The indirect tax regime GST will come into effect from April 2017. As per rules for refund, every registered taxable person will be required to furnish a monthly return in a specified form. There is also a provision for electronic furnishing of annual return by every registered taxable person and composition supplier. Every taxable person whose aggregate turnover during a financial year exceeds a crore will be required to submit annually a certified audited statement.

The draft rules have prescribed the form and manner of submission of quarterly returns by a composition supplier, returns by a non-resident taxable person, input service distributor, persons required to deduct tax at source and the form and manner of submitting statement of supplies effected through e-commerce. The rules also provide for matching of input tax credit claim on inward supplies and procedure for output tax liability reduction claim.

No refund of input tax credit would be allowed if the supplier of goods or services avails of a drawback or claims rebate of tax paid. The rules also provide for grant of provisional 80 per cent refund to notified exporters and refund to certain persons. Refund in case of export of taxable goods or services without payment of tax under bond or letter of undertaking shall be granted on the basis of a prescribed formula.