Analysis of Clarification on GST Refund by CBIC

CA Mayur Todmal | Last updated: 02 April 2020

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The Central Board of Indirect Taxes and Customs (CBIC) has issued a new circular providing crucial clarifications on various GST refund-related issues. This update modifies the master circular on refunds and addresses key concerns raised by taxpayers and GST practitioners. It clarifies rules around bunching refund claims across financial years, conditions for refunding accumulated input tax credit (ITC) due to rate changes, and the proportionate refund of tax paid through both cash and credit ledgers for non-zero-rated supplies. The circular also reinforces that refunds are restricted to ITC on invoices reflected in GSTR-2A and introduces a new requirement to mention HSN/SAC codes in Annexure 'B' for better segregation of ITC.

CBIC has issued clarification via a circularw.r.t. refund-related issues based on several representations received by the GST practitioners and taxpayers. Accordingly, master circular on Refunds No. 125/44/2019-GST dated 18.11.2019 stand modified to that extent. Here are some important clarificat

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About the Author

CA Mayur Todmal

Practicing CA

Be where your feet are... The views and opinions; thoughts and assumptions; analysis and conclusions expressedare personaland do not necessarily reflect any legal standing.

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