This circular provides clarifications on the manual filing and processing of refund claims under GST in view of the non-availability of the refund module on the common portal.

It clarifies that refund claims relating to inverted duty structure, deemed exports, and excess balance in the electronic cash ledger are to be filed and processed manually until further orders. The procedure prescribed under Circular No. 17/17/2017-GST is made applicable to these categories of refunds, as it is consistent with the CGST Act and Rules.

Refund applications are required to be filed in FORM GST RFD-01A, generally on a monthly basis. However, taxpayers with aggregate turnover up to ₹1.5 crore who are eligible to file GSTR-1 quarterly may also apply for refunds on a quarterly basis. Filing of refund claims is permitted only after furnishing FORM GSTR-1 for the relevant period and after filing a valid FORM GSTR-3B for the preceding tax period. Pending finalisation of GSTR-2 and GSTR-3 for the initial GST period, provisional refunds of input tax credit may be sanctioned, subject to an undertaking by the applicant to repay the amount with interest if found ineligible later.

The circular prescribes specific statements and documentary requirements for refunds arising from inverted duty structure and deemed exports, including mandatory undertakings from suppliers or recipients, as applicable. It also lays down the procedure for re-credit of rejected refund amounts, inter-authority coordination between Central and State tax officers, timelines for sanction and payment of refunds, and nomination of nodal officers to ensure smooth processing and disbursement of refund amounts.