This circular provides clarification on the procedure to be followed by a registered person for claiming refund in cases where a refund application was earlier rejected and subsequently allowed by an appellate authority or any other forum.

The circular explains that appeals against rejection of refund claims are presently handled offline and, as per Rule 93 of the CGST Rules, any amount debited from the electronic credit ledger at the time of filing the original refund claim is not re-credited until the appeal is finally decided. Consequently, the rejected amount continues to remain debited during the pendency of appeal.

Where a registered person receives a favourable order in appeal or any other forum against rejection of refund (originally rejected through FORM GST RFD-06), the person is required to file a fresh refund application in FORM GST RFD-01 under the category “Refund on account of assessment/provisional assessment/appeal/any other order.” Since the credit was not re-credited earlier, no fresh debit from the electronic credit ledger is required while filing this application. Relevant details of the order and supporting documents must be uploaded along with the application.

Upon receipt of such application, the proper officer shall sanction the refund amount allowed by the appellate or other authority and issue the refund order and payment order accordingly. Any portion of the claim finally rejected is required to be re-credited to the electronic credit ledger, subject to prescribed safeguards.

The clarification aims to ensure a uniform and clear procedure for refund claims arising out of appellate or judicial relief.