Enmiendas y aclaraciones relacionadas con las devoluciones bajo el GST | 47.ª reunión del Consejo de GST

The (Goods and Service Tax) GST Council met for the 47th time on June 28th and 29th, 2022, and was chaired by the Union Finance Minister. In the 47th GST Council meeting, Major decisions were taken around the revision of GST rates on various goods to rationalize an inverted duty structure. GST Rates were also reduced on certain medical instruments such as Ostomy appliances, Orthopedic appliances, etc., and various other services also. GST Council also provided relaxations to suppliers dealing through e-commerce platforms, dealers opted for composition schemes, etc.

Among all the recommendations, GST Council discussed various issues related to GST refunds faced by the industry and came up with various recommendations and clarifications to ensure the smooth release of refunds to the exporters.

In this article, a detailed discussion is made about amendments made by GST Council on various refund-related issues

1. Extension of Period of Limitation for GST refund (N/No. 13/2022 dated 05.07.2022)

• Hon’ble Apex Court excluded a period of appx. 2 years for counting of a period of limitation under all statutes due to lockdowns. However, CBIC clarified that such a period shall not be excluded while counting the period of limitation for refund.
• An assessee has 2 years to file a refund application from the relevant date.
• Due to lockdown, taxpayers could not file refund applications within the time period permitted under GST law and consequently, their refund claims got time-barred.
• Considering the hardship done to exports due to genuine problems, GST council recommended certain periods to be excluded while counting periods of limitation.
• As suggested by GST Council, CBIC made following extension by N/No. 13/2022 dated 05.07.2022:

a. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for a reason other than fraud u/s 73:

b. For filing refunds application u/s 54 and 55, while computing the period of limitation, the period from 1st March 2020 to 28th Feb 2022 shall be excluded.

2. Central Goods and Service Tax (Amendment) Rules, 2022 (N/No. 14/2022–Central Tax dated 05.07.2022)

2.1 Recredit of erroneously sanctioned refund amount when same is deposited with interest and penalty

• The refund amount claimed by the taxpayer gets debited in his electronic credit ledger.
• However, if any refund amount is granted erroneously to the taxpayer then the assessee is required to deposit the same with interest and penalty through the filing of GST DRC-03 by debiting an electronic cash ledger.
• Upon deposition, an amount equivalent to the amount of erroneous refund deposited by the registered person shall be re-credited to the electronic credit ledger through an order made in FORM GST PMT-03A.

2.2 Additional Ground of withholding refund under Rule 96

• Rule 96(4) provides the following 2 grounds for withholding refund of IGST claimed with respect to the export of goods on payment of IGST:
  • Where a refund is claimed u/s 54(10), i.e., Where any refund is due to a registered person who has defaulted in furnishing any return or who is required to pay any tax, interest, or penalty or refund is claimed u/s 54(11), i.e., where order giving rise to refund is the subject matter of appeal or further proceedings.
  • Where custom officers determine that goods were exported in violation of custom provisions.

• CGST Amendment Rules provide for an additional ground of withholding refund where the proper officer, on the basis of data analysis and risk parameters, is of the opinion that verification of credentials of the exporter and ITC availed is essential before granting of refund to safeguard the interest of revenue.

• Accordingly, whenever a proper officer has reasons to believe that exporter has not availed valid ITC then he may withhold a refund under Rule 96(4).

2.3 Refund withheld under Rule 96 to be dealt with in accordance with Rule 89 (Alert Cases)

• Rule 96(4) provides power to withhold refund claimed with respect to IGST paid on export of goods in case of risky exporters or where goods are exported in violation of custom provisions.
• Till now, with respect to the refund withheld, the customs officer was liable to send an intimation to the applicant and jurisdictional commissioner about holding of refund and Where the applicant becomes entitled to refund of the amount withheld, the concerned jurisdictional officer shall proceed to refund the amount.
• Now provisions of Rule 96 have been amended to provide that where a refund is withheld, the proper officer shall transmit such claim to the jurisdictional officer electronically in Form GST RFD-01, and intimation about such transmission shall also be sent to the exporter.
• Such a system-generated form shall be considered as an application for refund and shall be handled in accordance with provisions of Rule 89.

2.4 Other Changes

1. Refund shall be permitted in case of export of electricity and for the purpose of claiming a refund, the person is required to submit a statement containing the number and date of the export invoices, details of energy exported, tariff per unit, and other specified documents.

Application for refund will be filed under the “Any Other” category electronically in FORM GST RFD-01, on the portal. In the remark column of the application, the taxpayer would enter “Export of electricity- without payment of tax (accumulated ITC)”. At this stage, the applicant is not required to make any debit from the electronic credit ledger.

The procedure of claiming a refund is clarified in detail vide Circular No. 175/07/2022-GST dated 6th July 2022.

2. Para conceder la devolución por exportación de bienes sin pago de GST, el valor de los bienes exportados será el menor de los siguientes importes:
   • Valor FOB declarado en la declaración de embarque o
   • Valor declarado en la factura fiscal o factura de suministro

3. Aclaración sobre la devolución con respecto a los suministros considerados como "Exportación presunta"

Problema: 1

• El GST pagado en una exportación presunta es elegible para devolución y dicha devolución puede ser solicitada tanto por el proveedor como por el receptor de la exportación presunta.
• El receptor tiene derecho a solicitar la devolución con respecto a la exportación presunta, siempre que no haya utilizado el ITC de dichos suministros internos.
• Sin embargo, los receptores enfrentaban dificultades para solicitar la devolución, ya que el sistema debitaba el importe de la devolución en el Libro Mayor de Crédito Electrónico, a pesar de que dicho importe nunca se había acreditado en él.
• Para superar las limitaciones técnicas, la CBIC aclaró mediante la circular n.º 147/03/2021-GST del 12.03.2021 que el receptor puede reclamar el ITC del impuesto pagado en la exportación presunta para permitirle solicitar la devolución en el portal de GST.
• Ahora, ha surgido la cuestión de si dicho ITC reclamado por el receptor con respecto a la exportación presunta está sujeto a las disposiciones de la Sección 17 de la Ley CGST de 2017(Distribución de crédito y créditos bloqueados)

Clarification

• El Departamento ha aclarado que dicho ITC se ha puesto a disposición del receptor únicamente para permitirle solicitar la devolución en el portal y no constituye un ITC según las disposiciones del Capítulo V de la Ley CGST de 2017.
• En consecuencia, dicho ITC no estará sujeto a las disposiciones de la Sección 17 de la Ley CGST.

Problema: 2

• Cuando se solicita la devolución del ITC debido a una exportación realizada sin pago de IGST o una devolución solicitada bajo una estructura de impuestos invertida, se debe calcular el "ITC neto" para determinar el importe de devolución elegible.
• La fórmula para calcular el ITC neto y el importe de devolución elegible se establece en las Reglas 89(4) y 89(5) de las Reglas CGST.
• Ahora, ha surgido la cuestión de si el ITC utilizado por el receptor con respecto a la exportación presunta debe incluirse en el "ITC neto" para el cálculo de la devolución bajo las Reglas 89(4) y (5) de las Reglas CGST.

Clarification:

• La CBIC ha aclarado que dicho ITC reclamado por exportación presunta no es un ITC según la Sección 17 de la Ley CGST de 2017.
• Por lo tanto, dicho ITC utilizado por el receptor no debe incluirse en el "ITC neto" para el cálculo de la devolución de ITC bajo la regla 89(4) o la regla 89(5) de las Reglas CGST de 2017.

4. Se permite la devolución bajo una estructura de impuestos invertida debido a la tasa concesional de GST sobre la producción

• Mediante el párrafo 3.2 de la Circular n.º 135/05/2020-GST del 31.03.2020, se aclaró que la devolución por estructura de impuestos invertida no sería admisible en casos donde el suministro de entrada y salida sea el mismo.
• Sin embargo, el departamento ha aclarado que la intención de esta circular no era cubrir suministros donde el proveedor realiza el suministro de bienes bajo una notificación de concesión y la tasa de suministro de salida es menor que la tasa de suministro de entrada (de los mismos bienes) en el mismo momento debido a dicha notificación.
• Por lo tanto, la devolución bajo la estructura de impuestos invertida se permitirá cuando el ITC se acumule porque la tasa de GST sobre el suministro externo de los mismos bienes es menor que el ITC sobre los suministros internos debido a una notificación de concesión.