TaxTMI 
TaxTMI 
Regarding Guidelines for Refund Processing under the HGST Act -Standard Operating Procedure for manual application and processing.
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.... (Division/Range) in the State of Haryana. 2. All the Joint Excise & Taxation Commissioners (Appeals) in the State of Haryana. 3. The Senior Deputy Accountant General (Audit), Haryana, Chandigarh. 4. PS/ACSET. Endst. No. 1647/GST-III, Panchkula, dated the 25-05-2018 A copy alongwilh a copy of guidelines regarding refund under HGST Act is forwarded to the following in the Head Office for information and necessary action:- 1. All the Addl. Excise and Taxation Commissioners. 2. All the Jt. Excise and Taxation Commissioners. 3. The Jt. Director (L-)-I and II. 4. The Dy. Excise and Taxation Commissioners. 5. DA-I and II. 6. DDA-I & II. 7. PS/PA to ETC. Superintendent(GST) For Excise & Taxation Commissioner, Haryana. ============= Document 1 2018 Refund under GST Standard Operating Procedure for manual application and processing Prepared by: Excise & Taxation Department Govt. of Haryana INTRODUCTION Efficient Processing of refunds is extremely critical for any tax administration in view the fact that....
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....GST & SGST paid by treating the supply as Intra- State supply which is subsequently held as Inter-State supply and vice versa. (ix) Refund on account of issuance of refund vouchers for taxes paid on advances against which goods or services have not been supplied (x) Finalisation of provisional assessment (xi) Refund of taxes on purchase made by UN or embassies etc (xii) Refunds to International tourists of GST paid on goods in India and carried abroad at the time of their departure from India Standard Procedures for Refunds First of all, the standard procedure for processing of refunds needs to be elaborated. The whole process of refunds under GST has been designed so as to bring about standardisation in the processing of all types of refunds to the extent possible. The forms have been standardised like forms for making claims of refunds, deficiency memo, show cause notice, sanctioning refunds etc. Therefore, standard step-by-Step Procedure for Refunds is described as under: A. Application Form Presently, refunds applications are being processed manually. Therefore, procedures described hereunder confined to manual proc....
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....f refund application shall be counted from such date. In case where the refund relates to claim arising from electronic cash register, an acknowledgment GST RFD-02 shall be issued online from the portal itself. In all other cases (other than seeking refund from electronic cash ledger), the Proper Officer shall examine the application in form GST RFD- 01A for its completeness in terms of sub-rule (2), (3), (4) of Rule 89. The Proper Officer shall validate the GSTIN details on the portal to see whether return has been filed. A declaration has to be filed by the claimant to the effect that no refund has been claimed against the relevant invoices. This process of examination of GST RFD-2 has to be completed within a period of 15 days of filing the application. If the application for refund GST RFD-01A is found to be complete as described above, the acknowledgment, GST RFD-02 shall be issued. In case, any deficiency is noted in the course of examination with regard to its completeness, a deficiency memo in form GST RFD-03 communicating the deficiencies shall be issued. The applicant can file his refund application afresh by making good ....
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.... the GST law (7 days) be adhered to. E. Sanctioning of Refund The application of refunds shall be scrutinized by the Proper Officer for its lawful claim. The details shall be validated from returns. In cases where the Proper Officer has the reasons, to be recorded in writing, that the claim, wholly or partly, is not admissible to the applicant, he shall issue a show cause notice in FORM GST RFD-08 to the applicant affording him an opportunity of being heard and seeking his reply. The Page 6 applicant may respond to this notice by furnishing a reply in FORM GST RFD- 09 within 15 days of receipt of notice. So, it is advised that Show Cause notice in form GST RFD-08, if required, be issued within a period of 35 days of date of GST RFD-02 so that whole process is completed well within the time limit of 60 days. The Proper Officer shall pass an order in FORM GST RFD-06, after considering his reply, sanctioning the amount of refund in whole or part, or, rejecting the said refund claim. The amount of provisional refund shall be adjusted accordingly. In case, Proper Officer is satisfied that the amount of refund is not payable to ....
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....his case shall be withheld till returns are furnished and amount is paid. Refunds can also be withheld in cases where it is a subject matter of further proceedings and the Commissioner is of the view that refund is likely to adversely impact the recovery of revenue on account of malfeasance or fraud. The commissioner may withhold refund on this ground after giving an opportunity of being heard. Refund can be withheld for such time as he may deem fit. In this case, the applicant shall be entitled to interest @ 6% per annum if he is finally found to be entitled to such refund. Types of Refunds As has been stated above, an application for refund has to be accompanied with documents evidencing that the amount of refund is due to the applicant and to establish that the incidence of tax has not been passed on to any other person. Refunds under GST arise under various situations laid down in different provisions of law. So, major types of refund are described category-wise for its specifics. A. Refunds arising from Zero-Rated Supplies The refunds arising from zero rated supplies constitute one of the major categories of refunds. Zero r....
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....h the statements containing number and date of invoices and relevant Bank Realization Certificate (BRC) or Foreign Inward Remittance Certificate (FIRC). The statement has Page 9 been prescribed as Statement 2 attached with GST RFD-01A. The receipt of payment by the supplier in foreign convertible exchange is prerequisite for supply of service in the course of export. Export of Services) with payment of tax (Refund of IGST paid on export of services) Copy of FORM GST RFD-01A filed on common portal Copy of Statement 2 of FORM GST RFD-01A Invoices w.r.t. input, input services and capital goods BRC/FIRC for export of services Undertaking/Declaration in FORM GST RFD-01A (ii) Supplies of Goods or services to SEZ developer or Unit on payment of tax: In cases where supplies of goods or services are made to SEZ unit or SEZ developer, the supplier of goods or services shall file application for refund in form GST RFD-01A. In case of supplies of goods to SEZ unit or SEZ developer, the goods should have been admitted in full in the SEZ for authorized operations which will be endorsed by the Specified Officer of the Zone....
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....und is less than Rs.2 Lakh, the applicant may file a declaration to this effect as evidence. In case the amount of refund exceeds Rs.2 lakh, a certificate to the effect that incidence has not been passed on to any other person issued by CA should be submitted by the applicant along with his application. Provisional refunds shall be granted in such cases as has been explained in the foregoing paras. The amount of refund in these cases shall be computed by formula explained here as under: Page | 11 Refund Amount = (Turnover of Zero -rated supply of Goods + Turnover of Zero-rated supply of services) X Net ITC/Adjusted Total Turnover. Where,- "Refund amount" means the maximum refund that is admissible; "Net ITC" means input tax credit availed on inputs and input services during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both of Rule 89 of the GST Rules; Explanation: Sub-rule (4A) of rule 89 of GST Rules provides that a person (the supplier seeking refund on his zero rated supply) will be entitled to refund of credits on inputs or input services oth....
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....of FORM RFD-01A filed on common portal Copy of Statement 3A of FORM RFD-01A generated on common portal Copy of Statement 3 of FORM RFD- 01A Invoices w.r.t. input and input services BRC/FIRC for export of services Undertaking/Declaration in FORM RFD-01A B. Refund arising on account of Inverted Duty Structure A person is also entitled for refund of accumulated input tax credit where rate of tax on inputs are higher than the rate of tax on output supplies. The refunds in such cases are not allowed where the output supplies are nil rated or exempted supplies. The refund of accumulated credits on account of inverted duty structure is also not admissible in such cases as are notified by the Government on the recommendation of the Council. Page | 13 Refunds of inverted duty structure shall be filed for a tax period on a monthly basis or quarterly basis for those taxpayers who are filing quarterly returns for having turnover less than 1.5 Crore. It is to be ensured that a valid return in form GSTR-3B is filed for the last tax period before the one in which refund is filed. Persons applying for refunds must give an u....
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....an order of Appellate Authority, Tribunal, or Court should be accompanied with reference number of the order and copy of the order passed by the authority. In case it relates to payment of pre-deposits under section 107(6) or section 112(8) of GST law, the reference number of the payment should be mentioned. Refund to casual taxpayers and non-resident taxpayers out of balance from advance tax deposited at the time of grant of registration shall be granted at the end of the registration period. The amount of refund of balance amount shall not be made unless such person has filed all the returns due during the period the registration was effective. Some Important Points A. Refund under section 55 of the GST law to UN bodies and Other Notified agencies shall be process by the Central tax authorities. B. Refund of Integrated Tax paid on export of goods or services is not permitted to such persons who have received supplies on which the supplier has availed of the benefit of concessional rate of tax of 0.05% each for Central GST and State GST or 0.1% under Integrated Tax. C. Refund of Integrated Tax paid on export of goods or services i....