GST Refund

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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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gst nil refund
Blog
CA. Sachin Jindal

Have you mistakenly filled NIL GST refund|Option to Re-file is available now

Being Goods and Service Tax (“GST”) is new so, possibility of errors in filing of refund application is high. Have you erroneously filed NIL GST refund application under GST though you had a genuine refund claim of such period? Till now, option to re-file refund application is not available. Understanding genuine hardship to taxpayers, CBIC has issued a Circular No. 110/29/2019 – GST dated 3rd October, 2019, wherein it provided an option to re-file refund application if taxpayer has inadvertently filed NIL GST refund application. 1. Erroneous NIL GST refund application Whenever a registered person proceeds to file GST RFD-01/01A

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Impact of GST on Post sales Discount
Blog
CA. Kapil Mittal

IGST Refund to exported| Mismatch between GSTR-1 & GSTR-3B

“Export” is considered as a major contributor to any economy and therefore, government makes all possible efforts to increase it. For this purpose, exports are kept free from any kind of taxes including Goods and Service Tax. To substantiate such principle, export of goods or services or both has been classified as “Zero Rated Supply” under Integrated Goods and Service Tax, 2017 (“IGST Act”) and accordingly, such supply is not liable to Goods and Service Tax (“GST”). To claim benefit of such “zero rated supply”, GST law provides for either of the following options: Exporter may export goods without payment

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GST on goods sent outside India under sale or approval basis
Blog
CA. Sachin Jindal

GST on goods sent outside India under sale or approval basis

CBIC clarifies on taxability of goods sent/ taken out of India for exhibition or on consignment basis for export promotion Indian exporters engage in several business promotion activities outside India in order to expand their outreach globally and increase volumes. Certain activities may require physically showcasing the goods to the potential buyers in order to strike deals and finalise sale orders. In this connection, the goods would have to be taken outside India for demonstration to the potential buyers either directly in exhibitions, trade fairs, business congregations, industry meets etc. or indirectly through distributors/ agents on consignment basis. The goods

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GST Refund and Drawback
Blog
CA. Kapil Mittal

Can IGST Refund be seek, where Higher drawback has been claimed on Exports

Gujarat High Court rules that claim of higher rate of duty drawback is not a valid reason for rejection of IGST refund on exports Unreasonable delays in grant of refund of Integrated Goods and Services Tax (‘IGST’) has impacted several exporters in the recent past.  There have been several instances where taxpayers had to resort to litigation in the High Court in order to obtain specific relief and direction for grant of IGST refunds. Duty drawback is one of the export incentives provided by the Government of India under the Foreign Trade Policy.  As per the policy decision taken by

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Verification of IGST Refund
Exports of Goods and Services
CA. Sachin Jindal

CBIC introduces additional safeguards for verification of IGST refunds on exports with payment of tax

In order to make India’s exports competitive in the global markets and in line with the principles of international trade and commerce of zero-rating exports, the GST and customs laws have provisions on place for grant of refunds in case of input taxes paid on exported goods.  On similar lines, the GST law also has an alternative route to benefit the exporters – ‘export of goods with payment of taxes’, wherein the taxes paid on sale would be refunded. In line with this initiative, the Central Board of Indirect Taxes and Customs (‘CBIC’) has brought in several exporter friendly and

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manual GST refund application
Blog
CA. Kapil Mittal

Once the High court order issues, GST officer bound to accept manual GST refund application

In the recent judgement, Delhi High court made it clear that once order of the High Court was issued, the GST officer was bound by the same to accept manual GST refund application from the taxpayer. Delay in processing of refund claims and grant on provisional refund within the statutory timelines have resulted in severe working capital and compliance issues for taxpayers.  Often, taxpayers have approached courts to obtain directions from the courts in order to expedite the refunds.  Recently, the Delhi High Court in the case of GSI Products and AC Impex vs. Union of India and PC Universal

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recredit of rejected itc refund
Blog
CA. Kapil Mittal

Input tax credit of rejected refund amount can be taken manually by taxpayer if not recredit by tax authorities

Where rejection of refund claim by the GST authorities, the rejected ITC should be recredit to Input tax credit ledger of taxpayer for utilisation. However Since there is no mechanism to do so, this resulted in certain difficulties to taxpayers in cases where the existing Input Tax Credit (‘ITC’) was not recredited by tax authorities for utilisation.  In this case, the Gujrat High Court (‘HC’) has provided valuable guidance on the subject in the case of M/s. Garden Silk Mills Ltd. Vs. Union of India (R/Spl Civil Appl No. 7397 Of 2018) vide order dated 11 April 2019. It has

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IGST Refund from Custom - Invoice mismatch Cases
Blog
CA. Kapil Mittal

IGST Refund from Custom | Invoice mismatch Cases

Ministry of Finance via circular no. 05/2018-Customs, has clarified certain error done by exporters while filling there returns under GST consequently non – release of there IGST refund from custom where exports has been made on payment of IGST. Such cases are marked as SB005 error code by custom. As per said circular, 40000 crores refunds of refunds has been sanction by CBEC.  Information is being made available to exporters on a real-time basis with regard to the errors status on ICEGATE website for registered users. Details of refund sanctioned is being sent through SMS on registered mobile phones. 1.

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