Clarification regarding processing of refund claims filed by UIN entitles

Circular No.: 63/37/2018-GST
Date of Circular: 14th September 2018
Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 168(1): Power to issue instructions
• Relevant Notifications:
  • Notification No. 13/2017-Integrated Tax (Rate)
  • Notification No. 16/2017-Central Tax (Rate)
  • Notification No. 16/2017-Union Territory Tax (Rate)
  • Corresponding notifications under State GST Acts

Summary of Circular:

This circular provides additional clarifications for processing GST refund claims filed by UIN entities (Embassies, Consulates, UN bodies, and specified international organizations), and aims to improve consistency and reduce delays in sanctioning such refunds.

1. Refund Eligibility to be Based on Reciprocity Conditions:
   Refund eligibility must adhere strictly to the reciprocity letters issued by the Ministry of External Affairs (MEA), which may specify:
   • Minimum invoice values
   • End-use restrictions (official or personal)
     Refunds claimed by UIN entities not in accordance with these letters should be denied even if the claim is certified by diplomatic officials.
2. Required Documentation for Refund Processing:
   UIN entities must submit:
   • Statement of invoices (in prescribed format)
   • Hard copies of invoices only where UIN is not mentioned
   • Certificate and Undertaking in formats compliant with above notifications
     Delays are mainly due to non-submission of these documents.
3. New Standardized Documentation Formats Prescribed:
   The circular prescribes the following formats:
   • Annexure A: Refund checklist
   • Annexure B/B-1: Certificate (for Embassies/UN bodies)
   • Annexure C/C-1: Undertaking (for Embassies/UN bodies)
   • Annexure D: Invoice statement
   • Annexure E: Format for monthly report by GST field formations
4. Prior Permission Letter for Vehicle Purchases:
   For vehicle-related refund claims, UIN entities must submit a copy of the Prior Permission Letter from MEA Protocol Division along with their refund application to avoid delays.
5. Ineligibility of Refund for UN/International Personnel:
   Officials of UN and international organizations are not entitled to refunds in their personal capacity under the cited notifications.
   Only personnel attached to Embassies/Consulates may be eligible, subject to reciprocity.
6. Waiver for UIN on Invoices (April 2018–March 2019):
   A one-time waiver is granted for missing UIN on invoices issued between April 2018 and March 2019, provided:
   • Attested copies of such invoices are submitted to the jurisdictional officer.
7. Revised Monthly Reporting Format:
   Field offices must submit a revised monthly report (Annexure E) to DG-GST by the 30th of each succeeding month for UIN refunds processed.

Source: Circular No.: 63/37/2018-GST