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Clarifications on refund related issues

Circular No.ES/77/2018-19                                                              May 31, 2018

To: Members of the Council

Sub: Clarifications on refund related issues

Dear Member,

We would like to inform you that CBEC has issued Circular No. 45/19/2018-GST dated 30th May, 2018 regarding clarifications on refund related issues.

In this connection, Board has invited attention to CBIC Circular No. 17/17/2017 – GST dated 15th November 2017, Circular No. 24/24/2017 – GST dated 21st December 2017 and Circular No. 37/11/2018 – GST dated 15th March, 2018 which has laid down the procedure for manual filing and processing of different types of refund claims under GST and clarified the exports related refund issues.

CBIC has received representations from Members of Trade seeking clarification on certain refund related issues.

In order to clarify these issues and with a view to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred by section 168(1) of the Central Goods and Services Tax Act, 2017 (CGST Act for short) hereby clarifies the issues raised as below:

  1. Claim for refund filed by an Input Service Distributor, a person paying tax under section 10 or a non-resident taxable person
  2. Application for refund of integrated tax paid on export of services and supplies made to a Special Economic Zone developer or a Special Economic Zone unit
  3. Refund of unutilized input tax credit of compensation cess availed on inputs in cases where the final product is not subject to the levy of compensation cess
  4. Requirement of bond or Letter of Undertaking (LUT) in the case of zero rated supply of exempted or non-GST goods and whether refund can be claimed by the exporter of exempted or non-GST goods
  5. Scope of the restriction imposed by rule 96(10) of the CGST Rules, regarding non-availment of the benefit of Notification Nos. 48/2017-Central Tax dated the 18.10.2017, 40/2017-Central Tax (Rate) dated 23.10.2017, 41/2017-Integrated Tax (Rate) dated 23.10.2017, 78/2017-Customs dated 13.10.2017 or 79/2017-Customs dated 13.10.2017.

For details on the above queries you may refer to Circular No. 45/19/2018-GST dated 30th May, 2018.

Members may please make a note of the above.

Thanking you,

Yours faithfully,


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