New Functionality in RFD-01: Refunds permitted despite positive or zero cumulative Demand.
GST Advisory has been issued for New Functionality in RFD-01: Refunds permitted despite positive or zero cumulative Demand. Earlier functionality for refund under the category “on account of Assessment /Enforcement /Appeal/ revison/Any other order (ASSORD) could be claimed only if :
- The overall cumulative Demand ID balance was negative (i.e refund eligible).
- The Demand ID status showed “Refund Due”.
Problem is if minor head (like tax, interest, penalty) had a negative balance but the overall demand balance was zero or positive, the taxpayer could not claim that refund.
Issue Raised : Both the taxpayers and officers pointed out that genuine refund situations were being blocked because of this restriction.
New System Changes:
Now the GST system has been improved:
- Refunds can be claimed irrespective of the Demand ID Status.
- Refunds are allowed even when the overall cumulative balance is zero or positive, as long as the minor head shows a negative balance.
- In Form RFD-01, only the negative balance will be auto-populated. The taxpayer can claim a refund of negative amounts. No refund allowed for positive amounts.
- The system will automatically suggests the latest order linked with that negative balance (e.g Order in original , rectification order and appellate order)
- Guidence will displayed near the Order No and Demand ID fields to help taxpayers fill in details correctly.
A detailed user mannual and FAQs will be issued soon. For any issues or discripencies, taxpayers can raise a ticket with GST helpdesk.
https://www.gst.gov.in/newsandupdates/read/621
