TaxTMI 
TaxTMI 
Clarifications on exports related refund issues.
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.... then, several representations have been received seeking further clarifications on issues relating to refund. In order to clarify these issues and with a view to ensure uniformity in the implementation of the provisions of the law across field formations, in exercise of powers conferred by section 168 of the Himachal Pradesh Goods and Services Tax Act, 2017 (HPGST Act), I hereby clarify the issues raised as below: 2. Non-availment of drawback: The third proviso to sub-section (3) of section 54 of the HPGST 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 state tax. 2.1 This has been clarified in paragraph 8.0 of Circular No. 24/24/2017 - GST, dated 3rd February, 2017. In the said paragraph, reference to "section 54(3)(ii) of the HPGST Act" is a typographical error and it should read as "section 54(3)(i) of the HPGST Act". 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 ba....
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....that the substantive benefits of zero rating may not be denied where it has been established that exports in terms of the relevant provisions have been made. The delay in furnishing of LUT in such cases may be condoned and the facility for export under LUT may be allowed on ex-post facto basis taking into account the facts and circumstances of each case. 5. Exports after specified period: Rule 96A (1) of the HPGST 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....
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....ther wholly or partly, or any other substantive deficiency is noticed subsequently. 7. Self-declaration for non-prosecution: It is learnt that some field formations are asking for a self-declaration with every refund claim to the effect that the claimant has not been prosecuted. The facility of export under LUT is available to all exporters in terms of notification No. 37/2017- State Tax dated 29th Sep., 2018, except to those who have been prosecuted for any offence under the CGST Act or the IGST Act or SGST 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, 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. It is clarified that this requirement is already satisfied in case of exports under LUT and asking for self-declaration with every refund claim where the exports have been made under LUT is not warranted. 8. Refund of transitional credit: Refund of unutilized input tax c....
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....have applied for such refund claims in FORM GST RFD-01A also. In this regard, the field formations 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 HPVAT Act, 2005 read with above referred sub-sections of section 142 of the HPGST Act shall be followed while processing such refund claims. 10.1 Furthermore, it has been brought to the notice of the Commissioner that the field formations 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 HPGST 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-section provides that where any claim for refund of VAT credit is fully or partially rejected, the amount so rejected shall lapse and therefore, will not be transitioned into GST. Furthermore, it should be ensured that no refund of the amount of VAT credit is granted in case the said amount has been transiti....
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....e Tax (Rate), dated 20th November 2017 and notification No. 41/2017-Integrated Tax (Rate) dated 23rd October 2017 provide for supplies for exports at a concessional rate of 0.05% and 0.1% respectively, subject to certain conditions specified in the said notifications. 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. It is also clarified that the exporter will be eligible to take credit of the tax @ 0.05% / 0.1% paid by him. The supplier who supplies goods at the concessional rate is also eligible for refund on account of inverted tax structure as per the provisions of clause (ii) of the first proviso to sub-section (3) of section 54 of the HPGST Act. It may also be noted that the exporter of such goods can export the goods only under LUT / bond and cannot export on payment of integrated tax. In this connection, notification No. 3/2018-State Tax issued vide EXN-F(10)-13-2017, dated 27.06.2017 may be referred. 14. Requirement of invoices for processing of clai....