Fresh GST Refund Application Required Where Assessee
Wins Appeal
[Circular
No. 111/30/2019 – GST dated 3 October 2019]
Subject:
Procedure to claim refund in FORM GST RFD-01 subsequent to favourable
order in appeal or any other forum.
Doubts
have been raised on the procedure to be followed by a registered person to claim
refund subsequent to a favourable order in appeal or any
other forum against rejection of a refund claim in FORM GST RFD-06. The matter has been examined and in order to clarify
this issue and to ensure uniformity in the implementation of the provisions of the
law across field formations, the Board, in exercise of its powers conferred by section
168 (1) of the Central
Goods and Services Tax Act, 2017 (hereinafter referred to as
“CGST Act”), hereby clarifies the issues raised as below:
2. Appeals
against rejection of refund claims are being disposed offline as the electronic
module for the same is yet to be made operational. As per rule 93 of the Central
Goods and Services Tax Rules, 2017 (hereinafter referred to as “CGST
Rules”), where an appeal is filed against the rejection of a refund claim, re-crediting
of the amount debited from the electronic credit ledger, if any, is not done till
the appeal is finally rejected. Therefore, such rejected amount remains debited
in respect of the particular refund claim filed in FORM GST RFD-01.
3. In
case a favourable order is received by a registered person
in appeal or in any other forum in respect of a refund claim rejected through issuance
of an order in FORM GST RFD-06, the registered
person would file a fresh refund application under the category “Refund on account
of assessment/provisional assessment/appeal/any other order” claiming refund of
the amount allowed in appeal or any other forum. Since the amount debited, if any,
at the time of filing of the refund application was not re-credited, the registered
person shall not be required to debit the said amount again from his electronic
credit ledger at the time of filing of the fresh refund application under the category
“Refund on account of assessment/provisional assessment/appeal/any other order”.
The registered person shall be required to give details of the type of the Order
(appeal/any other order), Order No., Order date and the Order Issuing Authority.
The registered person would also be required to upload a copy of the order of the
Appellate or other authority, copy of the refund rejection order in FORM GST RFD
06 issued by the proper officer or such other order against which appeal has been
preferred and other related documents.
4. Upon
receipt of the application for refund under the category “Refund on account of assessment/provisional
assessment/appeal/any other order” the proper officer would sanction the amount
of refund as allowed in appeal or in subsequent forum which was originally rejected
and shall make an order in FORM GST RFD 06 and issue payment order in FORM GST RFD
05 accordingly. The proper officer disposing the application for refund under the
category “Refund on account of assessment/provisional assessment/appeal/any other
order” shall also ensure re-credit of any amount which remains rejected in the order
of the appellate (or any other authority). However, such re-credit shall be made
following the guideline as laid down in para 4.2 of Circular
no. 59/33/2018 – GST dated 04/09/2018.
5. The
above clarifications can be illustrated with the help of an example. Consider a
registered person who makes an application for refund of unutilized ITC on account
of export to the extent of Rs.100/- and debits the said amount from his electronic
credit ledger. The proper officer disposes the application by allowing refund of
Rs.70/- and rejecting the refund of Rs. 30/-. However,
he does not recredit Rs.30/- since appeal is preferred
by the claimant and accordingly FORM GST RFD 01B is not uploaded. Assume that the
appellate authority allows refund of only Rs.10/- out of the Rs. 30/- for which the registered person went in appeal. This
Rs.10/- shall be claimed afresh under the category “Refund on account of assessment/provisional
assessment/appeal/any other order” and processed accordingly. However, subsequent
to processing of this claim of Rs.10/- the proper officer shall re-credit Rs.20/-
to the electronic credit ledger of the claimant, provided that the registered person
is not challenging the order in a higher forum. For this purpose, FORM GST RFD 01B
under the original ARN which has so far not been uploaded will be uploaded with
refund sanctioned amount as Rs.80/- and the amount to be re-credited as Rs. 20/-. In case, the proper officer who rejected the refund
claim is not the one who is disposing the application under the category “Refund
on account of assessment/provisional assessment/appeal/any other order”, the latter
shall communicate to the proper officer who rejected the refund claim to close the
ARN as above only after obtaining the undertaking as referred in para 4.2 of Circular
no. 59/33/2018 – GST dated 04/09/2018.
6. It
is requested that suitable trade notices may be issued to publicize the contents
of this circular.
7. Difficulty,
if any, in implementation of the above instructions may please be brought to the
notice of the Board.
F.No. CBEC
– 20/06/03/2019 – GST