Processing of GST Refund
Claim by UIN Entities – CBIC Clarification
[CGST
Circular No. 63 dated 14th September 2018]
Subject: Clarification
regarding processing of refund claims filed by UIN entities – regarding
The Board vide Circulars No. 36/10/2018-GST dated 13th March,
2018 and No. 43/17/2018-GST dated 13th April, 2018 has specified the
detailed procedure for filing and processing of refund applications by UIN entities
(Embassy/Mission/Consulate / United Nations Organizations/Specified International
Organizations). Various representations have been received on certain issues pertaining
to the processing of such refund claims. In order to clarify these issues and to
ensure uniformity in the implementation of the provisions of the law across the
field formations, the Board, in exercise of its powers conferred under section 168
of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST
Act) hereby clarifies the said issues as below:
2. Non-compliance with letter of reciprocity: Notifications
No. 13/2017 – Integrated Tax (Rate), 16/2017-Central Tax (Rate) and No. 16/2017
– Union Territory tax (Rate) all dated 28th June, 2017 and corresponding
notifications under the respective State Goods and Services Tax Acts provide for
examination of the refund claims in accordance with the letter of reciprocity issued
by the Ministry of External Affairs (hereinafter referred to as MEA). Generally,
these letters of reciprocity have certain conditions specified on the basis of which
refunds have to be processed and sanctioned. For example, letters may specify the
minimum value of goods or services or the end use of such goods or services (official
or personal purposes).
2.1 It has been observed that many UIN entities are claiming the refund on
all invoices irrespective of whether or not they are eligible for the same as per
the reciprocity letter issued by MEA. It is observed that such claims are attested/signed
by Diplomats/Consulars and authorized signatories of the
Consulates or Embassies of the foreign countries.
3. UIN entities have been advised to submit a statement of invoices and hard
copies of only those invoices wherein the UIN is not mentioned vide Circular No.
43/17/2018-GST dated 13th April, 2018. Further, refund processing officers
have been advised not to request for original or hard copy of the invoices unless
necessary. However, it is observed that the delay in processing of the UIN refunds
is primarily due to the non-furnishing of the hard copy of the invoices by the UIN
entities and the statement of invoices as specified in paragraph 2.1 of Circular
No. 43/17/2018-GST dated 13.04.2018. It may be noted that the same are needed in
order to determine the eligibility for grant of refund in accordance with the reciprocity
letter issued by MEA. Further, it has been observed that in some cases, the Certificate
and Undertaking submitted by the UIN entities is not in accordance with Notifications
No. 13/2017 – Integrated Tax (Rate), 16/2017-Central Tax (Rate) and No. 16/2017
– Union Territory tax (Rate) all dated 28th June, 2017 and corresponding
notifications under the respective State Goods and Services Tax Acts.
4. In order to expedite the processing of the refund applications filed by
the UIN entities, the following formats/documents are hereby specified:
4.1 Refund Checklist: In order to bring in uniformity in the processing of
the refund claims, a checklist has been specified in Annexure A. All UIN
entities may refer to this checklist while filing the refund claims.
4.2 Certificate: A sample certificate to be submitted by Embassy/Mission/Consulate
is enclosed as Annexure-B and that to be submitted by United Nations Organizations/Specified
International Organizations is enclosed as Annexure-B-1.
4.3 Undertaking: A sample undertaking to be submitted by Embassy/Mission/Consulate
is enclosed as Annexure-C and that to be submitted by United Nations Organizations/Specified
International Organizations is enclosed as Annexure-C-1.
4.4 Statement of Invoices: The detailed statement of invoices shall be submitted
in the format specified in Annexure D.
5. Prior Permission letter for GST refund for purchase of vehicles: MEA vide letter
F. No. D_II/451/12(5)/2017 dated 21.06.2018 has informed that it is mandatory to
enclose the copy of ‘Prior Permission Letter’ issued by the Protocol Special Section
of MEA at the time of submission of GST refund for purchase of vehicle by the foreign
representatives. Accordingly, it is advised that UIN entities must submit the copy
of the ‘Prior Permission letter’ and mention the same in the covering letter while
applying for GST refund on purchase of vehicles to avoid delay in processing of
refunds.
6. Non-availability of refunds to personnel and officials of United Nations
and other International organizations: It is hereby clarified that the personnel and officials
of United Nations and other International organizations are not eligible to claim
refund under Notifications No. 13/2017 –Integrated Tax (Rate), 16/2017-Central Tax
(Rate) and No. 16/2017 – Union Territory tax (Rate) all dated 28th June,
2017 and corresponding notifications under the respective State Goods and Services
Tax Acts. However, the eligibility of refund for the personnel and officials posted
in the Embassy/Mission/Consulate shall be determined based on the principle of reciprocity.
7. Waiver from recording UIN in the invoices for the months of April, 2018
to March, 2019: A one-time waiver is hereby given from recording the
UIN on the invoices issued by the suppliers pertaining to the refund claims filed
for the quarters from April, 2018 to March, 2019, subject to the condition that
the copies of such invoices which are attested by the authorized representative
of the UlN entity shall be submitted to the jurisdictional
officer.
8. Format of Monthly report: Circular No. 36/10/2018-GST dated 13th March,
2018 provides for a monthly report to be furnished to the Principal Director General
of Goods and Services Tax by the 30th of the succeeding month. The report shall
now be furnished in a new format as specified in Annexure E.
9. It is requested that suitable trade notices may be issued to publicize
the contents of this Circular.
10. Difficulty, if any, in implementation of the above instructions may please
be brought to the notice of the Board.
Annexure A: Checklist for processing UIN
refunds
(a) Covering letter for each quarterly refund
(b) Final copy of FORM GST RFD- 10 with Application Reference Number
(ARN)
(c) Final copy of FORM GSTR –11
(d) Statement of invoices as per Annexure D
(e) Certificate in case of goods that the goods have been used according
to Notifications No. 13/2017 – Integrated Tax (Rate), 16/2017-Central Tax (Rate)
and No. 16/2017 – Union Territory tax (Rate) all dated 28th June, 2017
and corresponding notifications under the respective State Goods and Services Tax
Acts
(f) Undertaking in case of services
that the services have been used according to Notifications No. 13/2017 – Integrated
Tax (Rate), 16/2017-Central Tax (Rate) and No. 16/2017 – Union Territory tax (Rate)
all dated 28th June, 2017 and corresponding notifications under the respective
State Goods and Services Tax Acts
(g) Copy of letter issued by the Protocol Division of the Ministry of External
Affairs based on the principle of reciprocity
(h) Photocopies of only those invoices where UIN has not been recorded on
the invoices by the
(i) A cancelled cheque
of the bank account as mentioned in FORM GST RFD-10 (to be submitted with
only the first refund claim filed)
Annexure B: Certificate to be submitted
by Mission/Embassy/Consulate
Date:
CERTIFICATE
(as per CBIC’s (a) notifications No. 13/2017 – Integrated Tax (Rate), 16/2017-Central
Tax (Rate) and No. 16/2017 – Union Territory tax (Rate) all dated 28th June, 2017
and corresponding notifications under the respective State Goods and Services Tax
Acts)
The Mission/Embassy/Consulate of the____________ <Name of the State>
hereby confirms that:
I. The goods mentioned in the invoices for the period________ to_____________
have been put to official use/ are in the official use of the Embassy/ Consulate
or for personal use of the members of his/her family.
II. The goods will not be supplied further or otherwise disposed of before
the expiry of three years from the date of receipt of the goods and
III. In the event of non-compliance of clause (I) and (II), the Mission/
Embassy /Consulate will pay back the refund amount paid to the Mission/Embassy/Consulate.
IV. The refund claimed by us is as per the terms and conditions stipulated
in the Certificate issued by the Protocol Division of the Ministry of External Affairs,
based on the principle of reciprocity.
I,_____________ , declare that I have read and understood
all the conditions mentioned above and hereby agree to abide by them.
(Signature)
Name
Head of the Mission/Consulate/ Embassy / Any other
Authorized Signatory
Note: Please take print on letterhead of the Embassy & sign with
stamp
Delete / strike which are not applicable.
Annexure B-I: Format for certificate for
United Nations Organizations/Specified International Organizations)
Date:
CERTIFICATE
(as per CBIC’s notifications No. 13/2017 – Integrated Tax (Rate), 16/2017-Central
Tax (Rate) and No. 16/2017 – Union Territory tax (Rate) all dated 28th June, 2017
and corresponding notifications under the respective State Goods and Services Tax
Acts)
The < Name of the Organization>, <Name of the State> hereby confirms
that:
The goods mentioned in the invoices for the period________ to________ have
been used or are intended to be used for official purpose of the< Name of the
Organization>, New Delhi.
I,______________ , declare that I have read and
understood all the conditions mentioned above and hereby agree to abide by them.
(Signature)
Name
Head of the Organisation/Authorized Signatory
Note: Please take print on letterhead of the organization and sign with stamp.
Annexure C: Format for undertaking for Mission/Embassy
/Consulate
Date:
UNDERTAKING
(as per CBIC’s notifications No. 13/2017 – Integrated Tax (Rate), 16/2017-Central
Tax (Rate) and No. 16/2017 – Union Territory tax (Rate) all dated 28th June, 2017
and corresponding notifications under the respective State Goods and Services Tax
Acts)
The Embassy/Mission/Consulate of the _____________ , <Name of the State>
hereby state that the services received as mentioned in the invoices for the period____________
to_________ are for official purposes of the Embassy/Mission/Consulate of the ____________ in <Name of the State> or for personal use
of the said diplomatic agent or career consular officer or members of his/her family.
The refund claimed by us on the above mentioned services is as per the terms
and conditions stipulated in the Certificate issued by the Protocol Division of
the Ministry of External Affairs, based on the principle of reciprocity.
(Signature)
Name
Head of the Mission/Consulate/ Embassy/
Authorized Signatory
Note: Please take print on letterhead of the Embassy & sign with
stamp Delete / strike which are not applicable.
Annexure C-I: Format for undertaking for
United Nation Organizations/Specified International Organizations)
Date:
UNDERTAKING
(as per CBIC’s notifications No. 13/2017 – Integrated Tax (Rate), 16/2017-Central
Tax (Rate) and No. 16/2017 – Union Territory tax (Rate) all dated 28th June, 2017
and corresponding notifications under the respective State Goods and Services Tax
Acts)
The <Name of the Organisation>, <Name
of the State> hereby state that the services received as mentioned in the invoices
for the period______________________ to__________ are for official purpose of the
<Name of the Organisation>, <Name of the State>.
I, _______________ , declare that I have read and
understood all the conditions mentioned above and hereby agree to abide by them.
( )
Name Authorized Signatory
Note: Please take print on letter head of the organization and signed with
stamp.
Annexure D: Format for statement of invoices
|
Sl.
No. |
GSTIN
of supplier |
Invoice
|
Taxable
Value |
Central
Tax |
State
Tax / UT Tax |
Integrated
Tax |
Place
of Supply |
Goods
/ Services |
Description
of goods/ services |
For
Official use / Personal use |
Whether
the said invoice is covered under the principle of reciprocity? (Y /N) |
||
|
No. |
Date |
Value |
|||||||||||
|
|
|||||||||||||
Verification
I/We <Name of the Authorized representative / Diplomat / Consular >>
hereby solemnly affirm and declare that the information given herein above is true
and correct to the best of my/our knowledge and belief and nothing has been concealed
therefrom.
I also affirm that the invoices declared in the table above are eligible
for refund under Notifications No. 13/2017 – Integrated Tax (Rate), 16/2017-Central
Tax (Rate) 16/2017 – Union Territory tax (Rate) all dated 28th June, 2017 and the
corresponding notifications issued under the respective State Goods and Services
Tax Act, 2017.
I/We declare that no refund on this account has been received by me/us earlier.
Place
Signature of Authorized Signatory
Date
Designation/ Status
Annexure E: Format for monthly report
Office of the Commissioner __________
Report for the month of _________
|
Name of
the State |
Details
of the UlN entity |
Time Period |
Status of
Refund application (Sanctioned/ Deficiency Memo issued / under process / Rejected) |
Name of
the State for which refund has been sanctioned |
Central
Tax |
State Tax/
Union Territory |
Integrated
|
Cess |
||
|
Name |
UlN |
From |
To |
|||||||
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
(8) |
(9) |
(10) |
(11) |