Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO. 3(17)ST-L&P/2001 DATED 24 TH JUNE, 2006
SUBJECT: IMPLEMENTATION OF NEW REFUND RULES
I am directed to refer to the subject noted above.
2. The Chapter V of the Sales Tax Rules, 2006, pertaining to refund of sales
tax, aims at unifying procedures being currently followed for refund for sales tax. The
salient features of these new rules are as under:-
Presently there are different rules that deal with three different types of refunds
i.e.:
(i)
(ii)
(iii)
Refund Rules, 2002, dealing with he claims of refunds of other than
zero-rate categories and refunds under section66;
Refund Rules, 2005, based in risk-assessment, dealing with the claims of
notified exporters; and
Refund rules dealing with exporters of zero-rated categories.
The new rules, notified vide SRO 555(I)/2006 dated 5 th June 2006 as effective
from 1 st July 2006, incorporate the procedure for refund payment to all above
categories and in addition, also deal with the claims of following persons:
(i)
(ii)
Those involved in local zero-rated supplies; and
Local supplies whose excess input tax is not adjusted against output tax
in three months.
The new rules provide for payment of claim through Risk-based Refund Analysis
System (RRAS) and after verification of input tax payment, through the system,
on the basis of risk profiling and targeting of the claimant.
The refund rules also provide for central payment of refund through CBR,
directly in the bank account of the claimant. Requisite setup in this respect is
being established.
Minimum data and documents are required from the claimant. Only those
invoices are called for on which refund is claimed.
No manual scrutiny is required. Whole process is automated.
Claims of zero-rates sector shall be processed through Fast Track ensuring early
payment of refund.