{"id":1289,"date":"2015-11-25T09:10:00","date_gmt":"2015-11-25T09:10:00","guid":{"rendered":"https:\/\/taxolegal.com\/gstblog\/?p=1289"},"modified":"2021-12-02T09:13:43","modified_gmt":"2021-12-02T09:13:43","slug":"gst-government-issues-refund-mechanism-draft-report","status":"publish","type":"post","link":"https:\/\/taxolegal.com\/gstblog\/index.php\/2015\/11\/25\/gst-government-issues-refund-mechanism-draft-report\/","title":{"rendered":"GST: Government Issues Refund Mechanism Draft Report"},"content":{"rendered":"\t\t
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Goods and Service Tax cannot be written off easily, as many of the\npolitically motivated sections of the society may presume. Recently a Report of\nthe Joint Committee on Business processes for GST on Refund processes was made\npublic by the Empowered Committee of State Finance Ministers. In the taxation\nadministration, refund refers to any amount that is due to the tax payer from\nthe tax administration. In the present taxation system it is considered as a\nstrained area, both for the taxpayer and the tax administration. So in order to\nestablish an effective and efficient tax administration system it is essential\nthat issues on which refund arises ought to be kept at minimum and be clearly\ndefined in the law. Since GST is going to subsume many of the existing taxation\nlaws such as Central Excise, Service Tax, VAT, CST, etc., the situations under\nwhich refund arise under these laws are as follows:<\/span><\/o:p><\/span><\/p>

(A) Excess payment of tax due to\nmistake or inadvertence.<\/span><\/o:p><\/span><\/p>

(B) Export (including deemed\nexport) of goods \/ services under claim of rebate or Refund of accumulated\ninput credit of duty \/ tax when goods \/ services are exported.<\/span><\/o:p><\/span><\/p>

(C) Finalization of provisional\nassessment.<\/span><\/o:p><\/span><\/p>

(D) Refund of Pre \u2013 deposit for\nfiling appeal including refund arising in pursuance of an appellate authority\u2019s\norder (when the appeal is decided in favor of the appellant).<\/span><\/o:p><\/span><\/p>

(E) Payment of duty \/ tax during\ninvestigation but no\/ less liability arises at the time of finalization of\ninvestigation \/ adjudication.<\/span><\/o:p><\/span><\/p>

(F) Refund of tax payment on\npurchases made by Embassies or UN bodies.<\/span><\/o:p><\/span><\/p>

(G) Credit accumulation due to\noutput being tax exempt or nil-rated.<\/span><\/o:p><\/span><\/p>

(H) Credit accumulation due to\ninverted duty structure i.e. due to tax rate differential between output and\ninputs.<\/span><\/o:p><\/span><\/p>

(I) Year-end or volume based\nincentives provided by the supplier through credit notes.<\/span><\/o:p><\/span><\/p>

(J) Tax Refund for International\nTourists<\/span><\/o:p><\/span><\/p>

Each of the situations mentioned above are discussed individually\nfor better appreciation of the issue and the proposed process to handle them\nunder the proposed GST regime in the said Report of the Joint Committee on\nBusiness processes for GST on Refund processes was made public by the Empowered\nCommittee of State Finance Ministers.<\/span><\/o:p><\/span><\/p>

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n<\/p>

The GST committee has released a draft report for the comments of\nstake holders on issues \/ topics concerning types of refund forms. It discusses\nas to what should be the time period for filing of refund and relevant date. It\nalso discusses details of supporting documents: receipt of refund application\nand procedure for generating proof of receipt of application for refund. The\nissue regarding number of copies of applications to be filed including\nRequirement for taxpayer to keep a copy of refund application for the\nprescribed period is also mentioned in the report. Procedure and time within\nwhich preliminary scrutiny of submission of the relevant documents is carried\nout, procedure for dealing with refund thereafter including examination of\nprinciple of \u201cunjust enrichment\u201d as also a part of this report. Moreover,\nminimum amount below which refund shall not be granted, sanctioning of refund,\nverification and control, interest, adjustment, recovery of erroneous refund\nare also covered in detail in the said report for the stakeholders to peruse\nand give their suggestions. This sends the signals that the government is\nserious in implementing Goods and Service Tax as early as possible.<\/o:p><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Goods and Service Tax cannot be written off easily, as many of the politically motivated sections of the society may presume. Recently a Report of the Joint Committee […]<\/p>\n","protected":false},"author":1,"featured_media":576,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"disabled","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[8],"tags":[],"class_list":["post-1289","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst"],"uagb_featured_image_src":{"full":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",1000,600,false],"thumbnail":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",150,90,false],"medium":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",300,180,false],"medium_large":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",768,461,false],"large":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",1000,600,false],"1536x1536":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",1000,600,false],"2048x2048":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",1000,600,false]},"uagb_author_info":{"display_name":"admin","author_link":"https:\/\/taxolegal.com\/gstblog\/index.php\/author\/taxol_amyas2u3\/"},"uagb_comment_info":0,"uagb_excerpt":"Goods and Service Tax cannot be written off easily, as many of the politically motivated sections of the society may presume. Recently a Report of the Joint Committee […]","_links":{"self":[{"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/posts\/1289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/comments?post=1289"}],"version-history":[{"count":4,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/posts\/1289\/revisions"}],"predecessor-version":[{"id":1293,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/posts\/1289\/revisions\/1293"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/media\/576"}],"wp:attachment":[{"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/media?parent=1289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/categories?post=1289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/tags?post=1289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}