Sub Manual filing and processing of refund claims in respect of zero-rated supplies - reg.
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 zero-rated supplies shall be filed and processed manually till further orders. Therefore, in exercise of the powers conferred by section 168 of the Andhra Pradesh Goods and Services Tax Act, 2017 ( APGST Act in short) 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 Central Goods and Services Tax Act,2017 (CGST Act in short) / APGST Act and rules 89 to 96A of the Central Goods and Services Tax Rules (CGST Rules in short) / Andhra Pradesh Goods and Services Tax Rules, 2017 ( APGST Rules in short), 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 APGST /CGST rules . The shipping bill filed by an exporter shall be deemed to be an application for refund in such cases. The application shall be deemed to have been filed only when export manifest or export report is filed and the applicant has furnished a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be. Upon receipt of the information regarding furnishing of a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be, from the common portal, the system designated by the Customs shall process the claim for refund and an amount equal to the integrated tax paid in respect of such export shall be electronically credited to the bank account of the applicant. 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 CGST Rules vide notification No 55/2017-Central Tax dated 15.11.2017 and APGST Rules vide notification G.O. Ms. No. 581 Revenue (CT-II) DEPARTEMNT Dt 8.12.2017) 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 CGST Act/APGST 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-01A on the common portal and the amount claimed as refund shall get debited in accordance with sub-rule (3) of rule 86 of the CGST/ APGST 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-01A 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 CGST/ APGST 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 issued in this regard by the Chief Commissioner of Central Tax and the Commissioner of State Tax. The taxpayers who are migrated , were assigned between the State and Central tax authorities vide Order no. 1 /2017 /APGST /DIV.COM. dt 24.11.2017. In case if any registered person is not allotted to State or Central authority, such registered person is at liberty to apply for refund before the Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented. However, in the latter case, an undertaking is required to be submitted stating that the claim for sanction of refund has been made to only one of the authorities. It is reiterated that the State Tax officers shall facilitate the processing of the refund claims of all registered persons whether or not such person was registered with the State Government in the earlier regime.
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 refund register to be maintained for this purpose with the following details
Table 1
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 sanction of refund shall be recorded in the 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 refund register as in the table indicated below:-
Table 3
2.10 After the refund claim is processed in accordance with the provisions of the APGST Act and the rules made thereunder and where any amount claimed as refund is rejected under rule 92 of the CGST/AP GST 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 CGST Rules vide notification no 55/2017-central tax dated 15.11.2017 and APGST Rules vide notification G.O. Ms. No. 581 Revenue (CT-II) DEPARTEMNT Dt .12.2017)subject to the provisions of rule 93 of the CGST/ APGST Rules.
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 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 any one of the tax authorities and 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.
Sd/- J.Syamala Rao,
Chief Commissioner of State Tax