Rule 91 of CGST Rules 2017: Grant of Provisional Refund

Provisions under Rule 91 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Grant of Provisional Refund”, are as under:

CGST Rule 91: Grant of Provisional Refund (Chapter-X: Refund)

(1) The provisional refund in accordance with the provisions of sub-section (6) of section 54 shall be granted subject to the condition that the person claiming refund has, during any period of five years immediately preceding the tax period to which the claim for refund relates, not been prosecuted for any offence under the Act or under an existing law where the amount of tax evaded exceeds two hundred and fifty lakh rupees.

(2) The proper officer, after scrutiny of the claim and the evidence submitted in support thereof and on being prima facie satisfied that the amount claimed as refund under sub-rule (1) is due to the applicant in accordance with the provisions of sub-section (6) of section 54, shall make an order in FORM GST RFD 04, sanctioning the amount of refund due to the said applicant on a provisional basis within a period not exceeding seven days from the date of the acknowledgement under sub-rule (1) or sub-rule (2) of rule 90.

Provided that the order issued in FORM GST RFD 04 shall not be required to be revalidated by the proper officer. [proviso inserted from 01/02/2019: refer Note 1]

(3) The proper officer shall issue a payment advice payment order [text substituted from 24/09/2019: refer Note 2] in FORM GST RFD 05 for the amount sanctioned under sub-rule (2) and the same shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund on the basis of a consolidated payment advice [text inserted from 24/09/2019: refer Note 3(a)].

Provided that the payment advice payment order [text substituted from 24/09/2019: refer Note 2] in FORM GST RFD 05 shall be required to be revalidated where the refund has not been disbursed within the same financial year in which the said payment advice payment order [text substituted from 24/09/2019: refer Note 2] was issued. [proviso inserted from 01/02/2019: refer Note 1]

(4) The Central Government shall disburse the refund based on the consolidated payment advice issued under sub-rule (3). [sub-rule (4) inserted from 24/09/2019: refer Note 3(b)]

Amendments History:

1. Proviso to sub-rule (2) & (3) inserted from 01/02/2019 vide Notification 3/2019.

2. In Sub-rule (3), the text ‘payment advice’ substituted with the text ‘payment order’ at three places, vide Notification 31/2019, followed with Notification 42/2019 on commencement date of 24/09/2019.

3. Amendments from 24/09/2019 vide Notification 49/2019:

(a) In Sub-rule (3), the text ‘on the basis of a consolidated payment advice’ inserted.

(b) Sub-rule (4) inserted.

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