Section-48. Refund of tax
(1) Any person claiming refund of any
tax and interest, if any, paid on such tax or
any other amount paid by him, may
make an application in that regard to the
proper officer of IGST/CGST/SGST
before the expiry of two years from the
relevant date in such form and in
such manner as may be prescribed:
PROVIDED that a registered taxable
person, claiming refund of any balance in the
electronic cash ledger as per
sub-section (6) of section 44, may claim such refund in
the return furnished under section 34
in such manner as may be prescribed.
(2) A specialized agency of the
United Nations Organization or any Multilateral
Financial Institution and
Organization notified under the United Nations
(Privileges and Immunities) Act, 1947
(46 of 1947), Consulate or Embassy of
foreign countries or any other person
or class of persons as notified under section
49, entitled to a refund of
IGST/CGST/SGST paid by it/him on inward supplies of
goods and/or services, may make an
application for such refund to the proper
officer, in the form and manner
prescribed, before the expiry of sixth months
from the last day of the month in
which such supply was received.
(3) Subject to the provisions of
sub-section (10), a taxable person may claim refund
of any unutilized input tax credit at
the end of any tax period:
PROVIDED that no refund of unutilized
input tax credit shall be allowed in cases
other than exports including zero
rated supplies or in cases where the credit has
accumulated on account of rate of tax
on inputs being higher than the rate of tax on
output supplies, other than nil rated
or fully exempt supplies:
PROVIDED FURTHER that no refund of
unutilized input tax credit shall be allowed in
cases where the goods exported out of
India are subjected to export duty:
PROVIDED ALSO that no refund of input
tax credit shall be allowed if the supplier of
goods or services claims refund of
output tax paid under the IGST Act, 2016.
(4) The application shall be
accompanied by—
(a) such documentary evidence as may
be prescribed to establish that a refund is
due to the applicant, and
(b) such documentary or other
evidence (including the documents referred to in
section 30) as the applicant may
furnish to establish that the amount of tax and
interest, if any, paid on such tax or
any other amount paid in relation to which
such refund is claimed was collected
from, or paid by, him and the incidence of
such tax and interest had not been
passed on to any other person:
PROVIDED that where the amount
claimed as refund is less than five lac rupees, it
shall not be necessary for the
applicant to furnish any documentary and other
evidences and instead, he may file a
declaration, based on the documentary or other
evidences available with him,
certifying that the incidence of such tax and interest
had not been passed on to any other
person.
(5) If, on receipt of any such
application, the proper officer is satisfied that the whole
or part of the amount claimed as
refund is refundable, he may make an order
accordingly and the amount so
determined shall be credited to the Fund.
(6) Notwithstanding anything
contained in sub-section (5), the proper officer may, in
the case of any claim for refund on
account of export of goods and/or services
made by registered taxable persons,
other than such category of registered
taxable persons as may be notified in
this behalf, refund on a provisional basis,
ninety percent. of the total amount
so claimed, excluding the amount of input tax
credit provisionally accepted, in the
manner and subject to such conditions,
limitations and safeguards as may be
prescribed and thereafter make an order
under sub-section (5) for final
settlement of the refund claim after due
verification of documents furnished
by the applicant.
(7) The proper officer shall issue
the order under sub-section (5) within sixty days
from the date of receipt of
application.
Explanation.- The “application” for the purpose of this sub-section
shall mean
complete application containing all
information as may be prescribed.
(8) Notwithstanding anything
contained in sub-section (5) or sub-section (6), the
refundable amount shall, instead of
being credited to the Fund, be paid to the
applicant, if such amount is
relatable to –
(a) refund of tax on goods and/or
services exported out of India or on inputs or input
services used in the goods and/or
services which are exported out of India;
(b) refund of unutilized input tax
credit under sub-section (3);
(c) refund of tax paid on a supply
which is not provided, either wholly or partially,
and for which invoice has not been
issued;
(d) refund of tax in pursuance of
section 70 ;
(e) the tax and interest, if any, or
any other amount paid by the applicant, if he had
not passed on the incidence of such
tax and interest to any other person; or
(f) the tax or interest borne by such
other class of applicants as the Central or a
State Government may, on the
recommendation of the Council, by notification,
specify.
(9) Notwithstanding anything to the
contrary contained in any judgment, decree,
order or direction of the Appellate
Tribunal or any Court or in any other
provision of this Act or the rules
made thereunder or in any other law for the time
being in force, no refund shall be
made except as provided in sub-section (8).
(10) Notwithstanding anything
contained in sub-section (3), where any refund
is due under the said sub-section to
a registered taxable person who has
defaulted in furnishing any return or
who is required to pay any tax, interest or
penalty, which has not been stayed by
any Court, Tribunal or Appellate Authority
by the specified date, the proper
officer may—
(a) withhold payment of refund due
until the said person has furnished the return or
paid the tax, interest or penalty, as
the case may be;
(b) deduct from the refund due, any tax,
interest, penalty, fee or any other amount
which the taxable person is liable to
pay but which remains unpaid under the Act
or under any earlier law.
Explanation.- For the purposes of this sub-section, the expression
“specified date”
shall mean—
(a) the last date for filing an
appeal under this Act, in a case where no appeal has
been filed; or
(b) thirty days from the date of
filing an appeal under this Act, in a case where an
appeal has been filed.
(11) Notwithstanding anything
contained in sub-section (5) or sub-section (6),
where an order giving rise to a
refund is the subject matter of an appeal or
further proceeding or where any other
proceeding under this Act is pending and
the Commissioner is of the opinion
that grant of such refund is likely to adversely
affect the revenue in the said appeal
or other proceeding on account of
malfeasance or fraud committed, he
may, after giving the taxable person an
opportunity of being heard, withhold
the refund till such time as he may
determine.
(12) Where a refund is withheld under
sub-section (11), the taxable person
shall be entitled to interest as
provided under section 50, if as a result of the
appeal or further proceeding he
becomes entitled to refund.
(13) Notwithstanding anything to the
contrary contained in this section, the
amount of advance tax deposited by a
casual taxable person or a non-resident
taxable person under sub-section (2)
of section 24 shall not be refunded unless
such person has, in respect of the
entire period for which the certificate of
registration granted to him had
remained in force, furnished all the returns
required under section 34.
(14) Notwithstanding anything
contained in this section, no refund under subsection (5)
or sub-section (6) shall be paid
to an applicant if the amount is less
than one thousand rupees.
Explanation. — For the purposes of this section -
1. “refund” includes refund of tax on
goods and/or services exported out of India or
on inputs or input services used in
the goods and/or services which are exported
out of India, or refund of tax on the
supply of goods regarded as deemed
exports, or refund of unutilized
input tax credit as provided under sub-section (3).
2. “relevant date” means –
(a) in the case of goods exported out
of India where a refund of tax paid is available
in respect of the goods themselves
or, as the case may be, the inputs or input
services used in such goods, -
(i) if the goods are exported by sea
or air, the date on which the ship or
the aircraft in which such goods are
loaded, leaves India, or
(ii) if the goods are exported by
land, the date on which such goods pass
the frontier, or
(iii) if the goods are exported by
post, the date of despatch of goods by
the Post Office concerned to a place
outside India;
(b) in the case of supply of goods
regarded as deemed exports where a refund of tax
paid is available in respect of the
goods, the date on which the return relating to
such deemed exports is filed;
(c) in the case of services exported
out of India where a refund of tax paid is
available in respect of services
themselves or, as the case may be, the inputs or
input services used in such services,
the date of -
(i) receipt of payment in convertible
foreign exchange, where the supply
of service had been completed prior
to the receipt of such payment; or
(ii) issue of invoice, where payment
for the service had been received in
advance prior to the date of issue of
the invoice;
(d) in case where the tax becomes
refundable as a consequence of judgment,
decree, order or direction of the
Appellate Authority, Appellate Tribunal or any
Court, the date of communication of
such judgment, decree, order or direction;
(e) in the case of refund of
unutilized input tax credit under sub-section (3) , the end
of the financial year in which such
claim for refund arises;
(f) in the case where tax is paid
provisionally under this Act or the rules made
thereunder, the date of adjustment of
tax after the final assessment thereof;
(g) in the case of a person, other
than the supplier, the date of receipt of goods or
services by such person; and
(h) in any other case, the date of payment of tax.
