CBIC Issued Instructions on Sanction, Post-Audit, and Review of Refund Claims

The Central Board of Indirect Taxes and Customs (CBIC) issued instructions concerning sanction, post-audit, and review of refund claims. Board issued these instructions while the field officers were following different practices regarding sanction, review, and post-audit of refund claims. 

The board said that in case of refund claims, a few Commissionerates are issuing the speaking orders, and in a few other cases, speaking orders are not being issued. Similarly, the field officers followed different practices in the case of review and post-audit. 

So, the board has examined the purpose of ensuring uniformity in procedure and enabling effective monitoring of sanction of refund claims to safeguard the interest of revenue.

Board clarified that while passing the refund sanction order in Form GST RFD-06, the proper officer should also upload a detailed speaking order. Also, the speaking order should contain the details, including details for the category of refunds, additional details in case of the refund of accumulated Input Tax Credit (ITC), etc., to ensure uniformity.

Regarding post-audit and review, the board clarified that officers must review all refund orders to examine their legality and propriety. Also, it helps decide whether to go for an appeal to the appellate authority under section 102 (2) of the Central Goods and Services Tax (GST) Act or not.

The instructions stated that until the online functionality for conducting post-audit is developed on the ACES GST portal. The board instructed that the post-audit of refund orders shall be undertaken offline until the online functionality is developed on the ACES GST portal. 

Also, the concerned division shall provide the refund orders and the relevant documents to the post-audit cell through the e-office within seven days of issuance of the refund sanction order. The post-audit cess shall complete the audit within three months from the refund order date. Then the post-audit cell shall submit the report to the review cell through the e-office within three months from the conclusion of the post-audit.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in