India: Amendments to GST refund rules and procedures

Amended GST rules concerning refund procedures and “e-way bill” processes

Amended GST rules concerning refund procedures and “e-way bill” processes

The Central Board of Indirect Taxes and Customs amended the goods and services tax (GST) rules concerning refund procedures and “e-way bill” processes.

The amendments address, among other items:

  • Limitations period for filing a “fresh” refund application after a deficiency memo is issued: Rule 90(3) of the GST rules prescribes that when a deficiency memo is issued, the taxpayer must file a “fresh” refund application after addressing and rectifying the deficiencies. A new rule provides that there is a two-year limitations period, measured from the date of communication of the deficiency memo to the date of the filing of the refund claim.
  • Withdrawal of refund application: A new rule (sub-rule (4) added to Rule 90) of the GST rules allows taxpayers to withdraw a refund application, subject to a condition that the refund application is withdrawn before certain refund orders are issued. An application to withdraw a refund application is to be filed on Form GST RFD-01W.
  • Amended rule on generation “e-way bill” by a registered person: Rule 138E of the GST rules restricts an e-way bill generated by a registered person that has failed to furnish a return for two consecutive months/quarter for both inward and outward movements of goods. This restriction has been amended, so that the rule only applies with regard to the generation of e-way bill for the outward movement of goods.

Read a May 2021 report [PDF 272] prepared by the KPMG member firm in India



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