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 on GST portal under a catagory for a particular period, a message box pops up asking whether person wants to file “NIL” refund application.
- Several registered persons have inadvertently filed refund application in GST RFD-01/01A for the period during which they were genuinely entitled to refund.
- Once application filed, GST portal does not provide option to re-file such application.
- Accordingly, various representation were filed with CBIC requesting to provide an option of re-filling of GST RFD-01/01A.
2. Cases where GST Refund application can be refilled
CBIC is clarified vide circular that if a registered person has filed “NIL” refund application for a period under a particular category then he may re-file for same period under same catagory only if he satisfies following 2 conditions:
- Condition-1: Such person has already filed a NIL refund application for such period.
- Condition-2*: Registered person has not filed refund application under such category during any subsequent period.
* Condition-2 shall apply for refund claims falling under following categories:
- Refund of unutilized input tax credit (ITC) in case of exports without payment of tax;
- Refund of unutilized ITC in case of supplies made to SEZ Unit/SEZ Developer without payment of tax;
- Refund of unutilized ITC on account of accumulation due to inverted tax structure;
Example:
| Cases on which Condition-2 is not applicable | Cases on which Condition-2 is applicable | |
| Period for Which NIL Refund claim has been filed | April, 2019 | April, 2019 |
| Refund application for subsequent period | May, 2019-Filed | May, 2019-Filed |
| Whether eligible to re-file refund application for April, 2019? | YES | NO |
| Cases on which Condition-2 is not applicable | Cases on which Condition-2 is applicable | |
| Period for Which NIL Refund claim has been filed | April, 2019 | April, 2019 |
| Refund application for subsequent period | May, 2019- Not Filed | May, 2019-Not Filed |
| Whether eligible to re-file refund application for April, 2019? | YES | YES |
3.Procedure of refiling refund application
- Refund application shall be re-filed under “OTHER CATAGORY” instead of same catagory under which “NIL” GST RFD-01/01A was filed earlier.
- GST RFD-01/01A should pertain to same period for which NIL refund application was filed.
- Application shall be accompanied with all supporting documents which is otherwise required to claim refund.
4. Procedure of granting refund
- On receipt of refund application, proper officer shall calculate admissible amount as per applicable provisions.
- Upon scrutiny of application for completeness and eligibility, if proper officer is satisfied that the whole or any part of the amount claimed is payable as refund then he shall request the taxpayer in writing to debit the such amount from his electronic credit ledger through FORM GST DRC-03.
- Once the proof of such debit is received by the proper officer, he shall issue the refund order in FORM GST RFD-06 and the payment order in FORM GST RFD-05.
Learn more about How to get Refund under GST
