Month: September 2017

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If refund is made based on the order of appellant authority, then would interest be paid

Yes, interest (at a rate not exceeding 9%) would be computed and paid for the period starting from expiry of 60 days from the date of application consequent to the order till the date of actual refund of tax. It is pertinent to note that the Government vide Notification No. 13/2017 – Central Tax dated June 28,2017, has prescribed the rate of interest @ 9%.

(ICAI FAQ PUBLICATIONS 06-09-2017 INTEREST ON DELAYED REFUNDS: FAQ NO. 31)

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Would interest be paid on the amount of refund sanctioned

Yes, in terms of section 56, interest would be paid at a rate not exceeding 6%, if the refund is not sanctioned with 60 days from the receipt of refund application. It is pertinent to note that the Government vide Notification No. 13/2017 – Central Tax dated June 28,2017 has prescribed the rate of interest @ 6%.

(ICAI FAQ PUBLICATIONS 06-09-2017 REFUNDS: FAQ NO. 29)

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Is there any other case apart from those covered in Section 54, wherein refund can be claimed under GST

Yes, as per Section 55 of the CGST Act, the Government may, on the
recommendations of the Council, by notification, specify any specialised agency of the United Nations Organisation or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries and any other person or class of persons as may be specified in this behalf, who shall, subject to certain conditions and restrictions, be entitled to claim a refund of taxes paid on the notified supplies of goods or services or both received by them.

(ICAI FAQ PUBLICATIONS 06-09-2017 REFUND IN CERTAIN CASES: FAQ NO. 28)

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What will be the amount of bond furnished for exports and how will the bond be secured

The bond would cover the amount of tax involved in the export based on estimated tax liability as assessed by the exporter himself. FORM RFD -11 under rule 96A of the CGST Rules requires furnishing a bank guarantee with bond as a security. The bank guarantee should normally not exceed 15% of the bond amount. If Commissioner is satisfied with the track record of an exporter then furnishing of bond without bank guarantee would suffice. [Refer Circular No. 4/4/2017-GST dated July 7, 2017].

(ICAI FAQ PUBLICATIONS 06-09-2017 QUESTIONS ON NOTIFICATIONS AND CIRCULARS: FAQ NO. 26)

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What are the categories of persons eligible for submitting a Letter of Undertaking in place of a Bond

According to Notification No. 16/2017 – Central Tax dated July 7, 2017, following registered person shall be eligible for submission of Letter of Undertaking in place of a bond:
(a) a status holder as specified in paragraph 5 of the Foreign Trade Policy 2015- 2020; or
(b) who has received the due foreign inward remittances amounting to a minimum of 10% of the export turnover, which should not be less than one crore rupees, in the preceding financial year,
(c) has not been prosecuted for any offence under the Act or under an existing law where the amount of tax evaded exceeds two hundred and fifty lakh rupees.

(ICAI FAQ PUBLICATIONS 06-09-2017 QUESTIONS BASED ON NOTIFICATIONS AND CIRCULARS :FAQ NO. 25)

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What are the prior procedures for persons making zero rated supplies to claim refund of taxes paid in relation to supply of goods or services under bond or Letter of Undertaking

Any registered person availing the option to make a zero rated supply of goods or services without payment of integrated tax shall furnish a bond or a Letter of Undertaking in FORM GST RFD-11 prior to execution of such supply.

(ICAI FAQ PUBLICATIONS 06-09-2017 REFUNDS: FAQ NO. 24)