Circular No. 17/17/2017 – GST
F. No. 349/169/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
GST Policy Wing
New Delhi, Dated the 15th November, 2017
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners
/ Commissioners of Central Tax (All)
The Principal Director Generals / Director Generals (All)
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 hasbeen decided by the competent authority, on the recommendations of the Council, thatthe applications/documents/forms pertaining to refund claims on account of zero-ratedsupplies shall be filed and processed manually till further orders. Therefore, inexercise of the powers conferred by sub-section (1) of section 168 of the CentraGoods and Services Tax Act, 2017 (hereinafter referred to as ‘the CGST Act’) and forthe 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 TaxAct, 2017 (hereinafter referred to as ‘the IGST Act’) read with clause (i) of subsection (3) and sub-section (6) of section 54 of the CGST Act and rules 89 to 96A ofthe Central Goods and Services Tax Rules, 2017 (hereinafter referred to as ‘the CGSTRules’), a registered person may make zero-rated supplies of goods or services or bothon payment of integrated tax and claim refund of the tax so paid, or make zero-ratedsupplies of goods or services or both under bond or Letter of Undertaking withoutpayment of integrated tax and claim refund of unutilized input tax credit in relation tosuch zero rated supplies.
2.2 The refund of integrated tax paid on goods exported out of India is governed byrule 96 of the CGST Rules. The shipping bill filed by an exporter shall be deemed tobe an application for refund in such cases. The application shall be deemed to havebeen filed only when export manifest or export report is filed and the applicant hasfurnished a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be.receipt of the information regarding furnishing of a valid return in FORMGSTR-3 or FORM GSTR-3B, as the case may be, from the common portal, thesystem designated by the Customs shall process the claim for refund and an amountequal to the integrated tax paid in respect of such export shall be electronicallycredited to the bank account of the applicant. Any order regarding withholding of suchrefund or its further sanction respectively in PART-B of FORM GST RFD-07 orFORM GST RFD-06 shall be done manually till the refund module is operational onthe common portal.
2.3 The application for refund of integrated tax paid on zero-rated supply of goodsto a Special Economic Zone developer or a Special Economic Zone unit or in case ofzero-rated supply of services (that is, except the cases covered in paragraph 2.2 aboveand para 2.4 below) is required to be filed in FORM GST RFD-01A (as notified inthe CGST Rules vide notification No. 55/2017 – Central Tax dated 15.11.2017) by thesupplier on the common portal and a print out of the said form shall be submittedbefore the jurisdictional proper officer along with all necessary documentary evidences as applicable (as per the details in statement 2 or 4 of Annexure to FORMGST RFD – 01), within the time stipulated for filing of such refund under the CGSTAct.
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 RFD01A on the common portal and the amount claimed as refund shall get debited inaccordance with sub-rule (3) of rule 86 of the CGST Rules from the amount in theelectronic credit ledger to the extent of the claim. The common portal shall generate aproof of debit (ARN- Acknowledgement Receipt Number) which would be mentionedin the FORM GST RFD-01A submitted manually, along with the print out of FORMGST RFD-01A to the jurisdictional proper officer, and with all necessarydocumentary evidences as applicable (as per details in statement 3 or 5 of Annexure toFORM GST RFD-01), within the time stipulated for filing of such refund under theCGST Act.
2.5 The registered person needs to file the refund claim with the jurisdictional taxauthority to which the taxpayer has been assigned as per the administrative orderissued in this regard by the Chief Commissioner of Central Tax and the Commissionerof State Tax. In case such an order has not been issued in the State, the registeredperson is at liberty to apply for refund before the Central Tax Authority or State TaxAuthority till the administrative mechanism for assigning of taxpayers to respectiveauthority is implemented. However, in the latter case, an undertaking is required to besubmitted stating that the claim for sanction of refund has been made to only one ofthe authorities. It is reiterated that the Central Tax officers shall facilitate the
processing of the refund claims of all registered persons whether or not such personwas registered with the Central 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 tobe maintained for this purpose with the following details –