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    December 19, 2015
    Show AI Summary
    GST return framework: electronic common returns, auto population between GSTR 1/2/3, invoice matching, and automatic ITC reversal rules.
    The proposal establishes a common electronic GST return regime with self-assessment, separate return forms for distinct taxpayer categories, mandatory electronic Cash, ITC and Tax Liability ledgers, and payment as a prerequisite for valid filing. It prescribes sequential monthly/quarterly filing with specified cut off dates for GSTR 1, GSTR 2 and GSTR 3 to enable auto population and invoice matching, details contents required for each GSTR variant, mandates HSN/SAC reporting tied to turnover, provides a two day reconciliation window between counterparties, automatic reversal of unmatched ITC after two cycles, and allows revisions via debit/credit notes and supplementary documents.
    December 19, 2015
    Show AI Summary
    GST electronic payment process uses a single challan (CPIN), three payment modes, and real time CIN reconciliation.
    Establishes an end-to-end electronic GST payment system using a GSTN issued common challan with a unique CPIN, three payment modes (internet/card, OTC for small amounts, and NEFT/RTGS via RBI), real time transmission of electronic strings and CIN confirmations from collecting banks/RBI to GSTN, centralized taxpayer cash ledgers on GSTN, e FPBs per bank, and an RBI e kuber accounting and reconciliation workflow with standardized accounting codes for CGST, IGST, Additional Tax and SGST.
    December 19, 2015
    Show AI Summary
    GST refund process: streamlined online verification, minimal documentation, CA certification for unjust enrichment, and statutory timelines enforced.
    Refunds under the proposed GST regime arise for excess payments, exports (including deemed exports), provisional assessment finalization, pre-deposit in appeals or investigations, supplies to specified international and public bodies, refunds from tax-free or non-GST supplies, carry forward Input Tax Credit, incentives adjustments, and tourist purchases. Claims require online verification with customs for exports, minimal documentation given electronic filings, CA certification to address unjust enrichment where applicable, a one-year filing window from relevant trigger dates, prescribed time-bound processing, automated acknowledgements, electronic disbursement, and mechanisms for review, pre-audit, interest on delayed refunds, and adjustment against outstanding confirmed demands.
    December 17, 2015
    Show AI Summary
    GST registration framework ensures PAN-based unique identification, online verification, and deemed approval with migration mechanisms.
    Registration under GST is a PAN-based unified process creating a 15 character GSTIN for unique identification; it mandates registration for specified classes (existing taxpayers, persons above turnover threshold, interstate suppliers, casual and non-resident suppliers) and allows state-wise and vertical-specific registrations. Applications are submitted online with prescribed documents, may be processed before receipt of signed summaries, and are subject to online verification and deemed approval after a three working day authority response; migration, composition scheme eligibility, amendment procedures, and rules for surrender or cancellation are integral to the registration lifecycle.
    December 17, 2015
    Show AI Summary
    Goods and Services Tax: dual CGST/SGST on a destination based consumption base with invoice credit and a modified bank inter state model.
    The Report recommends a dual GST-CGST and SGST-levied concurrently on an identical consumption base under the destination principle, with liabilities computed by the invoice credit method, separate accounting and no cross utilisation of input tax credits, full immediate credit for capital goods, narrow negative list exemptions, specified treatment of SIN goods by dual GST and excise, uniform small dealer threshold exemption (Rs.10 lakh) with an optional composition levy, and inter state trade managed through a Modified Bank Model with a nodal bank and Form GST I for consolidated electronic payment and transaction reporting.
    December 10, 2015
    Show AI Summary
    GST: recommend revenue neutral rate 15-15.5% with 12% low rate, 17-18% standard, 40% demerit applies.
    Recommend a national GST RNR of 15-15.5% (preferably 15%), derived from adjustments to indirect tax turnover estimates and validated against macro and direct-turnover approaches. Adopt a transitional multi-rate structure: combined lower rate 12%, combined standard rate 17-18% (under 15% RNR), and a combined demerit rate 40% for luxury/sin goods. Require a narrow, common exemptions list, elimination of CVD/SAD exemptions, preservation of input tax credits (including on capital goods), a transparent five year State compensation mechanism, and no administratively complicating state rate bands.
    December 5, 2015
    Show AI Summary
    Revenue neutral rate guidance recommends a narrow combined central state band to preserve revenue while limiting exemptions and simplifying GST.
    The Report recommends using a Revenue Neutral Rate as an analytical benchmark and advises a narrow combined Centre and states RNR with a preference for the lower end; it proposes conditional rate structures tied to exemptions and special treatment (including demerit taxation), favors a medium term one rate GST with a transitional two rate approach, urges rationalization of exemptions to protect the standard rate and compliance, and calls for Centre state allocation of combined rates, credible compensation mechanisms, and extended monitoring before rate changes.
    December 4, 2015
    Show AI Summary
    Goods and Services Tax to subsume existing indirect taxes, broaden the tax base and enable seamless input tax credits.
    The proposal designates Goods and Services Tax to subsume state VAT, Central Sales Tax, Central Excise, Service Tax and other indirect levies; excludes alcoholic liquor for human consumption from GST while bringing specified alcohol products within GST and subjecting tobacco to GST alongside Central Excise, with rates to be set by the GST Council. The framework aims to simplify and harmonize indirect taxation, broaden the tax base, and promote compliance via a robust IT-enabled input tax credit mechanism.
    October 23, 2015
    Show AI Summary
    GST refund procedures: electronic filing, system linkage and time bound sanction to streamline and secure refund processing.
    The report prescribes a comprehensive GST refund regime: enumerating refund triggers (excess payment, exports and deemed exports, provisional assessment finalization, appellate and investigation outcomes, exempt/nil supplies, inverted duty accumulation, and special refunds), mandating electronic filing with standard forms and GSTN ICEGATE linkages, one year filing limits from defined relevant dates, system acknowledgement and preliminary scrutiny timelines, automatic blocking of claimed ITC on application, CA certification (or threshold self certification) to rebut unjust enrichment, time bound sanctioning with interest from electronic acknowledgement, invoice matching to prevent duplicate claims, and provisions for recovery and audit safeguards.
    October 23, 2015
    Show AI Summary
    Dual GST model ensures separate Centre State levies with IGST for inter state supplies to preserve input tax credit continuity.
    The Department endorses a federated dual GST with separate CGST and SGST statutes, uniform core features, and an IGST mechanism for inter State supplies and imports where the Centre collects IGST and passes SGST to destination States. CGST and SGST credits must be maintained and utilised separately; cross utilisation is barred except under IGST rules. A common tax base, subsumption of central and state indirect taxes, harmonised procedures, simplified compliance for small taxpayers, constitutional amendments, IT infrastructure linkage and a compensation mechanism for transitional revenue effects are required for implementation.
    October 21, 2015
    Show AI Summary
    GST return framework: unified e-returns with auto-populated ledgers, invoice matching and specified amendment procedures.
    The report prescribes a unified electronic GST return framework requiring registered persons to file periodic returns (including nil returns) across linked forms-GSTR-1 through GSTR-8-covering outward and inward supplies, monthly consolidation, compounding, non-resident taxpayers, ISDs, TDS deductors and annual reconciliation. It mandates online filing with offline preparation options, auto-population between returns and real-time ledgers for ITC, cash and tax liability, time-bound amendment windows, invoice-level data requirements (including HSN/SAC thresholds), and portal-driven validation, acknowledgement, invoice matching, reversals and inter-governmental settlement instructions under the IGST model.
    October 12, 2015
    Show AI Summary
    GST payment processes: electronic challans (CPIN/CIN), bank/RBI aggregation, and automated reconciliation across tax heads.
    The proposed GST payment system requires electronic challan generation on the GSTN which issues a unique CPIN; banks report successful receipts by creating a CIN that embeds the CPIN and transmits real time confirmation strings to GSTN. RBI, acting as aggregator through e Kuber, consolidates daily luggage files into digitally signed e scrolls for each tax head and forwards them to GSTN and Accounting Authorities on T+1 for automated accounting and reconciliation. The model prescribes standardized electronic interfaces, mandatory IT capabilities for authorized banks, 39 tax accounts, and a MOE process for resolving reconciliation discrepancies.
    October 12, 2015
    Show AI Summary
    GST registration framework requires PAN based, statewise online identification and verification, enabling thresholded compulsory registration and compliance controls.
    The report prescribes a PAN based, State wise online registration regime via a centralized GST Common Portal issuing a 15 digit GSTIN, mandatory identity verification, and standardized documentary requirements; mandates registration on crossing prescribed turnover thresholds or for inter state and reverse charge suppliers while permitting voluntary registration and a compounding scheme for smaller taxpayers; defines procedural timelines for portal validation, three common working day authority responses with deemed approvals, query/response windows, and mechanisms for migration of existing registrants, suspension, cancellation, amendment, and post registration risk profiling; it also provides for Facilitation Centres and Tax Return Preparers, Input Service Distributor continuity, and a compliance rating/blacklisting system to regulate input tax credit eligibility.
    October 12, 2015
    Show AI Summary
    Goods and Services Tax procedural consultation - draft registration, refund and payment processes opened for stakeholder comments.
    Draft business processes for GST registration, refunds and payments have been published for stakeholder consultation, with invited comments by a specified deadline; draft Model CGST, SGST and IGST laws and return-filing processes will be posted for comment in due course. These measures form part of implementing a proposed dual GST aimed at subsuming various Central and State indirect taxes.
    September 1, 2015
    Show AI Summary
    GST readiness: Revenue Secretary to prioritise IT, transparency and procedural simplification for coordinated implementation.
    The Revenue Secretary prioritises transparency, expanded IT use, and simplification of rules to improve tax administration and taxpayer services. He will review GST readiness of Central and State Governments to enable coordinated, time bound implementation once the GST Constitution Amendment Bill is passed and ratified, and has invited public suggestions on tax reform.
    August 12, 2015
    Show AI Summary
    IGST apportionment clarifies distribution between Centre and States under proposed GST, with CGST and SGST concurrent levy.
    Proposed GST provides for concurrent levy of CGST and SGST on intra State supplies and IGST on inter State supplies. IGST proceeds will be apportioned between Centre and States as prescribed by Parliament on the GST Council's recommendation, and CGST together with the Union's share of IGST will be devolved to States under constitutional fiscal devolution principles.
    August 3, 2015
    Show AI Summary
    Directorate renaming and headquarters relocation: GST directorate renamed and HQ moved, with staff placed on temporary deputation.
    The Directorate General of Service Tax is re named as Directorate General of Goods & Service Tax and its headquarters and Principal Director General post are shifted from Mumbai to Delhi, with staff payroll remaining with the originating office while personnel are placed on loan to other formations and records retained in Mumbai until transfer instructions. Officers in DGST Mumbai, Kolkata and Chennai are placed at the disposal of respective Chief Commissioners on a temporary deputation basis for one year, and officers in New Delhi are treated as posted to the renamed Delhi directorate.
    July 31, 2015
    Show AI Summary
    GST revenue sharing: apportionment of IGST and devolution of Central GST to States under the proposed statutory framework.
    Both the Union and States will simultaneously levy tax on every supply, with the Centre collecting Central GST and States collecting State GST for intra state transactions; the Centre will collect Integrated GST on inter state supplies and its proceeds will be apportioned between Centre and States under a statutory mechanism based on GST Council recommendations, and Central GST plus the Union's apportioned IGST share will be devolved to States under the constitutional fiscal devolution framework.
    June 17, 2015
    Show AI Summary
    GST implementation committees to coordinate IT readiness, draft model CGST/IGST/SGST laws and recommend tax rates.
    Formation of two committees to facilitate GST implementation from 1.4.2016. A Steering Committee, co-chaired by the Additional Secretary (Department of Revenue) and the Member Secretary (Empowered Committee of State Finance Ministers), including Department of Revenue, CBEC, GSTN and State representatives, will monitor IT preparedness, finalise Sub-Committee reports on GST mechanics, draft model CGST, IGST and SGST laws/rules, coordinate stakeholder consultations and oversee officer training. GSTN will prepare IT infrastructure for online registration, returns and refunds while States prepare backend systems.
    June 15, 2015
    Show AI Summary
    GST threshold changes could exempt small traders from registration and provide concessional rates; interstate sales excluded.
    Proposed GST threshold rules set turnover bands determining registration and liability: below a low-end threshold no registration or GST payment; between lower and upper thresholds liable to a concessional tax rate; concessional rate excluded for inter State supplies; GST Council to fix the concessional quantum and the standard rate; reduced threshold proposed for Northeastern areas.

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      Refund Process in GST Regime - GST

      December 19, 2015

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      REPORT OF THE JOINT COMMITTEE ON BUSINESS PROCESSES FOR GST ON REFUND PROCESSES

      SITUATIONS WHERE REFUND WOULD ARISE:

      • Excess payment due to mistake and inadvertence,
      • Export (including deemed export),
      • Finalization of Provisional Assessment,
      • Refund of pre deposit in case of Appeal or Investigation,
      • Refund for Tax payment on transactions by UN bodies,
      • CSD Canteens, Para-military forces canteens, etc.
      • Refund from Manufacturing / Generation/ Production/Creation of Tax- free supplies or Non-GST Supplies,
      • Refund of Carry Forward Input Tax Credit
      • Refund on account of year end or volume based incentives.
      • Tax refunds for International Tourists.

      EXCESS PAYMENT OF TAX DUE TO MISTAKE OR INADVERTENTCE

      • The situations where the tax payer has made excess payment of tax either by mistake or by inadvertence resulting in more payment of tax than due to the Government.
      • Such excess payment may be on account of:-
        • wrong mention of nature of tax (CGST / SGST / GST),
        • wrong mention of GSTIN, or
        •  wrong mention (deposit) of tax amount.
      • In first two situations i.e. in case of wrong mention of nature of tax (CGST / SGST  /  IGST)  or  in  case  of  wrong  mention  of  GSTIN,  the  tax administration is required to verify the correctness of the taxpayer’s claim and therefore the taxpayer may file a refund application which should be decided within a period to be prescribed by the GST Law.
      • In the first and third situation, the refund of excess amount of tax, at the option of the taxpayer, would either be automatically carried forward for adjustment against future tax liabilities or be refunded.

      EXPORT (INCLUDING DEEMED  EXPORT)  OF GOODS / SERVICES

      • Two options may be made available to the exporter in the proposed GST regime:
      • Obtaining duty paid inputs and claiming refund of the same at  the  time  of  export  of  the  finished  goods without payment of duty.
      • Obtaining duty  paid  inputs,  availing  the  input  tax credit  thereon  and  exporting  finished  goods  after payment of duty (after utilizing such input tax credit) and thereafter claiming the rebate of the duty paid on exported goods.

       EXPORT (INCLUDING DEEMED EXPORT) OF GOODS / SERVICES

      • The following process is proposed for making this system as simple as possible:
      • Verification: The IEC details of taxpayer will be captured at the time of issuance of GSTIN and the same will be verified online with DGFT.
      •  Application: The refund of ITC / rebate of GST paid on exported goods may be granted on submission of application to this effect by the taxpayer.
      • Since the trigger point for refund is export of goods, therefore the event of export will be verified online.

      EXPORT (INCLUDING DEEMED EXPORT) OF  GOODS / SERVICES

      • Linkage between ICEGATE of Customs administration and the proposed GSTN of GST administration may be established so that online verification of the exports can be carried out.
      • Invoice wise sale / purchase details by the taxpayers’ (filed with the monthly returns) can be linked with the Customs data (for export cases) available with ICEGATE.

      DEEMED EXPORT OF GOODS OR SERVICES:

      • Supplier of domestically produced duty paid goods when supplied to  EOUs / SEZs / Projects  under  International Competitive Bidding (ICB) / Mega Power Plants/World Bank Funded Projects can seek refund of terminal excise duty as also drawback of the duty paid on the inputs used in manufacture of such goods.

      EXPORT (INCLUDING DEEMED EXPORT) OF GOODS / SERVICES

      • GENERAL:
      • No Partial refund. Entire refund claim may be sanctioned within the time limit laid down in the GST Law.
      • No Refund of ITC paid on inputs for manufacturing of Goods on which Custom Export Duty is leviable.

      FINALIZATION OF PROVISIONAL ASSESSMENT

      • The following process is recommended:
      • The taxpayer may file a simple refund application along with a Chartered Accountant’s Certificate certifying the fact of non-passing of the GST burden by the taxpayer.
      • GST Law may provide for certain predefined period during which refund may not be granted which can be regarded as the mandatory waiting period for the outcome of the appeal / application for stay.
      • GST Law Drafting Committee may  also  consider  for providing powers to jurisdictional authority at sufficiently senior level for withholding the refund in exceptional cases on the condition that interest at appropriate rate has to be paid.

      PRE DEPOSIT IN CASE OF APPEAL OR INVESTIGATION

      • The refund of such amount may be handled as per the procedure given below:
      • A separate mechanism for the accounting.
      • Amount of tax paid during investigation, etc. become non leviable once the  investigation is finalized  and / or an adjudication order in favour of the taxpayer is issued.
      • As soon as the investigation, etc. is over which
        • does not lead to issuance of a show cause notice, or
        • where after investigation, show cause notice is issued but the adjudication order is in favour of the taxpayer.

      The taxpayer shall be immediately eligible to claim refund of the amount that is found to have been paid in excess during investigation, etc.

      PRE DEPOSIT IN CASE OF APPEAL OR INVESTIGATION  

      • The model GST Law may provide for a time limit after which only the refund can be sanctioned either by cash or by adjustment order at the option of the tax payer by the jurisdictional officers.
      • Refund may be withheld only if the department has obtained a stay order on the operation of the adjudication order, failing which refund has to be allowed.

      TAX PAYMENT ON TRANSACTIONS BY UN BODIES, CSD CANTEENS, PARA-MILITARY FORCES CANTEENS, ETC.

      • The following process for grant of refund is recommended:
        • Refund on purchases by UN Bodies may be granted from only one office each of both the tax administrations within one State.
        • UN Bodies will be assigned a unique identification number (ID)) and  will  file  their  purchase  statements (without purchase invoices) along with their claim for refund.
        • While making supplies to such bodies, the suppliers must indicate the Unique ID on the invoices.
        • Form of application for refund which may be used by such bodies is enclosed as  Annexure-VII to this document.
        • Same process to apply for CSD canteen/CPMF canteen etc. No exemption in Tax but refund of Tax to be made.

      REFUND OF CARRY FORWARD INPUT TAX CREDIT

      • The ITC may accumulate on account of the following reasons:  
      • Inverted Duty Structure i.e. GST on output supplies is less than the GST on the input supplies;
      • Stock accumulation;
      •  Capital goods; and
      • Partial Reverse charge mechanism for certain services.
      • GST Law may provide that refund of carried forward ITC may not be allowed and such amount would be carried forward to the next tax period (s).
      • In cases of inverted duty structure, cash refund may be granted after due audit and should be sanctioned only after the input tax credit  has  been  matched  from  the  purchase  and  sales statements filed along with monthly returns.

      REFUND ON ACCOUNT OF YEAR END OR VOLUME BASED INCENTIVES PROVIDED BY THE SUPPLIER THROUGH
      CREDIT NOTES

      • In such cases, the eligibility for ITC at the buyer’s end and the output liability at the supplier’s end will get simultaneously reduced / adjusted on the basis of  credit  notes  issued  by  the  supplier  and  the corresponding debit notes issued by the buyers.
      • Refund would be granted after due validation including matching of credit and debit notes.

      TAX REFUND FOR INTERNATIONAL TOURISTS

      • Refund of GST will  be  available  at  designated airports and ports only and the refund of the GST paid on retail purchase by the foreign tourists during their stay in India is allowed.
      • A part of the eligible amount of refund will be deducted as handling fee for services rendered.

      TIME PERIOD OF FILING REFUND

      • It is recommended that a period of one year from the relevant date may be allowed for filing of refund application.
      • The following dates are recommended as relevant dates for different type of refund cases

      S.NO.

      SITUATION OF REFUND

      RELEVANT DATE

      1. 

      On account of excess payment of Date of  payment  of GST due to mistake or inadvertence.                               

      Date of  payment  of GST.

      2.

      On account of Export of Goods.

       

      Date on  which  proper  officer under  the  Custom  Act  gives  an order for export known as “LET EXPORT ORDER”.

      3.

      On account of Export of Services.

      Date of BRC.

      4.

      On account of finalization of provisional assessment.

      Date of the finalization order.

      5.

      In pursuance of an appellate authority’s order in favour of the taxpayer.

      Date of communication of  the appellate authority’s order.

      6.

      On account of payment of GST During investigation, etc. when no/less liability arose at the time of finalization of investigation proceedings or issuance of adjudication order.

      Date of communication of adjudication order or order relating to completion of investigation.

      7.

      On account of accumulated credit of GST in case of a liability to pay service tax in partial reverse charge cases.

      Date of providing of service (normally the date of invoice).

      8.

      For refund arising out of payment of GST on petroleum products, etc. to Embassies or UN bodies or to CSD canteens, etc. on the   basis   of applications filed by such persons.

      Date of payment of GST.

       

      9.

      On account of refund of accumulated ITC due to inverted duty structure.

      Last day of the financial year.

      DOCUMENTS TO BE FILED FOR REFUND

      • Documents evidencing  tax  payments  required  to  be enclosed with the refund application should be minimal but adequate:
      • All payments of tax will be in electronic mode and all B2B invoices will be uploaded on the portal. Therefore following evidences may not be called for:
        • Copy of proof of deposit of tax i.e. challan etc/ copy of return evidencing payment of duty.
        • Copy of invoices.
        • Documents evidencing  export (online  verification  with ICEGATE).
      • A Chartered Accountant’s Certificate may be called for evidencing that the tax burden has not been passed on to the buyer. Under Principle of “unjust enrichment”.

      DOCUMENTS TO BE FILED FOR REFUND

      • EXPORT OF GOODS:

      SHIPPING BILL

      NOT NEEDED

      TO BE VERIFIED ONLINE

      Export Invoice

      Not needed..

      To be verified online

      Packing List

      Not needed..

      To be verified online

      Mate Receipt

      Needed to be filed online with refund Application.

      Bill of Lading

      Needed to be filed online with refund application.

      BRC

      To be filed within one year of Export or in a Period as prescribed by RBI. To be submitted with application in case of advance payment.

      DOCUMENTS TO BE FILED FOR REFUND

      • EXPORT OF SERVICES:
      • Invoice
      • Bank Realization Certificate (BRC). No refund without filing of BRC. Cut-off date for filing of refund to be linked to receipt of BRC
      • No custom documents that  can  substantiate  the occurrence of event of export as no shipping bill is required to be filed.

      PROCEDURE:

      It is recommended that the State Tax authorities shall deal with the SGST refund and Central Tax authorities shall deal with refund of CGST and IGST.

      • Applicant may be given the option of filing refund application either
        through the GSTN portal or through the respective State / Central Tax portal.

      Refund Claim Form under ------ Goods & Services Tax.docx Refund Claim Form for embassies, international and public organisations.docx.

      • On filing of the electronic application, a receipt/ acknowledgement number may be generated and communicated to the applicant via SMS and email for future reference.
      • It is recommended that the preliminary scrutiny may be carried out within 30 common working days.

      PROCEDURE:

      • Online  refund:  The  amount  of  refund  can  be transferred  to  the  applicant  electronically  through NEFT /RTGS/ECS.

      Refund order under ----- Goods & Services Tax Act.docx Reduction Adjustment Summary.docx.

      • Process of review: Every refund that is sanctioned would need to go through a higher authority in order to ensure the correctness of the decision of refund sanctioning authority.
      • Pre-audit: Besides this, for refund amounts exceeding a predetermined amount a provision for pre-audit of refund application.

      PROCEDURE:

      • Show Cause Notice: If the refund is not found to be legal or correct for any reason, then the jurisdictional authority should issue Show Cause Notice (SCN) to the applicant.
      • Consumer Welfare Fund: In case, the refund application is found to be in order but does not satisfy the test of unjust  enrichment,  the  refund  amount,  after  sanction, would be credited to the Consumer Welfare Fund.
      • Minimum Limit: It is recommended that an amount in the range of ₹ 500-1000/- may be fixed below which refund shall not be granted.

      PROCEDURE:

      Other important points:

      • Return itself may be  treated  as  a  refund application in specified cases.
      •  On filing of the electronic application, a receipt/ acknowledgement  number  to  be  generated  & communicated  to  the  applicant  via  SMS  and email for future reference.
      •  Refund application to be displayed on taxpayer's online dashboard/ledger.

      PROCEDURE:

      • Refund application found to be complete in all respect - To be communicated to applicant via SMS and e-Mail.
      • Date of such communication to be considered as the relevant date for interest liability
      • Proof of satisfying the principle of “unjust enrichment”
        • Self certification by taxpayers
        •  CA certificate for taxpayers beyond a threshold limit.

      INTEREST:

      • Time limit: The GST Law may provide for a prescribed time limit  of 90 days  from  the  date  of  the  system  generated acknowledgment  of  refund  application  after  which  interest clause will start automatically.
      • Issue of incomplete application (and related time limit) may be dealt by provisions in GST law.
      • Rate of interest: The Committee recommends that the rate of interest in case of refund may be around 6%
      • The GST Law may also provide that the interest will accrue from the last date when refund should have been sanctioned even when the refund is ordered to be paid by the order of the appellate authority in the appeal filed by the applicant against order of rejection passed by the refund sanctioning authority.

      ADJUSTMENT & RECOVERY

      Adjustment: The  GST  Law  may  provide  for adjusting the refund claim against any amount of un-stayed  confirmed  demand  lying  beyond  the appeal period.

      Reduction Adjustment Summary.docx.

      SUMMARY

      • Refund cases to be kept at a minimum
      • Total online process.
      • Online verification to the extent possible.
      • Communication through sms and e-mail.
      • Dealer can check status of application on portal.
      • Time limit for refund to be fixed in the Act .
      • Dealer Facilitation prime objective.

      Topics

      ActsIncome Tax