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instruction No. 03/2022.

Date: June 14, 2022
Subject: Procedure relating to sanction, post-audit and review of GST refund claims
Description:

This instruction lays down uniform procedures for sanction, post-audit, and review of GST refund claims to ensure consistency and effective revenue monitoring. It mandates issuance of a detailed speaking order in all refund sanctions through FORM GST RFD-06, even where refunds are fully sanctioned, outlining verification, findings, and legal basis. Comprehensive checklists are prescribed for different refund categories, including zero-rated supplies, inverted duty structure, deemed exports, excess cash balance, and other refunds. The instruction clarifies that pre-audit of refund claims is not required, but post-audit may be conducted for refund claims of ₹1 lakh or more. Timelines are prescribed for completion of post-audit and review, with provision for creation of a dedicated Post-Audit Cell. All refund orders are required to be reviewed under Section 107(2) of the CGST Act within stipulated time limits to ensure legality and propriety.

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