GST RFD 10A is live now!

CBIC had issued Circular No. 227/21/2024-GST on 11th July, 2024. A revised procedure for processing refund applications filed by the Canteen Stores Department (CSD) under the GST regime was introduced therein. Now, on 22nd July 2024, GSTN announced that it has developed an online functionality to enable CSDs to file an application for refund in FORM GST RFD-10A in the GST common portal.

Let’s understand the revised procedure explained in the circular and advisory!

GSTN Advisory dated 22nd July 2024

Refund of tax paid on Inward supply of goods by Canteen Store Department (FORM GST RFD 10A)

Jul 22nd, 2024

1. In reference to Circular No. 227/21/2024-GST issued by the GST policy wing, CBIC on 11th July 2024 for online processing of refund applications filed by the Canteen Stores Department (CSD), GSTN has developed an online functionality to enable CSDs to file an application for refund in FORM GST RFD-10A in GST common portal.
2. The prerequisites & relevant date for filing a refund application under this category are mentioned in Para 4, 5 & 6 of the said Circular. The applicants are advised to refer to the same for details in this regard.
3. The process to be followed for filing a refund application under the said category is as below:
   1. Login into the GST portal. Click on Services -> Refund -> Application for Refund.
   2. Select "Refund of tax paid on Inward supply of goods by Canteen Store Department(CSD)".
   3. Select the Period for which the refund is to be applied, by selecting From & To Period and then clicking on the "Create Refund" application.
   4. The refund applications on the GST portal are to be filed sequentially concerning tax periods. If there is no refund to be claimed for a particular period, CSD needs to file a NIL refund claim for that period. Once a refund is filed or an NIL refund claim is filed for a particular period, the system will not allow filing for the same period again. Similarly, it will not allow the taxpayer to file for any previous periods.
      Example:
      A CSD wants to file two refunds for the periods Jan 2024 to March 2024 and July 2024 to September 2024. In the GST system, the CSD has to file the first refund by selecting the period Jan 2024 to March 2024. When the CSD tries to file the second refund claim for the period July 2024 to September 2024, the GST portal will prompt the user to file a refund for the period April 2024 – June 2024. If there is no refund claim for the period April 2024 – June 2024, then an NIL refund claim has to be filed for the said period. Post that, the GST portal will allow the CSD to file a refund for the period July 2024 to September 2024.
   5. In the GST portal, the Select Period is available from July 2017. If a taxpayer has already filed manual refund claims for the earlier periods or no refund claim is required to be filed for the earlier periods, they are advised to file an NIL refund claim for such earlier periods.
      Example:
      A CSD wants to file a refund claim(RFD 10A) for the period April – June 2024 in the GST system and all their earlier CSD refund claims are filed manually till the period March 2024. The said CSD has to file NIL refund claims in the GST system for the period from June 2017 – March 2024 in the GST portal though manual refund claims are filed for the said period. This will enable the taxpayer to file a CSD refund claim for the period April – June 2024.
      Note: Once a NIL refund claim is filed in the GST system for a period, the CSD cannot claim a refund for the same period again in the GST system.
   6. The details of invoices for which the refund is to be claimed shall be uploaded in the Statement. After successful validation of the statement, click on the Proceed button.
   7. The total tax paid on the Inward supply of goods will be auto-populated. Enter the value of IGST, CGST, and SGST in the "Total Refund applied for" table.
   8. While filing a refund application, the applicant has to Select the "Bank Account Number" in which the refund is to be disbursed.
   9. Before submitting the refund application, the applicant can Save & Preview the refund application. If any correction/addition or rectification is to be done in the refund application, it can be done only before submission. Once the application is submitted using the Submit button, the system will not allow any change in the refund application.
4. Issues (if any) faced by the taxpayers in filing refund applications may be reported on the Grievance redressal portal: https: //selfservice.gstsystem.in

Key takeaways from the advisory

• To file a refund application of CSD, firstly log in to the GST portal. Click on Services -> Refund -> Application for Refund. Select "Refund of tax paid on Inward supply of goods by Canteen Store Department(CSD)".

• Select the Period for which the refund is to be applied, by selecting From & To Period and then clicking on the "Create Refund" application.
• The refund applications on the GST portal are to be filed sequentially concerning tax periods. If there is no refund to be claimed for a particular period, CSD needs to file a NIL refund claim for that period. Once a refund is filed or an NIL refund claim is filed for a particular period, the system will not allow filing for the same period again. Similarly, it will not allow the taxpayer to file for any previous periods.

Conclusion

As we embrace the new functionality of GST RFD 10A, CSDs can now seamlessly claim refunds. This update not only streamlines the refund process but also ensures greater transparency and efficiency in handling transactions. It's an exciting step forward for compliance and ease of doing business, enabling taxpayers to focus more on growth and innovation.

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