Provisional sanction of refund claims on the basis of identification and evaluation of risk by the system

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.... the basis of identification and evaluation of risk by the system. In addition, a proviso has been inserted in rule 91(2) to provide that, on case-by-case basis, where the proper officer is of the opinion that in a particular case, provisional refund should not be granted, he can, for reasons to be recorded in writing, instead of grant of refund on provisional basis, proceed with detailed examination of the application. Further, vide notification eCF No. 704478/16 dated 17.09.2025, category of registered persons has been notified under section 54(6) of the Assam GST Act, 2017, who shall not be allowed refund on provisional basis for zero rated supplies. 2. In order to ensure uniformity in the implementation of the provisions of the Act a....

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....d applications, which are not categorised as "low-risk" by the system, refund shall not be sanctioned on provisional basis and in such cases, the proper officer shall proceed with detailed scrutiny of refund application and further action as per the extant guidelines. 3.2 The statutory conditions prescribed for grant of provisional refund, including non- eligibility of the notified category of registered persons under section 54(6) vide notification eCF No. 704478/16 dated 17.09.2025, the requirement under rule 91(1) regarding non- prosecution, shall continue to be applicable in these cases. Further, as no adjustment or withholding of refund, as provided under sub-sections (10) and (11) of section 54 of the Assam GST Act, can be done in ....

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....5, therefore the provisions related to risk-based sanction of provisional refund shall be applicable for all refund applications filed on or after 01.10.2025. 5. It is worthwhile to note that the GST Council, in its 56th meeting, has also recommended amending Section 54(6) of the CGST Act, 2017, to provide for sanction of 90% of the refund amount claimed on provisional basis, in case of refund claims filed on account of inverted duty structure (IDS), similar to the provisions in place for zero-rated supplies. However, the said amendment to the Act will be incorporated through the forthcoming Finance Act and States will also be required to pass the corresponding amendments in their respective legislations, which will take time. 5.1. Th....