Seeks to clarify procedure to claim refund in FORM GST RFD-01 subsequent to favourable order in appeal or any other forum.

Circular No.: 111/30/2019-GST
Date of Circular: 3rd October 2019
Relevant Sections and Rules:

• CGST Act, 2017:
  • Section 168(1): Power to issue instructions
• CGST Rules, 2017:
  • Rule 93: Re-credit after rejection of refund claim
• Relevant Circulars Referenced:
  • Circular No. 59/33/2018-GST dated 04.09.2018

Summary of Circular:

This circular provides a standardized procedure for filing a refund claim after a favourable order is received in appeal or any other legal forum subsequent to rejection of an earlier refund application filed in FORM GST RFD-01.

1. Re-filing Refund after Favourable Appeal Order:

• If a refund claim was rejected via RFD-06 and later allowed by an appellate or other authority, the registered person shall:
  • File a fresh refund claim under the category:
    “Refund on account of assessment/provisional assessment/appeal/any other order”.
  • No need to re-debit the amount from the electronic credit ledger again, as it was never re-credited.
  • The application must include:
    • Type and copy of appellate/order
    • Copy of original rejection order (RFD-06)
    • Other relevant documents

2. Sanctioning and Re-credit Mechanism:

• The proper officer shall:
  • Issue RFD-06 order for the refund amount allowed in appeal
  • Issue RFD-05 for the payment
  • For the balance amount rejected by appellate authority (if any), officer must re-credit it in the electronic credit ledger, subject to:
    • Compliance with conditions in Para 4.2 of Circular 59/33/2018-GST
    • Receipt of the required undertaking from the taxpayer

3. Illustration:

• Original claim: ₹100 refund of unutilized ITC
• Refund allowed by officer: ₹70; ₹30 rejected (not re-credited as appeal filed)
• Appeal outcome: ₹10 allowed; ₹20 remains rejected
• Action:
  • Fresh refund claim of ₹10 under appeal category
  • Post-sanction of ₹10, the officer re-credits ₹20 (assuming no further appeal)
  • RFD-01B to be updated with ₹80 sanctioned and ₹20 re-credited

4. Coordination Between Officers:

• If different officers handle the original and appeal-based refund claims:
  • The appeal-disposing officer must communicate with the original officer
  • Original officer shall close the ARN only after obtaining necessary undertakings

Source: Circular No.: 111/30/2019-GST