CBIC vide Circular No 147/03/2021- GST dated 12th March 2021 clarifies some refund related Issues

  • Clarification in respect of refund claim by recipient of Deemed Export Supply

Para 41 of Circular No. 125/44/2019 – GST dated 18/11/2019 stipulates that the recipient of deemed export supplies for obtaining the refund of tax paid on such supplies shall submit an undertaking that he has not availed ITC on invoices for which refund has been claimed but when they proceed to file refund on the portal, the system requires them to debit the amount so claimed from their electronic credit ledger.

Now, vide para 2 of this circular, the para 41 of above aforesaid circular No. 125/44/2019-GST dated 18.11.2019 is modified to remove the restriction of non-availment of ITC by the recipient of deemed export supplies on the invoices, for which refund has been claimed by such recipient. Now recipient claiming refund of deemed export can claim ITC and then subsequently proceed for its refund thereof.

  • Extension of relaxation for filing refund claim in cases where zero-rated supplies has been wrongly declared in Table 3.1(a).

A validation check has been placed on common portal which prevented the value of refund of IGST/ Cess declared in FORM GST RFD 01 A from being more than the amount of integrated tax/ Cess declared in table 3.1 (b) of FORM GSTR-3B. However, in various cases, the taxpayers had inadvertently entered the details of export of services or zero-rated supplies to SEZ Unit/developer in Table 3.1 (a) instead of Table 3.1 (b) of GSTR-3B.

Through this circular, relaxation in filing of refund claims as provided in para 26 of Circular No. 125/44/2019-GST dated 18th November 2019 has been extended uptill 31.03.2021.

  • Manner of Calculation of Adjusted Total Turnover under sub-rule (4) of Rule 89 of CGST Rules, 2017.

CBIC vide Notification No. 16/2020-Central Tax dated 23.03.2020 imposed a restriction that the turnover of zero-rated supply of goods shall not exceed 1.5 times the value of like goods domestically supplied by the same or, similarly placed supplier, as declared by the supplier. Now, the doubts had been raised it would also apply for computation of “Adjusted Total Turnover” in the refund formula.

CBIC vide this circular has clarified that for the purpose of Rule 89(4), value of export/zero-rated supply of goods to be included while calculating “adjusted total turnover” will be same as being determined as per amended definition of “Turnover of zero-rated supply of goods” in the said sub-rule. The restriction of 150% of the value of like goods domestically supplied, as applied in “turnover of zero-rated supply of goods”, would also apply to the value of “Adjusted Total Turnover” in Rule 89 (4).

For more details, Read the Circular from the Link below:

PDF Version is attached: CBIC vide circular no. 147_03 dated 12th March 2021 clarifies some refund issues


This document has been prepared in summary form by Dewan P. N. Chopra & Co. based on the Circular issued by CBIC as indicated above. For further details, please refer the said Judgement as per link attached above. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of such information. Reader should conduct and rely upon their own examination, investigation and analysis and are advised to seek their own professional advice. The information and data contained herein is not a substitute for the reader’s independent evaluation and analysis. This document is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies on it.


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