Online processing of refund applications and single authority disbursement

GST Refunds

Online refund processing (End to End) has been deployed by GSTN. Consequently, refund ARNs generated from 26.09.2019 onwards would be processed online , including issuance of GST RFD-04, GST RFD-06 orders and disbursement of all tax heads like CGST/IGST/Cess and SGST/UTGST throughout India

Single authority disbursement has been implemented.

Refund applications filed by the taxpayers in RFD-01 form shall be processed electronically/ online by the tax-officer and all communications between the tax officers and the taxpayers shall take place electronically.

Refund amount shall be disbursed by accredited bank of CBIC through the Public Financial Management System (PFMS) after bank account validation.

New GST Refund Functionalities

  • Form GST RFD-01 –Application for Refund (Rule 89(1) of the CGST Rule, 2017); Form GST RFD-02 – Sending Acknowledgement (Rule 90(1), 90(2) & 95(2)); Form GST RFD-03 – Raising Deficiency Memo (Rule 90(3))
  • Form GST RFD-04 -Issuing Provisional Refund Order (Rule 91(2)); Form GST RFD-06 – Issuing Final Refund Order (Rule 92(1), 92(3), 92(4), 92(5) & 96(7)); Form GST RFD-05 – Generating Payment Order (Rule 91(3), 92(4), 92(5) & 94)
  • Form GST RFD-07B -Withholding Refund (Rule 92(2) & 96(6))
  • Form GST RFD-08 -Sending Show Cause Notices by tax official (Rule 92(3))
  • Form GST RFD-09 -Reply to Show cause notice by taxpayer (Rule 92(3))
  • Form GST PMT 03 -For re-credit of inadmissible ITC (Rule 86(4) & 87(11))
  • Online refund processing functionality has been deployed. The taxpayers can file refund application (in Form GST RFD 01) and the tax officers can process the refund application, online.
  • Form GST RFD-05 -Generating Payment Order (Rule 91(3), 92(4), 92(5) & 94)After processing the refund application the tax officials will issue payment order online and the amount will be refunded/ credited to taxpayer’s account, as provided by them in their refund application.
  • In case validation of bank account number given by the taxpayer fails, intimation will be sent to taxpayer about the same and the taxpayer will be required to correct bank account details, so that refund amount can be credited to their bank account.
  • In the new system, after processing is completed by the tax officer, the sanctioned amount will get credited to the bank account of the Taxpayer through the accredited bank of Government and through the PFMS System.
  • All communications between the taxpayers and the tax officers will be online. Taxpayers can view the various stages of processing of their refund application and can give replies to notice, if any, online on the GST Portal now. They will also be given information via SMS and Email, at important stages of processing of their refund application.
  • All refund applications filed in RF0D1A form and before 25th September, 2019 will be processed manually and disbursed as done under the previous refund process.

Online refund processing and single authority disbursement : Advisory for taxpayers

  • GSTN has issued an “Online refund processing and single authority disbursement : Advisory for taxpayers”
  • RFD-01:The taxpayers were filling refund application in form RFD-01A online. The RFD-01A form has been disabled on the portal. The taxpayer shall be able to file his refund application in form RFD-01 now.
  • However, the taxpayer shall be able to view the status of RFD-01A applications also along with the new ones.
  • The bank account details mentioned in the refund application shall be validated by PFMS after filing of RFD-01. The taxpayers must ensure that the bank account details selected in the refund application are valid and correct.
  • The taxpayer will need to change/ edit the bank account details (through non-core amendment in registration in REG-14) if there is failure of bank account validation by PFMS. After performing this step, the taxpayer needs to enter the updated bank account by clicking on ‘Update Bank Account’ functionality provided with the ARN of the refund application.
  • The taxpayer shall be able to view the status of bank account validation on his dashboard. It will also be communicated through e-mail/ SMS.
  • RFD-02 (Acknowledgement):The tax officer issued RFD-02 manually. The tax officer shall issue RFD-02 electronically to the taxpayer. The taxpayer shall be able to view the acknowledgement in RFD-02 on his dashboard. The taxpayer will also receive communication through email and SMS
  • RFD-03 (Deficiency Memo):The tax officer shall issue RFD-03 electronically to the taxpayer. With the issuance of RFD-03, the ITC/ cash will get recredited to the electronic credit/ cash ledger of the taxpayer. The taxpayer shall be able to view the deficiency memo in RFD-03 on is dashboard. Once RFD-03 has been issued against an ARN, the taxpayer is required to file a fresh refund application. The taxpayer will receive communication through email and SMS.
  • RFD-04 (Provisional Refund Order): The tax officer shall issue RFD-04 electronically to the taxpayer. The taxpayer shall be able to view the provisional sanction order in RFD-04 on his dashboard. The taxpayer will receive communication through email and SMS.
  • RFD-05 (Payment Order):The tax officer shall issue RFD-05 electronically to the taxpayer. The tax officer is not required to send the copy of RFD-05 to the central nodal authority and state AAs. The taxpayer shall be able to view the payment order in RFD-05 on his dashboard. The bank account details mentioned in the refund application shall be validated by PFMS after issuance of RFD-05 by the tax-officer.
  • RFD-05 (Payment Order): The taxpayer will need to change/edit the bank account details (through non-core amendment in registration in REG-14) if there is failure of bank account validation by PFMS. After performing this step, the taxpayer needs to enter the updated bank account by clicking on ‘Update Bank Account’ functionality provided with the ARN of the refund application.
  • The taxpayer shall be able to view the status of bank account validation and disbursement on his dashboard. The taxpayer will receive communication through email and SMS
  • RFD-06 (Final refund order):The tax officer shall issue RFD-06 electronically to the taxpayer. The taxpayer shall be able to view the final sanction/ rejection order in RFD-06 on his dashboard.
  • RFD-07B (Withholding Order):The tax officer shall issue RFD-07B electronically to the taxpayer. The taxpayer shall be able to view the withhold order in RFD-07B on his dashboard.
  • The taxpayer will receive communication through email and SMS
  • RFD-08 (Show Cause Notice):The tax officer shall issue RFD-08 electronically to the taxpayer. The taxpayer shall be able to view the show cause notice in RFD-08 on his dashboard. The taxpayer is expected to give reply to the SCN within 15 days of receipt of the SCN. If the taxpayer doesn’t respond within 15 days of the issuance of SCN, the tax officer can take action on the refund application. The taxpayer will receive communication through email and SMS.
  • RFD-09 (Reply to Show Cause Notice by the Taxpayer): The taxpayer is required to reply the SCN electronically/online in RFD-09 form which would be available on his dashboard. The taxpayer shall be able to reply to the SCN and upload supporting documents electronically through RFD-09. The tax officer may not process the reply to the SCN if not given electronically in RFD-09 by the taxpayer.
  • PMT-03 (Order for Recredit of Rejected Amount): The tax officer shall issue PMT-03 electronically. With the issuance of PMT-03, the inadmissible ITC shall get recredited to the electronic credit ledger of the taxpayer automatically.
  • The taxpayer is required to give an undertaking that he will not file an appeal against the refund order if he/she desires to get a recredit of the rejected amount. This undertaking has to be submitted to the tax officer manually. The taxpayer shall be able to view the recredit order in PMT-03 on his dashboard.

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