Feedback

How Can the Canteen Stores Department (CSD) Claim GST Refunds in Himachal Pradesh?

Navigating the intricacies of GST refunds can be daunting, especially for institutions like the Canteen Stores Department (CSD) in Himachal Pradesh. This article breaks down the step-by-step process, ensuring you understand how to claim your entitled refunds efficiently.

Understanding the Circular: Key Points

The Government of Himachal Pradesh issued Circular No. 60/34/2018-GST on March 13, 2019. This circular provides detailed instructions on how the CSD can claim refunds on the state and central GST paid on inward supplies.

Who is Eligible?

The CSD, under the Ministry of Defence, is entitled to claim a refund of 50% of the applicable state and central taxes paid on all inward supplies of goods. This applies to goods received for subsequent supply to Unit Run Canteens or authorized customers.

Filing the Application for Refund

To ensure a smooth refund process, here’s what the CSD needs to do:

1. Invoice-Based Refund: The refund is based on invoices of inward supplies, not on accumulated input tax credit.
2. Quarterly Manual Filing: Until an online utility is available, refund applications must be filed manually on a quarterly basis using FORM GST RFD-10A. The application should include:
   • An undertaking confirming the receipt of goods.
   • A declaration that no prior refund has been claimed for the invoices in question.
   • Copies of valid returns filed in FORM GSTR-3B.
   • Copies of FORM GSTR-2A and attested invoices not reflected in GSTR-2A.
   • Bank account details for the refund.

Processing the Refund Application

Upon receiving the complete application in FORM GST RFD-10A, the following steps are undertaken:

1. Acknowledgement: An acknowledgement in FORM GST RFD-02 is issued within 15 days.
2. Deficiency Memo: If there are deficiencies, a memo in FORM GST RFD-03 is issued within 15 days.
3. Validation and Scrutiny: The proper officer validates GSTIN details and scrutinizes FORM RFD-10A, GSTR-3B, and GSTR-2A.
4. Sanction Order: The refund sanction/rejection order is issued manually in FORM GST RFD-06, along with a payment advice in FORM GST RFD-05.

Payment of Refund

The sanctioned refund is processed as follows:

• The state tax refund is paid by the state tax authority.
• The central tax refund is paid by the central tax authority.
• Communication between the authorities ensures proper payment processing.

Important Considerations

• Refund claims must be filed with the jurisdictional central/state tax authority assigned to the CSD.
• Only one comprehensive deficiency memo should be issued if necessary.
• The proper officer ensures the refund amount is 50% of the taxes paid.

Conclusion

The CSD in Himachal Pradesh can streamline its GST refund process by following the detailed instructions provided in the circular. By adhering to the guidelines and ensuring accurate documentation, the CSD can efficiently claim refunds and ensure compliance with state and central GST regulations.

For further details, refer to the official circular.