CBIC Issues clarification on fully electronic refund process by Form GST RFD-01 & Single disbursement

Central Board of Indirect Taxes and Customs in its circular dated 18th November 2019, has issued a clarification regarding fully electronic refund process through FORM GST RFD-01 and single disbursement.

CBIC in its earlier circular dated 31.12.2018 has specified that the refund application in the above form shall be filed electronically with all supporting documents. However, various post submission stages of processing of the refund application continued to be manual.

Finally, refund procedure was made fully electronic and was deployed on the common portal with effect from 26.09.2019.

Now the CBIC has issued this present Circular laying down procedure for electronic submission and processing of refund applications in supersession of all earlier circulars on the subject.

Key Points of the Circular

  • Provides the types of the refunds for which applications shall be filed in FORM GST RFD-01 on the common portal and the same shall be processed electronically.
  • The Circular specifies certain modalities which shall be followed for all refund applications filed in FORM GST RFD-01.
  • Deficiency memos to be issued within 15 days starting from the date of generation of Application Reference Number.
  • It has also been clarified that any refund claim for a tax period may be filed only after furnishing all the returns in FORM GSTR-1 and FORM GSTR-3B which were due to be furnished on or before the date on which the refund application is being filed.
  • Provisional Refund:  It is clarified that in such cases, the proper officer shall refund on a provisional basis ninety percent of the refundable amount of the claim (amount of refund claim less the inadmissible portion of refund so found) in accordance with the provisions CGST Rules.
  • Application for refund of integrated tax paid on export of services and supplies shall be made to a Special Economic Zone developer or a Special Economic Zone unit.
  • Further, detailed guidelines covering various types of refunds claims which may be followed while scrutinizing refund claims for completeness and eligibility has been laid down as under:
  • Guidelines for refunds of unutilized Input Tax Credit. 
  • Guidelines for refund of tax paid on deemed exports. 
  •  Guidelines for claims of refund of Compensation Cess. 
  •  Clarifications on issues related to making zero-rated supplies.
  •  Refund of transitional credit. 
  • Refund of TDS/TCS deposited in excess.

The Circular also contains a list of all statements /declarations /undertakings/certificates and other supporting documents to be provided along with the refund application.  

Click here to read the Notification.

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