TaxTMI 
TaxTMI 
Clarification on refund related issues
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncharge Distt. Kinnour, H.P. Dated Shimla-9 20th March, 2021. Madam/Sir, Subject: Clarification on refund related issues - Reg. Various doubts have been arisen on some of the issues relating to GST refunds. In order to ensure uniformity in the implementation of the provisions of the law, in exercise of powers conferred under section 168 of the Himachal Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as "HPGST Act"), the issues are clarified as under: 2. Clarification in respect of refund claim by recipient of Deemed Export Supply 2.1 Doubts have been arisen in respect of difficulties being faced by the recipients of the deemed export supplies in claiming refund of tax paid in respect of such supplies since the system....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aced by the Circular No. 125/44/2019-GST dated 10.12.2019. 2.4 In order to ensure that there is no dual benefit to the claimant, the portal allows refund of only Input Tax Credit (ITC) to the recipients which is required to be debited by the claimant while filing application for refund claim. Therefore, whenever the recipient of deemed export supplies files an application for refund, the portal requires debit of the equivalent amount from the electronic credit ledger of the claimant. 2.5 As stated above, there is no restriction under 3rd proviso to Rule 89(1) of HPGST Rules, 2017 on recipient of deemed export supply, claiming refund of tax paid on such deemed export supply, on availment of ITC on the tax paid on such supply. Therefore, th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re that the supplier has not claimed refund with respect to the said supplies. The procedure regarding procurement of supplies of goods from DTA by Export Oriented Unit (EOU) / Electronic Hardware Technology Park (EHTP) Unit / Software Technology Park (STP) Unit / Bio-Technology Parks (BTP) Unit under deemed export as laid down in Circular No. 14/14/2017-GST dated 03.02.2018 needs to be complied with." 3. Extension of relaxation for filing refund claim in cases where zero-rated supplies has been wrongly declared in Table 3.1(a). 3.1 Para 26 of Circular No. 125/44/2019-GST dated 10th December, 2019 gave a clarification in relation to cases where taxpayers had inadvertently entered the details of export of services or zero-rated supplies to....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., para 26 of Circular No. 125/44/2019-GST dated 10.12.2019 stands modified as under: "26. In this regard, it is clarified that for the tax periods commencing from 01.07.2017 to 31.03.2021, such registered persons shall be allowed to file the refund application in FORM GST RFD-01 on the common portal subject to the condition that the amount of refund of integrated tax/cess claimed shall not be more than the aggregate amount of integrated tax/cess mentioned in the Table under columns 3.1(a), 3.1(b) and 3.1(c) of FORM GSTR-3B filed for the corresponding tax period." 4. The manner of calculation of Adjusted Total Turnover under sub-rule (4) of Rule 89 of HPGST Rules, 2017. 4.1 Doubts have been arisen as to whether the restriction on turnove....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he relevant period.' 4.4 "Turnover in state or turnover in Union territory" as referred to in the definition of "Adjusted Total Turnover" in Rule 89 (4) has been defined under sub-section (112) of Section 2 of HPGST Act 2017, as: "Turnover in State or turnover in Union territory" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....an 1.5 times the value of same/ similar goods in domestic market, as declared by the supplier: Illustration: Suppose a supplier is manufacturing only one type of goods and is supplying the same goods in both domestic market and overseas. During the relevant period of refund, the details of his inward supply and outward supply details are shown in the table below: Net admissible ITC = ₹ 270 All values in Rs. Outward Supply Value per unit No of units supplied Turnover Turnover as per amended definition Local (Quantity 5) 200 5 1000 1000 Export (Quantity 5) 350 5 1750 1500 (1.5*5*200) Total 2750 2500 The formula for calculation of refund as per Rule 89(4) is : Refund Amount = (Turnover of zero-rated supply of go....