This circular provides detailed guidance on the manual filing and processing of refund claims relating to zero-rated supplies, owing to the non-availability of the refund module on the GST common portal at the relevant time.

It clarifies that registered persons making zero-rated supplies, including exports of goods or services and supplies to SEZ units or developers, are eligible to claim refund either of the integrated tax paid or of unutilized input tax credit (ITC) where supplies are made under bond or Letter of Undertaking without payment of IGST. Refund of IGST paid on export of goods is to be processed automatically based on the shipping bill, subject to filing of valid returns, while other categories of zero-rated refunds are required to be filed in FORM GST RFD-01A on the common portal and submitted manually to the jurisdictional tax officer along with prescribed documents.

The circular lays down the step-by-step procedure for receipt, scrutiny, acknowledgement, provisional refund, final sanction or rejection, and re-credit of rejected amounts. It prescribes specific timelines, manual issuance of statutory forms, maintenance of refund registers, and coordination between Central and State tax authorities for payment of sanctioned refunds. Provisional refunds are to be granted within seven days, and final orders are to be issued within sixty days from receipt of a complete application.

Overall, the circular aims to ensure uniformity, transparency and timely disposal of refund claims for zero-rated supplies during the interim period of manual processing.