Clarifications issued on GST Refunds
GST dated 12.03.2021
Refund for Deemed Exporters
• Vide Circular No. 125/44/2019 –GST dated 18.11.2019, there was a restriction placed on deemed exporter to not avail the credit in GSTR 3B if the exporter intends to file refund claim.
• Contrary to this circular, GST portal insisted on refund amount to be debited from the electronic credit ledger at the time of filing the refund claim
• Due to this contradiction, deemed exporter were unable to file the refund claim.
Amendment:
• The above circular is now amended, to remove such restriction.
• Thus, the recipient can now claim Input Tax Credit and then file refund application so that the refund amount gets debited from the Electronic Credit Ledger.
Extension of relaxation for filing refund claim in cases where zero-rated supplies has been wrongly declared in GSTR 3B
• Ideally refund application can be filed only when the suppliers enters zero rated supply details in the appropriate table i.e., 3.1(b) of GSTR 3B.
• Due to difficulties faced by the suppliers for claiming refund on account of any errors in reporting such supplies, Circular No.125/44/2019 dt. 18.11.2019 provided for relaxation in filing refunds even on account of such errors for the period 1.7.2017 to 30.06.2017.
• The above-mentioned relaxation is now extended to 31st March 2021.
Manner of Calculation of “Adjusted Total Turnover”
• Notification No.16/2020 dated 23.03.2020 provided for restriction in value for calculating value of zero-rated supplies in case of exports.
• As per the notification, value of goods exported should not be more than 1.5 times of the value of like goods supplied in the domestic market.
- • Eligibility of refund is calculated using the below formula:
- Refund amount– (Turn over of Zero-Rated Supply of Goods + Turnover of Zero-Rated Supply of Services) * Net ITC / Adjusted Total Turnover
•It is now clarified that restriction of 1.5 times of the value to be considered for arriving at the “Turnover of Zero-Rated Supply of Goods” should be also considered for arriving at the “Adjusted Total Turnover”
Other Circulars
Extension of the procedure to be followed for the IGST Refund on Supply of Goods
• In cases where Shipping Bills were not transmitted to ICEGATE due to mis-match, the procedure to claim Refund of IGST was provided by Circular No.12/2018-Cus dated 25th May ,2018.
• However , this circular was valid only in respect of shipping bills filed upto 31.3.2019
• Vide Circular 4/2021-Cus dated 16.02.2021, the same procedure is now mutatis mutandis now made applicable even for the subsequent period.
• CA Certificate evidencing that there is no discrepancy in IGST amount needs to be now furnished within the following stipulated dates:
| S. No. | Financial Year | Stipulated Date |
|---|---|---|
| 1 | FY 2019-20 | 31st March 2021 |
| 2 | FY 2020-21 | 30th October 2021 |
Officer Interface facility
• In order to resolve mis-match errors in Shipping Bill, officer interface was brought in as an alternative measure.
• On receipt of several representations on account of several cases where IGST refund is holded up, it is been decided to keep the Officer Interface available permanently.
• Invoice mis-match errors can be resolved with the help of Officer Interface correction on payment of Rs.1,000/-
R V K S and Associates Chartered Accountants
Offices
Chennai | Bangalore | Devanahalli| Hyderabad | Mumbai | Vijayawada
For full detail click below :
https://www.dropbox.com/s/x8cyooisa9sk73q/GST%20Clarifications%20on%20Refund.pdf?dl=0