1. Drafting anomaly in Rule 4
Sub rule 3 of Rule 4 of draft GST Refund Rules provide that “where the proper officer is satisfied that the amount refundable under sub rule (1) and sub rule (2) is payable to the applicant under subsection (8) of section 48, he shall make an order………”Section 48 relates to Goods and Services tax Practitioners.
It is suggested that in the aforesaid sub-rule, the words “subsection (8) of section 48” be replaced with “subsection (8) of section 54” which relates with refund povisions.
2. Time Limit for communicating deficiencies in form GST RFD-03 by proper officer
Rule 2(3) of the draft GST Refund Rules provide that where any deficiencies are noticed, the proper officer shall communicate the deficiencies to the applicant in FORM GST RFD-03 through the Common Portal electronically, requiring him to file a refund application after rectification of such deficiencies. However, the time limit for issuing FORM GST RFD-03 by proper officer has not been provided and only time limit of 15 days is provided for issuing acknowledgement FORM GST RFD-02.
It is suggested that time limit for issuing FORM GST RFD-03 by proper officer be provided for.
3. Appeal on account of refund pending
Clause c of Rule 3(1) of draft GST Refund Rules provide that provisional refund may be granted subject to condition that no proceedings of any appeal, review or revision is pending on any of the issues which form the basis of the refund and if pending, the same has not been stayed by the appropriate authority or court.
Pendency of appeals from current regime is no fault of taxable person. This also renders rule 3 inoperative due to large pendency of appeals on account of refund rejected on frivolous grounds and non-disposal by appellate authorities for years.
It is suggested that clause c of rule 3(1) be deleted.
4. Time Limit for Issuing Order sanctioning refund
Rule 4 of draft GST Refund Rules provides for the order sanctioning refunds in FORM GST RFD-06 (approval of refund), FORM GST RFD-07 (adjustment of refund against existing demand) & FORM GST RFD-08 (refund not admissible). However, the time limit for issuing these forms by proper officer has not been provided for.
It is suggested that time limit for issuing FORM GST RFD-06, 07 & 08 by proper officer be provided for.