A ‘NIL’ refund claim was filed by numerous registered persons for a certain period of time in form GST RFD-01A/RFD-01 on a common portal. Many of them filed it unintentionally despite the fact that they were eligible for claim for that particular period and under that particular category.
This might have happened because of a message box auto pop, asking whether he wants to apply for ‘NIL’ refund for a certain period under a certain category, whenever a registered person proceeds to claim a refund in form GST RFD-01A/RFD-01 on the common portal. The system does so to ensure the chronological filing of all refund applications under a particular category.
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However, this lead to the unintentional selection of ‘NIL’ refund filing and once a ‘NIL’ refund claim has been filed for a period under a particular category, re-filing the refund claim for that opted period under that particular category can not be done on the common portal. As a result, many registered persons requested for a mechanism that will allow them to re-file the refund claim for the period and the category under which the NIL refund claim was inadvertently filed initially.
The Board duly analysed the matter and came to the conclusion to exercise its powers honoured by section 168 (1) of the Central Goods and Services Tax Act, 2017 to ensure the uniform implementation of the provision of Law. The board decided to allow such individuals who filed NIL refund claim in form GST RFD-01A/RFD-01, to claim again the refunds for that specific time and under that specific category. However, the board also put two conditions which should be satisfied by such individuals to re-apply for the refund.
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According to the first condition, a registered person is eligible to file the refund claim again only if he has filed a NIL refund claim in form GST RFD-01A/RFD-01 for a definitive period under a specific category. And according to the second condition, the registered person must not have filed any refund claims in form GST RFD-01A/RFD-01 under the same category for any consequent period.
The second condition is applicable to a few categories of refunds only. These refunds are the refund of unutilized input tax credit (ITC) by the reason of exports without tax payment; supplies made to SEZ Unit/SEZ Developer without tax payment and assessment because of inverted tax structure.
Except these categories, Registered persons shall be permitted to re-apply even if the second condition is not satisfied.
If the registered person duly satisfies the above-mentioned two conditions, he shall re-apply for the refund under the category of “Any Other” and not of “Nil” under which the refund claim was filed initially. However, the period for which the refund has to be claimed should match with that of the initial application. Supporting documents shall also be submitted with the refund application when you opt for “Any Other” category. When the tax official receives a refund application, he scrutinise the application & calculate the refund amount which is reasonable as per the applicable rules and in the manner given in para 3 of Circular No.59/33/2018-GST dated 04.09.2018 (wherever applicable).
When the whole or partial amount which is claimed is acceptable, the tax official send a written request to the taxpayer, if needed, to debit the particular amount from his electronic credit ledger via form GST DRC-03. After receiving the evidence of such debit, the officer shall move forward to issue the refund order and payment order in form GST RFD-06 and form GST RFD-05, respectively.
When the refund claims are dismissed, appeals against them are being disposed offline because of the absence of any online module to so so. According to the rule 93 of the Central Goods and Services Tax Rules, 2019, when such cases happen, the amount debited from the electronic credit ledger, if any, is not re-credited until the appeal is certainly rejected then such dismissed amount is kept debited therein for the particular refund claim filed in form GST RFD-01.
When a registered person receives a favourable order in appeal or any other forum for a refund claim which was dismissed via an order in form GST RFD-06, he shall file a new refund application under the category “Refund on account of assessment/provisional assessment/appeal/any other order” to claim a refund of the amount which is permitted in appeal or any other forum.
As the amount debited while filing a refund application was not re-credited, the registered person shall not debit the said amount again from his electronic credit ledger while filing a new refund application under the category “Refund on account of assessment/provisional assessment/appeal/any other order”.
Details such as type of the Order No., Order (appeal/any other order), Order date and the Order Issuing Authority will need to be furnished by the registered person. Not only this, he shall be required to upload a copy of the order of the Appellate or other authority and a copy of the refund rejection order issued by the tax officer in form GST RFD 06 or such other orders and documents of similar nature.
After receiving the refund application under the category “Refund on account of assessment/provisional assessment/appeal/any other order” the officer would approve the refund amount as permitted in appeal or in subsequent forum which was initially dismissed and issue the refund order and payment order in form GST RFD-06 and form GST RFD-05, respectively.
The concerned officer who is processing the refund application under the category “Refund on account of assessment/provisional assessment/appeal/any other order” shall also make sure to re-credit the amount which remains disapproved in appellate’s order or order of any other authority.
