Manual Filing Extended to Inverted Duty,
Deemed Exports and Electronic Cash Ledger Balances
· Format for Application Statement1, Statement 1A and
Statement 5B Prescribed in RFD-01A
[Ref: Circular No.24/24/2017-GST dated 21.12.2017]
Sub – Manual filing and processing of
refund claims
on account
of inverted duty structure, deemed exports and excess balance in electronic cash ledger.
Due to the non-availability of the refund module on the common portal, it has been decided by
the competent authority, on the recommendations of the Council, that the applications/documents/forms pertaining
to refund
claims on
account of inverted
duty structure (including
supplies
in terms
of
notification Nos. 40/2017-Central
Tax
(Rate)and
41/2017-Integrated Tax (Rate) both dated 23.10.2017), deemed exports and excess balance in electronic cash ledger shall be filed and processed manually till further orders. In this regard,
the Board, in
exercise of its powers conferred under section 168 (1) of the Central Goods and Services Tax Act, 2017 hereby clarifies that the provisions of Circular No. 17/17/2017-GST dated 15.11.2017 shall also be applicable to the following types of refund inasmuch as they pertain to the method of filing of the refund claim and its processing which is consistent with the relevant provisions of the CGST Act, 2017 (hereafter referred to as ‘the CGST Act’) and the CGST Rules, 2017 (hereafter referred to as ‘the CGST Rules’):-
(i) refund of unutilized input tax credit where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies) of goods or services or both except those supplies which are notified
by the Government on the recommendations
of the Council (section 54(3) of the CGST Act refers);
(ii) refund of tax on the supply of goods regarded as deemed exports; and
(iii) refund of balance in the electronic cash ledger.
2.0 It is clarified that refund claims in respect of zero-rated supplies and on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger shall be filed for
a tax period on
a monthly
basis in FORM
GST RFD-01A.However, in
case
registered persons having aggregate turnover of up to Rs1.5 crorein the preceding financial year or the current financial year are opting
to
file FORM GSTR-1
quarterly (notification No. 57/2017-Central Tax dated 15.11.2017 refers), such persons shall
apply for refund on a quarterly basis. Further, it is stated that the refund claim for a tax period may be filed only after filing the details in FORM GSTR-1
for
the said tax period. It is also to be ensured that a valid return in FORM GSTR-3B has been filed for the last tax period before the one in which the refund application is being filed. Since the date of furnishing of FORM
GSTR 1 from July, 2017 onwards has been extended while the dates of furnishing of FORM
GSTR 2 and FORM GSTR
3 for such period are yet to be notified, it has been decided by the competent authority
to sanction refund of provisionally accepted input
tax credit
at this juncture. However, the registered persons applying for refund must give an undertaking to the effect that the amount
of
refund sanctioned
would be paid back to the Government
with interest in case it is found subsequently that the requirements of clause (c) of sub-section (2) of section
16
read with sub-section (2)
of sections 42 of
the CGST Act have
not been complied with in
respect of the amount refunded. This undertaking should be submitted manually along with the refund claim till the same is
available in FORM RFD-01A
on the common portal.
3.0 In case of refund claim arising due to inverted duty structure, the following statements - Statement 1 and Statement 1A
of FORM GST RFD-01A
have to be filled:-
Statement -1 [rule 89(5)]
Refund Type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section 54(3)]
(Amount in Rs.)
|
Turnover of inverted
rated supply
of goods |
Tax payable on such inverted
rated supply
of goods |
Adjusted
total turnover |
Net input tax credit |
Maximum refund amount
to be claimed [(1×4÷3)-2] |
|
1 |
2 |
3 |
4 |
5 |
|
|
|
|
|
|
Statement 1A [rule 89(2)(h)]
Refund type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section 54(3)]
|
Sl. No. |
Details of invoices of inward supplies
received |
Tax
paid on inward supplies |
Details of invoices of outward supplies
issued |
Tax paid on outward supplies |
||||||||
|
|
No |
Date |
Taxable Value |
Integrated Tax |
Central Tax |
State/Union territory Tax |
No. |
Date |
Taxable Value |
Integrated Tax |
Central
Tax |
State/Union territory
Tax |
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.0 Whereas,
the Government
has issued
notification
No. 48/2017-Central Tax
dated 18.10.2017 under section 147 of the CGST Act wherein certain supplies of goods have been notified as deemed export. Further, the third proviso to rule 89(1) of the CGST Rules allows the recipient or the supplier to apply for refund of tax paid on such deemed export supplies. In case such refund is
sought by the supplier of deemed export supplies, the documentary evidences as specified in
notification No. 49/2017-Central Tax dated 18.10.2017 are also required to
be furnished which includes an undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and that no input tax credit on
such supplies has been availed of by him. The undertaking should be submitted manually along with the refund claim. Similarly, in case the refund is
filed by the recipient of deemed export supplies, an undertaking by the supplier of deemed export supplies that he shall not claim the refund in respect of
such supplies is also
required
to be furnished manually. 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.
4.1 Further, as per the provisions
of
rule 89(2)(g) of the CGST
Rules,
the following statement 5B of FORM GST RFD-01A
is required to be furnished for claiming refund on supplies declared as deemed exports:-
Statement 5B [rule 89(2)(g)]
Refund type: On account of deemed exports
(Amount in Rs)
|
Sl. No. |
Details of invoices of outward supplies in
case refund is claimed by supplier/ Details of invoices of inward supplies in case refund is claimed by recipient |
Tax paid |
|||||
|
|
No. |
Date |
Taxable Value |
Integrated Tax |
Central Tax |
State /Union Territory Tax |
Cess |
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
|
|
|
|
|
|
|
|
5.0 It is reiterated that para 2.5 of Circular No. 17/17/2017-GST dated 15.11.2017 may be referred to in order to ascertain the jurisdictional
proper officer to whom the manual application for refund is to be submitted. Where any amount claimed as refund is rejected under rule 92 of the CGST Rules, either fully or partly, the amount debited, to the extent of rejection, shall be re-credited to the electronic credit ledger by an
order
made in FORM GST RFD-1B until the FORM
GST PMT-03 is available
on the common portal. Further, the payment of the sanctioned refund amount shall be made only by the respective tax authority of the Central or State Government. Thus, the refund order issued either by the Central tax authority or the State tax/UT tax authority shall be communicated to the concerned counter-part tax authority within seven working days for the purpose of payment of the relevant sanctioned refund amount of tax or cess, as the case may be. This time limit of seven working days is also applicable to refund claims in respect of zero-rated supplies being processed as per Circular No. 17/17/2017-GST dated 15.11.2017 as
against the time limit of three days prescribed in para 4 of the said Circular. It
must be ensured that the timelines specified under
section 54(7) and rule 91(2) of the CGST Rules for the sanction of refund are adhered to.
6.0 In order to facilitate sanction of refund amount of central tax and State tax by the respective tax authorities, it has been decided that both the Central and State Tax authority shall nominate nodal officer(s) for the purpose of liasioning through a
dedicated e-mail id. Where the amount of
central tax and
State
tax refund
is ordered to
be sanctioned provisionally by the Central tax authority and a sanction order is passed in accordance with the provisions of rule 91(2) of the CGST Rules, the Central tax authority shall communicate the same, through the nodal officer, to the State tax authority for making payment of the sanctioned refund amount in relation
to State tax
and vice versa. The
aforesaid communication shall primarily be
made through e-mail attaching the scanned copies of the sanction order [FORM GST RFD-04 and FORM GST RFD-06], the application for refund in FORM
GST
RFD-01A and the Acknowledgement Receipt Number (ARN). Accordingly, the jurisdictional
proper officer of Central
or State Tax, as the case may be, shall issue FORM GST
RFD-05 and
send it
to the DDO for onward
transmission for release
of payment. After release
of payment by the respective PAO to the applicant’s bank account, the nodal officer of
Central tax and State tax authority shall inform each other. The manner of communication as referred earlier shall be followed at the time of final sanctioning of the refund also.
7.0 In case of refund claim for the balance amount in the electronic cash ledger, upon filing of FORM
GST
RFD-01A as per the procedure laid down in para 2.4 of Circular
No.
17/17/2017-GST
dated 15.11.2017, the amount of refund claimed shall get debited in the electronic cash ledger.
8.0 It is also clarified that the drawback of all taxes under GST (Central Tax, Integrated Tax, State/Union Territory Tax) should
not have been
availed while claiming refund of accumulated ITC under section 54(3)(ii) of the CGST Act. A declaration to this effect forms part of FORM GST RFD-01A as well.
9.0 It is requested that suitable trade notices may be issued to publicize the contents of this circular.
10.0 Difficulty, if any, in implementation of the above instructions may please be brought to the notice of the Board.
F. No. 349/58/2017-GST