prpri Going to file GST Refund? Know the important changes Going to file GST Refund? Know the important changes in the process first

Amendments, related to GST refund, made into CGST Rule 2017 by Central Government on the recommendation via Notification No. 15/2021 Dated 18th May, 2021 with the help of FAQ’s. These amendments shall come into the force w.e.f 18th May 2021.

1. As per Section 54(1) of CGST Act, 2017 read with Rule 90(3) of CGST Rules 2017 Refund of any tax and interest can be claimed by making an application before the expiry of 2 years from the relevant date but what if a registered person files an application in GST RFD-01 and Proper officer communicate deficiencies GST RFD-03 to rectify the same.

Now while furnishing the fresh application by rectifying the deficiencies as communicated by proper office in GST RFD-03, does law include the period starting from date of making original application to the the date of proper office rejected the same that application in 2 years?

Ans- As per latest amendment in rule 90(3), The period starting from the date of making an original application for GST refund in GST RFD-1 to the date ending on which deficiency is communicated by the proper office in GST RFD-3 shall be excluded from the period of 2 years as specified in section 54(1) of the CGST Act, 2017 for making a fresh application after rectifying the deficiencies.

2. Is it possible to withdraw application after furnishing application for GST Refund in Form GST RFD-01?

Ans: – Yes as per the newly inserted sub-rule 5 to Rule 90, the applicant may, at any time before issuance of

i) Provisional refund sanction order in FORM GST RFD-04 or,

ii) Final refund sanction order in FORM GST RFD-06 or,

iii) Payment order in FORM GST RFD-05 or,

iv) Refund withhold order in FORM GST RFD-07 or,

v) Notice in FORM GST RFD-08

Withdraw the application for refund by furnishing FORM GST RFD-01W.

3. What will happen in Credit and Cash ledger of the applicant after furnishing Form GST RFD-01W to withdraw application filed earlier for GST refund in FORM GST RFD-01?

Ans: – As per newly inserted sub-rule 6 to Rule 90, Upon Submission of application in GST RFD-01W, any amount debited by the applicant from electronic credit ledger or electronic cash ledger while filing application for refund in GST RFD-01, shall be credited back to the ledgers from which such debited was made.

4. How Proper Officer passes on order when he is of the opinion that GST refund is liable to be withheld?

Ans: – As per Section read 54(10) and 54(11) of CGST Act, 2017 read with rule 92(2), where the Proper officer or commissioner is of the opinion that, Refundable amount is liable to be withheld, he shall communicate the same in Part A instead of Part B of FORM GST RFD-07 stating the reason of withholding and proviso also inserted as explained below:

“Provided that where the Proper Officer or the commissioner is satisfied that the refundable amount is no longer liable to be withheld then he may pass an order for release of withheld refund amount in Part B of FORM GST RFD-07.”

5. Has Proviso to Rule 92(1) is still in force?

Ans: – No, Proviso to Rule 92(1) has been omitted now. This proviso was for giving order for adjustment of any outstanding demand under the Act or under any existing law in Part A of FORM GST RFD-07.

6. What are the Amendments made in Rule 96?

Ans: – Amendments have been made under sub-rule 6 and 7.

Now as per sub-rule 6, Proper officer of Central tax or State tax or Union territory tax shall pass an order in Part A instead of Part B of FORM GST RFD-07.

Now as per sub-rule 7, where the applicant becomes entitled to refund of the amount withheld under Rule 96(4)(a) the concerned jurisdictional officer of central tax, State tax or Union Territory as the case may be shall proceed to refund the amount by passing an order in FORM GST RFD-06 after passing an order for release of withheld refund in Part B of FORM GST RFD-07. Earlier the word “after passing an order for release of withheld refund in Part B of FORM GST RFD-07” was not there.


About the Author

Ritu ChauhanAuthor is Ritu Chauhan, FCA, Partner in Ruchi Anand & Associates, a leading and prominent Chartered Accountant Firm in India, founded in 2000 and having existence in New Delhi and Gurgaon. Ruchi Anand & Associates is a group of accounting professionals, providing end to end solutions in diversified fields of Corporate Finance, beginning from registration of company in India to compliance and procedural parts to Financial Reporting, Auditing and other areas of consultancy/liaison.

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August 2021