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Withholding of Refund

Withholding of Refund

  • In case of claim of refund of accumulated input tax credit, the refund due will be either withheld or deducted in cases where –
  • A person defaults in furnishing any return;
  • A person is required to pay any tax, interest or penalty ordered, which is not stayed by Court or Appellate Authority within the last date for filing an appeal under this act.
  • In case of claim of refund against payment of IGST, the refund shall be withheld where, –
  • a request has been received from the jurisdictional Commissioner to withhold the payment of refund; or the proper officer of Customs determines that the goods were exported in violation of the provisions of the Customs Act, 1962.
  • the proper officer of integrated tax at the Customs station shall intimate the applicant and the jurisdictional Commissioner, and a copy of such intimation shall be transmitted to the common portal
  • the proper officer shall pass an order in Part B of FORM GST RFD-07
  • Where the applicant becomes entitled to refund of the amount withheld, the concerned jurisdictional officer shall proceed to refund the amount after passing an order in FORM GST RFD-06.

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