Amendment to powers of State tax officers for processing and grant of refund
State tax officers, vide Notification No. 39/2017-Central tax dated 29th Dec’17, had been given powers to grant refund under section 54 or section 55 of the CGST Act read with the rules made there under except rule 96 of the Central Goods and Services Tax Rules, 2017.
Rule 96 at such time dealt with refund of integrated tax paid on goods exported out of India.
Subsequently vide notification 75/2017 – Central Tax, dated 29th Dec ’17, a sub rule 9 was inserted whereby the refund of tax paid on exports (goods or services) was restricted, in case the person making such exports has received supplies from a supplier claiming benefit of deemed export or claiming benefit of merchant export of charging 0.05% of CGST under notification No. 40/2017-Central Tax (Rate) dated 23rd Oct ‘17 or notification No. 41/2017-
Integrated Tax (Rate) dated 23rd Oct ’17.
Thus the State officers are given powers to check for any violation of the conditions mentioned in sub rule 9 under section 96 i.e. in case a person exports services then the State officer in terms of section 96(9) shall also ensure that such person has not obtained supplies from a supplier claiming benefit of deemed export or claiming benefit of merchant export of charging 0.05% of CGST under notification No. 40/2017-Central Tax (Rate) dated 23rd Oct ‘17 or notification No. 41/2017-Integrated Tax (Rate) dated 23rd Oct ’17..