To,
All Joint Commissioner (Adm.),
Commercial Taxes Department,
Sub - Manual filing and processing of refund claims in respect of zero-rated supplies.
Due to the non-availability of the refund module on the common portal, it has been decided, on the recommendations of the Council, that the applications/documents/forms pertaining to refund claims on account of zero-rated supplies shall be filed and processed manually till further orders. A new rule 97A for manual filing and processing of refunds has been inserted in chapter X of Rajasthan Goods and Services Tax Rules, 2017 (hereinafter referred to as 'the RGST Rules'). Therefore, in exercise of the powers conferred by sub-section (1) of section 168 of the Rajasthan Goods and Services Tax Act, 2017 (hereinafter referred to as 'the RGST Act') and for the purpose of ensuring uniformity, the following conditions and procedure are laid down for the manual filing and processing of the refund claims:
2.1 As per sub-section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as 'the IGST Act') read with clause (i) of sub-section (3) and sub-section (6) of section 54 of the RGST Act and rules 89 to 96A of the RGST Rules, a registered person may make zero-rated supplies of goods or services or both on payment of integrated tax and claim refund of the tax so paid, or make zero-rated supplies of goods or services or both under bond or Letter of Undertaking without payment of integrated tax and claim refund of unutilized input tax credit in relation to such zero rated supplies.
2.2 The refund of integrated tax paid on goods exported out of India is governed by rule 96 of the CGST Rules only. The shipping bill filed by an exporter shall be deemed to be an application for refund in such cases. Detailed guidelines for such cases has been issued by the Central Board of Excise and Customs, Circular No. 17/17/2017 - GST, Dated the 15th November, 2017. Any order regarding withholding of such refund or its further sanction respectively in PART-B of FORM GST RFD-07 or FORM GST RFD-06 shall be done manually till the refund module is operational on the common portal.
2.3 The application for refund of integrated tax paid on zero-rated supply of goods to a Special Economic Zone developer or a Special Economic Zone unit or in case of zero-rated supply of services (that is, except the cases covered in paragraph 2.2 above and para 2.4 below) is required to be filed in FORM GST RFD-01A (as notified in the RGST Rules vide notification No. F.No.12 (46)FD/ Tax/ 2017-Pt-II/ 139 dated 15.11.2017) by the supplier on the common portal and a print out of the said form shall be submitted before the jurisdictional proper officer along with all necessary documentary evidences as applicable (as per the details in statement 2 or 4 of Annexure to FORM GST RFD - 01), within the time stipulated for filing of such refund under the RGST Act.
2.4 The application for refund of unutilized input tax credit on inputs or input services used in making such zero-rated supplies shall be filed in FORM GST RFD-01 A on the common portal and the amount claimed as refund shall get debited in accordance with sub-rule (3) of rule 86 of the RGST Rules from the amount in the electronic credit ledger to the extent of the claim. The common portal shall generate a proof of debit (ARN- Acknowledgement Receipt Number) which would be mentioned in the FORM GST RFD-01A submitted manually, along with the print out of FORM GST RFD-01 A to the jurisdictional proper officer, and with all necessary documentary evidences as applicable (as per details in statement 3 or 5 of Annexure to FORM GST RFD-01), within the time stipulated for filing of such refund under the RGST Act.
2.5 The registered person needs to file the refund claim with the jurisdictional tax authority to which the taxpayer has been assigned as per the administrative order No. 01/2017 issued on 17.11.2017 in this regard by the Chief Commissioner of Central Tax, Rajasthan and the Commissioner of State Tax. Rajasthan.
2.6 Once such a refund application in FORM GST RFD-01A is received in the office of the jurisdictional proper officer, an entry shall be made in a bounded refund register to be maintained for this purpose with the following details -
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2.7 Further, all communication in regard to the FORMS mentioned below shall be done manually, within the timelines as specified in the relevant rules, till the module is operational on the common portal, and all such communications shall also be recorded appropriately in the refund register as discussed in the succeeding paragraphs -
2.8 The processing of the claim till the provisional sanetion of refund shall be recorded in the bounded refund register as in the table indicated below -
Table 2
2.9 After the sanction of provisional refund, the claim shall be processed and the final order issued within sixty days of the date of receipt of the complete application form. The process shall be recorded in the bounded refund register as in the table indicated below -
Table 3
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2.10 After the refund claim is processed in accordance with the provisions of the RGST Act and the rules made thereunder and where any amount claimed as refund is rejected under rule 92 of the RGST 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 PMT-03. The amount would be credited by the proper officer using FORM GST RFD-01B (as notified in the RGST Rules vide notification No.l2(46)FD/ Tax/ 2017-Pt-II/ 139 dated 15.11.2017) subject to the provisions of rule 93 of the RGST Rules.
3. For the sake of clarity and uniformity, the entire process of filing and processing of refunds manually is tabulated as below:
3.1 Filing of Refund Claims:
3.2 Steps to be followed for processing of Refund Claims:
Three different bounded refund registers are to be maintained for record keeping of the manually sanctioned refunds - for receipts, sanction of provisional refunds and sanction of final refunds. The steps are as follows:
Processing for grant of provisional refund shall be completed within 7 days as per the RGST Rules and details to be maintained in the register for provisional refunds. Bifurcation of the taxes to be refunded under CGST (CT) /SGST (ST) / IGST (IT) /Cess shall be maintained in the register mandatorily;
After the sanction of the provisional refund, final order is to be issued within sixty days (after due verification of the documentary evidences) of the date of receipt of the complete application form. The details of the finally sanctioned refund and rejected portion of the refund along with the breakup (CT / ST / IT/ Cess) to be maintained in the final refund register;
The amount not sanctioned and eligible for re-credit is to be recredited to the electronic credit ledger by an order made in FORM GST PMT-03. The actual credit of this amount will be done by the proper officer in FORM GST RFD-01B.
3.3 Detailed procedure for manual processing of refund claims:
The detailed procedure for disposal of Refund claims filed manually is as under:
This form needs to be accompanied with the requisite documentary evidences. This Form shall contain the debit entry in the electronic credit ledger of the amount claimed as refund in FORM GST RFD-01A.
Rule 89(2) - Requisite Documents
Rule 89(3)- Debiting of electronic credit ledger
Deficiencies, if any, in documentary evidences are to be ascertained and communicated in FORM GST RFD-03 within 15 days of filing of the refund application.
Deficiency Memo should be complete in all respects and only one Deficiency Memo shall be given.
Submission of application after Deficiency Memo shall be treated as a fresh application.
Resubmission of the application, after rectifying the deficiencies pointed out in the Deficiency memo, shall be made by using the ARN and debit entry number generated originally
If the application is not filed afresh within thirty days of the communication of the deficiency memo, the proper officer shall pass an order in FORM GST PMT-03 and re-credit the amount claimed as refund through FORM GST RFD-01B.
Rule 90(3) - Issuance of Deficiency memo
Rule 90(3)- Fresh refund application requirement Rule 93(1) - recredit of refund amount applied for
Provisional refund shall be granted separately for each head CT/ST/UT/IT/Cess within 7 days of acknowledgement in FORM GST RFD-04.
Before sanction of the refund a declaration shall be obtained that the applicant has not contravened rule 91(1).
Payment advice to be issued in FORM GST RFD-05.
Refund would be made directly in the bank account mentioned in the registration.
Rule 91(2) - Prima facie satisfaction, seven day requirement
Rule 91(3) -Payment advice, electronic credit to bank account
The Shipping bill details shall be checked by officer through ICEGATE SITE (www.icegate.gov.in) wherein the officer would be able to check details of EGM and shipping bill by keying in port name, Shipping bill number and date.
Further, details of IGST paid also needs to be verified from FORM GSTR- 3 or FORM GSTR- 3B, as the case may be, filed by the applicant and it needs to be verified that the refund amount claimed shall be less than the tax paid on account of zero rated supplies as per FORM GSTR-3 or FORM GSTR- 3B, as the case may be.
Ascertain what amount may be sanctioned finally and see whether any adjustments against any outstanding liability is required (FORM GST RFD-07 - Part A).
Ascertain what amount of the input tax credit is sanction-able, and amount of refund, if any, liable to be withheld.
Order needs to be passed in FORM GST RFD-07 - Part B.
Rule 92(1) - Any adjustments made in the amount against existing demands
Rule 92(2) - reasons for withholding of refunds
The applicant has to reply within 15 days of receipt of the notice in FORM GST RFD-09.
Principles of natural justice to be followed before making the final decision.
Final order to be made in FORM GST RFD-06.
Rule 92(3) - Requirement of reply to the notice within 15 days
Rule 92(3), 92(4), 92(5) - Sanction of Refund order
Post-audit of the orders may however continue on the basis of extant guidelines.
Amount paid provisionally needs to be adjusted accordingly.
Payment advice is to be made in FORM GST RFD-05.
The amount of credit rejected has to be recredited to the credit ledger by an order in FORM GST PMT- 03 and shall be intimated to the common portal in FORM GST RFD-01B.
Refund, if any, will be paid by an order with payment advice in FORM GST RFD-05.
The details of the refund along with taxpayer bank account details shall be manually submitted in PFMS/[States'] system by the jurisdictional Division's DDO and a signed copy of the sanction order shall be sent to PAO office for release of payment.
Rule 92(4), 92(5) -Payment advice issue
4. The refund application for various taxes i.e. CT / ST / IT/ Cess can be filed with the tax authorities, whom the taxpayer has been assigned according to the order issued in this regard. The application shall be processed by the said authority, however the payment of the sanctioned refund amount shall be made only by the respective tax authority of the Centre or State government. In other words, the payment of the sanctioned refund amount in relation to CT / IT / Cess shall be made by the Central tax authority while payment of the sanctioned refund amount in relation to ST would be made by the State tax authority. It therefore becomes necessary that the refund order issued either by the Central tax authority or the State tax authority is communicated to the concerned counter-part tax authority within three days for the purpose of payment of the relevant sanctioned refund amount of tax or cess, as the case may be.
5. It is directed that refund order issued by the proper officer of state tax shall be communicated to the jurisdictional commissioner of central tax through registered post and inform thereof through email, within three working days of the issuance of order, for payment of the sanctioned refund amount of IT or CT or cess, as the case may be. Details of such orders sent to the central authorities, through registered post, shall also be communicated to Joint Commissioner (IT) for information.
6. It is further directed that for taxpayers under territorial jurisdiction of all districts of the State except Jaipur, the jurisdictional proper officer of the concerned district, working as Drawing and Disbursing Officer (DDO), shall receive the relevant orders for sanctioned refund for ST issued by the central tax authority and process for payment to the taxpayer through pay manager.
7. Joint Commissioner (IT) shall receive the relevant orders of sanctioned refund for ST issued by the central tax authority for taxpayers under territorial jurisdiction of Jaipur district and process for payment to the taxpayer through pay manager.
8. All Joint Commissioners (Admn.) are directed to ensure compliance of these directions and make aware the stakeholders of trade and industry about the contents of this Circular.
(Alok Gupta)
Commissioner
State Tax,
Rajasthan, Jaipur.