Master Circular on fully electronic refund process and single disbursement

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The necessary capabilities for making the refund procedure fully electronic, in which all steps of submission and processing shall be undertaken electronically, have been deployed on the common portal with effect from September 26, 2019. Accordingly, the CBIC vide Circular No. 125/44/2019 dated November 18, 2019 (“the Circular”) has laid down the procedure for electronic submission and processing of refund applications in supersession of earlier Circulars viz. Circular No. 17/17/2017-GST dated November 15, 2017, 24/24/2017-GST dated December 21, 2017, 37/11/2018-GST dated March 15, 2018, 45/19/2018-GST dated May 30, 2018 (including corrigendum dated July 18, 2019), 59/33/2018-GST dated September 4, 2018, 70/44/2018-GST dated October 26, 2018, 79/53/2018-GST dated December 31, 2018, and 94/13/2019-GST dated March 28, 2019.

However, the provisions of the said Circulars shall continue to apply for all refund applications filed on the common portal before September 26, 2019, and the said applications shall continue to be processed manually as prior to deployment of the new system.

The Circular has made detailed discussions on the following:

  • Filing of refund applications in FORM GST RFD-01
  • Deficiency Memos
  • Provisional Refund
  • Scrutiny of Application
  • Re-crediting of electronic credit ledger on account of rejection of refund claim
  • Application for refund of integrated tax paid on export of services and supplies made to a Special Economic Zone developer or a Special Economic Zone unit
  • Disbursal of refunds
  • Guidelines for refunds of unutilized Input Tax Credit
  • Guidelines for a refund of tax paid on deemed exports
  • Guidelines for a claim of refund of Compensation Cess
  • Clarifications on an issue related to making zero-rated supplies
  • Refund of transitional credit
  • Restrictions imposed by Rule 96(10) of the Central Goods and Service Tax Rules, 2017
  • Clarification on the calculation of refund amount for claims of refund of accumulated ITC on account of inverted tax structure
  • Refund of TDS/TCS deposited in excess
  • The debit of electronic credit ledger using FORM GST DRC-03
  • Refund of Integrated Tax paid on Exports
  • Clarifications on other issues

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