The Central Board of Indirect Taxes and Customs (CBIC) has laid down new guidelines regarding sanction, post-audit, and review of GST refund claims.
Distinct practices are adopted by field formations in the case of review and post-audit. The new procedures are being laid out to bring uniformity to the system and also to effectively monitor the sanction of refund claims to safeguard the interest of revenue.
In this article, we will touch upon important changes that CBIC established in accordance with the new circular. <<The link to the full circular PDF will be attached below>>.
- Sanction Order: As per the circular, the proper officer needs to upload a detailed ‘speaking order’ along with the refund sanction order while passing the refund sanction order in Form GST RFD-06.
- Post-audit and Review: Refund claims shall not be subjected to pre-audit. However, the post-audit of refund claims may continue. It has been decided that post-audit may henceforth be conducted only for refund claims amounting to Rs. 1 Lakh or more till further instructions.
The following are the guidelines for post-audit and review of refund claims:
2. To undertake the post-audit of a refund order, a Post-Audit Cell under a Deputy/Assistant Commissioner along with superintendents and inspectors may be created in Commissionerate Headquarters.
3. Post audit to be concluded and findings be communicated within 3 months from the date of issuance of RFD-06 order.
4. The review of the refund order has to be concluded at least 30 days before the expiry of the time limit for filing of appeal under section 107(2) of the CGST Act.
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