Post audit of GST refund will be done for all GST refund claims

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Post audit of GST refund to be conducted by “Post-Audit Cell” for all GST refund claims amounting to 1.00 lakh or more – Instructions issued by CBIC

CBIC has issued detailed guidelines regarding sanction, post-audit and review of refund claims already signed under GST vide Instruction No. 03/2022 dated June 14, 2022. With this, the sanctioning authorities under GST have been directed to upload the speaking order in Form GST RFD-06 capturing the various categories of GST refunds sanctioned along with other necessary details under the law.

Post audit of GST refund for all GST refund claims amounting to INR 1.00 Lakh or more will be done by the “Post-Audit Cell”.

– The Post Audit Form RFD-06 should be completed within 3 months from the date of issue of the order and the findings of the Post Audit will be communicated to the Review Branch for further action within the said time period of 3 months.

– The review of the refund order shall be completed at least 30 days before the expiry of the time period permitted for filing an appeal under section 107(2) of the CGST Act, i.e. 6 months from the date of communication of the judgment or refund order.

Till the time the functionality of conducting post-audit online on the ACES GST portal is developed, the post-audit of refund orders may be conducted in offline mode.

The purpose of the review is to enable the department to file an appeal under section 107 of the CGST Act, where outward refund has been approved by the authority.

Companies should maintain proper records and evaluate the amount of refunds sanctioned, so as to avoid any penal consequences under GST in future.

A copy of the instructions is as follows:

attachment area

CBIC Circular (4) (1)

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