CGST Circular 63/2018

Circular Number	63/2018
Circular Date	14-09-2018
PDF	Download

The Principal Chief Commissioners/ Chief Commissioners/

Principal Commissioners/Commissioner of Central Tax (All) /

The Principal Directors General/ Directors General (All) /

Pr. Chief Controller of Accounts (CBIC)

Madam/ Sir,

Subject: Clarification regarding processing of refund claims filed by UIN entities – regarding

1) The Board vide Circulars No. 36/10/2018-GST dated 13th March, 2018
and No. 43/17/2018-
GST dated 13th April, 2018 has specified the detailed procedure for
filing and processing of refund applications by UIN entities
(Embassy/Mission/Consulate / United Nations Organizations/Specified
International Organizations). Various representations have been received
on certain issues pertaining to the processing of such refund claims. In
order to clarify these issues and to ensure uniformity in the
implementation of the provisions of the law across the field formations,
the Board, in exercise of its powers conferred under section 168 of the
Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST
Act) hereby clarifies the said issues as below:

2) Non-compliance with letter of reciprocity: Notifications No. 13/2017
– Integrated Tax
(Rate), 16/2017-Central Tax (Rate) and No. 16/2017 – Union Territory tax
(Rate) all dated 28th June, 2017 and corresponding notifications under
the respective State Goods and Services Tax Acts provide for examination
of the refund claims in accordance with the letter of reciprocity issued
by the Ministry of External Affairs (hereinafter referred to as MEA).
Generally, these letters of reciprocity have certain conditions specified
on the basis of which refunds have to be processed and sanctioned. For
example, letters may specify the minimum value of goods or services or
the end use of such goods or services (official or personal purposes).

2.1 It has been observed that many UIN entities are claiming the
refund on all invoices irrespective
of whether or not they are eligible for the same as per the reciprocity
letter issued by MEA. It is observed that such claims are attested/signed
by Diplomats/Consulars and authorized signatories of the Consulates or
Embassies of the foreign countries.

3) UIN entities have been advised to submit a statement of invoices and
hard copies of only those
invoices wherein the UIN is not mentioned vide Circular No.
43/17/2018-GST dated 13th April,2018. Further, refund processing
officers have been advised not to request for original or hard copy of
the invoices unless necessary. However, it is observed that the delay in
processing of the UIN refunds is primarily due to the non-furnishing of
the hard copy of the invoices by the UIN entities and the statement of
invoices as specified in paragraph 2.1 of Circular No. 43/17/2018-GST
dated 13.04.2018. It may be noted that the same are needed in order to
determine the eligibility for grant of refund in accordance with the
reciprocity letter issued by MEA. Further, it has been observed that in
some cases, the Certificate and Undertaking submitted by the UIN entities
is not in accordance with Notifications No. 13/2017 – Integrated Tax
(Rate), 16/2017-Central Tax (Rate) and No. 16/2017 – Union Territory tax
(Rate) all dated 28th June, 2017 and corresponding notifications under
the respective State Goods and Services Tax Acts.

4) In order to expedite the processing of the refund applications filed
by the UIN entities, the
following formats/documents are hereby specified:

4.1 Refund Checklist: In order to bring in uniformity in the
processing of the refund
claims, a checklist has been specified in Annexure A. All UIN entities
may refer to this checklist while filing the refund claims.

4.2 Certificate: A sample certificate to be submitted by
Embassy/Mission/Consulate is
enclosed as Annexure-B and that to be submitted by United Nations
Organizations/Specified International Organizations is enclosed as
Annexure-B-1.

4.3 Undertaking: A sample undertaking to be submitted by
Embassy/Mission/Consulate is
enclosed as Annexure-C and that to be submitted by United Nations
Organizations/Specified International Organizations is enclosed as
Annexure-C-1.

4.4 Statement of Invoices: The detailed statement of invoices shall be
submitted in the
format specified in Annexure D.

5) Prior Permission letter for GST refund for purchase of vehicles: MEA
vide letter F. No.
D_II/451/12(5)/2017 dated 21.06.2018 has informed that it is mandatory to
enclose the copy of ‘Prior Permission Letter’ issued by the Protocol
Special Section of MEA at the time of submission of GST refund for
purchase of vehicle by the foreign representatives. Accordingly, it is
advised that UIN entities must submit the copy of the ‘Prior Permission
letter’ and mention the same in the covering letter while applying for
GST refund on purchase of vehicles to avoid delay in processing of
refunds.

6) Non-availability of refunds to personnel and officials of United
Nations and other
International organizations: It is hereby clarified that the personnel
and officials of United Nations and other International organizations are
not eligible to claim refund under Notifications No. 13/2017 – Integrated
Tax (Rate), 16/2017-Central Tax (Rate) and No. 16/2017 – Union Territory
tax (Rate) all dated 28th June, 2017 and corresponding notifications
under the respective State Goods and Services Tax Acts. However, the
eligibility of refund for the personnel and officials posted in the
Embassy/Mission/Consulate shall be determined based on the principle of
reciprocity.

7) Waiver from recording UIN in the invoices for the months of April,
2018 to March, 2019:
A one-time waiver is hereby given from recording the UIN on the invoices
issued by the suppliers pertaining to the refund claims filed for the
quarters from April, 2018 to March, 2019, subject to the condition that
the copies of such invoices which are attested by the authorized
representative of the UIN entity shall be submitted to the jurisdictional
officer.

8) Format of Monthly report: Circular No. 36/10/2018-GST dated 13th
March, 2018 provides for
a monthly report to be furnished to the Principal Director General of
Goods and Services Tax by the 30th of the succeeding month. The report
shall now be furnished in a new format as specified in Annexure E.

9) It is requested that suitable trade notices may be issued to
publicize the contents of this Circular.

10) Difficulty, if any, in implementation of the above instructions may
please be brought to the
notice of the Board. Hindi version would follow.