The Government of West Bengal on October 10, 2023, issued a circular regarding prescribing manner of filing an application for refund by unregistered persons.
The following has been stated: -
•Filing of refund application: The unregistered person, who wants to file an application for a refund under sub-section (1) of section 54 of WBGST Act, in cases where the contract/agreement for the supply of services of construction of flat/ building has been canceled or where long-term insurance policy has been terminated, shall obtain a temporary registration on the common portal using his Permanent Account Number (PAN)
•Relevant date for filing of refund: As per sub-section (1) of section 54 of the WBGST Act, a time period of two years from the relevant date has been specified for filing an application for refund.
•Minimum refund amount: Sub-section (14) of section 54 of the WBGST Act provides that no refund under subsection (5) or sub-section (6) shall be paid to an applicant if the amount is less than one thousand rupees. Therefore, no refund shall be claimed if the amount is less than one thousand rupees.
The proper officer shall process the refund claim filed by the unregistered person in a manner similar to other RFD-01 claims. The proper officer shall scrutinize the application with respect to the completeness and eligibility of the refund claim to his satisfaction and issue the refund sanction order in FORM GST RFD-06 accordingly. The proper officer shall also upload a detailed speaking order along with the refund sanction order in FORM GST RFD06.
In cases where the amount paid back by the supplier to the unregistered person on cancellation/termination of agreement/contract for the supply of services is less than the amount paid by such unregistered person to the supplier, only the proportionate amount of tax involved in such amount paid back shall be refunded to the unregistered person.
Difficulty, if any, in the implementation of this Trade Circular may be brought to the notice of the Commissioner.
The detailed circular is attached in the document given below.
[TRADE CIRCULAR No. 15/2023]
