Circular No. 63/37/2018 – GST

Circular No. 63/37/2018 – GST

Circular No. 63/37/2018 – GST

F. No. 349/48/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing

New Delhi, Dated the 14th September 2018

To
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/Commissioner of Central Tax (All) / The Principal Directors General/ Directors General (All) / Pr. Chief Controller of Accounts (CBIC)

Madam/ Sir,

Subject: Clarification regarding the processing of refund claims filed by UIN entities – regarding

The Board vide Circulars No. 36/10/2018-GST dated 13th March 2018 and No. 43/17/2018- GST dated 13th April 2018 has specified the detailed procedure for filing and processing of refund applications by UIN entities (Embassy/Mission/Consulate / United Nations Organizations/Specified International Organizations). Various representations have been received on certain issues pertaining to the processing of such refund claims. In order to clarify these issues and to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in the exercise of its powers conferred under section 168 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act) hereby clarifies the said issues as below:

2. Non-compliance with the letter of reciprocity: Notifications No. 13/2017 – Integrated Tax
(Rate), 16/2017-Central Tax (Rate) and No. 16/2017 – Union Territory tax (Rate) all dated 28th June,
2017 and corresponding notifications under the respective State Goods and Services Tax Acts provide
for examination of the refund claims in accordance with the letter of reciprocity issued by the Ministry
of External Affairs (hereinafter referred to as MEA). Generally, these letters of reciprocity have certain
conditions specified on the basis of which refunds have to be processed and sanctioned. For example,
letters may specify the minimum value of goods or services or the end use of such goods or services
(official or personal purposes).

2.1 It has been observed that many UIN entities are claiming the refund on all invoices irrespective
of whether or not they are eligible for the same as per the reciprocity letter issued by MEA. It is
observed that such claims are attested/signed by Diplomats/Consulars and authorized signatories of the
Consulates or Embassies of the foreign countries.

Related Topic:
Circular No. 64/38/2018-GST

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3. UIN entities have been advised to submit a statement of invoices and hard copies of only those invoices wherein the UIN is not mentioned vide Circular No. 43/17/2018-GST dated 13th April 2018. Further, refund processing officers have been advised not to request for the original or hard copy of the invoices unless necessary. However, it is observed that the delay in processing of the UIN refunds is primarily due to the non-furnishing of the hard copy of the invoices by the UIN entities and the statement of invoices as specified in paragraph 2.1 of Circular No. 43/17/2018-GST dated 13.04.2018. It may be noted that the same is needed in order to determine the eligibility for grant of refund in accordance with the reciprocity letter issued by MEA. Further, it has been observed that in some cases, the Certificate and Undertaking submitted by the UIN entities is not in accordance with Notifications No. 13/2017 – Integrated Tax (Rate), 16/2017-Central Tax (Rate) and No. 16/2017 – Union Territory tax (Rate) all dated 28th June 2017 and corresponding notifications under the respective State Goods and Services Tax Acts.

SOURCE: CBIC, CGST Circulars