TaxTMI 
TaxTMI 
Instruction regarding exports related refund issues.
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....clarified as below: 2. Non-availment of drawback: The third proviso to sub-section (3) of section 54 of the KGST Act states that no refund of input tax credit shall be allowed in cases where the supplier of goods or services or both avails of drawback in respect of central tax. 2.1 This has been clarified in paragraph 8.0 of Circular No. 17 / 2017-18 dated 05th March 2018. It may be noted that in the said circular reference has been made only to central tax, integrated tax, State / Union territory tax and not to customs duty leviable under the Customs Act, 1962. Therefore, a supplier availing of drawback only with respect to basic customs duty shall be eligible for refund of unutilized input tax credit of central tax / State tax / Union territory tax / integrated tax / compensation cess under the said provision. It is further clarified that refund of eligible credit on account of State tax shall be available even if the supplier of goods or services or both has availed of drawback in respect of central tax. 3. Amendment through Table 9 of GSTR-1: It has been reported that refund claims are not being processe....
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....ccount the facts and circumstances of each case. 5. Exports after specified period: Rule 96A (1) of the KGST Rules provides that any registered person may export goods or services without payment of integrated tax after furnishing a LUT / bond and that he would be liable to pay the tax due along with the interest as applicable within a period of fifteen days after the expiry of three months or such further period as may be allowed by the Commissioner from the date of issue of the invoice for export, if the goods are not exported out of India. The time period in case of services is fifteen days after the expiry of one year or such further period as may be allowed by the Commissioner from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange. 5.1 It has been reported that the exporters have been asked to pay integrated tax where the goods have been exported but not within three months from the date of the issue of the invoice for export. In this regard, it is emphasised that exports have been zero rated under the Integrated Goods ....
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....ently. 7. Self-declaration for non-prosecution: It is learnt that some refunding authorities are asking for a self-declaration with every refund claim to the effect that the claimant has not been prosecuted. 7.1. The facility of export under LUT is available to all exporters in terms of notification issued by the Central Board of Excise and Customs bearing No. 37/2017- Central Tax dated 4th October, 2017, except to those who have been prosecuted for any offence under the CGST Act or the IGST Act or any of the existing laws in force in a case where the amount of tax evaded exceeds two hundred and fifty lakh rupees. Para 2(d) of the Circular No. 8/8/2017- GST dated 4th October, 2017, issued by the Central Board of Excise and Customs, mentions that a person intending to export under LUT is required to give a self-declaration at the time of submission of LUT that he has not been prosecuted. Persons who are not eligible to export under LUT are required to export under bond. 7.2. It is clarified that this requirement is already satisfied in case of exports under LUT and asking for self-declaration with every refund c....
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....g laws: Sub-sections (3), (4) and (5) of section 142 of the KGST Act provide that refunds of tax/duty paid under the existing law shall be disposed of in accordance with the provisions of the existing law. It is observed that certain taxpayers have applied for such refund claims in FORM GST RFD-01A also. In this regard, the refunding authorities are advised to reject such applications and pass a rejection order in FORM GST PMT-03 and communicate the same on the common portal in FORM GST RFD-01B. The procedures laid down under the existing laws viz., the Karnataka Value Added Tax Act, 2003 read with above referred sub-sections of section 142 of the KGST Act shall be followed while processing such refund claims. 10.1 Furthermore, it noticed that the refunding authorities are rejecting, withholding or re- crediting VAT credit, while processing claims of refund filed under the existing laws. In this regard, attention is invited to sub-section (3) of section 142 of the KGST Act which provides that the amount of refund arising out of such claims shall be refunded in cash. Further, the first proviso to the said sub-secti....
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....ng the number and date of shipping bills or bills of export and the number and the date of the relevant export invoices is required to be submitted along with the claim for refund. It is therefore clarified that insistence on proof of realization of export proceeds for processing of refund claims related to export of goods has not been envisaged in the law and should not be insisted upon. Supplies to Merchant Exporters: Notification (40/2017) No. FD 48 CSL dated 23rd October 2017 and notification No. 41/2017 - Integrated Tax (Rate) dated 23rd October 2017, issued by the Central Board of Excise and Customs, provides for supplies for exports at a concessional rate of 0.05% and 0.1% respectively, subject to certain conditions specified in the said notifications. 13. 13.1 It is clarified that the benefit of supplies at concessional rate is subject to certain conditions and the said benefit is optional. The option may or may not be availed by the supplier and / or the recipient and the goods may be procured at the normal applicable tax rate. 13.2 It is also clarified that the exporter will be eligible to take credit of the tax @ 0.05% / 0.....