GST Refund

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Clubbing of GST refund claims across two financial years is allowed
Blog
CA. Sachin Jindal

Clubbing of GST refund claims across two financial years is allowed

The refund of ITC is a key constituent of Goods and Service Tax (“GST”), and it is a pre-requisite for the department to ensure the smooth operation of the same to avoid any unnecessary increase in the cost of goods/services. However, various issues keep on evolving with the use of the system. The government has issued several GST Circulars to curb these issues. Department has received various representations seeking clarification on some issues related to refund under GST.  We are really pleased to share this with you as our efforts have finally brought the sigh of relief for the taxpayers

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Provisional GST Refund
Blog
CA. Kapil Mittal

Provisional GST Refund | GST RFD-04

In case of GST Refund, whenever a situation arises where refund amount can’t be ascertained precisely, then, the proper officer shall sanction refund amount on provisional basis.  1. Provisional GST Refund Where the proper officer has reasons to believe that due to irregularities in refund application, whole or part of the refund claim may face rejection. Then in such a case, the proper officer shall disburse refund on the provisional basis to the extent of 90% of the refundable amount*. However, the final refund shall be granted in accordance with provisions of Rule 92 of CGST Rules. Order of provisional

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letter of undertaking
Blog
CA. Sachin Jindal

All about Letter of undertaking(LUT) under GST

1. What is Letter of undertaking (LUT) Letter of Undertaking or LUT is an undertaking filed by an exporter of goods or service which permits him to export goods or services without payment of IGST subject to the condition that he will complete the process of export of goods or services within the prescribed time limit..  According to the Notification No. 37/2017 – Central Tax, it’s mandatory to file LUT for exporting goods or services or both without paying the IGST.  In case, an exporter fails to submit LUT the person needs to pay IGST or has to provide an

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Electronic processing of GST Refund
Blog
CA. Sachin Jindal

Complete Electronic processing of GST Refund under GST

Digitalization has become a key agenda in the GST department; And the government is taking every step to increase the digitalization of every process and reducing human intervention including the GST refund procedure. To accomplish this objective, Refund under Good and Service Tax (“GST”) has been made completely electronic with effect from 26th September 2019 with no requirement of manual submission of any document with GST refund application.  Central Board of Indirect Taxes and Customs (“CBIC” or “Department”) described complete procedure of electronic filing of GST refund application vide circular No. 125/44/2019-GST dated 18th November 2019 and also covered many

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gst refund claim
Blog
CA. Sachin Jindal

GST Refund Claim for Any Period and for the one which spread through two financial years can be filled

Hon’ble Delhi High Court permitted GST refund claim to spread across two Financial years in case of exports In the matter of M/s Pitambra Books Private Limited vs Union of India Wide W.P. (C) No. 627/2020  On the 21st of January 2020, the Hon’ble Justice of Delhi High Court gave a remarkable verdict in the case of M/s Pitambra Books Private Limited where petitioner was in the manufacturing and export of books where the procurement of raw material and export was spread across the financial year.  Filing of GST refund claim across the financial year is restricted by Para 8

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Standard Operating Procedure
Blog
CA. Kapil Mittal

Standard Operating Procedure in case of alerts in IGST Refund

On 23rd January 2020, the Central Board of Indirect Taxes and Customs (CBIC) has published Circular No.131/1/2020-GST regarding the Standard Operating Procedure (SOP). This new procedure is for those exporters whose refund has been stuck due to alerts in IGST refund at custom. In June 2018, the CBIC has noticed instances of fraudulent ITC claims using ineligible documents and subsequent utilization of the credit for the purpose of payment of IGST exports. In addition, there were substantial variations between the FOB value declared in the Shipping Bill and the Taxable Value declared in the GST returns, with the intent of

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Fake ITC Claims
Blog
CA. Sachin Jindal

Fake ITC Claims: CGST Departments Has Started Blocking Fake Claims

The Office of Directorate General of GST Intelligence has released a new notification to take actions against fake ITC claims. The DGGI  issued the notification in the interest of Principal Chief Commissioners and Chief Commissioners, CGST, asking them to block Input Tax Credit under the 86(1)(a) of CGST Rules 2017. As the rule suggests, the Zonal Chief Commissioners can block or unblock Input Tax Credit availed against fake invoices. The Principal DG has released the notification to take action against the ITC claims issued without the proper receipt of Goods or services. However, the notification suggested some implementation to proceed

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Circular can not prevail over the statute, HC allows IGST refund where higher rate of drawback claimed
Blog
CA. Sachin Jindal

Circular can not prevail over the statute, HC allows IGST refund where higher rate of drawback claimed

Several goods exporters across the country could not avail their ITC refund for a period of July 17 to September 17. The reason being the claim of a higher rate of drawback, this has been a major concern for the whole exporter community. Already many have faced losses as the GST department rejected the refund claim relying on the 37/2018 circular. Several cases have been registered by exporters on the same. In one of such cases, the Madras High Court has given their verdict in favour of the exporter. In the case of M/S. PRECOT MERIDIAN LIMITED VERSUS THE COMMISSIONER

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Processing of GST refund, where refund application allocated to wrong tax authority
Blog
CA. Sachin Jindal

Processing of GST refund, where refund application wrongly allocated

CBIC clarifications that processing of GST refund should not be held up and processed by authority where the application has been wrongly allocated by the system. The Central Board of Indirect Taxes and Customs (‘CBIC’) vide Circular No. 104/23/2019-GST dated 28 June 2019 has clarified the authority who is required to process the GST refund applications of taxpayers in cases of incorrect mapping. The division of taxpayer base between the Centre and States to ensure a Single Interface under GST is critical to ensure the smooth and seamless flow of business operations.  1. Issues The GST refund applications filed by

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gst cicular no 111
Blog
CA. Kapil Mittal

GST Refund subsequent to favorable order in Appeal or any other Forum

Goods and Service Tax (“GST”) provides an option to file appeal against order of lower authorities. Therefore, if refund application of any taxpayer gets rejected then he may file appeal with next appellate authority. Rejection order is passed in form GST RFD-06. CBIC received various representations asking to clarify procedure of claiming refund finalised through Appeals or any other Forum. Accordingly, CBIC has clarified such issue vide Circular No. 111/30/2019-GST about manner of handling such issue in following manner: 1. Pre-requiste of filing appeal against GST RFD-06 As of now, appeals against rejection of refund claims are handled in offline

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