Clarification w.r.t. manual filing and processing of refund claims on account of inverted duty structure, Deemed Exports and excess balance in e-cash ledger

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The Commissioner of Central Board of Excise and Customs vide Circular No. 24/24/2017-GST dated December 21, 2017 has clarified that in case of claim of refund on account of Inverted duty structure, Deemed Exports and excess balance in e-cash ledger (“types of refund”), application/ forms/ documents shall be filed and processed manually in accordance with provisions of Circular No. 17/17/2017-GST dated November 15, 2017 till further orders.

It is also clarified that in case of such types of refund Form GST RFD-01A shall be filed for a tax period on monthly basis except where registered persons are having aggregate turnover of up to ₹ 1.5 Crore in the preceding financial year or in the current financial year and are opting to file Form GSTR-1 quarterly, then Form GST RFD-01A shall be filed quarterly. It is also to be ensured that a valid return in Form GSTR-3B has been filed for the last tax period before the one in which the refund application is being filed. However, the claimant must manually furnish an undertaking that the amount of refund sanctioned would be paid back to the Government with interest in case it is found subsequently that the requirements of Section 16(2)(c) read with Section 42(2) of the CGST Act, 2017 have not been complied with in respect of the amount refunded.

In case of refund claim arising due to inverted duty structure, Statement 1 and Statement 1A of Form GST RFD-01A have to be filled.

Moreover, in case of refund on account of Deemed Exports supply, where refund is sought by the supplier of Deemed Exports supplies, the documentary evidences as specified in Notification No. 49/2017-Central Tax dated October 18, 2017 are also required to be furnished manually which includes an undertaking by the recipient of Deemed Exports supplies that he shall not claim the refund in respect of such supplies and that no ITC on such supplies has been availed of by him.

Further, in case of refund on account of Deemed Exports, Statement 5B of Form GST RFD-01A is required to be furnished.

Furthermore, the drawback of all taxes under GST (CGST, IGST, SGST/UTGST) should not have been availed while claiming refund of accumulated ITC under section 54(3)(ii) of the CGST Act, 2017. A declaration to this effect forms part of Form GST RFD-01A as well.

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