FULLY ELECTRONIC REFUND PROCESS

FORM GST RFD-01 AND SINGLE DISBURSEMENT OFFICER

CIRCULAR NO.125/44/2019-GST

Points to be Noted:-

1. Submission and Processing of Refund application will be

Electronically fully w.e.f 26.09.2019
2. Hence circulars laying guidelines for manual submission and
processing need to be suitably modified to comply with electronic
process.
3. All previous circulars will be superseded for the purpose of refund
application filed after 26.09.2019
4. Refund Application to be processed online
a. Refund of ITC in case of Export /SEZ unit/SEZ Devloper without
payment of Taxes
b. Refund of Taxes in case of Export of Services with payment
c. Refund of Taxes in case of Supplies to SEZ unit/Developer with
payment
d. Refund of ITC due to Inverted duty Structure
e. Refund of Taxes on deemed export supplies to Recipient/Supplier
f. Refund of Excess balance in Electronic Cash Ledger
g. Refund of Excess payment of Tax
h. Refund of Tax Paid on Intra State supplies which was Inter State
Supplies and Vice versa
i. Refund on account of assessment/provisional
assessment/appeal/any other order
j. Refund on account of “Any Other” Ground or reason.
5. MODALITIES TO BE FOLLOWED
a. File all returns GSTR 1 and GSTR 3B/GSTR -4/5/6
b. File Form GST RFD-01
(Including Comprehensive list of documents to be attached – Discussed later in detail)
c. ARN Number will be generated thereafter
(Application deemed to have been filed under sub rule (2) of rule 90 of CGST Rules for further
processing)
d. Issue of Acknowledgment in GST RFD-02 or Deficiency memo in
GST RFD-03 within 15 days
(After deficiency Memo issued, Cash/ITC already debited will be return back automatically and fresh
application needs to be filed and further deficiency memo shall be issued only if substantive deficiency
is found)
e. Application issued to Wrong Jurisdictional Officer will be
electronically transmitted to correct jurisdiction within 3 days
without issuing Deficiency Memo.
f. Refund of ITC shall be made along with undertaking as ITC is
provisional as GSTR 2 is not yet implemented
g. As refund application filed to correct deficiency will be fresh
one hence limit of 2 years from relevant date shall be
applicable to it.
h. Provisional refund of 90% of refundable refund shall be issued
in case proper officer has reason to have irregularities in
refund application as per rule 91 and 92.
i. IF provisional refund is greater than Actual sanctioned refund
then SCN will be issued to recover the excess amount. And after
that excess amount shall be added to liability ledger through
DRC07
j. Rejected amount of refund shall be re-credited through Form
GST PMT-03.
k. No Adjustment or withholding of refund under section 54(10)
or 54(11) from provisional refund instead Proper officer in
 such case sanction refund on final basis at earliest and not on
provisional basis and recover from such sanctioned amount.
l. Advice to issue the refund order in 45 days. (60 days as per
law)
m.Verification of ITC details by Proper Officer for refund
submitted
 Copy of GSTR 2A of relevant periods to be uploaded
 Self Certified copies of Invoices not visible in GSTR 2A shall
be uploaded in Format Specified.
 Proper officer shall not insist for copies of Invoices
appearing in GSTR 2A.
 ITC Availment shall be subject to Rule 36(4) restriction.

n. Calculation of Refundable ITC by Common Portal

Refundable ITC Shall be Least of following

 Maximum Refund Amount as per Rule 89(4) or 89(5)
 Balance in Credit Ledger at the end of tax period covered by
refund
 Balance of Credit ledger at the time of Filing of Refund
application

Such Refundable ITC will be debited from Credit Ledger in following

order
 Integrated Tax,
 Central Tax/State Tax Equally
 Differential Amount if any shall be debited from Central
Tax/State Tax ledger in which balance is available.

Order of Debit described above is not available in Common Portal

therefore taxpayer is Advised to follow above order at their own.
However if order of debit is not adhered no adverse view will be
taken.

LUT NOT FILED BEFORE MAKING ZERO RATED SUPPLIES

o. In this regard, it is emphasized that the substantive benefits of zero
rating may not be denied where it has been established that exports
interms of the relevant provisions have been made. The delay in
furnishing of LUT in such cases may be condoned and the facility for
export under LUT may be allowed on ex post facto basis taking into
account the facts and circumstances of each case.

VALUE DECLARED IN TAX INVOICE DIFFERS FROM VALUE IN

SHIPPING BILL
p. The lower of the two values should be taken into account while
calculating the eligible amount of refund

CLARIFICATION FOR EXPORT PROCEEDS REALIZATION IN CASE OF

GOODS
q. It is therefore clarified that insistence on proof of realization of export
proceeds for processing of refund claims related to export of goods has
not been envisaged in the law and should not be insisted upon.

Refund of transitional credit

r. NOT ADMISSIBLE (As it can not be said to be availed during
relevant period)