Key highlights for refunds

Circular 135/05/2020 notified on 31st March 2020:

Key highlights for refunds :

1) Now refund for excess tax paid, tax deposited in wrong head or tax to be refunded due to appeal or assessment or orders can be applied by RFD-01.

2) The refund can be clubbed and claimed across different financial years

3) Refund now would not be entirely paid in cash ( except on export or zero-rated supply ), it would be credited in a mode in which original tax was paid i.e if credit was used, then the amount would be refunded in electronic credit ledger ( order in PMT-03) if cash paid, they would be refunded in cash ( vide order in RFD-06)

4) The refund can now be claimed for invoices uploaded in 2A ( no clarity on facts that an additional 10 percent of 2A can be claimed or not ).

5) Inverted duty structure tax can’t be refunded if inputs were earlier taxed at a high rate and now the tax on input and output is the same .

6) HSN/ SAC field now has been inserted in Annexure B of RFD-01, so that it can be identified whether ITC on capital goods or inputs is claimed, as in some cases ITC of capital goods is not allowed.