TaxTMI 
TaxTMI 
TaxTMI 
Processing of refund under the GST.
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....oss the field formations, the Commissioner of State tax, Maharashtra State, in exercise of its powers conferred by section 168 (1) of the Maharashtra Goods and Services Tax Act, 2017 (hereinafter referred to as the "MGST Act"), hereby clarifies the issues as detailed hereunder: 2. Modification in the earlier Trade Circular No. 22T of 2018: 2.1. The Trade Circular 22T of 2018 dated 1st September 2018 was issued and the certain instructions about processing of refund under the GST Act were issued. 2.2. Vide said Trade Circular in Paragraph 1.5 and Paragraph 4 instructions were given to the Nodal Officers regarding the information/data about refund i.e. Input Tax Credit, Turn-over in GSTR-1 and GSTR-3B etc. to be provided by the Economic In....
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....eclare the eligibility or otherwise of the input tax credit availed against the invoices related to the claim period in the said Annexure for enabling the proper officer to determine the same. 3.3. It may be noted that the methodology and procedure to be followed with regards to the manual processing of GST refund shall be governed by Trade/Internal Circular(s) issued by this office from time to time. 4. System validations in calculating refund amount 4.1. Currently, in case of refund of unutilized input tax credit (ITC for short), the common portal calculates the refundable amount as the least of the following amounts: (a) The maximum refund amount as per the formula in rule 89(4) or rule 89(5) of the Maharashtra Goods and Services Tax....
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....nt, no adverse view may be taken by the tax authorities. 4.4. The above system validations are being clarified so that there is no ambiguity in relation to the process through which an application in FORM GST RFD-01A is generated. 4.5. Further, it may be noted that the refund application can be filed only after the electronic credit ledger has been debited in the manner specified in para 4.2 (read with para 4.3) above, and the ARN is generated on the common portal. 5. Re-credit of electronic credit ledger in case of rejection of refund claim: 5.1. In case of rejection of claim for refund of unutilized input tax credit on account of ineligibility of the said credit under subsections (1), (2) or (5) of section 17 of the MGST Act, or under....
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....e same is finally decided against the claimant, as has been laid down in rule 93 of the MGST Rules. 5.3. Consider an example where against a refund claim of ₹ 100, only ₹ 80 is sanctioned (Rs.15 is rejected on account of ineligible ITC and ₹ 5 is rejected on account of any other reason). As described above, ₹ 15 would be re-credited with simultaneous issue of notice under section 73 or 74 of the MGST Act for recovery of ineligible ITC. ₹ 5 would be recredited (through FORM GST RFD-01B) only after the receipt of an undertaking from the claimant to the effect that he shall not file an appeal or in case he files an appeal, the same is finally decided against the claimant. 6. Scope of rule 96(10) of the MGST Rule....
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....fit of certain notifications, as specified in the said sub-rule, has been availed. 7. Disbursal of refund amount after sanctioning by the proper officer: 7.1. A few cases have come to notice where a tax authority, after receiving a sanction order from the counterpart tax authority (Centre or State), has refused to disburse the relevant sanctioned amount calling into question the validity of the sanction order on certain grounds. E.g. a tax officer of one administration has sanctioned, on a provisional basis, 90 per cent. of the amount claimed in a refund application for unutilized ITC on account of exports. On receipt of the provisional sanction order, the tax officer of the counterpart administration has observed that the provisional ref....
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....her, rule 93(1) of the MGST Rules provides that where any deficiencies have been communicated under rule 90(3), the amount debited under rule 89 (3) shall be re-credited to the electronic credit ledger. Therefore, the intent of the law is very clear that in case a deficiency memo in FORM GST RFD-03 has been issued, the refund claim will have to be filed afresh. 8.2. It has been learnt that certain field formations are issuing show cause notices to the claimants in cases where the refund application is not re-submitted after the issuance of a deficiency memo. These show-cause-notices are being subsequently adjudicated and orders are being passed in FORM GST RFD-04/06. It is clarified that show-cause-notices are not required to be issued whe....