Recovery of Arrears and Refund Chapter- 08
b) registered persons who acquire tax paid inputs for use thereof in the manufacture of goods chargeable
to sales tax] at the rate of zero per cent under the Act or a notification issued there-under 92:
c) (c) registered persons claiming refund of the excess amount of input tax as referred to in sub-section (2)
of section 8B and first proviso to section 10 of the Act;
d) registered persons who acquire tax paid inputs used in the export of goods, local supply of which is
exempt under the Act or any notification issued there under;
e) persons claiming refund of sales tax under section 66 of the Act 96; and
f) diplomats, diplomatic missions and privileged persons and organizations who purchase goods or
services on payment of tax and are otherwise entitled to receive zero-rated supply as provided under
Chapter VIII of these rules..
(2) The provisions of this chapter shall apply, mutatis mutandis, to refund of federal excise duty payable in
sales tax mode under the Federal Excise Act, 2005.
Expeditious processing and payment of refunds (Rule 26A)
Omitted
Establishment of Refund Division and posting of officers (Rule 27)
There shall be established a CSTRO under the Federal Board of Revenue for centralized payment of all
refund amounts as due under the Act.
There shall be established a Refund Division, headed by an officer, not below the rank of Assistant
Commissioner, herein after referred to as officer-in-charge, duly supported by audit staff referred to as
processing officers, to examine, process and settle the refund claims filed under these rules.
There shall be established a Post Refund Division in each RTO or LTU headed by an officer not below the
rank of an Assistant Commissioner to audit the refund claims processed and sanctioned by the Refund
Division.
Filing of refund claim (Rule 28)
For all the refund claims under section 10 and 8B of the Act, for the tax period July, 2019 and onwards, the
data provided in the monthly return shall be treated as data in support of refund claim and no separate
electronic data shall be required. The amount specified in column 29 of the return, as prescribed in the form
STR-7, shall be considered as amount claimed for the purposes of claim under section 10 of the Act, once
the return has been submitted along with all prescribed annexures thereof:
Provided that, in case of claims arising from zero-rated supplies including exports, the claimant shall be
able to submit his return without Annex H and the same may be filed separately at any time but not later
than one hundred and twenty days of submission of the return without Annex-H. The date of submission of
Annex-H shall be considered as the date of filing of refund claim. In other cases of refund, the date of
submission of form STR-7A shall be considered as date of submission of refund claim and the same shall
be filed within one hundred and twenty days of submission of relevant return:
Provided further that in case of a commercial exporter, the claim shall be filed in the aforesaid manner
within one hundred and twenty days, either after submission of the return without Annex-H, or after the date
of issuance of BCA, whichever is later:
Provided also that the period of one hundred and twenty days, as aforesaid, may be extended for a period
not more than sixty days, by the Commissioner having jurisdiction, if the claimant so requests, thereby
providing reasons justifying the delay in submission of claim:
Provided also that if a claimant is registered as commercial exporter and exporting same state goods, the
period of one hundred and eighty days shall be reckoned from date of filing of return or the date of issuance
of BCA, whichever is later.
The registered person claiming refund in the aforesaid manner shall maintain and keep all the paper
documents relating to the refund claim, such as invoices, credit notes, debit notes, goods declarations,
bank credit advice, banking instruments etc. in his office and may not submit the same along with the
refund to the concerned Regional Tax Office or Large Taxpayers' Unit. The same shall be presented to the