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Refunds

Relevant Sections: 54 to 58 of The Central Goods and Services Tax Act, 2017.

Relevant Rules: Refund Rules: 89 to 97A of The Central Goods and Services Tax Rules, 2017

Section / Rules Who can Apply Eligibility Form and Time Conditions
Sec. 54 (1) r. w. Rule [89 (1) & 97A] Any person, except the persons covered by notification issued under section 55 Any Tax, Interest, Penalty, Fees or any other amount paid other than IGST paid on goods exported out of India Apply on or before the expiry of two years from the relevant date in Form-GST-RFD-01 File application electronically or manually through common portal either directly or through a Facilitation Centre notified by the Commissioner
Sec. 54 (1) r. w. Rule [89 (1)] Provided that a registered person, Claiming refund of any balance in the electronic cash or credit ledger may claim such refund in the return itself Apply on or before the expiry of two years from the relevant date in Form GSTR-3 (Monthly return) or Form GSTR-4 (Quarterly return) or Form GSTR-7 (TDS return)  
Sec. 54 (1) r. w. Rule [89 (1)] Supplier of goods or services or both Supplies made to a SEZ unit or a SEZ developer after such goods (or evidence of services) have been admitted in full in the SEZ for authorised operations. Apply on or before the expiry of two years from the relevant date in Form-GST-RFD-01  
Sec. 54 (1) r. w. Rule [89 (1)] r. w. notification 48 / 2017 – Central Tax Recipient of deemed exports supplies (refer notification)   Apply on or before the expiry of two years from the relevant date in Form-GST-RFD-01  
Sec. 54 (1) r. w. Rule [89 (1)] r. w. notification 48 / 2017 – Central Tax Supplier of deemed export supplies (refer notification)   Apply on or before the expiry of two years from the relevant date in Form-GST-RFD-01 The recipient does not avail input tax credit on such supplies and furnishes an undertaking that the supplier may claim the refund
Sec. 27 & 54 (1) & (13) r. w. Rule [89 (1)] Casual Taxable Person and Non Resident Taxable person Refund of advance tax paid less actual liability Casual Taxable Person – GSTR-1 & 3B

Non Resident Taxable Person – GSTR-5

 To be claimed in last return to be furnished by such person.

Refund will be granted if such person has filed all the returns as per section 39.
Sec 54 (2) r. w. Rule (89 & 95) Specialized Agency of UNO, or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries or any other person or class of persons Refund of tax paid on inward supplies of goods or services or both • Apply, in Form GST-RFD-10, on or before the expiry of six months from the last day of the quarter in which such supply was received.

• Extended to eighteen months by notification no. 20 / 2018 Central Tax dated 28th March 2018.

 File application electronically through common portal either directly or through a Facilitation Centre notified by the Commissioner
54 (3) & (10) r. w. Rule (89) A Registered person Any unutilized input tax credit at the end of any tax period Apply on or before the expiry of two years from the relevant date in Form-GST-RFD-01 • Returns should be filed.

• Outstanding taxes, interest, or penalty, if not stayed by any Court, Tribunal or Appellate Authority, should have been paid. If not paid, the proper officer will:

  • Withhold payment of refund until the return is filed or tax, interest or penalty is paid.
  • Deduct from the refund due, any tax, interest, penalty, fee or any other amount unpaid under this law or under the existing laws.
        • No refund shall be allowed in cases other than:
  • Exports of Goods or Services without payment of tax, or
  • Supply of goods or Services to SEZ developer or a SEZ unit without payment of tax;
  • Where rate of tax on input is higher than rate of tax on output supplies (other than nil rated or fully exempt supplies),
  • Or as may be notified by the Government.

• No refund of unutilized input tax credit shall be allowed in cases where:

  • Export duty is levied on goods exported out of India.
  • The supplier of goods or services avails drawback in respect of central tax or claims refund of integrated tax paid on such supplies.

Relevant date for supply of GOODS means

Refund Available On Goods exported Relevant Date
Tax paid on export or

Tax paid on Inputs or Input Services used in such goods

 By Sea /Air The date on which Ship / Aircraft on which goods are loaded leaves India
By Land (Road) The date when the goods pass the frontier
By Post The date when goods are dispatched by Post office
Refund of tax paid in respect of the goods In case of deemed exports The date when return is filed

Relevant date for supply of SERVICES means:

Refund Available On Relevant Date
Tax paid on export of services or on Inputs or Input Services Date of receipt of Payment in Foreign Exchange where supply is completed before receipt of payment or,
Date of issue of Invoice where payment is received in advance

Relevant dates for other cases

Cases Relevant Date
where the tax becomes refundable as a consequence of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court The date of communication of such judgment, decree, order or direction
Refund of unutilised input tax credit under sub-section (3) The end of the financial year in which such claim for refund arises
Where tax is paid provisionally under this Act or the rules The date of adjustment of tax after the final assessment thereof
In the case of a person, other than the supplier The date of receipt of goods or services or both by such person
In any other case The date of payment of tax

Other Important points

  1. Any of the following documentary evidences in Annexure 1 of Form GST RFD-01 to establish the refund is due: [Sections 33, 54 (4) r. w. Refund Rule 89 (2)]

1.1 The reference number of the order and a copy of the order passed by the proper officer or an Appellate Authority or Tribunal or Court resulting in such refund.

1.2 Reference number of the part payment made under per Section 107(6) in case of appeal to Appellate Authority.

1.3 Reference number of the part payment made under Section 112(8) in case of appeal to Appellate Tribunal.

1.4 Statement containing the number and date of shipping bills or bills of export and the number and date of relevant export invoices in case of export of goods.

1.5 Statement containing relevant Bank Realization Certificates or Foreign Inward Remittance Certificates in a case where the refund is on account of the export of services.

1.6 Statement containing the number and date of invoices along with the evidence regarding endorsement specified in the third proviso to sub-rule (1) in case of supply of goods made to a Special Economic Zone unit or a Special Economic Zone developer

1.7 Statement containing the number and date of invoices, the evidence regarding endorsement specified in the fourth proviso to sub-rule (1) and the details of payment, along with proof thereof, made by the recipient to the supplier for authorized operations as defined under the Special Economic Zone Act, 2005, in a case where the refund is on account of supply of services made to a Special Economic Zone unit or a Special Economic Zone developer.

1.8 Declaration to the effect that the Special Economic Zone unit or the Special Economic Zone developer has not availed of the input tax credit of the tax paid by the supplier of goods or services or both, in a case where the refund is on account of supply of goods or services made to a Special Economic Zone unit or a Special Economic Zone developer.

1.9 Statement containing the number and date of invoices along with following evidences in a case where the refund is on account of deemed exports.

Notification 49 / 2017 Central Tax: (Evidences required to be produced by the supplier of deemed exports for claiming refund u/r. 82(2)(g) of the CGST Rules, 2017.

1.9.1 Acknowledgment by the jurisdictional Tax officer of the Advance Authorisation holder or Export Promotion Capital Goods Authorisation holder, as the case may be, that the said deemed export supplies have been received by the said Advance Authorisation or Export Promotion Capital Goods Authorisation holder, or a copy of the tax invoice under which such supplies have been made by the supplier, duly signed by the recipient Export Oriented Unit that said deemed export supplies have been received by it.

1.9.2 An undertaking by the recipient of deemed export supplies that no input tax credit on such supplies has been availed of by him.

1.9.3 An undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and the supplier may claim the refund.

1.10 Where the claim pertains to refund of any 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 supply, a statement in Annex 1 of Form GST RFD-01 containing the number and date of invoices received and issued during a tax period should be provided.

1.11 The reference number of the final assessment order and a copy of the said order in a case where the refund arises on account of finalization of provisional assessment.

1.12 Statement showing the details of transactions considered as intra-State supply but which is subsequently held to be inter-State supply.

1.13 Statement showing the details of the amount of claim on account of excess payment of tax.

1.14 A declaration to the effect that incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person in a case where the amount of refund claim does not exceed 2 lakh rupees.

1.14.1 Declaration is not required in following cases:

  • Refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies;
  • Refund of unutilized input tax credit under sub section (3) – where rate of tax on inputs is higher than rate of tax on outward supplies.
  • Refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued.
  • Refund of tax in pursuance of section 77 – Tax wrongly collected and paid to Central or State Government.
  • The tax or interest borne by such other class of applicants as the Government may, on the recommendations of the Council, by notification, specify.
  1. The following documentary evidences in Annexure 2 of Form GST RFD-01to establish the refund is due: [Sections 54(4) r. w. Rule 89 (2)].

2.1 CA /Cost Accountant certificate to the effect that incidence of tax, interest or any other amount claimed as refund has not been passed on to any person, where the refund amount is greater than two lakh rupees. (In case where refund amount is less than two lakh Rupees, it is not necessary).

2.1.1 Declaration is not required in following cases:

  • Refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies.
  • Refund of unutilized input tax credit under sub section (3) – where rate of tax on inputs is higher than rate of tax on outward supplies.
  • Refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued.
  • Refund of tax in pursuance of section 77 – Tax wrongly collected and paid to Central or State Government.
  • The tax or interest borne by such other class of applicants as the Government may, on the recommendations of the Council, by notification, specify.
  1. On receipt of refund application the amount so determined by the proper officer shall be credited to the Consumer Welfare Fund by issuing an order within 60 days from the date of receipt of application-Sections 54 (5) and (7) r. w. Section 57.

3.1 However, in following cases the refund amount will be paid to the applicant if such amount is relatable to any of the following:

3.1.1 Refund of tax paid on zero-rated supplies or on inputs or input services used in making such zero-rated supplies.

3.1.2 Refund of unutilized input tax credit under sub-section (3).

3.1.3 Refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued.

3.1.4 Refund of tax wrongly collected and paid as per section 77 (refer Section 19 of IGST).

3.1.5 The tax and interest or any other amount paid by the applicant, if he had not passed on the incidence of such tax and interest to any other person.

3.1.6 The tax or interest borne by such other class of applicants as the Government may notify.

3.2 Where an order giving rise to a refund is the subject matter of an appeal or further proceedings or where any other proceedings under this Act is pending and the Commissioner is of the opinion that grant of such refund is likely to adversely affect the revenue in the said appeal or other proceedings on account of malfeasance or fraud committed, he may, after giving the taxable person an opportunity of being heard, withhold the refund till such time as he may determine.

3.3 If refund due is not credited to the applicant within 60 days, then interest not exceeding 6% from the date of expiry of 60 days to the date on which refund is received, as may be specified shall be payable. - Section 54 (12) & 55.

3.4 Where any claim of refund arises from an order passed by an adjudicating authority or Appellate Authority or Appellate Tribunal or court which has attained finality and the same is not refunded within sixty days from the date of receipt of application filed consequent to such order, interest at such rate not exceeding nine per cent as may be notified by the Government on the recommendations of the Council shall be payable from the date of expiry of 60 days from the date of receipt of application to the date on which such refund is received. (Section 56).

3.5 No refund will be granted if the amount is less than One Thousand rupees - Section 54 (14).

3.6 If refund due arising from an order passed by an adjudicating/Appellate Authority which has attained finality is not received within 60 days of application filed consequent to such order, then interest not exceeding 9%, as may be specified shall be payable.

3.7 The order of refund shall be passed within 60 days of receipt of application complete in all aspects. Else the Officer will issue a notice for deficiencies & give opportunity of being heard.

3.8 The applicant shall debit the electronic credit ledger by an amount equal to the refund so claimed where the application relates to refund of input tax credit – Rule 89(3).

  1. Refund of input tax credit, in case of Zero-Rated Supply without payment of tax under bond or letter of undertaking, shall be granted as per following Formula–Rule 89(4):
Turnover of zero rated Supply of Goods + Services  
____________________________________________  x Net ITC
Adjusted Total Turnover  (i.e., excluding exempt supplies)

Where -

  • "Refund amount"means the maximum refund that is admissible.
  • "Net ITC"means input tax credit availed on inputs and input services during the relevant period, other than the input tax credit availed for which refund is claimed under sub-rules [(4A) (Notified Deemed Exports)] or [(4B) (Supplier levying 0.1% IGST or 0.05% CGST and 0.05% SGST)] or both.
  • "Turnover of zero-rated supply of goods" means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking, other than the turnover of supplies in respect of which refund is claimed under sub-rules (4A) (Notified Deemed Exports)] or [(4B) (Supplier levying 0.1% IGST or 0.05% CGST and 0.05% SGST)] or both
  • "Turnover of zero-rated supply of services" means the value of zero-rated supply of services made without payment of tax under bond or letter of undertaking, calculated in the following manner, namely:
Zero-rated supply of services = Total of payments received during the relevant period for zero rated supply of service + Zero-rated services where supply has been completed for which payment had been received in advance in any period prior to the relevant period - Advances received for zero-rated supply of services for which the supply has not been completed during the relevant period
  • "Adjusted Total turnover" means
  • The aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes Central tax, State tax, Union territory tax, Integrated tax and cess
  • Less the value of exempt supplies other than zero-rated supplies during the relevant period and
  • Less the turnover of supplies in respect of which refund is claimed under sub-rules (4A) (Notified Deemed Exports)] or [(4B) (Supplier levying 0.1% IGST or 0.05% CGST and 0.05% SGST)] or both during the relevant period;
  • “Relevant period”means the period for which the claim has been filed.
  1. Refund amount in case of Inverted Duty Structure: [Sec 54(3) & Rule 89(5)]
  • Maximum refund of input tax credit shall be granted as per the following Formula:
Turnover of inverted rated supply of Goods and Services / Adjusted Total Turnover (as calculated in point no. 4 above) 
 x   Net ITC

Less:
Tax payable on such inverted rated supply of goods

Where,–

  • "Net ITC" means input tax credit availed on inputs and input services during the relevant period other than input tax credit availed for which refund is claimed under sub-rules (4A)(Notified Deemed Exports)] or [(4B) (Supplier levying 0.1% IGST or 0.05% CGST and 0.05% SGST)] or both.
  • "Adjusted Total turnover"means
  • The aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes Central tax, State tax, Union territory tax, Integrated tax and cess
  • Less the value of exempt supplies other than zero-rated supplies during the relevant period and
  • Less the turnover of supplies in respect of which refund is claimed under sub-rules [(4A) (Notified Deemed Exports)] or [(4B) (Supplier levying 0.1% IGST or 0.05% CGST and 0.05% SGST)] or both during the relevant period.
  1. Acknowledgment of Refund application (Rule 90)

6.1 Acknowledgement

Application of refund relating to Form for acknowledgment Date considered for filing of refund claim Time period of 60 days for Section 54(7)
Electronic Cash Ledger GST-RFD-02 On the day the application is filed electronically From date of filing of claim mentioned in Form GST-RFD-02
Other than claim from Electronic Cash Ledger GST-RFD-02 Proper Officer will, within 15 days, scrutinize the application and then only application will be generated electronically From date of filing of claim mentioned in Form GST-RFD-02

6.2 Proper Officer shall communicate deficiencies in application of refund, if any, in Form GST-RFD-03. A fresh application of refund shall be filed after rectification of such deficiencies.

  1. Grant of Provisional Refund [Section 54(6) & Rule 91)]

7.1 Provisional refund of 90% of the total amount claimed will be granted in case of any claim for refund on account of zero-rated supply made by registered persons, other than such category of persons as may be notified, excluding the amount of input tax credit provisionally accepted. The Officer shall thereafter make an order for final settlement of the refund claim after due verification of documents furnished by the applicant.

7.2 The person claiming refund has, during any period of five years immediately preceding the tax period to which the claim for refund relates, not been prosecuted for any offence under the Act or under an existing law where the amount of tax evaded exceeds two hundred and fifty lakh rupees.

7.3 Provisional order of refund shall be in Form GST-RFD-04 within a period not exceeding 7 days from the date of Acknowledgment of Refund application.

7.4 Payment advice will be issued in Form GST-RFD-05 and refund shall be electronically credited to any of the bank accounts mentioned in registration details and as specified in the application for refund.

  1. Order Sanctioning Refund (Rule 92)

8.1 After scrutinizing the books of account and arriving at due refund amount, the Proper Officer shall pass an Order in Form GST-RFD-06. He shall also mention the amount refunded to the applicant provisionally as also the amount adjusted, if any, against any outstanding demand under the Act or under any existing law.

8.2 If the whole amount of refund is adjusted against any outstanding demand, an order of such adjustment shall be issued in Part A of Form GST-RFD-07.

8.3 If any amount has to be withheld in case where any of the returns is pending to be filed, an order shall be issued in Part B of Form GST-RFD-07 along with reasons for withholding the refund.

8.4 Proper Officer shall issue a notice in Form GST-RFD-08 intimating that whole or part of amount of refund is not payable to the applicant and such applicant is required to furnish a reply in Form GST-RFD-09 within 15 days of receipt of such notice and then such Officer shall grant refund in Form GST-RFD-06 allowing / disallowing the amount of refund in whole or in part.

8.5 Where the Proper Officer is satisfied that amount refundable under sub-rule (1) or sub-rule (2) is payable to the application under sub-section (8) of section 54, he shall make an order in Form GST RFD-06 and issue a payment advice in Form GST RFD-05 for the amount of refund and the same shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application.

8.6 If the Proper Officer is satisfied that amount is not payable to applicant, he shall make an order in Form GST-RFD-06 and issue an advice in Form GST-RFD-05 for the amount of refund to be credited to Consumer Welfare Fund.

  1. Credit of amount of rejected refund claim (Rule 93)

9.1 Where deficiencies are communicated to the applicant or where the claim is rejected, the whole or part amount of refund amount so communicated or rejected shall be recredited to electronic credit ledger by order in Form GST-PMT-03.

  1. Order sanctioning interest on delayed refunds (Rule 94)

10.1 Proper Officer shall make an order along with a payment advice in Form GST-RFD-05 specifying the amount delayed, period of delay and amount of interest payable and such amount along will be credited electronically to bank account of the applicant.

  1. Refund of tax to certain persons (Rule 95)

11.1 Specialized Agency of UNO, or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries or any other person or class of persons, as notified shall apply for refund in Form GST-RFD-10 once in every quarter along with statement of inward supplies in Form GSTR-11. Acknowledgment of receipt of application shall be in Form GST-RFD-2

11.2 Refund of tax paid by the applicant shall be available if

  • The inward supplies were received from a registered person against a tax invoice;
  • Name and GSTIN or UIN of the applicant is mentioned on the tax invoice; and
  • Such other restrictions or conditions as may be specified in the notification are satisfied
  • Provisions of Rule 92 of order sanctioning refund shall, mutatis mutandis, apply for sanction and payment of refund under this rule;
  • Where an express provision in a treaty or other international agreement, to which the President or the Government of India is a party, is inconsistent with the provisions of this Chapter, such treaty or international agreement shall prevail.
  1. Refund of IGST paid on goods or services exported out of India (Rule 96)

12.1 Application for refund of IGST paid on the goods exported out of India shall be by filing shipping bills by an exporter of goods. Such application shall be deemed to have been filed only when —

12.1.1 The person in charge of the conveyance carrying the export goods duly files an export manifest or an export report covering the number and the date of shipping bills or bills of export; and

12.1.2 The applicant has furnished a valid return in Form GSTR-3 or Form GSTR-3B;

12.2 The details of the relevant export invoices in respect of export of goods contained in Form GSTR-1 shall be transmitted electronically by the common portal to the system designated by the Customs and the said system shall electronically transmit to the common portal, a confirmation that the goods covered by the said invoices have been exported out of India.

12.3 Where the date for furnishing the details of outward supplies in Form GSTR-1 for a tax period has been extended, the supplier shall furnish the information relating to exports as specified in Table 6A of Form GSTR-1 after the return in Form GSTR-3B has been furnished and the same shall be transmitted electronically by the common portal to the system designated by the Customs. Provided that, such information in Table 6A furnished shall be auto-drafted in Form GSTR-1 for the said tax period.

12.4 Upon the receipt of the information regarding the 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 or the proper officer of Customs, as the case may be, shall process the claim of refund in respect of export of goods and an amount equal to the IGST paid in respect of each shipping bill or bill of export shall be electronically credited to the bank account of the applicant mentioned in his registration particulars and as intimated to the Customs authorities.

12.5 The claim for refund shall be withheld where-

12.5.1 A request has been received from the jurisdictional Commissioner of Central tax, State tax or Union territory tax to withhold the payment of refund due to the person claiming refund in accordance with the provisions of sub-section (10 - non filing of return, any outstanding dues) or sub-section (11 – order giving rise to refund has adverse effect on revenue) of section 54; or

12.5.2 The proper officer of Customs determines that the goods were exported in violation of the provisions of the Customs Act, 1962.

12.6 Where refund is withheld in accordance with the provisions as mentioned in clause (a) of sub-rule (4), the proper officer of integrated tax at the Customs station shall intimate the applicant and the jurisdictional Commissioner of central tax, State tax or Union territory tax, as the case may be, and a copy of such intimation shall be transmitted to the common portal.

12.7 Upon transmission of such intimation, the proper officer of central tax or State tax or Union territory tax, as the case may be, shall pass an order in Part B of Form GST RFD-07.

12.8 Where the applicant becomes entitled to refund of the amount withheld under clause (a) of sub-rule (4), the concerned jurisdictional officer of central tax, State tax or Union territory tax, as the case may be, shall proceed to refund the amount after passing an order in Form GST RFD-06.

12.9 The Central Government may pay refund of the integrated tax to the Government of Bhutan on the exports to Bhutan for such class of goods as may be notified in this behalf and where such refund is paid to the Government of Bhutan, the exporter shall not be paid any refund of the integrated tax.

12.10 The application for refund of integrated tax paid on the services exported out of India shall be filed in Form GST RFD-01 and shall be dealt with in accordance with the provisions of rule 89

12.11 The persons claiming refund of integrated tax paid on exports of goods or services should not have received supplies on which the supplier has availed the benefit of the following notifications:

12.11.1 48/2017-Central Tax dated the 18th October, 2017

12.11.2 40/2017-Central Tax (Rate) 23rd October, 2017

12.11.3 41/2017-Integrated Tax (Rate) dated the 23rd October, 2017

12.11.4 78/2017-Customs dated the 13th October, 2017

12.11.5 79/2017-Customs dated the 13th October, 2017

  1. Refund of IGST paid on export of goods or services under bond or Letter of Undertaking. (Rule 96A):

13.1 Any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking in Form GST RFD-11 to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest specified under sub-section (1) of section 50 (18% p.a.). Such tax and interest shall be paid

13.1.1 Within fifteen days after the expiry of three months from the date of issue of the invoice for export, if the goods are not exported out of India; or

13.1.2 Within fifteen days after the expiry of one year from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange.

The periods mentioned above may be extended by the Commissioner.

13.2 The details of the export invoices contained in Form GSTR-1 furnished on the common portal shall be electronically transmitted to the system designated by Customs and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system.

13.3 Provided that where the date for furnishing the details of outward supplies in Form GSTR-1 for a tax period has been extended, the supplier shall furnish the information relating to exports as specified in Table 6A of Form GSTR-1 after the return in Form GSTR-3B has been furnished and the same shall be transmitted electronically by the common portal to the system designated by the Customs: Provided that, such information in Table 6A furnished shall be auto-drafted in Form GSTR-1 for the said tax period.

13.4 Where the goods are not exported within three months from the date of issue of invoice, and the registered person fails to pay the tax amount along with interest, the export, as allowed under bond or Letter of Undertaking shall be withdrawn forthwith and the said amount shall be recovered from the registered person in accordance with the provisions of Section 79 (Recovery of Tax).Such export as allowed under bond or Letter of Undertaking as withdrawn shall be restored immediately when the registered person pays the amount due.

13.5 The Board has specified the conditions and safeguards under which a Letter of Undertaking may be furnished in place of a bond.

Notification 37 / 2017 – Central Tax

13.5.1 All registered persons who intend to supply goods or services for export without payment of integrated tax shall be eligible to furnish a Letter of Undertaking in place of a bond except those who have been prosecuted for any offence under the Central Goods and Services Tax Act, 2017 or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws in force in a case where the amount of tax evaded exceeds two hundred and fifty lakh rupees.

13.5.2 The Letter of Undertaking shall be furnished on the letter head of the registered person, in duplicate, for a financial year in the annexure to Form GST RFD-11 and it shall be executed by the working partner, the Managing Director or the Company Secretary or the proprietor or by a person duly authorized by such working partner or Board of Directors of such company or proprietor;

13.5.3 Where the registered person fails to pay the tax due along with interest, as specified under sub-rule (1) of Rule 96A of Central Goods and Services Tax Rules, 2017, within the period mentioned in clause (a) or clause (b) of the said sub-rule, the facility of export without payment of integrated tax will be deemed to have been withdrawn and if the amount mentioned in the said sub-rule is paid, the facility of export without payment of integrated tax shall be restored.

13.6 The provisions of sub-rule 1 shall apply, mutatis mutandis, in respect of zero-rated supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit without payment of integrated tax.

  1. Consumer Welfare Fund (Rule 97)

14.1 Duty/ Central tax/ Integrated tax/ Union territory Tax/ Cess and income from investments along with other monies specified in

14.1.1 Sub-section (2) of section 12C of the Central Excise Act, 1944, (Consumer Welfare Fund).

14.1.2 Section 57 of the Central Goods and Services Tax Act, 2017 (Consumer Welfare Fund) read with section 20 of the Integrated Goods and Services Tax Act, 2017 (Application of provisions of CGST Act, 2017).

14.1.3 Section 21 of the Union Territory Goods and Services Tax Act, 2017 (Application of provisions of CGST Act, 2017), and

14.1.4 Section 12 of the Goods and Services Tax (Compensation to States) Act, 2017 (Power to make rules).

shall be credited to the Consumer Welfare Fund.

14.2 An amount equivalent to fifty per cent of the refund amount of integrated tax or of cess determined under sub-section (5) of Section 54 of the Central Goods and Services Tax Act, 2017, read with section 20 of the Integrated Goods and Services Tax Act, 2017 and read with section 11 of Goods and Services Tax (Compensation to States) Act, 2017, shall be deposited in the Fund.

14.3 Any amount, having been credited to the Fund, ordered or directed as payable to any claimant by orders of the proper officer, appellate authority or Appellate Tribunal or court, shall be paid from the Fund.

14.4 Accounts of the Fund shall be subject to audit by the Comptroller and Auditor General of India.

14.5 The [Central/State] Government shall, by an order, constitute a Standing Committee with a Chairman, a Vice-Chairman, a Member Secretary and such other members as it may deem fit and the Committee shall make recommendations for proper utilisation of the money credited to the Consumer Welfare Fund for welfare of the consumers.

14.6 Meeting of the Committee:

14.6.1 The Committee shall meet as and when necessary, generally 4 times in a year.

14.6.2 Meeting shall be held at such time and place as the Chairman, or in his absence, Vice Chairman, of the Committee may deem fit.

14.6.3 The meeting shall be presided over by the Chairman, or in his absence, by the Vice-Chairman

14.6.4 The meeting shall be called after giving at least ten days‘ notice in writing to every member

14.6.5 The notice of the meeting shall specify the place, date and hour of the meeting and shall contain statement of business to be transacted thereat.

14.6.6 No proceeding of the Committee shall be valid, unless it is presided over by the Chairman or Vice-Chairman and attended by a minimum of three other members.

14.7 The Committee shall have powers –

14.7.1 To require any applicant to get registered with any authority as the Central Government may specify.

14.7.2 To require any applicant to produce before it, or before a duly authorized Officer of the Government such books, accounts, documents, instruments, or commodities in custody and control of the applicant, as may be necessary for proper evaluation of the application.

14.7.3 To require any applicant to allow entry and inspection of any premises, from which activities claimed to be for the welfare of consumers are stated to be carried on, to a duly authorized officer of the Central Government or, as the case may be, State Government.

14.7.4 To get the accounts of the applicants audited, for ensuring proper utilization of the grant.

14.7.5 To require any applicant, in case of any default, or suppression of material information on his part, to refund in lump-sum along with accrued interest, the sanctioned grant to the Committee, and to be subject to prosecution under the Act.

14.7.6 To recover any sum due from any applicant in accordance with the provisions of the Act.

14.7.7 To require any applicant, or class of applicants to submit a periodical report, indicating proper utilization of the grant.

14.7.8 To reject an application placed before it on account of factual inconsistency, or inaccuracy in material particulars.

14.7.9 To recommend minimum financial assistance, by way of grant to an applicant, having regard to his financial status, and importance and utility of nature of activity under pursuit, after ensuring that the financial assistance provided shall not be misutilised.

14.7.10 To identify beneficial and safe sectors, where investments out of Consumer Welfare Fund may be made and make recommendations, accordingly.

14.7.11 To relax the conditions required for the period of engagement in consumer welfare activities of an applicant.

14.7.12 To make guidelines for the management and administration of Fund.

14.8 The Committee shall make recommendations -

14.8.1 For making available grants to any applicant

14.8.2 For investment of the money available in the Fund

14.8.3 For making available grants (on selective basis) for reimbursing legal expenses incurred by a complainant, or class of complainants in a consumer dispute, after its final adjudication

14.8.4 For making available grants for any other purpose recommended by the Central Consumer Protection Council (as may be considered appropriate by the Committee)

14.8.5 For making available up to 50% of the funds credited to the Fund each year, for publicity/ consumer awareness on GST, provided the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than twenty five crore rupees per annum.

Explanation for the purposes of Rule 97

  1. 'Act' means the Central Goods and Services Tax Act, 2017 (12 of 2017), or the Central Excise Act, 1944 (1 of 1944) as the case may be.
  2. 'applicant'means,
  1. The Central Government or State Government.
  2. Regulatory authorities or autonomous bodies constituted under an Act of Parliament or the Legislature of a State or Union Territory.
  3. Any agency or organization engaged in consumer welfare activities for a minimum period of three years, registered under the Companies Act, 2013 (18 of 2013) or under any other law for the time being in force.
  4. Village or mandal or samiti or samiti level co-operatives of consumers especially Women, Scheduled Castes and Scheduled Tribes.
  5. An educational or research institution incorporated by an Act of Parliament or the Legislature of a State or Union Territory in India or other educational institutions established by an Act of Parliament or declared to be deemed as a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956) and which has consumers studies as part of its curriculum for a minimum period of three years; and
  6. A complainant as defined under clause (b) of sub-section (1) of section 2 of the Consumer Protection Act, 1986 (68 of 1986), who applies for reimbursement of legal expenses incurred by him in a case instituted by him in a consumer dispute redressal agency.
  1. application'means an application in the form as specified by the Standing Committee from time to time;
  2. 'Central Consumer Protection Council'means the Central Consumer Protection Council, established under sub-section (1) of section 4 of the Consumer Protection Act, 1986 (68 of 1986), for promotion and protection of rights of consumers.
  3. 'Committee'means the Committee constituted under sub-rule (4);
  4. 'consumer'has the same meaning as assigned to it in clause (d) of sub-section (1) of section 2 of the Consumer Protection Act, 1986 (68 of 1986), and includes consumer of goods on which central tax has been paid
  5. ‘duty’means the duty paid under the Central Excise Act, 1944 (1 of 1944) or the Customs Act, 1962 (52 of 1962).
  6. ‘fund’means the Consumer Welfare Fund established by the Central Government under sub-section (1) of section 12C of the Central Excise Act, 1944 (1 of 1944) and section 57 of the Central Goods and Services Tax Act, 2017 (12 of 2017)
  7. 'proper officer'means the officer having the power under the Act to make an order that the whole or any part of the central tax is refundable.
  1. Manual filing and processing – (Rule 97A)

15.1 Notwithstanding anything contained in this Chapter, any reference to electronic filing of an application, intimation, reply, declaration, statement or electronic issuance of a notice, order or certificate on the common portal shall, in respect of that process or procedure, include manual filing of the said application, intimation, reply, declaration, statement or issuance of the said notice, order or certificate in such Forms as appended to these rules.

  1. Relevant Circulars
Circular No. Dated Heading
17/17/2017-GST 15th November, 2017 Manual filing and processing of refund claims in respect of zero-rated supplies
18/18/2017-GST 16th November, 2017 Clarification on refund of unutilized input tax credit of GST paid on inputs in respect of exporters of fabrics
24/24/2017-GST 21st December, 2017 Manual filing and processing of refund claims on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger
36/10/2018-GST 13th March, 2018 Processing of refund application for UIN entities
37/10/2018-GST 15th March, 2018 Clarifications on exports related refund issues
43/17/2018-GST 13th April, 2018 Clarifying the issues arising in refund to UIN
45/17/2018-GST 30th May, 2018 Clarification on refund related issues

Notes

 

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