Last updated: January 25th, 2020 6:09 PM

GST Refund Claim - By Order

Prior to understanding the procedure to claim a GST refund, first of all, let us know the flow of activity and applicability for refund procedure. The following narrates the relevant flow of activity:

• The applicant shall file the initial refund application, Form GST RFD-01.
• The department shall mention the rejected refund application through order in the Form GST RFD-06.
• The applicant can prefer to appeal against the said rejection order.
• Against the said appeal, the applicant may receive favourable order in appeal or any other forum.

Upon receiving the favourable order, the Trade and Industries requested clarifications regarding the refund amount. The clarification mentioned the procedure for claiming refund amount subsequent to the favourable order. After receiving feedback, the Central Board of Indirect Taxes and Customs (CBIC) issued clarification through Circular No.111/30/2019 on 3rd October 2019. The clarification mentioned the procedure for claiming refund amount subsequent to the favourable order.

For Post Receipt of Favourable Refund Order

If the applicant appealed against the refund rejection order and received a favourable order shall follow the below-mentioned procedure:

• The applicant shall furnish a fresh refund application.
• The applicant shall file the fresh refund application under the category ‘Refund on account of assessment, provisional assessment, appeal or any other order’.
• The amount allowed in an appeal shall display claimed as refund amount under the fresh refund application.
• The applicant shall provide the following details:
  • Type of the order (i.e. appeal or any other order);
  • Order number;
  • Order date; and
  • The order issuing authority
• The applicant shall upload a copy of the following documents: 
  • Copy of the order of the Appellate Authority or other authority;
  • Copy of refund rejection order in Form GST RFD-06 or such other order against which the appeal was preferred; and
  • Other relevant documents.

Action to be taken by the Proper Officer

• On receipt of the fresh refund application, the officer would sanction the refund amount as allowed in appeal or any other forum.
• The officer shall make an order in Form GST RFD-06.
• The proper officer shall issue the payment order in Form GST RFD-05.
• The proper officer shall also ensure the re-credit amount which remains rejected in the order of the appellate authority or any other authority.

Illustration for Better Understanding

For a better understanding of the circular, the following shall illustrate the procedure:

• Assuming the applicant filed a refund application for INR 100.
• The officer allowed INR 70 and rejected INR 30 out of the said refund application.
• The applicant preferred an appeal against the rejected INR 30.
• Out of the appeal of INR 30, the appellate authority allowed refund of INR 10 (i.e. applicant received a favourable order for INR 10) and rejected INR 20.
• For the said allowed refund of INR 10, the applicant shall file a fresh refund application under the category ‘Refund on account of assessment, provisional assessment, appeal or any other order’.
• For the remaining rejected INR 20, if no further appeal is preferred, then, the applicant is required to re-credit INR 20.

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