F. No. 349/58/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
GST Policy Wing
New Delhi, dated the 21st December, 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 on account of inverted duty
structure, deemed exports and excess balance in electronic cash ledger- Reg.
Due to the non-availability of the refund module on the common portal, it has beendecided by the competent authority, on the recommendations of the Council, that theapplications/documents/forms pertaining to refund claims on account of inverted dutystructure (including supplies in terms of notification Nos. 40/2017-Central Tax (Rate)and41/2017-Integrated Tax (Rate) both dated 23.10.2017), deemed exports and excess balance inelectronic cash ledger shall be filed and processed manually till further orders. In this regard,the Board, in exercise of its powers conferred under section 168 (1) of the Central Goods andServices Tax Act, 2017 hereby clarifies that the provisions of Circular No. 17/17/2017-GSTdated 15.11.2017 shall also be applicable to the following types of refund inasmuch as theypertain to the method of filing of the refund claim and its processing which is consistent withthe relevant provisions of the CGST Act, 2017 (hereafter referred to as ‘the CGST Act’) andthe CGST Rules, 2017 (hereafter referred to as ‘the CGST Rules’):-
(i) refund of unutilized input tax credit where the credit has accumulatedon accountof rate of tax on inputs being higher than the rate of tax on output supplies (other thannil rated or fully exempt supplies) of goods or services or both except those supplieswhich are notified by the Government on the recommendations of the Council(section 54(3) of the CGST Act refers);
(ii) refund of tax on the supply of goods regarded as deemed exports; and
(iii) refund of balance in the electronic cash ledger.
2.0 It is clarified that refund claims in respect of zero-rated supplies and on account ofinverted duty structure, deemed exports and excess balance in electronic cash ledger shall befiled for a tax period on a monthly basis in FORM GST RFD-01A.However, in caseregistered persons having aggregate turnover of up to Rs1.5 crorein the preceding financialyear or the current financial year are opting to file FORM GSTR-1 quarterly (notificationNo. 57/2017-Central Tax dated 15.11.2017 refers), such persons shall apply for refund on aquarterly basis. Further, it is stated that the refund claim for a tax period may be filed only2after filing the details in FORM GSTR-1 for the said tax period. It is also to be ensured thata valid return in FORM GSTR-3B has been filed for the last tax period before the one inwhich the refund application is being filed. Since the date of furnishing of FORM GSTR 1from July, 2017 onwards has been extended while the dates of furnishing of FORM GSTR 2and FORM GSTR 3 for such period are yet to be notified, it has been decided by thecompetent authority to sanction refund of provisionally accepted input tax credit at thisjuncture. However, the registered persons applying for refund must give an undertaking to theeffect that the amount of refund sanctioned would be paid back to the Government withinterest in case it is found subsequently that the requirements of clause (c) of sub-section (2)of section 16 read with sub-section (2) of sections 42 of the CGST Act have not beencomplied with in respect of the amount refunded. This undertaking should be submittedmanually along with the refund claim till the same is available in FORM RFD-01Aon thecommon portal.
3.0 In case of refund claim arising due to inverted duty structure, the following statements- Statement 1 and Statement 1Aof FORM GST RFD-01A have to be filled:-