Ans. Refund has been discussed in section 38 of the MGL.
“Refund” includes refund of tax on goods and/or services
exported out of India or on inputs or input services used in
the goods and/or services which are exported out of India,
or refund of tax on the supply of goods regarded as deemed
exports, or refund of unutilized input tax credit as provided
under section 38(2).
Ans. Yes, but only in following cases as given in sub-section (2) of section 38:-
(i) Exports of goods on which export duty is not payable;
(ii) Exports of services;
(iii) Where credit has accumulated on account of rate of tax on inputs being higher than the rate of taxes on Outputs.
Ans. No (Second proviso to Section 38(2) of MGL).
Ans. No. It is proposed to be carried forward.
Ans. No. He will have to pay the appropriate tax and claim refund of the tax wrongly paid. (IGST Sec.30 and Sec.53 GST).
Ans. It will be taxed, which later on can be claimed as refund by them.
[The United Nations Organization and Consulates or Embassies are required to take a Unique Identity Number and purchases made by them will be reflected against their number in the return of outward supplies of the supplier and refunds of taxes can be granted. A separate process will be notified in the Rules.GST Sec.19 (6)].
Ans. The person concerned is required to file the
application before expiry of two years from the relevant
date, as given in the explanation to section 38 of MGL.
Ans. Yes, except in cases of exports and refund of unutilized ITC as referred to in sub-section (2) of section 38 (also refer to question no. 2 above).
Ans. Yes, however, the amount so determined shall be credited to the Consumer Welfare Fund.
Ans. Yes, it is 90 days in all cases, excepting in a case
where the refund to the extent of 80% of the total amount
claimed is refundable to certain categories of exporters
referred to in sub-section (4A) of section 38. If refund is
not sanctioned within the period of three months, interest
will have to be paid by the department.
Ans. Yes, refund can be withheld in the following circumstances:
• If the registered dealer has not submitted return(s), till he files the return(s);
• If the registered taxable person is required to pay any tax, interest or penalty which has not been stayed by the appellate authority/Tribunal/court, till he pays such tax interest or penalty;[The proper officer can also deduct unpaid taxes if any of the dealer from the refundable amount].
• Commissioner/Board can withhold refund, if,the Order of Refund is under appeal and he is of the opinion that grant of such refund will adversely affect revenue - (Sec.38(9) of MGL).
Ans. If as a result of appeal or further proceeding the taxable person becomes entitled to refund then he shall be also entitled to interest.
Ans. No refund shall be granted if the amount is less that Rs.1000/-. (Sec.38 (11) of MGL)
Ans. The refund arising out of earlier law will be paid as per the earlier law and will be paid in cash (under CGST) or as per the provisions of the earlier law (under SGST) and will not be available as ITC (Section 156, 157 and 158 of MGL).
Ans. For export refunds to notified category of dealers, 80% refund can be granted before verification subject to such conditions and restrictions as may be prescribed – section 38(4A).
Ans. Since the exporter has a time period of one year from the date of export for remitting of export proceeds, BRC may not be available at the time of refund application.But if export proceeds are received in advance BRC may be available. Thus, refund should be subject to submission of BRC details within a period of maximum one year or as extended by RBI. e-BRC module of DGFT will be integrated with GST module.
However for export of services BRC would be required before sanction of refund.
Ans. The principle of unjust enrichment is not applicable in case of actual exports of goods or services as the recipient is located outside the taxable territory. However, in case of deemed exports it will be applicable.
Ans. The person concerned may furnish together with the application such document(s) or evidence(s) to establish that the amount of tax and interest, if any, paid on such tax or any other amount paid in relation to which such refund is claimed was not passed on by him to any other person – section 38(3)(b).
Further, to provide relief to taxpayers the above sub-section also provides that where the refund amount, as claimed, is less than Rs 5 lakh a self-declaration will only be required.
Ans. No, there will be no such provision in GST. They will have to purchase goods upon payment of tax and claim refund of the accumulated ITC as discussed in section 38(2).
Ans. Under the GST regime exports will be zero rated which means that the export goods would not suffer any actual tax liability although inputs for such exports would be tax paid. Under GST, refund will be allowable on the accumulated inputs as well as on exported finished goods.