GST Refund Claim - By Order

Prior to understanding the procedure to claim a GST refund, first of all, let us know the flow of activity and applicability for refund procedure. The following narrates the relevant flow of activity:

The applicant shall file the initial refund application, Form GST RFD-01.
The department shall mention the rejected refund application through order in the Form GST RFD-06.
The applicant can prefer to appeal against the said rejection order.
Against the said appeal, the applicant may receive favourable order in appeal or any other forum.

Upon receiving the favourable order, the Trade and Industries requested clarifications regarding the refund amount. The clarification mentioned the procedure for claiming refund amount subsequent to the favourable order. After receiving feedback, the Central Board of Indirect Taxes and Customs (CBIC) issued clarification through Circular No.111/30/2019 on 3rd October 2019. The clarification mentioned the procedure for claiming refund amount subsequent to the favourable order.

For Post Receipt of Favourable Refund Order

If the applicant appealed against the refund rejection order and received a favourable order shall follow the below-mentioned procedure:

The applicant shall furnish a fresh refund application.
The applicant shall file the fresh refund application under the category ‘Refund on account of assessment, provisional assessment, appeal or any other order’.
The amount allowed in an appeal shall display claimed as refund amount under the fresh refund application.
The applicant shall provide the following details:
- Type of the order (i.e. appeal or any other order);
- Order number;
- Order date; and
- The order issuing authority
The applicant shall upload a copy of the following documents:
- Copy of the order of the Appellate Authority or other authority;
- Copy of refund rejection order in Form GST RFD-06 or such other order against which the appeal was preferred; and
- Other relevant documents.

Action to be taken by the Proper Officer

On receipt of the fresh refund application, the officer would sanction the refund amount as allowed in appeal or any other forum.
The officer shall make an order in Form GST RFD-06.
The proper officer shall issue the payment order in Form GST RFD-05.
The proper officer shall also ensure the re-credit amount which remains rejected in the order of the appellate authority or any other authority.

Illustration for Better Understanding

For a better understanding of the circular, the following shall illustrate the procedure:

Assuming the applicant filed a refund application for INR 100.
The officer allowed INR 70 and rejected INR 30 out of the said refund application.
The applicant preferred an appeal against the rejected INR 30.
Out of the appeal of INR 30, the appellate authority allowed refund of INR 10 (i.e. applicant received a favourable order for INR 10) and rejected INR 20.
For the said allowed refund of INR 10, the applicant shall file a fresh refund application under the category ‘Refund on account of assessment, provisional assessment, appeal or any other order’.
For the remaining rejected INR 20, if no further appeal is preferred, then, the applicant is required to re-credit INR 20.

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Frequently Asked Questions

Common questions about GST Refund Claim Process: Favourable Orders Procedure.

The applicant needs to file a fresh refund application under the category 'Refund on account of assessment, provisional assessment, appeal or any other order'. The allowed refund amount should be claimed in this fresh application, along with details like the type of order, order number, date, and issuing authority. Relevant documents like a copy of the favourable order and the previous refund rejection order must also be uploaded.

Upon receiving the fresh refund application, the proper officer will sanction the refund amount as allowed in the appeal or other favourable order. The officer will issue an order in Form GST RFD-06 and a payment order in Form GST RFD-05. The officer must also ensure that any amount remaining rejected by the appellate authority or other forum is re-credited.

The refund amount to be claimed in the fresh refund application should be the amount allowed in the favourable appeal order or any other order received by the applicant. Any amount that remains rejected in the order of the appellate authority or other forum must be re-credited by the applicant.

In the fresh refund application, the applicant must provide details like the type of order (appeal or any other order), the order number, the order date, and the order issuing authority. The applicant must also upload a copy of the favourable order, the previous refund rejection order, and any other relevant documents.

The circular issued by the Central Board of Indirect Taxes and Customs (CBIC) on 3rd October 2019 (Circular No. 111/30/2019) clarifies the procedure for claiming a refund amount subsequent to receiving a favourable order in an appeal or any other forum, after the initial refund application was rejected.

Any amount that remains rejected by the appellate authority or other forum, after the favourable order, must be re-credited by the applicant. The proper officer will ensure that this remaining rejected amount is re-credited.

No, the applicant cannot file a single refund application for both the allowed refund amount and the remaining rejected amount. The allowed refund amount should be claimed in a fresh refund application under the category 'Refund on account of assessment, provisional assessment, appeal or any other order'. The remaining rejected amount, if no further appeal is preferred, must be re-credited by the applicant.

The applicant must provide a copy of the previous refund rejection order (Form GST RFD-06 or any other order) along with the fresh refund application. This is required to establish the context and background of the case, as the fresh application is being filed subsequent to receiving a favourable order in an appeal or other forum against the initial refund rejection.

No, the applicant cannot claim the entire initially rejected refund amount in the fresh refund application. The applicant can only claim the amount that has been allowed in the favourable appeal order or any other order received subsequent to the initial refund rejection. Any remaining rejected amount must be re-credited by the applicant.

Providing details like the type of order (appeal or any other order), order number, date, and issuing authority in the fresh refund application is crucial. These details help the proper officer identify and verify the specific favourable order based on which the refund amount is being claimed. It also establishes the validity and context of the fresh refund claim.