and covered by clause (b) of section 54(8)-does not require the declaration to be attached; practitioners should use the prescribed refund form format when filing such claims.