This circular provides clarifications on multiple refund-related issues under GST to ensure uniform implementation and to address difficulties faced by taxpayers.

The circular clarifies that in cases where accumulated input tax credit (ITC) required to be lapsed under Notification No. 20/2018–Central Tax (Rate) has already been reversed through FORM GSTR-3B, refund of unutilized ITC on account of inverted tax structure for the same period may be claimed as a one-time measure under the category “Any Other” in FORM GST RFD-01A. The proper officer is required to calculate the admissible refund and ask the taxpayer to debit the eligible amount through FORM GST DRC-03 before sanction.

It is further clarified that taxpayers who have not yet reversed the lapsed ITC may do so through FORM GST DRC-03 instead of GSTR-3B. Where reversal is done after the due date, interest is payable, but refund eligibility from 1 August 2018 remains intact after reversal and payment of interest.

For merchant exporters who have received supplies from suppliers availing concessional rate benefits, refund of ITC is to be claimed under the “Any Other” category, following the prescribed procedure.

The circular also clarifies the procedure for re-submission of refund applications after issuance of deficiency memos, stating that corrected applications should be filed using the same ARN and processed after debit through FORM GST DRC-03.

These clarifications aim to resolve procedural bottlenecks and facilitate timely grant of GST refunds.