Skip to main content

GST rules changed on refund claims

GST rules changed on refund claims
The Finance Minister has decided  thet applications/documents/forms pertaining to refund claims on account of certain Zero reated supplies shall be fileld and processed manually till further orders. Last Wednesday, notification  no 55/2017-central tax was issued, amending teh central goods and services tax (CGST)Rules and precribing new refund  application form  RFD-01A. Simultaneously, the Central Board of Excise and Customs(CBSE) presribed the procedure through Circular 17/17/17/2017-GST.
For refund of Integrated GST (IGST) paid on export of goods,the present  procedure for disbursement through custom remians unchanged.For refund of IGST paid on export of services or supplies to Special Economic Zone (SEZ) developers or units, RFD-01A must be filed by the supplier on the common portal. Then, a print out of the form should be given to the jurisdictional tax officer, with the necessary documentary evidence.
For refund of unutilised input tax credit on account of zero-rated supplies under bond or letter of undertaking without payment of IGST, RFD-01A must be filed by the supplier on the common portal. First, the amount claimed as refund will get debited from the amount in the electronic credit ledger to the extent of the claim and an acknowledgement receipt number (ARN) generated. The claimant should then incorporate the ARN in the hard copy of the RFD-01A and send the application to the jurisdictional tax officer, with all prescribed documents.
Within seven days of the receipt of a completed application, the officer must grant provisional refund of 90 per cent of the claim. The balance amount should be disbursed within 60 days of the claim, after due processing. All the communications in regard to the claims, such as acknowledgement, deficiency memo, provisional refund order, payment advice, refund sanction or rejection order, order for complete adjustment or with holding of sanctioned refund, notice of rejection of claim, reply to show cause notice, etc, should be done manually. Within the timelines as specified in the relevant Rules, till the refund module is operational on the common portal. If any claim is rejected fully or partially, the amount debited, to the extent of rejection, should be re-credited to the electronic credit ledger of the claimant.
Where a tax payer has not been assigned to any tax authority, the refund application may be filed either before the central or state tax authority, till the administrative mechanism for assigning of taxpayers to the respective authority is implemented. In which case, an undertaking is to be given that the claim for sanction of refund has been made to only one of these.
Any central or state authority may process the application and sanction the refund but the payment is to be made only by the respective one. That is, CGST can be disbursed only by a central tax authority and State GST only by a state one. The refund order issued by either is to be communicated to the counterpart concerned within three days for the purpose of payment of the relevant sanctioned refund amount, says CBEC. This means the exporter must wait longer and follow up with central and state authorities. We now have to wait and see how this new system works.
The Business Standard,New Delhi, 20th November 2017

Comments

Popular posts from this blog

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

RBI rushes in to prop up falling rupee

RBI rushes in to prop up falling rupee India’s central bank reportedly intervened in the currency markets on Monday to prevent a further slide in the local unit, which breached the 67 mark to a dollar for the first time in 15 months amid a widening trade gap and runaway import bills fuelled by high crude-oil prices. Some state-owned banks were seen selling dollars aggressively, interventions that market dealers attributed to the central bank’s strategy to stem the decline of the Indian rupee against the US currency. The rupee is the worst performing among a dozen Asian monetary units in the past three months. It lost 4.25 per cent to the dollar during the period, show data from Bloomberg. On Monday, the Reserve Bank of India (RBI) is said to have sold about Rs 800 million collectively on the spot and exchange traded futures markets, dealers said. An email sent to RBI remained unanswered until the publication of this report. The currency market has seen such a strong central bank interven…

GST Refund of Rs 20,000 Cr Pending: Exporters’ Body

GST Refund of Rs  20,000 Cr Pending: Exporters’ Body Refund of over Rs 20,000 crore on account of Goods and Services Tax (GST) is pending with the government with more than half the amount stuck as input tax credit, Federation of Indian Export Organisations said on Tuesday. While claims over Rs7,000 crore were cleared in March, the amount was Rs 1,000 crore in April.However, after exporters’ request, the GST council and tax department are organizing a second phase of Special Refund Fortnight starting May 31, which will enable exporters to draw their refunds at a speedy pace. Many exporters have been unable to file the refund of input tax credit due to technical glitches, exports and claim happened in different months. The major challenge lies on ITC refund especially because the process is partly electronic and partly manual which is cumbersome and add to the transaction cost, the exporters’ body said. On IGST, refunds are getting delayed due to airline and shipping companies not submitt…