Gist of Circulars issued by CBIC on GST Refunds -Interested Reading
Provisions to refund input tax credit to retail outlets on an international airport, removed with retrospective effect from 01.07.2019.
Clarifications issued for a refund of unutilized GST credit by entities exporting electricity, including the following:
Refund should be filed within 2 years from the last day of the month, in which electricity is exported as per REA issued by the Regional Power Committee Secretariat
Refund of GST credit specifically used in the domestic supply of electricity, is prohibited
Refund of common GST credit is not clarified
Manual refund processing currently
Statement 3B is introduced to overcome the requirement of Statement 3 of submitting shipping bills
Re-credit of electronic credit ledger while returning erroneous refund received: Manual procedure provided for re-credit. Approach the GST jurisdictional officer with a request. Submit proof of payment for returning the erroneous refund, along with proof of payment of interest and penalty, where applicable. Upon being satisfied, the officer will re-credit the electronic credit ledger through Form GST PMT 03A.
Refund on inverted duty structure: A clarification is issued allowing taxpayers to claim a refund of inputs, where inputs and outputs are the same, but the tax rate on output is less due to concessional rate benefits available to the seller
Deemed exports: To claim a refund of ITC by the recipient of deemed exports, he had to avail of the ITC once under Form GSTR-3B. It is clarified that such availment is not subject to verification under section 17 of the CGST Act. Further, such ITC availed is not the ITC under terms of GST Law, therefore, it doesn’t have to include in “Net ITC” for claiming a refund for zero-rated or inverted duty structure supplies.
