TaxTMI 
TaxTMI 
Comprehensive Clarifications on GST Refund Issues Including Deemed Export Refunds, Filing Errors in GSTR-3B, and Computation of Adjusted Total Turnover under UPGST Rules, 2017
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....resentations have been received seeking clarification on some of the issues relating to GST refunds. The issues have been examined and to ensure uniformity in the implementation of the provisions of law across the field formations, the Commissioner, in exercise of its powers conferred by section 168 of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as "UPSGST Act"), hereby clarifies the issues detailed hereunder: 2. Clarification in respect of refund claim by recipient of Deemed Export Supply 2.1 Representations have been received 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 is not allowing....
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.... claim. The said restriction has been placed by the No. GST/2019-20/1920068/740 Commercial tax- Dated 25.11.2019. 2.4 In this regard, it is submitted that 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 UPSGST Rules, 2017 on recipient of deemed export supply, claiming refund of tax pai....
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....led in statement 5B for the tax period for which refund is being claimed and the amount does not exceed the amount of input tax credit availed in the valid return filed for the said tax period. The recipient shall also be required to declare 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 06.11.2017 needs to be complied with." 3. Extension of relaxation for filing refund claim in cases where zero-rated supplies has been wrongly decla....
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....vided for filing refund claims where the taxpayer inadvertently entered the details of export of services or zero-rated supplies to a Special Economic Zone Unit/Developer in table 3.1(a) instead of table 3.1(b) of FORM GSTR-3B till 31.03.2021. Accordingly, para 26 of Circular No. GST/2019-20/1920068/740 Commercial tax- Dated 25.11.2019 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....
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....he turnover of services; and (b) the turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services, excluding- (i) the value of exempt supplies other than zero-rated supplies; and (ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, during the 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 UPSGST Act 2017, as: "Turnover in State or turnover in Union territory" means the aggregate value of all taxable supplie....
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....lue of "Adjusted Total Turnover" in Rule 89 (4) of the UPSGST Rules, 2017. 4.6 Accordingly, it is clarified that for the purpose of Rule 89(4), the value of export/zero-rated supply of goods to be included while calculating "adjusted total turnover" will be same as being determined as per the amended definition of "Turnover of zero-rated supply of goods" in the said sub-rule. The same can explained by the following illustration where actual value per unit of goods exported is more than 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....