As per the provisions of sub-section (2) of section 17 of the Rajasthan Value Added Tax Act, 2003, any refund of excess of input tax over output tax has to be made only after the end of the immediately succeeding year, after first adjusting the same against any tax payable or amount outstanding under the Central Sales Tax Act, 1956 (Central Act No. 74 of 1956) or under this Act or the repealed Act. However, the Commissioner, after recording reasons for doing so may, by a general or a specific order, direct to grant such refunds even earlier.

The representative associations have requested that the inter-State sales with the support of declaration Form 'C is taxable at the rate of 2%, whereas the rate of tax on inputs is at least 5% in the State. Therefore, a substantial amount of working capital of the dealers of the State having turnover of inter-State sale is blocked because of low output tax in comparison to higher input tax.

To resolve this problem the Hon'ble Chief Minister at para number 252 of her Budget Speech for 2015-16 has announced, to grant e-refund within thirty days of filing of quarterly return, to the dealers whose turnover of inter-State sales in the previous year was more than 50% of total turnover.

In order to give effect to the said budget announcement and keeping in mind that the net tax payable by a dealer, whose turnover of inter-state sale against Form 'C is substantial, has a negative value due to which substantial amount of their working capital is locked up, I, Vaibhav Galriya, Commissioner, Commercial Taxes, Rajasthan, in exercise of the powers conferred under sub-section (2) of section 17 of the Rajasthan Value Added Tax Act, 2003 (Act No. 4 of 2003, hereby direct, to grant refund of excess of input tax over output tax to such dealers whose turnover of inter-State sales in the previous year was more than 50% of total turnover, in the manner as provided hereunder, within thirty days of filing of application in this regard.

Manner for Early refund:

(1) That Such dealer shall submit an application in Form VAT-20A electronically through the official web-site of the Department, in the manner as provided therein, after submission of quarterly return in Form VAT-10 completed in all respect.

(2) The assessing authority, on receipt of such application shall verify the facts and deposit of tax, as provided in section 53 of the Act.

(3) The claim of concessional rate of tax shall be allowed to the extent of the declaration forms furnished by the dealer up to the time of issuance of order by assessing authority for early refund.

(4) The assessing authority shall verify the claim of input tax credit in the manner as provided in circular No.F.26(197)ACCT/MEA/ 2013/235 (S.No.3124) dated 19-06-2014, as amended from time to time.

(5) The assessing authority after having been satisfied with the genuineness of the transactions and the relevant documents, shall dispose of the application for the claim of early refunds within a period of 30 days from the date of submitting completed application.

(6) Where the requested refund is disallowed or allowed partially the assessing authority shall pass a speaking order after affording an opportunity of being heard to the dealer or his authorized representative before passing such order.

(7) Where the refund in part or in full is allowed, he shall issue refund order to the applicant in the manner specified under the Rajasthan Value Added Tax Rules, 2006.

(8) Subsequent to the passing of such order, if it is found that refund was granted in excess of the actual refund due, such excess refunded amount shall be recovered as if it is a tax due from the dealer under this Act and the interest on such tax shall be charged at the rate notified by the State Government, under section 55 of the RVAT Act, 2003 for the period from the date of grant of refund, till the date this amount is paid in the Government treasury.

Vaibhav Galriya,

Commissioner,

Commercial Taxes,

Rajasthan, Jaipur