Summary of Circular:
Doubts
have been raised in respect of processing of a refund application by a
jurisdictional tax authority to whom the application has been electronically
transferred by the common portal in cases where the said tax authority is not
the one to which the taxpayer has been administratively assigned.
It
has been reported by the field formations that administrative assignment of
some of the tax payers to the Central or the State tax authority has not been
updated on the common portal.
For
example, a tax payer M/s XYZ Ltd. was administratively assigned to the Central
tax authority but was mapped to the State tax authority on the common portal.
The
refund application was transferred by the common portal to the proper officer
of the State tax authority despite M/s XYZ Ltd. being administratively assigned
to the Central tax authority
the
proper officer of the State tax authority should electronically re-assign the
said application to the designated jurisdictional proper officer. It has,
however, been reported that the said re-assignment facility is not yet available
on the common portal.
Clarification:
where reassignment of refund applications
to the correct jurisdictional tax authority is not possible on the common
portal, the processing of the refund claim should not be held up and it should
be processed by the tax authority to whom the refund application has been
electronically transferred by the common portal. After the processing of the
refund application is complete, the refund processing authority may inform the
common portal about the incorrect mapping with a request to update it suitably
on the common portal so that all subsequent refund applications are transferred
to the correct jurisdictional tax authority
Download original circular
in pdf: Click here
Details of Circular:
Subject: Processing of refund applications in FORM GST RFD-01A
submitted by taxpayers wrongly mapped on the common portal – reg.
Doubts have been raised in respect of processing of a refund
application by a jurisdictional tax authority (either Centre or State) to whom
the application has been electronically transferred by the common portal in
cases where the said tax authority is not the one to which the taxpayer has
been administratively assigned. The matter has been examined. In order to
ensure uniformity in the implementation of the provisions of the law across
field formations, the Board, in exercise of its powers conferred by section 168
(1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as
“CGST Act”), hereby clarifies the issues in succeeding paras.
2. It has been reported by the field formations that
administrative assignment of some of the tax payers to the Central or the State
tax authority has not been updated on the common portal in accordance with the
decision taken by the respective tax authorities, in pursuance of the
guidelines issued by the GST Council Secretariat, vide Circular No. 01/2017
dated 20.09.2017, regarding division of taxpayer base between the Centre and
States to ensure Single Interface under GST. For example, a tax payer M/s XYZ
Ltd. was administratively assigned to the Central tax authority but was mapped
to the State tax authority on the common portal.
3. Prior to 31.12.2018, refund applications were being
processed only after submission of printed copies of FORM GST RFD 01A in the
respective jurisdictional tax offices. Subsequent to the issuance of Circular
No.79/53/2018-GST dated 31.12.2018, copies of refund applications are no longer
required to be submitted physically in the jurisdictional tax office. Now, the
common portal forwards the refund applications submitted on the said portal to
the jurisdictional proper officer of the tax authority to whom the taxpayer has
been administratively assigned. In case of the example cited in para 2 above,
as the applicant was wrongly mapped with the State tax authority on the common
portal, the application was transferred by the common portal to the proper
officer of the State tax authority despite M/s XYZ Ltd. being administratively
assigned to the Central tax authority. As per para 2(e) of Circular No.
79/53/2018-GST dated 31.12.2018, the proper officer of the State tax authority
should electronically re-assign the said application to the designated
jurisdictional proper officer. It has, however, been reported that the said
re-assignment facility is not yet available on the common portal.
4. Doubts have been raised as to whether, in such cases,
application for refund can at all be processed by the proper officer of the
State tax authority or the Central tax authority to whom the refund application
has been wrongly transferred by the common portal.
5. The matter has been examined and it is clarified that in
such cases, where reassignment of refund applications to the correct
jurisdictional tax authority is not possible on the common portal, the
processing of the refund claim should not be held up and it should be processed
by the tax authority to whom the refund application has been electronically
transferred by the common portal. After the processing of the refund
application is complete, the refund processing authority may inform the common
portal about the incorrect mapping with a request to update it suitably on the
common portal so that all subsequent refund applications are transferred to the
correct jurisdictional tax authority.
6. It is requested that suitable trade notices may be issued
to publicize the contents of this Circular.
Author:
Gourav Kapoor
Founder,
Author:
Gourav Kapoor
Founder,
CA Passion
Post a Comment
Please do not enter any spam link in the comment box.