Government FAQs clarify that the proposed 90% automated provisional GST refund facility will apply to eligible low-risk claims involving zero-rated supplies and inverted-duty structures, subject to Aadhaar authentication and other prescribed conditions.
The Ministry of Finance has issued FAQs clarifying the proposed automated GST refund mechanism recommended by the 57th GST Council.
Under the proposed system, 90% of eligible refund claims relating to zero-rated supplies and inverted-duty structures may be sanctioned provisionally through automated, risk-based processing.
However, the facility will not be available to every taxpayer.
The FAQs clarify that taxpayers who have not completed prescribed Aadhaar authentication and claims involving certain notified products, including specified tobacco products and pan masala, will be excluded from the automated provisional refund facility.
The Government has also proposed issuance of Form GST RFD-04 within three working days of acknowledgement for qualifying claims.
The revised system aims to accelerate refunds, reduce manual intervention and improve working capital for eligible businesses and exporters.
Important: The 90% provisional refund mechanism is subject to the prescribed risk-assessment criteria and formal implementation of the proposed reforms. CA Sansaar