3. FINALIZATION OF PROVISIONAL ASSESSMENT

The following process is recommended:-
a) The taxpayer may file a simple refund application along with a Chartered Accountant Certificate certifying the fact of non-passing of the GST burden by the taxpayer.

b) GST law may provide for certain pre-defined period during which refund may not be granted which can be regarded as mandatory waiting period for the outcome of appeal/application for stay.

c) GST Law Drafting Committee may also consider for providing powers to Jurisdictional Authority at sufficiently senior level for withholding the refund in exceptional cases on the condition that interest at appropriate rate has to be paid.

PROCESS OF REFUND IN CASE OF EXPORT( INCLUDING DEEMED EXPORT) OF GOODS/SERVICES 

-Verification - The Import Export Code(IEC) details of taxpayer will be captured at the time of issuance of GSTIN and the same will be verified online with  Directorate General of Foreign Trade (DGFT).

-Application - The refund of Input Tax Credit/rebate of GST paid on imported goods may be granted on submission of application to this effect by the taxpayer.

-Since the trigger point for refund is export of goods, therefore the event of export will be verified online.

-Linkage between ICEGATE of Custom Administration and the proposed GSTIN of GST administration may be established so that online verification of export can be carried out.

-Invoice wise sale/purchase details by the taxpayers (filed with monthly returns) can be linked with Customs data (for export cases) available with ICEGATE. 

2. EXPORT (INCLUDING DEEMED EXPORT) OF GOODS/ SERVICES

Two options may be made available to the exporter in the proposed GST regime:
a) Obtaining duty paid inputs and claiming refunds of the same at the time of export of the finished goods without payment of duty.

b) Obtaining duty paid inputs, availing input tax credit thereon and exporting finished goods after payment of duty ( after utilizing input tax credit) and thereafter claiming the rebate of the duty paid on exported goods. 

Interpretation :- If you export goods without payment of duty then you get refund of input tax credit and if you pay duty on export, then you can avail input tax credit and get rebate of duty paid.

1. EXCESS PAYMENT OF TAX DUE TO MISTAKE OR INADVERTENCE :-

a) Such excess payment may be on account of:-
   -wrong mention of nature of tax (CGST/SGST/IGST).
   -wrong mention of GSTIN.
   -wrong mention(deposit) of  tax amount.

b) In first two situations i.e wrong mention of nature of tax and GSTIN, the tax administration is required to verify the taxpayer's claim of refund and therefore the taxpayer may file a refund application which should be decided within period prescribed under GST Law.

c) In the first and third situation i.e wrong mention of nature of tax and tax amount, the refund of excess amount of tax at the option of taxpayer would either automatically carried forward for adjustment against future tax liabilities or be refunded.

Interpretation:- If there is wrong mention of nature of tax then it can be adjusted.For ex- you have to fill CGST but you fill SGST, then you take credit of excess CGST in future tax liabilities and if there is wrong mention of tax amount then also you can take excess adjusted in future period but in case of wrong mention of GSTIN, you have only option to get refund of GST. 
  

SITUATIONS WHERE REFUND OF GST ARISE

1. Excess Payment due to mistake and inadvertence.

2. Export (including deemed export).

3. Finalization of Provisional Assessment.

4. Refund of pre deposit in case of Appeal or Investigation.

5. Refund for Tax Payment on transactions by UN bodies, CSD Canteens, Para-Military Forces canteens etc.

6. Refund from Manufacturing/ Generation/ Production/ Creation of Tax Free Supplies or Non-GST Supplies.

7. Refund of Carry Forward Input Tax Credit.

8. Refund on account of year end or volume based incentives.

9. Tax Refunds for International Tourists.