: CBIC clarifies GST refund related issues #FinanceIndia #StockMarketNEWS CBIC clarifies GST refund related issues New Delhi, Mar 22 (KNN) The Central Board of Indirect Taxes and Customs (CBIC) has

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CBIC clarifies GST refund related issues #FinanceIndia #StockMarketNEWS
CBIC clarifies GST refund related issues New Delhi, Mar 22 (KNN) The Central Board of Indirect Taxes and Customs (CBIC) has issued clarifications on Goods and Services Tax (GST) refund related issues.

Various representations have been received seeking clarification on some of the issues relating to GST refunds. The issues have been examined and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), has issued various clarification, CBIC said in a circular dated March 12, 2021.

The Board while issuing clarification in respect of refund claim by recipient of Deemed Export Supply said that Para 41 of Circular No. 125/44/2019 – GST dated 18/11/2019 has placed a condition that the recipient of deemed export supplies for obtaining the refund of tax paid on such supplies shall submit an undertaking that he has not availed ITC on invoices for which refund has been claimed. Thus, in terms of the above circular, the recipient of deemed export supplies cannot avail ITC on such supplies but when they proceed to file a refund on the portal, the system requires them to debit the amount so claimed from their electronic credit ledger.

“There is no restriction on the recipient of deemed export supplies in availing ITC of the tax paid on such supplies when the recipient files for a refund claim. The said restriction has been placed by the Circular No. 125/44/2019-GST dated 18. 11. 2019,” the CBIC clarified.

In order to ensure that there is no dual benefit to the claimant, the portal allows refund of only Input Tax Credit (ITC) to the recipients which is required to be debited by the claimant while filing an application for refund claim. Therefore, whenever the recipient of deemed export supplies files an application for refund, the portal requires a debit of the equivalent amount from the electronic credit ledger of the claimant.

The Board has also clarified that Para 26 of Circular No. 125/44/2019-GST dated 18th November 2019 gave a clarification in relation to cases where taxpayers had inadvertently entered the details of export of services or zero-rated supplies to a Special Economic Zone Unit/Developer in table 3. 1(a) instead of table 3. 1(b) of FORM GSTR-3B of the relevant period and were unable to claim refund of the integrated tax paid on the same through FORM GST RFD-01A. This was because of a validation check placed on the common portal which prevented the value of refund of integrated tax/cess in FORM GST RFD-01A from being more than the amount of integrated tax/cess declared in table 3.

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