Dated 17th November, 2017

Manual Refund Application for exporters - New Guidelines _final

Manual Refund Application for exporters - New Guidelines


In order to facilitate easy exports the council has been trying to curb all the anomalies that has been created due to the non-functioning or rather we may call the time taken for the preparedness of the common portal to operate as designed for. Likewise, the refund issue in case of exports has been a major line of concern for all exporters. Further to cover the time lag for the functioning of the refund module on the common portal in relation to zero-rated supply, the council has recommended that the applications/documents/forms pertaining to refund claims on such supply shall be filed and processed manually. A brief on the major changes bought in is stated herein under for the sake of better understanding:

Refund of IGST on goods exported out of India1

For those exporters who are exporting on payment of IGST and the proper officer is satisfied that the refund is due and payable order shall be made manually in Form GST RFD-06. Moreover, if the amount of refund is withheld then order shall be given manually in Part-B of Form GST RFD-07.

Refund of unutilized input tax credit on inputs/input services1

For those exporters who are making exports under Bond/ LUT the refund of unutilized input tax credit shall be filed in Form GST RFD-01A on the common portal and the amount that is claimed as refund shall get debited from the amount in the electronic credit ledger of CT/ST/UT/IT/Cess. Further, an acknowledgement as a proof of debit needs to be generated on the common portal, which should be mentioned in the Form GST RFD-01A. Such Refund form along with the acknowledgment to be submitted manually to the jurisdictional proper officer along with all necessary documentary evidences within the stipulated time. After receipt of the refund application the proper jurisdictional officer shall make an entry in the Refund Register.

Refund of IGST paid on export of services/ zero rated supplies to SEZ units or SEZ developers1

Refund application of IGST shall be made in Form GST RFD- 01A by the supplier on the common portal which shall also be submitted in hard copy to the jurisdictional proper officer along with relevant documents as applicable within the time limit prescribed.

Three Broad Steps in the manual processing of refunds by the department is outlined hereunder1:

  • Entry of Refund applications in the Refund Registers.
  • Checking completeness and supporting documents. Further, to issue acknowledgement in Form GST RFD-02 within 15 days from the date of filing of the application.
  • All communications regarding issuance of refunds (provisional/final), deficiency memo shall be done manually as per prescribed forms.

Other points for consideration 1&2

  • Any process or procedure relating to Refund would include manual filing in such forms as prescribed under the rules.
  • Moreover, Form GST RFD-01A has been inserted for manual application of Refund wherein exports have been made under Bond/LUT and there is unutilized input tax credit.
  • Other procedure that shall be made manually till the module is operational on the common portal is stated herein below:

(i)   Form GST RFD-02 –Acknowledgement to be given in respect to claim for refund from electronic cash ledger.

(ii)   Form GST RFD-03- Deficiency in respect to above.

(iii)   Form GST RFD-04- Provisional Refund Order.

(iv)   Form GST RFD-05-Payment advice for provisional Refund.

(v)  Form GST RFD-08- Notice for rejection of refund application.

(vi)  Form GST RFD-09- Reply to Show Cause Notice.


No matter the process still remains the same from the point of view of exporters who have been exporting on payment of IGST, though there are likely circumstances that the status of refund would be communicated speedily owing to initiation of manual system, for the time being the refund module is being made operational on the common portal. However, it seems that there is a relaxation to a great extent to those exporters who have been exporting under Bond/LUT as facility has been given to file Form GST RFD-01A on the common portal and generate acknowledgment thereof followed by forwarding hard copy of the same which in turn would make available unutilized credit available to exporters and boosting up their working capital needs.

1Circular No. 17/17/2017-GST dated 15.11.2017.

2Notification No. 55/2017-Central Tax dated 15.11.2017.

Manual Refund Application for exporters - New Guidelines _final

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Manual Refund Application for exporters - New Guidelines _final

Manual Refund Application for exporters - New Guidelines _final
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BT Associates, India

Twenty years of experience in tax practice. Specialist in structuring & planning and tax optimization under indirect tax. Lead eastern India indirect tax practice of Ernst & Young in past.