Clarification on fully electronic refund process by FORM GST RFD-01 & single disbursement

Clarification on fully electronic refund process through FORM GST RFD-01 & single disbursement.

CBIC has issued a Master Circular No. 125/44/2019 – GST to clarify fully electronic refund process through FORM GST RFD-01 and single disbursement.

Earlier, after roll out of GST w.e.f. 01.07.2017, as per temporary mechanism applicants were required to file the refund application in FORM GST RFD-01A on the common portal, take a print out of the same and submit it physically to the jurisdictional tax office along with all supporting documents. 

Later, to make process of submission of the refund application electronic, Circular No. 79/53/2018-GST dated 31.12.2018 was issued wherein it was specified that the refund application in FORM GST RFD01A, along with all supporting documents, shall be submitted electronically. However, various post submission stages of processing of the refund application continued to be manual.

Finally, refund procedure was made fully electronic and was deployed on the common portal with effect from 26.09.2019.

Now the CBIC, has issued a Master Circular laying down procedure for electronic submission and processing of refund applications in supersession of all earlier circulars on the subject.

Clarification on fully electronic refund process by FORM GST RFD-01 

The said master Circular specifies the following in details:

1. Types of the refunds for which applications shall be filed in FORM GST RFD 01 on the common portal and the same shall be processed electronically.

2.  Modalities to be followed for all refund applications filed in FORM GST RFD-01.

3. Deficiency memos to be issued within 15 days starting from the date of generation of ARN.

4. Provisional Refund 

5. Scrutiny of Application

6. Re-crediting of electronic credit ledger on account of rejection of refund claim

7. Application for refund of integrated tax paid on export of services and supplies made to a Special Economic Zone developer or a Special Economic Zone unit

8. Disbursal of refunds 

9. Guidelines for refunds of unutilized Input Tax Credit 

10. Guidelines for refund of tax paid on deemed exports 

11. Guidelines for claims of refund of Compensation Cess 

12. Clarifications on issues related to making zero-rated supplies

13. Refund of transitional credit 

14. Restrictions imposed by sub-rule (10) of rule 96 of the CGST Rules 

15. Clarification on calculation of refund amount for claims of refund of accumulated ITC on account of inverted tax structure

16. Refund of TDS/TCS deposited in excess 

17. FAQ on Debit of electronic credit ledger using FORM GST DRC-03

18. Clarifications on other issues

The Circular also contains a list of all statements /declarations /undertakings/certificates and other supporting documents to be provided along with the refund application  

Download Master Circular Click Here >>

• Tax authorities not bound with provisions of section 44AE once assessee waived option
• Whether seized document is incriminating or not is a findings of fact – High Court
• Interest earned on borrowed funds/unutilized capital subsidy is capital receipts – High Court
• No statutory requirement of pre-deposit for stay of demand under Income Tax Act – HC
• Engagement of Company Secretaries as Young Professionals at RoC Mumbai and Pune