CGST Circular 60/2018
| Circular Number | 60/2018 |
| Circular Date | 04-09-2018 |
| Download | |
To,
The Principal Chief Commissioners/Chief Commissioners/Principal
Commissioners/ Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
The Principal Chief Controller of Accounts, CBIC
Madam / Sir,
Subject: Processing of refund applications filed by Canteen Stores
Department (CSD)- regarding
1) Vide notifications No. 6/2017-Central Tax (Rate), No.
6/2017-Integrated Tax (Rate) and No.
6/2017-Union territory Tax (Rate), all dated 28th June 2017, the Central
Government has specified the Canteen Stores Department (CSD for short),
under the Ministry of Defence, as a person who shall be entitled to claim
a refund of fifty per cent. of the applicable central tax, integrated tax
and Union territory tax paid by the CSD on all inward supplies of goods
received by the CSD for the purposes of subsequent supply of such goods
to the Unit Run Canteens of the CSD or to the authorized customers of the
CSD. Identical notifications have been issued by the State Governments
allowing refund of fifty per cent of the State tax paid by the CSD on the
inward supply of goods received by it and supplied subsequently as stated
above.2) With a view to ensuring expeditious processing of refund claims, the
Board, in exercise of
its powers conferred under section 168(1) of the Central Goods and
Services Tax Act, 2017 (hereafter referred to as the ‘CGST Act’), hereby
specifies the manner and procedure for filing and processing of such
refund claims as below:-3) Filing Application for Refund:
3.1 Invoice-based refund: It is clarified that the instant refund to
be granted to the CSD is not
for the accumulated input tax credit but refund based on the invoices of
the inward supplies of goods received by them.3.2 Manual filing of claims on a quarterly basis: In terms of rule 95
of the Central Goods and
Services Tax Rules, 2017 (hereinafter referred to as the ‘CGST Rules’),
the CSD are required to apply for refund on a quarterly basis. Till the
time the online utility for filing the refund claim is made available on
the common portal, the CSD shall apply for refund by filing an
application in FORM GST RFD-10A (Annexure-A to this Circular) manually to
the jurisdictional tax office.
The said form shall be accompanied with the following documents:
(i) An undertaking stating that the goods on which refund is being
claimed have been received by the CSD;
(ii) A declaration stating that no refund has been claimed earlier
against the invoices on which the refund is being claimed;
(iii) Copies of the valid return filed in FORM GSTR-3B by the CSD for the
period covered in the refund claim;
(iv) Copies of FORM GSTR-2A of the CSD for the period covered in the
refund claim along with the attested hard copies of the invoices on which
refund is claimed but which are not reflected in FORM GSTR-2A;
(v) Details of the bank account in which the refund amount is to be
credited.
4) Processing and sanction of the refund claim
4.1 Upon receipt of the complete application in FORM GST RFD-10A, an
acknowledgement
shall be issued manually within 15 days of the receipt of the application
in FORM GST RFD-02 by the proper officer. In case of any deficiencies in
the requisite documentary evidences to be submitted as detailed in para
3.2 above, the same shall be communicated to the CSD by issuing a
deficiency memo manually in FORM GST RFD-03 by the proper officer within
15 days of the receipt of the refund application. Only one deficiency
memo should be issued which should be complete in all respects.4.2 The proper officer shall validate the GSTIN details on the common
portal to ascertain
whether the return in FORM GSTR- 3B has been filed by the CSD. The proper
officer may scrutinize the details contained in FORM RFD-10A, FORM
GSTR-3B and FORM GSTR-2A. The proper officer may rely upon FORM GSTR-2A
as an evidence of the accountal of the supply made by the corresponding
suppliers to the CSD in relation to which the refund has been claimed by
the CSD.4.3 The proper officer should ensure that the amount of refund
sanctioned is 50 % of the Central
tax, State tax, Union territory tax and integrated tax paid on the
supplies received by CSD. The proper officer shall issue the refund
sanction/rejection order manually in FORM GST RFD-06 along with the
payment advice manually in FORM GST RFD-05 for each tax head separately.
The amount of sanctioned refund in respect of central tax/integrated tax
along with the bank account details of the CSD shall be manually
submitted in the PFMS system by the jurisdictional Division’s DDO and a
signed copy of the sanction order shall be sent to the PAO for release of
the said amount.5) It is clarified that the CSD will apply for refund with the
jurisdictional Central tax/State tax
authority to whom the CSD has been assigned. However, the payment of the
sanctioned refund amount in relation to central tax / integrated tax
shall be made by the Central tax authority while payment of the
sanctioned refund amount in relation to State Tax / Union Territory Tax
shall be made by the State tax/Union Territory tax authority. It
therefore, becomes necessary that the refund order issued by the proper
officer of any tax authority is duly communicated to the concerned
counter-part tax authority within seven days for the purpose of payment
of the remaining sanctioned refund amount. The procedure outlined in para
6.0 of Circular No.24/24/2017-GST dated 21st December 2017 should be
followed in this regard.6) It is requested that suitable trade notices may be issued to
publicize the contents of this
Circular.7) Difficulty, if any, in implementation of this Circular may please be
brought to the notice of
the Board. Hindi version would follow.
[Encl: Annexure-A]