Revalidation of GST Refunds in certain cases

REVALIDATION OF REFUND VOUCHERS UNDER GST IN CERTAIN CASES

The Goods and Services Tax Act, 2017 came into force with effect from 1.7.2017 in India.

The IGST Refunds, CGST Refunds and SGST Refunds were issued by the Central and State Government Departments.

The Refunds issued by the Departments will have to be claimed before the end of financial year but there are certain delays in claiming the refunds from the banks within the financial year.

In such cases the Central Government has issued instructions about the validity period of refund vouchers and validations required details as shown below:

In the said rules, in rule 91,–

(a) in sub-rule(2), the following proviso shall be inserted, namely:-

“Provided that the order issued in FORM GST RFD-04 shall not be required to be revalidated by the proper officer.”;

(b) in sub-rule (3), the following proviso shall be inserted, namely:-

“Provided that the payment advice in FORM GST RFD-05 shall be required to be revalidated where the refund has not been disbursed within the same financial year in which the said payment advice was issued.”.

In the said rules, in rule 92, in sub-rule (4), the following provisos shall be inserted, namely:-

“Provided that the order issued in FORM GST RFD-06 shall not be required to be revalidated by the proper officer:

The relevant notification comes into force with effect from 1.2.2019

The relevant notification is given below for ready reference:

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section

(i)]

Government of India Ministry of Finance (Department of Revenue)

[Central Board of Indirect Taxes and Customs] Notification No. 03/2019 – Central Tax

New Delhi, the 29th January, 2019

G.S.R……(E). -  In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:-

1. (1) These rules may be called the Central Goods and Services Tax (Amendment) Rules,

2019.

(2) Save as otherwise provided in these rules, they shall come into force on the first day of

February, 2019.

In the said rules, in rule 91,–

(a) in sub-rule(2), the following proviso shall be inserted, namely:-

“Provided that the order issued in FORM GST RFD-04 shall not be required to be revalidated by the proper officer.”;

(b) in sub-rule (3), the following proviso shall be inserted, namely:-

“Provided that the payment advice in FORM GST RFD-05 shall be required to be revalidated where the refund has not been disbursed within the same financial year in which the said payment advice was issued.”.

In the said rules, in rule 92, in sub-rule (4), the following provisos shall be inserted, namely:-

“Provided that the order issued in FORM GST RFD-06 shall not be required to be revalidated by the proper officer:

Provided further that the payment advice in FORM GST RFD-05 shall be required to be revalidated where the refund has not been disbursed within the same financial year in which the said payment advice was issued.”.

[F.No.20/06/16/2018-GST (Pt. II)]

(Gunjan Kumar Verma) Under Secretary to the Government of India

Note:- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19th June,2017, published vide number G.S.R 610 (E), dated the 19th  June, 2017 and last amended vide notification  No.  74/2018 -  Central  Tax,  dated  the  31st   December,  2018,  published  vide number G.S.R 1251 (E), dated the 31st December, 2018.