Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No.197/09/2023 to provide clarification regarding refund related issues.
Key points of the Circular are as below:
- Refund of Input Tax Credit (ITC) can be availed only for those invoices, details of which are reflected in FORM GSTR-2B of the applicant for the period beginning from 01.01.2022 or for any of the previous tax periods and on which the input tax credit is available to the applicant.
- No refund of ITC can be availed against the invoices, details of the details of which are uploaded by the supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant.
- An undertaking is required to be submitted electronically by the applicants applying for refund to the effect that the amount of refund sanctioned would be paid back to the Government with interest in case it is found subsequently that the requirements of the Act have not been complied with in respect of the amount refunded.
- Turnover of zero-rated supply of goods needs to be taken into consideration while calculating turnover in a state or a union territory and adjusted annual turnover.
- Exporters would be entitled to refund of unutilized input tax credit on actual export of the goods or realization of payment in case of export of services and subsequently exporters would be entitled
claim refund of the integrated tax so paid earlier on account of goods not being exported or the payment not being realized for export of services.
- Application for refund of ITC can be filed under the category “Any Other” on the GSTIN portal till the same cannot be filed under the category “Excess payment of tax” due to its unavailability.
Source: Central Board of Indirect Taxes and Customs (CBIC)
