The Central Board of Indirect Taxes & Customs (“CBIC”) vide Circular No. 111/30/2019 – GST dated October 03, 2019 has clarified the procedure to be followed by a registered person to claim refund subsequent to a favourable order in appeal or any other forum against the rejection of a refund claim in Form GST RFD-06. The following are the procedure laid down by the Board to be followed by the taxpayers which are discussed as hereunder:-
Appeal for Rejection of Refund: In terms of rule 93 of the Central Goods and Services Tax Rules, 2017 (“CGST Rules 2017”), where an appeal is filed against the rejection of a refund claim, re-crediting of the amount debited from the electronic credit ledger is not done till the appeal is finally rejected. Therefore, such a rejected amount remains debited in respect of the particular refund claim filed in Form GST RFD-01.
If favourable order received by the Registered Person against the appeal for refund: In case the appeal is rejected through issuance of an order in Form GST RFD-06, the registered person would file a fresh refund application under the category “Refund on account of assessment/provisional assessment/appeal/any other order” claiming refund of the amount allowed in appeal or any other forum.
The amount debited from electronic credit ledger, at the time of filing of the refund application was not re-credited, the registered person shall not be required to debit the said amount again from his electronic credit ledger at the time of filing of the fresh refund application under the category “Refund on account of assessment/provisional assessment/appeal/any other order”.
The registered person shall be required to give details of the type of the Order (appeal/any other order), Order No., Order date and the Order Issuing Authority. The registered person would also be required to upload a copy of the order of the Appellate or other authority, copy of the refund rejection order in FORM GST RFD 06 issued by the proper officer or such other order against which appeal has been preferred and other related documents.
Receipt of afresh Refund Application by the officer: After the receipt of the application for refund under the category “Refund on account of assessment/provisional assessment/appeal/any other order” the proper officer would sanction the amount of refund as allowed in appeal or in subsequent forum which was originally rejected and shall make an order in Form GST RFD-06 and issue payment order in Form GST RFD-05 accordingly.
The proper officer disposing of the application for a refund under the category “Refund on account of assessment/provisional assessment/appeal/any other order” shall also ensure re-credit of any amount which remains rejected in the order of the appellate (or any other authority).
The Complete Circular can be accessed at: http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-111.pdf;jsessionid=0AB4914E6035A06FCB8F5A640C7BCA8F