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CBIC issued new guidelines for GST refunds

Ajay Kumar Maggidi , Last updated: 20 June 2022  

Recently CBIC has issued detailed guidelines for sanctioning, post-audit and review of refund claims.

Key feature and short summary of the guidelines have been discussed below.

Instruction No. 03/2022-GST dated 14-06-2022.

It has been observed by CBIC that, proper speaking orders have not been issued while issuing the orders for GST refund claims and also currently different GST officers adopted different practices and procedures for sanctioning refunds, which created confusion among the tax payers/business community.

In this regard, to promote the uniformity in practices adopted by GST officers, the GST policy wing of the CBIC has issued detailed guidelines for the sanctioning of the refund claims, post-audit and review of all refund claims.

CBIC issued new guidelines for GST refunds

Speaking orders

  • Currently, certain refund applications are rejected without proper speaking orders (with out providing detailed reasoning for such rejection).
  • With this Instruction- the GST officers shall provide detailed speaking order with the reasons for sanction or rejection of the refund claims.

These guidelines to GST officers, helps:

  • Provide the details to be mentioned in a speaking order
  • Tax payers understand and respond to refund rejection order in a timely manner.

In the instructions issued to GST officers, CBIC has listed additional to be checked by GST officer for sanctioning refund. Hence we would have to double on check on the below key points before applying refund applications;

Additional details will be checked by GST officers for sanctioning of Refunds

1. Refund of ITC on account of zero rate supplies

  • Whether calculation of turnover or aggregate turnover is correct as per provisions
  • Whether calculation of NET ITC is correct as per provisions
  • NET ITC should not include input on capital goods
  • ITC should be restricted to extent reflecting in GSTR 2A/2B.
  • Submission of E BRC/ FIRC for service exports.

2. For supplies to SEZ's by DTA

  • Supplies should be for authorized operations basis LoA.
  • Supplies should be cross checked with SEZ online portal.
  • Documents should be endorsed by proper SEZ officer.
  • Payment should be received by DTA from SEZ against supply.

Post Audit of Refund Claims

  • Post Audit is not required for Refunds upto INR 1L
  • For Refunds exceeding INR 1L, GST department will conduct audit within 3 months from the refund date.

Post-audit of refund orders will be conducted in offline mode, till functionality for conducting post-audit online is developed at GST portal.


Review of Refund Claims by GST department

  • All refund claims are required to be reviewed.
  • So that department can decide whether to go for appeal or not
  • The review team should submit the report to the higher authorities at least 30 days prior for filing appeal.
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Published by

Ajay Kumar Maggidi
(Manager - Finance & Accounts)
Category GST   Report



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