Refund of taxes paid under GST : Export

Circular for Refund of taxes paid under GST regarding Export Reads:

10. Refund of taxes paid under existing laws: Sub-sections (3), (4) and (5) of section of the CGST
Act provide that refunds of tax/duty paid under the existing law shall be disposed of in accordance
with the provisions of the existing law. It is observed that certain taxpayers have applied for such
refund claims in FORM GST RFD 01A also.

In this regard, the field formations are advised to reject such applications and pass a rejection order in
FORM GST PMT 03 and communicate the same on the common portal in FORM GST RFD 01B.

The procedures laid down under the existing laws viz., Central Excise Act, 1944 and Chapter V of the
Finance Act, 1994 read with above referred sub-sections of section 142 of the CGST Act shall be
followed while processing such refund claims.

10.1 Furthermore, it has been brought to the notice of the Board that the field formations are rejecting,
withholding or re-crediting CENVAT credit, while processing claims of refund filed under the existing laws.

In this regard, attention is invited to sub-section (3) of section 142 of the CGST Act which provides that
the amount of refund arising out of such claims shall be refunded in cash. Further, the first proviso to
the said sub-section provides that where any claim for refund of CENVAT credit is fully or partially
rejected, the amount so rejected shall lapse and therefore, will not be transitioned into GST.

Furthermore, it should be ensured that no refund of the amount of CENVAT credit is granted in case the
said amount has been transitioned under GST. The field formations are advised to process such refund
applications accordingly.