Guidelines on sanction, post-audit and review of all GST Refund claims exceeding Rs. Lakh or more within 3 months from the issue of FORM GST RFD-06 (Final order for GST Refund issued by CBIC

 

The CBIC vide Instruction No. 03/2022 dated June 14, 2022 has issued a detailed guidelines with regard to the sanction, post-audit and review of refund claims already signed under GST. With this, the sanctioning authority under GST are instructed to upload Speaking Order in FORM GST RFD-06, capturing different categories of GST Refund sanctioned along with other required details under law.

Post audit of GST refund will be conducted for all GST refund claims amounting to INR 1.00 lakhs or more by the “Post- Audit Cell”

– Post audit should be concluded within 3 months from the date of issue of Form RFD-06 order and the findings of post audit shall be communicated to the review branch for further action within said time period of 3 months.

– The review of refund order shall be completed, at least 30 days before the expiry of time period allowed for filing appeal u/s 107(2) of CGST Act i.e. 6 months from the date of communication of the decision or refund order.

– Till the time the functionality for conducting post-audit online is developed on ACES GST portal, post-audit of refund orders may be conducted in offline mode.

– The objective of the review is to enable the department to file an appeal u/s 107 of the CGST Act, in the cases where extraneous refunds have been sanctioned by the authority.

The companies must maintain proper records and evaluate the amount of refunds sanctioned, so as to avoid any future penal consequences under GST.