CBIC clarifies certain refund related issues

Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 70/2018 dated 26th October, 2018 to clarify certain refund related issues.

The Key points of the Circular are:

  1. Status of refund claim after issuance of deficiency memo and re-credit of electronic credit ledger:

Presently the common portal does not allow a taxpayer to file a fresh application for refund once a deficiency memo has been issued against an earlier refund application for the same period. Therefore, it is clarified that till the time such facility is developed, taxpayers would be required to submit the rectified refund application under the earlier Application Reference Number (ARN) only. Thus, it is clarified when a deficiency memo in FORM GST RFD-03 is issued to taxpayers, re-credit in the electronic credit ledger (using FORM GST RFD-01B) is not required to be carried out and the rectified refund application would be accepted by the jurisdictional tax authorities with the earlier ARN itself.

A suitable clarification would be issued separately for cases in which such re-credit has already been carried out.

  1. Exporters who have received capital goods under EPCG to claim refund of IGST paid on exports:

Any exporter who himself/herself imported any inputs/capital goods in terms of Notification Nos. 78/2017-Customs and 79/2017-Customs both dated 13th October, 2017 shall be eligible to claim refund of the IGST paid on exports till the date of the issuance of the Notification No. 54/2018 – Central Tax dated the 9th October, 2018.

Exporters who are receiving capital goods under the EPCG scheme, either through import in terms of Notification No. 79/2017-Customs dated 13th October, 2017 or through domestic procurement in terms of Notification No. 48/2017-Central Tax, dated 18th October, 2017, shall continue to be eligible to claim refund of IGST paid on exports and would not be hit by the restrictions provided in the CGST Rules.

For further information please refer the attached document.

Source: Central Board of Indirect Taxes & Customs

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