Rule 92 of CGST Rules 2017: Order Sanctioning Refund

Provisions under Rule 92 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Order Sanctioning Refund”, are as under:

CGST Rule 92: Order Sanctioning Refund (Chapter-X: Refund)

(1) Where, upon examination of the application, the proper officer is satisfied that a refund under sub-section (5) of section 54 is due and payable to the applicant, he shall make an order in FORM GST RFD 06 sanctioning the amount of refund to which the applicant is entitled, mentioning therein the amount, if any, refunded to him on a provisional basis under sub-section (6) of section 54, amount adjusted against any outstanding demand under the Act or under any existing law and the balance amount refundable:

Provided that in cases where the amount of refund is completely adjusted against any outstanding demand under the Act or under any existing law, an order giving details of the adjustment shall be issued in Part A of FORM GST RFD 07.

(1A) Where, upon examination of the application of refund of any amount paid as tax other than the refund of tax paid on zero-rated supplies or deemed export, the proper officer is satisfied that a refund under sub-section (5) of section 54 of the Act is due and payable to the applicant, he shall make an order in FORM RFD 06 sanctioning the amount of refund to be paid, in cash, proportionate to the amount debited in cash against the total amount paid for discharging tax liability for the relevant period, mentioning therein the amount adjusted against any outstanding demand under the Act or under any existing law and the balance amount refundable and for the remaining amount which has been debited from the electronic credit ledger for making payment of such tax, the proper officer shall issue FORM GST PMT 03 re-crediting the said amount as Input Tax Credit in electronic credit ledger.

(2) Where the proper officer or the Commissioner is of the opinion that the amount of refund is liable to be withheld under the provisions of sub-section (10) or, as the case may be, sub-section (11) of section 54, he shall pass an order in Part B Part A of FORM GST RFD 07 informing him the reasons for withholding of such refund.

Provided that where the proper officer or the Commissioner is satisfied that the refund is no longer liable to be withheld, he may pass an order for release of withheld refund in Part B of FORM GST RFD 07.

(3) Where the proper officer is satisfied, for reasons to be recorded in writing, that the whole or any part of the amount claimed as refund is not admissible or is not payable to the applicant, he shall issue a notice in FORM GST RFD 08 to the applicant, requiring him to furnish a reply in FORM GST RFD 09 within a period of fifteen days of the receipt of such notice and after considering the reply, make an order in FORM GST RFD 06 sanctioning the amount of refund in whole or part, or rejecting the said refund claim and the said order shall be made available to the applicant electronically and the provisions of sub-rule (1) shall, mutatis mutandis, apply to the extent refund is allowed:

Provided that no application for refund shall be rejected without giving the applicant an opportunity of being heard.

(4) Where the proper officer is satisfied that the amount refundable under sub-rule (1) or sub-rule (1A) or sub-rule (2) is payable to the applicant under sub-section (8) of section 54, he shall make an order in FORM GST RFD 06 and issue a payment advice payment order in FORM GST RFD 05 for the amount of refund 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.

Provided that the order issued in FORM GST RFD 06 shall not be required to be revalidated by the proper officer:

Provided further that the payment advice payment order 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 was issued.

(4A) The Central Government shall disburse the refund based on the consolidated payment advice issued under sub-rule (4).

(5) Where the proper officer is satisfied that the amount refundable under sub-rule (1) or sub-rule (1A) or sub-rule (2) is not payable to the applicant under sub-section (8) of section 54, he shall make an order in FORM GST RFD 06 and issue an advice a payment order in FORM GST RFD 05, for the amount of refund to be credited to the Consumer Welfare Fund.

Amendments History:

1. First and Second Provisos to sub-rule (4) inserted w.e.f. 01/02/2019 vide Central Tax Notification 3/2019 dt. 29/01/2019.

2. In Sub-rule (4), the text ‘payment advice’ substituted with the text ‘payment order’ at three places vide Central Tax Notification 31/2019 dt. 28/06/2019, pending notification on effective date. Also, the text ‘on the basis of a consolidated payment advice’ inserted. However, later 24/09/2019 has been notified as the effective date vide Notification 42/2019 Central Tax dt. 24/09/2019.

3. Sub-rule (4A) inserted vide Central Tax Notification 31/2019 dt. 28/06/2019, pending notification on effective date. Subsequently, 24/09/2019 notified as the effective date vide Notification 42/2019 Central Tax dt. 24/09/2019.

4. In Sub-rule (5), the text ‘an advice’ substituted with the text ‘a payment order’ vide Central Tax Notification 31/2019 dt. 28/06/2019, pending notification on effective date. Subsequently, 24/09/2019 notified as the effective date vide Notification 42/2019 Central Tax dt. 24/09/2019.

5. Sub-rule (1A) inserted vide Central Tax Notification 16/2020 dt. 23/03/2020.

6. The text “or sub-rule (1A)” inserted in sub-rule (4) & (5) vide Central Tax Notification 16/2020 dt. 23/03/2020.

7. Proviso to sub rule (1) omitted vide Central Tax Notification 15/2021 dt. 18/05/2021.

8. The text ‘Part B’ in sub rule (2) replaced with the text ‘Part A’ vide Central Tax Notification 15/2021 dt. 18/05/2021.

9. Proviso to sub rule (2) inserted vide Central Tax Notification 15/2021 dt. 18/05/2021.

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Note: The CGST Rules 2017 along with the prescribed Forms were initially notified vide Central Tax Notifications 3/2017 dated 19/06/2017 (Rule 1 to 26), 10/2017 dated 28/06/2017 (Rules 27 to 138) and 15/2017 dated 01/07/2017 (Rules 139 to 162). These Rules/ Forms were subsequently amended by CBIC through various Notifications issued from time to time. Information on this page is a Rule-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.