CBIC issued detailed procedure for sanction, post-audit, and review of refund claims under GST

The Central Board of Indirect Taxes and Customs (CBIC) has issued a detailed procedure for sanction, post-audit, and review of refund claims under Goods and Services tax, in the light of the receipt of reports of different practices being followed by the officers, creating confusion for taxpayers.

CBIC clarified that while passing the refund sanction order, the proper officer is required to upload a detailed speaking order along with the refund sanction order in Form GST RFD-06.

"The matter has been examined with the twin purpose of ensuring uniformity in procedure and enabling effective monitoring of sanction of refund claims," CBIC said in a detailed instruction issued on June 14.


CBIC noted that currently different practices are being followed by the field formations even in the case of review and post-audit of refunds.

The instruction says that post audit will be done only for refund claims of Rs one lakh and above and within three month of the refund order.

It also asks to establish a post-Audit Cell in Commissionerate Headquarters for the purpose of post-auditing reimbursement orders.

The instruction issued to all field officers also says that review of the refund order shall be completed at least 30 days before the expiry of the time period allowed for filing an appeal of CGST Act.