Refund

This query is : Resolved

Sabita Sahoo (Querist)
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24 April 2018 A dealer has applied for refund of Rs.400/- excess balance in cash ledger under fee head.As the refund amount is less than Rs.1000/-,and refund claimed is inadmissible under GST act,then in order to reject the refund application the proper officer will reject it in form RFD 06 or RFD08?What procedure is to followed by proper officer?

Sabita Sahoo

Sabita Sahoo (Querist)
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26 April 2018 resolve it sir.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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10 July 2024 In the scenario you've described, where a dealer has applied for a refund of Rs. 400/- which is less than Rs. 1000/- and the refund claimed is inadmissible under the GST Act, the proper officer would reject the refund application using Form RFD-06. Here’s the procedure typically followed by the proper officer in such cases:

### Procedure to Reject Refund Application (Form RFD-06)

1. **Verification and Examination:**
- The proper officer will first verify the refund application submitted by the dealer.
- This includes checking the details provided in the application against the records available with the GST department.

2. **Grounds for Rejection:**
- If the refund claimed is inadmissible under the GST Act (for example, if it doesn't meet the criteria specified in the law), the officer will prepare a reasoned rejection order.
- Common grounds for rejection include:
- Refund amount being less than Rs. 1000/- and not eligible for refund.
- Refund claimed under a category that does not qualify for refund under GST rules.
- Any discrepancies or non-compliance found during verification.

3. **Preparation of Rejection Order:**
- The proper officer will prepare Form GST RFD-06, which is used for rejecting refund applications under GST.
- In this form, the officer will provide details such as the application number, date of application, grounds for rejection, and any other relevant information.
- The rejection order must be signed by the proper officer or an authorized signatory.

4. **Communication to Applicant:**
- Once Form RFD-06 is prepared and signed, the proper officer will communicate the rejection order to the applicant.
- The communication may be done electronically through the GST portal or through physical copy depending on the mode of submission of the refund application.

5. **Record Keeping:**
- A copy of the rejection order along with supporting documents and correspondence will be maintained in the department records.
- This ensures transparency and serves as a record of the decision taken by the proper officer.

### Conclusion

In your case, since the refund amount claimed is less than Rs. 1000/- and the refund is inadmissible under the GST Act, the proper officer will reject the refund application using Form RFD-06. This form is specifically used for rejecting refund claims. It’s important for the officer to provide clear grounds for rejection in the order, and ensure that the communication of rejection is done promptly to the applicant. If the dealer wishes to challenge the rejection, they may follow the appeals process under GST law.

Always ensure that all procedures are followed as per the GST regulations and seek guidance from a qualified GST professional or legal advisor if needed.

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