Daily Dose of GST Update By CA Pradeep Jain
COMPARATIVE ANALYSIS OF REFUND OF TAX IN REVISED GST LAW-PART-II:-
We discuss some other provisions pertaining to refund of tax in revised GST Law as follows:-
1. A new sub-section 13 has been added in section 48 which states that refund of advance tax deposited by casual or non-resident taxable person shall not be allowed unless they have furnished all returns during their period of registration. Hence, refund of advance tax will be admissible only on filing of returns. Thus, the procedure for casual or non-resident person has been made more difficult. They have to deposit the advance tax and there are terms and conditions for even getting refund of the same.
2. New clauses have been inserted in the meaning of relevant date as follows:-
(g) in the case of a person, other than the supplier, the date of receipt of goods or services by such person; and
(h) in any other case, the date of payment of tax.
Thus, if a person, other than supplier (this implies that person other than supplier can file the refund claim) files the refund claim then in that case the date of receipt of goods or services will be relevant date for computing time limit of refund claim. Furthermore, the clause (c) of the earlier GST Law specifying the relevant date in case of goods returned for being remade, refined, reconditioned or subjected to any other similar process in any place of business as the date of entry into the place of business for such purpose has been deleted. There was no refund mechanism for return of goods in factory premises for repairing or reconditioning purpose but the old GST Law specifically mentioned relevant date for filing refund claim in such cases. However, it appears that the government realised the redundancy of the provision and has deleted the same.
3. A new section 49 has been added for refund of taxes to any specialised agency of the United Nations Organisation or any Multilateral Financial Institution and organisation notified under the United Nations (Privileges and Immunities) Act, 1947. It is possible that the conditions and restrictions may be specified separately for granting refund in such cases. Presently, there is exemption for clearance to such specified persons under excise notification number 108/95 but under the proposed GST regime, they have to pay the GST and claim the refund.
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